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Gusto vs. Paychex Comparison: Comparing Two of Our Top HR Solutions
The right HR solution can simplify a small business's HR processes. Here's how Gusto and Paychex compare.
Table of Contents
- Gusto and Paychex are popular vendors that provide HR software and outsourced HR services to help businesses operate more smoothly.
- Gusto is an excellent HR solution for small businesses that want comprehensive payroll and HR features with transparent pricing.
- Paychex is a good choice for small businesses seeking a flexible and customizable HR solution with 24/7 support and PEO-level benefits.
- This comparison is for small business owners considering Gusto and Paychex to handle their HR needs.
HR services – including the best HR software and the best HR outsourcing companies – can help small business owners streamline their HR processes so they can focus on running their companies. While their features and capabilities vary, HR solutions can assist with hiring and onboarding, benefits administration, payroll processing, workforce management and compliance assistance.
Gusto and Paychex are both intuitive, feature-rich HR services businesses can tailor to meet their unique needs. We’ve pulled pertinent information on HR features, ease of use, customer support and more from our in-depth Gusto review and detailed review of Paychex to help business owners decide on the best solution for their needs.
Gusto vs. Paychex
Criteria | Gusto | Paychex |
|---|---|---|
Pricing | Starts at $40 per month, plus $6 per person per month | Starts at $39 per month, plus $5 per person per month |
HR features |
|
|
Payroll | Comprehensive (included in plans) | Standard (included in plans) |
Usability | Intuitive and user-friendly | Intuitive and user-friendly |
Customer support | Phone, email and live chat (priority support add-on) | Phone, live chat and a dedicated HR professional |
Who Do We Recommend Gusto For?
Gusto HR software is best suited for small and midsize businesses that want to streamline and optimize their payroll processes and other HR functions. This user-friendly platform can support employees and contractors, allowing employers to manage all their workers from one centralized location. Since it ensures precise and compliant payroll processing and offers additional HR tools, it’s an ideal choice for businesses focused on payroll excellence as a cornerstone of their HR operations.
We think Gusto stands out because of the following factors:
- Every Gusto plan includes full-service payroll, including W-2s and 1099s.
- Gusto can integrate with more than 155 third-party applications.
- Gusto’s time-management and payroll features integrate seamlessly, ensuring accurate payments.
Gusto’s time-tracking features integrate directly with its payroll. Source: Gusto
Who Do We Recommend Paychex For?
Paychex is a versatile HR and payroll services provider that caters to a wide range of businesses, including in-office, hybrid and remote organizations. It’s not just an HR platform; you can partner with Paychex as an outsourcing solution, so it’s an excellent choice for SMBs seeking a flexible HR provider. Its services are particularly valuable for organizations that want to streamline payroll management, tax compliance, employee benefits administration and human resources tasks.
The following factors make Paychex an excellent HR solution:
- Paychex has many self-service features that help employees manage their HR functions.
- Paychex offers a cloud-based platform and intuitive mobile apps, which are excellent options for remote and off-site workers.
- Paychex is available as a professional employer organization (PEO) or a human resources outsourcing (HRO) solution.
Gusto vs. Paychex
Pricing and Contracts
Gusto
- Gusto offers month-to-month contracts.
- Users can sign up for a one-month free trial.
- Add-on features like employee benefits, state tax registration and R&D tax credits are available.
Gusto offers four preset HR plans with transparent pricing and contract terms. It charges a monthly base fee plus a per-employee rate per month.
- Contractor Only: This plan is a great option for businesses that work with independent contractors. With a base fee of $35 per month, plus $6 per contractor per month, employers can access unlimited payroll, four-day direct deposit, 1099s and new-hire reporting. You can add international contractor payments, as well.
- Simple: With a base fee of $40 per month, plus $6 per employee per month, employers gain access to hiring and onboarding tools, employee benefits administration, single-state payroll processing, self-service features, HR reporting, workforce management and integrations.
- Plus: With a base fee of $80 per month, plus $12 per employee per month, employers gain access to everything in the Simple plan, plus advanced hiring features, time and project tracking, multistate payroll, direct deposit, PTO management, and performance management. You can add priority support for $8 per employee per month and time kiosks for $4 per user per month.
- Premium: For custom pricing, employers gain access to everything in the Plus plan, plus insurance broker integration, full-service payroll migration and account setup, compliance alerts, a time kiosk, and priority customer support with a dedicated customer success manager.
Gusto offers three employee plans and one contractor plan. Source: Gusto
Paychex
- Paychex offers PEO and HRO plans.
- Employers aren’t locked into a long-term contract. Instead, you can cancel anytime with 30 days’ notice.
- Paychex plans are scalable; employers can add or remove products and features as their business grows.
Paychex offers three preset HR plans with mostly customized pricing. It charges a monthly base fee plus a per-employee rate per month. Here’s a breakdown of Paychex’s plans:
- Essentials: With a base fee of $39 per month, plus $5 per employee per month, employers gain access to employee onboarding, payroll processing, payroll tax administration, employee self-service features, and analytics and reporting.
- Select: For custom pricing, employers gain access to everything in the Essentials plan, plus a learning management system.
- Select: For custom pricing, employers gain access to everything in the Select plan, plus background check services, an employee handbook builder, state unemployment insurance services, workers’ comp payment services and general ledger integrations.
- Add-ons: All plans can pay to add features, including job-posting website integrations, recruiting and applicant tracking, document management, employee benefits, business insurance, time and attendance management, job costing, performance management, and voice assist integrations.
HR Features
Gusto
Gusto’s HR features are tiered based on your service plan. Notable features include the following:
- Standard HR features: Gusto offers standard HR features for hiring and recruitment, onboarding, tracking time and attendance, administering employee benefits, and processing payroll. It also offers HR reporting, compliance alerts, employee surveys and performance management capabilities.
- Expanded HR features: Select plans can add contractor payments, state tax registration, R&D tax credits, time kiosks and priority support.
- Additional add-ons: Employers can access add-on benefits like health insurance, life and disability insurance, workers’ comp, retirement plans, and tax-advantaged benefits.
Paychex
Paychex plans are customized, ensuring businesses get the services they need. Notable features include the following:
- Essential HR features: Paychex offers essential HR features like hiring and recruitment, background check services, mobile-friendly paperless onboarding, employee benefits administration, payroll processing, payroll tax administration, performance management, and HR alerts and reporting.
- Time and attendance features: Paychex offers comprehensive employee time and attendance features like employee scheduling, time tracking, leave management, GPS tracking and geofencing.
- HRO or PEO options: Paychex’s HR features are available via a standard HR platform, or you can seek additional assistance through its HRO or PEO plans. Either way, its features are scalable.
Employees can manage their benefits and HR functions via their Paychex Flex account. Source: Paychex
Winner: Paychex
Although both vendors offer essential HR features, we appreciate that Paychex offers more feature flexibility. Its customized plans allow employers to access as many HR features as needed. We also like that its features are available via HRO or PEO services. The PEO co-employment model takes many HR responsibilities off the employer’s shoulders, which can benefit many small businesses. We were pleased that Paychex offers other business services, including workers’ compensation, employee scheduling and business insurance.
Payroll
Gusto
Gusto’s comprehensive payroll offerings include the following:
- Multistate payroll processing: Gusto offers multistate payroll processing with unlimited monthly payrolls and multiple pay rates and schedules.
- Tax services: Gusto offers state tax registration, W-2s and 1099s, tax filings, and payments.
- AutoPilot: Employers can use Gusto’s AutoPilot to automate payroll processing.
- Direct deposit: Gusto offers next-day, two-day and four-day direct deposit.
Paychex
Paychex’s payroll processing services include the following:
- Standard payroll processing: Paychex offers standard payroll processing and tax administration services.
- Device flexibility: Payroll can be completed online from a desktop or mobile device.
- Transfer payroll data: Employers can use Paychex’s general ledger service to easily transfer payroll data to their accounting software.
Usability
Most of the software we review is user-friendly, and these two vendors are no exception. Here’s how Gusto and Paychex compare in terms of usability.
Gusto
Gusto’s software and interface are easily navigable and user-friendly. We found the following elements notable:
- Interactive demo: Users can test the software with Gusto’s interactive demo.
- Cloud-based software: Gusto is a cloud-based platform with iOS and Android mobile apps.
- Integrations: Gusto can integrate with more than 155 third-party applications.
Gusto’s user-friendly dashboard is easy to navigate. Source: Gusto
Paychex
Paycheck’s interface is also easy to use and work with. Consider the following ease-of-use factors:
- Cloud-based software: Paychex is a cloud-based platform with iOS and Android mobile apps.
- Integrations: Paychex can integrate with more than 200 third-party applications.
- Implementation specialist: An implementation specialist can help you set up your account and learn the software.
Paychex’s user-friendly dashboard provides a clear overview of payroll and other elements. Source: Paychex
Customer Support
Gusto
Gusto’s customer support options include the following:
- Online resources: Employers can access helpful online resources like blog posts, tools and calculators, guides, data and research, and an online help center.
- Support channels: Gusto customer support can be reached by phone, email and live chat.
- Additional paid support: Premium plans have access to priority support, a dedicated customer success manager, certified HR expert support and an HR resource center. These features can also be added to Plus plans.
Paychex
Paychex provides the following customer support options:
- Online resources: Employers can access helpful online resources like a knowledge center, calculators, webinars, podcasts and state compliance resources.
- Channels: Paychex customer support can be reached by phone and live chat.
- 24/7 support: Paychex offers 24/7 support and dedicated support representatives.
Gusto vs. Paychex Recap
Choose Gusto if:
- You want a comprehensive payroll processing solution that includes standard HR functions.
- You need a platform that offers upfront transparent pricing and can scale with you as you grow.
- You have a mixed workforce with employees and contractors.
Choose Paychex if:
- You want a flexible HR solution with custom features and pricing.
- You want an HR solution that offers HRO and PEO plans.
- You need a comprehensive, intuitive solution with 24/7 customer support.
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