QuickBooks vs. Gusto: Which payroll software is right for your small business?
Choosing payroll software is not just about convenience; it is about how well the system can automate processes and save you valuable time.
For small businesses, selecting the right payroll solution can feel overwhelming because of the number of providers, features, and pricing options available.
The software you choose should align with your operational priorities, whether that means speed, accuracy, or additional HR support. This is where a detailed QuickBooks vs Gusto comparison becomes useful.
Both platforms dominate the payroll software market. While each promises accuracy and efficiency, the right option for you depends on the specific needs of your organization.
QuickBooks vs Gusto: Side-by-side comparison
Both QuickBooks and Gusto serve as trusted payroll solutions, but their focus areas differ.
QuickBooks overview
QuickBooks, developed by Intuit, is widely used by small and medium-sized businesses to keep finances organized. With it, you can:
- Track income and expenses
- Send customized invoices
- Accept payments, and
- Generate detailed financial reports.
It comes in both a cloud-based version (QuickBooks Online) and a desktop option, giving you flexibility based on how you prefer to work.
Beyond accounting, QuickBooks also includes payroll, inventory tools, and integrations with other apps so you can automate tasks and reduce manual work.
Gusto overview
Gusto is designed to make running payroll simple and stress-free.
You can process payroll in just a few clicks and as many times as needed each month without paying extra fees. Once payroll is submitted, your team gets paid quickly, and the system can even handle it automatically through AutoPilot™.
What makes Gusto stand out is its built-in tax compliance. It not only calculates payroll taxes but also files them directly with the correct government agencies.
QuickBooks vs Gusto: Features comparison
When comparing QuickBooks vs Gusto, the most important consideration is how their features align with your business priorities.
Payroll management
With QuickBooks Payroll, you can run payroll in less than five minutes after the initial setup.
The system allows you to stay in control with clear alerts and notifications, while payroll taxes are filed automatically with a 100% accuracy guarantee.
Gusto, on the other hand, takes a broader approach in payroll management and HR functions. You can run payroll as often as needed each month without paying extra.
Additionally, Gusto stores employee I-9s, W-2s, and contractor 1099s in one place, while offering state tax registration in all 50 states.
Time tracking and attendance
QuickBooks Payroll integrates with the QuickBooks Workforce app to make time tracking mobile and flexible.
Employees can clock in and out from anywhere, and you can set up geofencing so reminders go out when team members arrive at or leave a job site.
With Gusto, time tracking is built into the platform itself. Employees can log hours through the web, the mobile app, or a kiosk set up on a tablet.
Managers can review and approve timesheets from anywhere.
Hiring and onboarding features
For hiring and onboarding, QuickBooks Payroll offers practical tools like job description templates, onboarding checklists, and employee handbook resources.
Gusto provides more extensive tools in this area. You can post jobs publicly, send personalized offer letters, and manage custom onboarding checklists for each new hire.
It also supports software provisioning, so new employees can be set up with the tools they need right away.
The table below provides a clear comparison of the key feature differences between QuickBooks vs. Gusto.
| Feature | QuickBooks | Gusto |
| Payroll management |
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| Time tracking and attendance |
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| Hiring and onboarding |
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QuickBooks vs. Gusto: Plans and pricing
Here’s a quick side-by-side breakdown of how QuickBooks vs Gusto compare:
QuickBooks plans and pricing
QuickBooks offers four different plans designed to support businesses as they grow. Each tier unlocks additional features, with costs increasing as more users and advanced tools are added.
- Simple start – $19/month (regular $38): Best for individuals or small teams getting started.
- Essentials – $37.50/month (regular $75): Includes everything in Simple Start, plus recurring invoices and new AI features like Accounting Agent and Payments Agent.
- Plus – $57.50/month (regular $115): Supports up to five users plus accountant access. Adds more advanced tools like AI-powered reconciliation, anomaly detection, budgeting, and insights.
- Advanced – $137.50/month (regular $275): Designed for larger teams with up to 25 users plus accountant access. It also includes all features from lower plans, plus advanced project management and financial planning.
Gusto plans and pricing
Gusto keeps things simple with three plans, each priced based on a monthly base fee plus an additional cost per employee.
- Simple – $49/month + $6 per person: Best for small businesses with single-state payroll. Includes full-service payroll, unlimited runs, automated tax filings, and an employee self-service portal.
- Plus – $80/month + $12 per person: Expands on the Simple plan with multi-state payroll, next-day direct deposit, time tracking, PTO management, and hiring/onboarding tools. Also includes health insurance administration and broker integration.
- Premium – $180/month + $22 per person: Offers the most comprehensive features for growing companies. Includes everything in Plus, plus a dedicated service advisor, certified HR experts, performance management tools, and advanced analytics.
QuickBooks vs. Gusto: What is better for your business?
For organizations that prioritize integrating payroll with accounting, QuickBooks offers clear advantages by eliminating duplicate data entry and ensuring accuracy across financial records.
On the other hand, businesses that place greater emphasis on HR support and employee experience may find Gusto more suitable. Its platform simplifies onboarding, centralizes benefits management, and provides efficient time-tracking tools.
The decision between QuickBooks vs Gusto ultimately depends on the priorities of your business.
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