Gusto VS ADP Comparison

Choosing between Gusto and ADP? Both payroll providers can handle payroll, tax filing, direct deposit, employee self-service, and HR tools, but they serve different business needs.

In this Gusto vs. ADP comparison, we’ll look at pricing, payroll features, HR tools, benefits, integrations, and ideal business fit.

Gusto VS ADP At A Glance

Gusto and ADP both offer full-service payroll, tax filing, direct deposit, employee self-service, HR tools, benefits options, reporting, and employee management. The biggest difference is how each platform is built.

Gusto is the simpler, more transparent option. It publishes pricing online, includes unlimited payroll runs, and is easier for small businesses to start using without going through a custom quote process. It’s a strong fit for businesses that want payroll, HR, benefits, and employee management in one straightforward platform.

ADP is the more customizable option. It offers multiple payroll and HR packages, plus add-ons and services for recruiting, background checks, HR support, compliance, reporting, and PEO services. It’s a stronger fit for growing businesses that need more flexibility, support, and service options.

Where Gusto Wins

Gusto is a cloud-based payroll platform that offers all the payroll essentials, unlimited payroll runs, a straightforward interface, and automates payroll calculations and payroll tax filings.

Gusto sets itself apart with competitive, transparent pricing and a strong mix of HR, benefits, onboarding, and employee management tools. Additionally, Gusto can integrate with many third-party applications, making it a good option for small businesses.

Gusto stands out for:

Where Gusto Falls Short

Gusto has a lot going for it, but it does have some significant shortcomings, including that some of its strongest tools are limited to higher-tier plans or add-ons.

Where ADP Wins

Automatic Data Processing, Inc. (ADP for short) offers software that delivers payroll and HR solutions to small businesses, growing businesses, and larger organizations. Across all its plans, ADP Payroll handles core payroll functions, including payroll processing, direct deposit, tax filing, and new hire reporting.

ADP is especially strong for businesses that want payroll plus more customizable HR, hiring, benefits, compliance, and service options.

ADP wins when it comes to:

Where ADP Falls Short

One of ADP’s biggest drawbacks is the fact that you can’t see its pricing plans up front. It’s easy enough to get a quote, but the lack of transparency is less convenient than self-serve payroll platforms with published pricing.

Drawbacks of ADP include:

Gusto VS ADP: Pricing Comparison

Gusto publishes plan pricing online, making it easier to estimate monthly costs. Promotions may be available, but businesses should confirm current offers directly. ADP, on the other hand, does not publish its prices online and requires businesses to get in touch with a sales rep to generate a custom quote.

It’s challenging to determine whether Gusto is cheaper than ADP because ADP does not publish its prices online and creates a custom pricing plan for each business. So you’ll need to get a quote from ADP to compare costs effectively.

While both Gusto’s pricing plans and ADP Payroll’s plans include essential payroll tools, Gusto’s plans include unlimited payroll runs, payroll tax filing, employee self-service, and year-end tax forms. However, time tracking, multistate payroll, advanced HR, and dedicated support are tied to higher-tier plans or add-ons.

With ADP, some users report frustration with add-on costs, so businesses should review their quote carefully.

Gusto VS ADP Feature Comparison

Overall, Gusto offers a more transparent, easy-to-use payroll and HR platform for small businesses, while ADP offers more customizable payroll, reporting, HR, recruiting, and service options for growing businesses.

Only Gusto Features:

• Time tracking available on higher-tier plans
• Broad benefits administration options
• Included W-2 and 1099 filing

Only ADP Features:

• More advanced reporting and customization options
• Offers HR resources and support options across eligible RUN packages
• An optional ZipRecruiter subscription

Which Payroll Software Should I Choose: Gusto Or ADP?

Both Gusto and ADP have earned their spots as two of the best payroll software options on the market, so your business’s payroll operation will be in good hands regardless of your choice.

Gusto is best for small businesses that want transparent pricing, an easy interface, unlimited payroll runs, benefits administration, and built-in HR tools. Small businesses and startups stand to benefit from its straightforward features, pricing, and integrations with other software and applications.

Since ADP doesn’t disclose pricing, the time demand and uncertainty of negotiating a price may not be right for smaller businesses. Mid-sized businesses, however, may appreciate ADP RUN’s more customizable payroll, HR, recruiting, background check, reporting, and service options.

Choose Gusto If…

Choose ADP If…

For more small business payroll help, check out our complete guide on how to choose small business payroll. Or, if neither ADP nor Gusto makes the cut for your business, check out the cheapest payroll software for businesses instead.