Gusto VS ADP Comparison 2023
Our Gusto vs. ADP comparison demonstrates the differences in price, features, benefits administration, and use case for each of these payroll options.
|Pricing||Ranges from $40/month + $6/employee to $80/month + $12/employee||Varies|
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Are you wondering why you should choose Gusto vs. ADP? Or ADP vs. Gusto?
Gusto is best for small businesses that are looking for affordable, easy-to-use payroll software with built-in time tracking and HR. ADP is best for mid-sized to larger businesses that need custom payroll and HR service packages.
Keep reading for our side-by-side comparison of ADP vs. Gusto with an in-depth look at each payroll software’s features, pricing, and benefits.
Table of Contents
Gusto VS ADP
In the head-to-head Gusto vs. ADP battle, it’s important to note that both software options offer strong payroll solutions for businesses.
Gusto features a slightly lower price point, and its user-friendliness may serve smaller to mid-sized businesses better. In contrast, ADP’s rich feature set may better fit larger operations with more complex payroll needs.
Gusto Quick Overview
- Transparent pricing for tiered plans
- Built-in time tracking and HR
- Intuitive user interface
- Prepares year-end tax forms
- Unlimited payroll runs
- Limited time tracking
- Limited reporting compared to ADP
- Health insurance is offered in only 38 states and D.C.
Gusto is a cloud-based payroll platform that offers all the essential nuts and bolts of payroll, unlimited payroll runs, a straightforward interface, and automatically calculates payroll and tax filings.
Gusto effectively integrates other aspects of business, such as HR, employee onboarding, and benefits administration. Workers can log hours and keep track of PTO on any of Gusto’s three plans through the employee portal. Additionally, Gusto can integrate with third-party applications, such as the popular accounting program QuickBooks.
ADP Quick Overview
- A total of four plans helps with customization
- Strong payroll and employee management features
- Payroll and HR reports can be exported to Microsoft Excel
- 24/7 customer service compared to Gusto’s Monday-Friday coverage
- Pricing is not disclosed online
- Additional features come with added fees
- Charges per payroll run, whereas Gusto offers unlimited
Automatic Data Processing, Inc. (ADP for short) offers software that delivers payroll and HR solutions to small businesses and major corporations alike. Across all its plans, ADP Payroll handles core payroll functions, including payroll processing, direct deposit, tax filing, and new hire reporting.
Each plan also comes with useful HR applications: PTO tracking and approvals, time tracking, and assistance with workers’ compensation, retirement, and health care. An employee portal (MyADP) connects workers with these HR functions while also giving them access to their pay stubs and tax information.
What’s The Difference Between Gusto & ADP?
Both Gusto and ADP possess an array of features to take care of payroll as well as employee and HR management. They also pack many of the same features, including full-service payroll, tax filing, direct deposit, time tracking, new hire reporting, generating reports, and employee management.
There are two distinctions in features that stand out. First, ADP offers health insurance in every state, whereas Gusto’s coverage is limited to 38 states and D.C. Second, Gusto supports free unlimited pay runs, while ADP charges extra for the frequency of payment.
Both Gusto & ADP Offer
- HR support
- Ample integrations
- Full-service payroll
- Tax support
- Time tracking
- Employee management
- Direct deposit
- Benefits administration
Only Gusto Offers…
- Time tracking built into payroll plans
- Unlimited payroll processing (no added cost)
- Dedicated support representative
- Transparent pricing
- Free W-2 and 1099 filing
Only ADP Offers…
- Health insurance in all 50 states
- 24/7 customer support
- Background checks
- Mobile app for employers
- Dedicated payroll plans for Enterprise clients
- Payroll runs by phone call
Gusto VS ADP Pricing
|Price||Ranges from $40/month + $6/employee to $80/month + $12/employee||Varies|
|Number Of Employees||Up to 650+ employees; from $6-$12/employee||Up to 100,000 employees; price varies|
Gusto’s clear and transparent pricing structure lets users know exactly how much they can expect to pay each month and offers discounts to new customers. 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.
While both Gusto’s pricing plans and ADP Payroll’s plans include essential payroll tools, Gusto’s packages are generally more robust, with unlimited payroll runs, free W-2 and 1099 filing, time-tracking integrations, and benefits administration included in the lowest employee payroll tier.
Gusto VS ADP Features
|Unlimited Pay Runs|
|New Hire Reporting|
Although both software programs tout many of the same features, some tools and components differ considerably in scope and practice. To help make sense of it all, we’ll compare Gusto vs. ADP on a number of important payroll features for small businesses.
Do Users Like Gusto Or ADP More?
Gusto’s customer reviews praise the software’s intuitive nature, transparent pricing, tax support, and customer support. On the flip side, some customers have complained about limited reporting and analytics.
ADP’s streamlined user experience has been praised in some customer reviews. Users also appreciate the round-the-clock support, the multitude of features, and the easy-to-use interface. Conversely, customer complaints have touched on hidden fees and undisclosed pricing for its various plans.
Which Payroll Software Should I Choose: Gusto Or ADP?
There isn’t a single model for success when it comes to processing payroll. Many small businesses are satisfied with how ADP and Gusto have enhanced their operations. Let’s consider some scenarios when each software could be a better solution for small business needs.
Choose ADP If…
- You have a mid-size or rapidly expanding business
- You want to integrate payroll with other apps and software
- You require more extensive HR features to recruit applicants and perform background checks
- You need health insurance in Alabama, Alaska, Hawaii, Louisiana, Mississippi, Montana, Nebraska, North or South Dakota, West Virginia, or Wyoming
Choose Gusto If…
- You run a small or startup business
- You value streamlined payroll, HR, and benefits management over sophisticated analytics and reporting
- You need flexible payroll runs for contractors, tipped workers, or employees earning bonuses or commission
Gusto VS ADP Comparison: The Final Verdict
Gusto’s success in the payroll realm can be attributed to its transparent, budget-friendly pricing structure and easy-to-manage interface. The software’s leading features — automated payroll processing, direct deposits, tax filing, and PTO management — are available across all plans. Benefit options, such as medical, vision, dental, 401(k), and tax-advantaged savings accounts, are affordable add-on features.
For these reasons, small and startup businesses stand to benefit from the straightforward features, pricing, and integration with other software and applications.
Across all four plans, ADP Run is more comprehensive in its features and customization. Beyond its full-service payroll processing, ADP’s most prominent features are its extensive reporting and analytics, HR support, and time tracking. Additionally, 24/7 customer service can give small businesses peace of mind, especially if working outside standard 9-5 business hours.
Since ADP doesn’t disclose pricing, the time demand and uncertainty of negotiating a price (plus hidden fees) may not be right for smaller businesses. Instead, mid-size businesses with greater HR needs and growth plans may better afford and appreciate ADP Run’s added features.
Both Gusto and ADP have earned their spot as one of the best payroll software options on the market, so your business’s payroll operation will be in good hands regardless of your choice.