Gusto vs. ADP: Which Payroll Provider is Right for Your Business?

If you’re comparing Gusto and ADP, and want to know which payroll provider is best for your team, you’ve come to the right place.

Many companies (51%) still use spreadsheets for payroll, which means late nights and hours spent crunching numbers. The right payroll tool helps you skip the math, pay your team in a few clicks, and avoid mistakes.

We compared Gusto vs. ADP and found that:

• Gusto is the best payroll for small to mid-sized businesses that want an easy-to-use, cost-effective payroll and HR solution with transparent pricing.
• ADP is best for larger businesses that need a highly scalable payroll tool with advanced compliance and HR tools, but it’s more costly.

We'll cover the pros and cons of Gusto payroll vs. ADP so you can choose the best tool for your team.

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Feature comparison: Gusto vs. ADP

TL;DR: While Gusto and ADP payroll are similar, Gusto is ideal if you need a simple, all-in-one payroll and HR tool with no-frills pricing.

On the other hand, ADP is better if you're looking to grow your business, and you're looking for more customization, automatic data processing, compliance support, and a dedicated account manager. Unlike Gusto, you need to request a quote for pricing.

Here's a breakdown of what you can expect from Gusto and ADP payroll processing, time tracking, employee benefits, HR management, and compliance support features.

Payroll processing

Gusto automatically calculates wages, taxes, and deductions, so you can kick back while it does the math for you. 

But if you're looking for more customization and advanced features, like global payroll, ADP may be the better fit.

 Both Gusto and ADP offer direct deposit so you can pay your team without writing up cheques.

Time tracking

When you're working with hourly teams, payroll just doesn't work without time tracking and attendance. 

That's why Gusto includes basic time tracking features.  When an employee logs their hours for the day, Gusto does the busy work for you and automatically syncs their hours with your payroll processing. 

ADP's time tracking system is more in-depth and is designed for larger organizations to manage bigger teams. Along with time tracking, its team management system comes with compliance monitoring and scheduling tools, too.

Both tools allow your team to clock in and out easily on the website and mobile app, or on a tablet with the Time Kiosk app.

Employee benefits and HR management

Whether you need to conduct performance reviews or onboard new employees, Gusto has the tools for you. It also includes employee benefits like health insurance, 401(k) plans, and workers’ compensation.

On the flipside, ADP comes with global health coverage for teams around the world, and premium options that let you personalize benefits for each teammate. It also offers employee counselling, legal guidance, and HR consulting. ADP also includes background checks as part of its HR Pro plan.

Tax compliance

Both tools ensure your business is compliant with federal, state, and local tax regulations. Gusto automatically files payroll taxes and generates W-2 and 1099 forms, making tax season a lot easier. 

ADP goes a step further. It adapts to different state and agency requirements, keeps track of legislative changes, and assists with tax-related notices.

Overall, both platforms handle local taxes in addition to federal and state taxes. But if you need a tool that's a bit more fine-tuned for tax compliance, consider ADP.

Integrations and customizations 

If you already have accounting software like QuickBooks or Xero, Gusto allows for third-party integrations so you can continue managing finances without a hitch. 

ADP supports a broader range of integrations, including ERP systems, HCM software, and other enterprise-grade tools. It also offers more customization options for payroll automation and reporting for businesses that need a more thorough solution.

Customer support and scalability 

Gusto provides customer support via chat, email, and phone, but response times can be slow during peak hours. 

ADP offers 24/7 phone support and assigns dedicated account representatives to enterprise clients, so you'll have the support you need whenever you need it. It also offers access to certified HR professionals as part of its comprehensive service tiers.

Basically, when you’re thinking long-term, Gusto is great for small to mid-sized teams that want simplicity. Meanwhile, ADP is built to scale with you, especially if you have complex needs or you're planning to grow fast.

Gusto vs. ADP: Overview

Before choosing between Gusto vs. ADP payroll, take a closer look at each tool’s advantages and drawbacks.

What is Gusto?

Gusto is a cloud-based payroll and HR platform that’s great for startups and small to mid-sized business owners who want an affordable all-in-one HR tool.

Why teams choose it:

• Simple to use, even if you’ve never run payroll before.
• Transparent pricing with clear tiers.
• Includes onboarding, benefits, and tax filing.

What is ADP?

ADP is one of the oldest names in payroll. It offers a wide breadth of features for businesses with complex payroll needs, lots of employees, or international operations.

Why teams choose it:

• Handles everything from HR to payroll and tax filing to global compliance.
• 24/7 support and dedicated account reps.
• Scales well for growing and enterprise businesses.

 If you’re already thinking ADP isn’t the right choice for you, consider ADP alternatives.

Gusto: Pros and cons

Pros of Gusto

• Easy to use: Even if you’ve never done payroll before, Gusto’s simple design and automated processes make it easy and straightforward.
• Budget-friendly: With transparent, tiered pricing, you can pick the best package for your needs and budget.
• HR tools included: You get onboarding, benefits, and tax filing without needing to buy add-ons.
• Integrates with accounting tools: Gusto connects with QuickBooks, Xero, and other accounting software.
• Employee-friendly: Your team can easily access pay stubs and tax forms on their own via app or browser.
• Employee self service: Gusto offers employee self service features, giving your team the freedom to track their hours directly—no more time tracking micro-management!
• Global payroll: If you need to pay someone in another country, Gusto can handle it.

Cons of Gusto

• Not ideal for big teams: Gusto is great for small teams, but may fall short once your business (and payroll) gets more complex.
• Basic compliance: Gusto covers basic compliance, but doesn’t have the advanced compliance tools and legal support that ADP offers.
• Support can be slow: Gusto has phone, email, and chat support, but response times can be slow during peak hours.

ADP: Pros and cons

Pros of ADP

• Scales with you: ADP can handle everything from a small team to a global enterprise.
• Advanced compliance: Perfect if you’re in a regulated industry or juggling tax rules in multiple states.
• Dedicated customer support: Get 24/7 phone support, plus dedicated account reps for high-tier plans.
• Advanced HR: Includes time tracking, employee benefits, and even employee counselling.
• Global payroll support: Easily pay international employees across multiple countries and currencies.
• Legal assistance: ADP offers legal assistance as part of its HR Pro plan, providing support for businesses that require advanced features such as compliance and legal guidance.

Cons of ADP

• No public pricing: You’ll need to request a custom quote and it can get pricey.
• Not best for small businesses: With so many features, it might feel overwhelming if you need just the basics.
• Longer setup time: Setup and onboarding take longer due to the tool’s complexity.
•  Add-on costs: Many advanced features cost extra which can drive up your total spend.

Gusto vs. ADP: Pricing comparison

Gusto pricing vs. ADP pricing comes down to cost and transparency. While Gusto offers clear, tiered pricing and is more affordable, ADP needs you to request a custom quote and the final cost can be a little pricey.

TL;DR: Gusto is more budget-friendly if you’re a small business. And ADP’s pricing flexibility is great but only if you need the extras.

Below, we break down the key cost considerations for both tools.

Gusto pricing

When comparing Gusto pricing vs. ADP, Gusto has a transparent pricing model that bundles payroll, HR, and compliance into three different tiers:

• Simple Plan: Basic payroll for small businesses.
• Plus Plan: Payroll + HR (onboarding, benefits, and compliance support).
• Premium Plan: Full-service HR, compliance, and performance management with dedicated support.

Prices are public, so it’s easy to budget.

ADP pricing

With ADP vs. Gusto pricing, ADP takes a customized approach to, so you’ll need to talk to a Sales rep before you know how much it’ll cost you.

• Custom pricing: No public prices, only custom quotes.
• Tiered structure: Different plans based on your company’s size and needs.
• Additional costs: Features like time tracking, benefits administration, and advanced compliance may cost extra.

ADP gives you flexibility and customization, but that freedom can get expensive fast.

Cost considerations

The gist of Gusto pricing vs. ADP: 

• Gusto is simple and budget-friendly. You’ll see clear pricing upfront, with tiered plans that make it easy to pick what fits. No calls with Sales and no surprises.
• ADP’s pricing varies a lot. It’s based on your team size and feature selection. Some tools cost extra and those add-ons can quickly increase the final price tag.
• If you’re running a large or complex business, ADP’s customization may be worth it. But for smaller teams, it could feel like too much at too high a price.

Why Homebase is the best alternative to Gusto and ADP

Homebase is the best alternative to Gusto and ADP because:

• You won’t be  juggling different tools or paying for pricey add-ons. Just one affordable app to run your hourly team.
• Compared to ADP, Homebase is ideal for small businesses juggling payroll, scheduling, and HR. We  simplify things so that you don’t need to spend lots of time learning the ins and outs of payroll.
• And compared to Gusto, Homebase offers everything you could need to manage your team in a single app, like payroll, scheduling, time tracking, team messaging, and HR.

What is Homebase?

Homebase is an all-in-one team management tool designed for small to mid-sized businesses. Our toolkit includes:

• Payroll processing: Automated payroll with reminders for your team and no math for you.
• Scheduling: Easily build and share schedules with your team via text or email, eliminating no-shows and confusion.
• Time tracking: Track hours from almost any device and step back while the app adds up everything for you.
• HR and compliance: Helps with hiring, onboarding, and labor law compliance.
• Team communication: Stay connected with your team and ensure no one misses important messages with our all-in-one employee app.

Benefits of Choosing Homebase Over Gusto and ADP

For small businesses, managing payroll is just one part of the equation. Employee scheduling, time clock, team communication, and compliance are equally critical. 

Homebase makes it easy for you to manage  all these moving pieces in one place. No need for additional tools and integrations.

The benefits of choosing Homebase include:

• All-in-one solution: Payroll, scheduling, time tracking, team messaging, and HR in one app.
• Focused on small businesses: We help you spend less time on manual team management and paperwork (save 5+ hours a week!), and give you more control over your day.
• Transparent and affordable pricing: No hidden fees or complex pricing tiers, with a free plan for up to 20 employees.
• Easy to use: Designed for managers without an HR background and simple for employees to clock-in and out from anywhere.
• Better scheduling and time tracking: We don’t require add-ons or integrations for advanced scheduling like ADP and Gusto.
• Advanced time tracking tools: Homebase comes with easy-to-use time tracking, so your team can clock and clock out without a fuss.

Why businesses prefer Homebase

Businesses prefer Homebase because our tool is:

• More cost-effective than ADP and Gusto.
• Requires fewer add-ons, reducing the overall price.
• Simplifies team management, eliminating the need for multiple tools.
• Offers a comprehensive payroll solution that integrates seamlessly with other HR functions.

And it’s not just about saving time or money. It's also about keeping your team happy.

Did you know, 70% of employees experience job dissatisfaction when their paychecks have errors? So, choosing the right payroll tool is about not only paying employees on time but also avoiding costly mistakes.

With Homebase, you can run accurate payroll directly from tracked hours. No mistakes, no stress.

Does Homebase sound right for you? Try it for free today and see how much time you save on payroll.

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Frequently Asked Questions (FAQ)

Can I switch from Gusto to ADP or a different payroll platform?

Yes, you can switch from Gusto to ADP (or a different payroll platform)  by migrating your payroll data.  Gusto offers an easy setup process, while ADP may need help from their support team. 

It's best to switch at the end of a payroll cycle to avoid disruptions. Both Gusto and ADP offer user-friendly interfaces for processing payroll, making the transition smoother.

Does ADP offer better compliance support than Gusto?

Yes, ADP offers more advanced compliance than Gusto, including in-depth tax filing assistance and multi-state compliance. Gusto offers basic compliance support, which is usually enough for many small businesses, but may not be comprehensive enough for larger companies.

How does Homebase compare to Gusto and ADP?

Compared to Gusto and ADP, Homebase is better for businesses that need an all-in-one team management tool, including payroll, scheduling, time tracking, team communication, and HR. 

Plus, Homebase specializes in simplifying team management for small and mid-sized businesses in industries like retail, hospitality, and service.

Is ADP more expensive than Gusto?

Yes, ADP tends to be more expensive than Gusto. ADP requires custom quotes and many of their advanced tools cost extra. Gusto, on the other hand, has transparent pricing tiers that make it easier for you to  budget for payroll and HR services.

Why is ADP better than Gusto?

ADP is better than Gusto for large and growing companies that need complex payroll, HR, and team management tools. Gusto is better for small businesses that don’t need a complex or customized team management toolkit.

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