Gusto vs. QuickBooks Payroll: Which Payroll Software Is the Best Option for Your Business?

Gusto vs. QuickBooks Payroll compared

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Who do we recommend Gusto for?

Gusto automatically calculates taxes, and you can easily check everything before running payroll. Source: Gusto

We think Gusto is a great payroll software option for startups and small businesses that don’t plan on scaling at a rapid pace. Gusto’s stellar HR features, like recruiting and onboarding assistance, as well as access to certified HR experts, makes it especially useful for businesses getting started out that need HR help at an affordable price.

When it comes to payroll, Gusto offers a solid product. We especially love the option to run unlimited payroll in addition to the regularly scheduled cycles at no extra charge. Although Gusto becomes more expensive than some competitors as you add employees or move to Premium plans, we think the price is well worth it considering all the platform offers. Another great advantage of choosing Gusto is that the software does not require a long-term contract.

Regardless of the plan you select for your business, you’ll also be able to offer employees a great benefits package, including medical insurance, college savings, health savings accounts, flexible spending accounts and commuter benefits. If your business only hires contractors, Gusto has an affordable plan designed just for you. Plus, you have the option to add on international contractor or employee payments with Gusto Global. 

​​Here’s a brief overview of what we love about Gusto:

• Unlimited payroll with automatic federal, state and local tax filing
• Robust HR features for recruitment, onboarding and employee management 
• Extensive benefits packages, including college savings and commuter benefits
• Over 200 external integrations, plus Gusto-built add-ons

​Who do we recommend QuickBooks Payroll for?

QuickBooks Payroll makes automating payroll and scheduling same-day direct deposits a breeze. Source: Intuit

QuickBooks Payroll is our choice for established or growing small businesses. It offers three plans that remain affordable as you add multiple employees, so you can stick with QuickBooks as your business scales. We especially love that it seamlessly connects to one of the most popular accounting applications: QuickBooks Online accounting software. Intuit even offers bundled pricing for the two solutions — helping you keep prices low.

QuickBooks boasts an excellent payroll system, with unlimited payroll runs and federal and state reporting included standard. What really sets QuickBooks apart is that it allows for next-day direct deposit with its entry-level plan and same-day deposit with other plans. We found this especially useful for expanding businesses that need to keep cash on hand longer. 

Business owners will love that QuickBooks’ mobile app lets you manage payroll from anywhere. The platform connects you with reputable third-party benefits providers for medical and retirement plans. We especially love that Elite plan subscribers get tax penalty representation and protection, so tax errors won’t lead to expensive fees that put a halt to your businesses’ growth. 

These are our favorite QuickBooks features:

• Tax penalty representation and protection up to $25,000
• Affordable prices at scale with no long-term contracts
• Next-day or same-day direct deposits for no extra charge 
• Seamless integration with other Inuit products like QuickBooks accounting software

Gusto vs. QuickBooks Payroll comparison

Plans and pricing

Gusto

• Gusto offers three plans with unlimited payroll.
• There’s a plan for businesses that only pay contractors.
• The Simple plan only allows single state payroll.

Gusto has three payroll plans geared toward businesses with employees and a fourth plan for businesses that only hire contractors. Here’s how the plans break down:

Plus users can pay an additional $8 per employee to access priority support and certified HR experts. Other add-ons include international contractor payments in over 120 countries, new state tax registration, HSAs and FSAs, Gusto Global, which lets you pay employees around the world, workers’ compensation, life and disability insurance, 401(k) plans, and commuter benefits. 

We love that Gusto includes unlimited payroll, health insurance and HR tools with all packages. Even businesses on a budget will find great value in the Simple plan, especially as there are no contracts or termination fees, and you only start paying once you run payroll. However, we were disappointed that multistate businesses will have to opt for a more expensive plan. 

QuickBooks Payroll

• QuickBooks has three plans with unlimited payroll.
• You can try the platform free for 30 days.
• QuickBooks offers bundled pricing for its payroll and accounting software.

QuickBooks offers three payroll plans. We love that you can try the platform for free for 30 days. If you skip the free trial, you can get a discount for three months. There’s also special pricing for a payroll and accounting software bundle. 

These are QuickBook Payroll’s three stand-alone plans:

Similar to Gusto, we appreciate that QuickBooks offers unlimited payroll runs with all plans. We especially like that every plan permits multistate payroll. However, we were disappointed that, unlike Gusto, QuickBooks does not file local taxes with the entry-level plan. In general, we found QuickBooks’ higher-tiered plans to be more affordable than Gusto’s, especially for businesses with multiple employees. 

Payroll features

Gusto

• Payroll automation and unlimited cycles come with all plans.
• Add-ons let you pay international contractors or employees. 
• Only higher-tiered plans include next-day deposit. 

Gusto offers excellent full-service payroll across all its plans. You can pay employees and contractors by check, direct deposit and prepaid debit cards. The Simple plan provides two- or four-day direct deposit, while higher-tiered plans include next-day deposit. We appreciate that Gusto lets you automate payroll and allows for unlimited runs at no extra charge. The platform also automatically calculates and files all federal, state and local payroll taxes. 

Gusto stands out for offering an employer of record service, Gusto Global, which lets you pay employees internationally. You can also pay international contractors, but both of these services cost extra. 

QuickBooks Payroll

• QuickBooks offers next-day or same-day direct deposit.
• Elite plans include tax penalty protection.
• All plans get unlimited payroll, but only Premium plans include local tax filing.

Similar to Gusto, QuickBooks lets you automate payroll, process unlimited runs and pay employees and contractors in multiple ways. What sets QuickBooks apart is that the Core plan includes next-day direct deposit, while all other plans include same-day direct deposit. This allows you to hold on to cash longer and get employees paid quicker. 

QuickBooks will calculate and file your taxes, but local tax filing doesn’t come with the Core plan. We love that businesses subscribed to the Elite plan get assistance and up to $25,000 penalty protection in case of any IRS issue. While the software doesn’t support international payments, it integrates with solutions for international payments. 

HR tools

Gusto

• All plans come with HR support for hiring and onboarding new employees.
• Most plans include job posting, applicant tracking and employee management tools.
• Premium users get access to a certified HR expert.

With Gusto, you can create job postings and track applicants all from the central platform. Source: Gusto

We love that Gusto includes useful HR features, so businesses on a budget can get help hiring and managing employees without having to pay for a dedicated HR person. Gusto’s Simple plan comes with hiring documents, e-signatures, offer letter templates and onboarding checklists, so you can save time when bringing on new people.

We especially like that Gusto’s two high-tier plans include tools for creating job posts and tracking applicants, customized offer letters and onboarding checklists, and a background check add-on. You can also manage performance reviews and conduct employee surveys. The HR Resource Center helps you build an employee handbook and stay compliant with local and state laws. We found direct access to a certified HR expert for Premium plan subscribers to be particularly useful.

QuickBooks Payroll

• The HR support center has tools for onboarding and performance management. 
• The Elite plan provides access to external HR advisors.
• The Core plan doesn’t include HR features.

While QuickBooks offers useful HR tools, we were disappointed that they aren’t included in the Core plan. You’ll have to sign up for the more expensive Premium and Elite plans to get access to the HR support center, which includes employee onboarding checklists, employee handbook tools and features to help manage employee performance. 

Similar to Gusto, the highest-tiered plan also includes access to HR advisors who can help you with all aspects of hiring and managing employees, as well as providing guidance on state and federal compliance regulations. Unlike Gusto, QuickBooks doesn’t provide in-house HR experts. Instead, they provide HR support externally through Mineral, Inc. 

Integrations

Gusto

• Gusto integrates with around 200 business software solutions.
• Gusto-built apps include time management and background checks.

Gusto integrates with around 200 third-party business software products, including popular accounting, POS and expense management solutions. Gusto also boasts a number of in-house integrations for employee training, time tracking, expense management, background checks and managing employee performance. We love that Gusto even integrates with QuickBooks Online accounting software. 

QuickBooks Payroll

• You can integrate seamlessly with other Intuit products.
• External integrations are limited with QuickBooks Payroll.

QuickBooks Payroll seamlessly integrates with other Intuit products, most notably QuickBooks Online or Desktop accounting software. If you plan to use QuickBooks for accounting, you’ll find sharing data between the platforms to be a breeze. However, we were disappointed that you can’t use QuickBooks Payroll with other accounting software. In general, QuickBooks Payroll’s external integrations are quite limited. 

Employee benefits

Gusto

• Gusto brokers can help you offer medical insurance through over 100 carriers.
• For a fee, you can keep using your current broker.
• Gusto offers extensive benefits like life insurance, college savings and 401(k) plans.

Gusto lets you offer a variety of benefits packages to your team. Dental, vision and medical insurance administration with over 100 carriers comes free of charge with Gusto as your broker, or you can pay an additional $6 per employee per month to keep using your current broker. Employees can sign up right from the platform, and benefits are automatically deducted from payroll. While we love how easy Gusto makes offering health insurance, we were disappointed that coverage is limited to 38 states.

We appreciate that Gusto also offers HSAs and FSAs, disability and life insurance, workers’ compensation, college savings plans, commuter benefits, and 401(k) plans. While some of these benefits come as paid add-ons, they are easy to manage right from Gusto’s platform. We also love the Gusto Wallet app that helps employees request on-demand payments, manage their money and build savings.

QuickBooks Payroll

• You get access to over 200 health insurance carriers through Allstate.
• QuickBooks also offers 401(k) plans, workers’ comp, and HSA or FSA coverage.
• QuickBooks offers health insurance in more states than Gusto.

QuickBooks also makes it easy to offer your employees benefits packages. Health insurance benefits are offered through Allstate Health Solutions with over 200 carriers. You can also get HSA, FSA and COBRA coverage. We especially like that QuickBooks provides health insurance in more states, 48 in total, except for Hawaii, Vermont and Washington, D.C. Workers’ compensation insurance and 401(k) retirement plans are also available through third parties for an additional fee. 

Ease of use

Gusto

• The platform is easy to use, even for those new to payroll software.
• There isn’t a mobile payroll app.

Running payroll from Gusto is a piece of cake, even for small business owners new to payroll software. It’s simple to manually enter information and automate payroll cycles. We like that employees can painlessly add their own information during self-onboarding. Plus, employees have lifetime access to pay stubs and tax forms in the online portal. The only drawback is that Gusto doesn’t offer a mobile app for processing payroll on the go. 

QuickBooks Payroll

• QuickBooks Payroll is straightforward, and some plans include guided assistance. 
• There is a mobile payroll app.

You can use QuickBooks to run payroll from any device. Source: Intuit

QuickBooks Payroll is also easy to navigate, especially for businesses that already use other Intuit products, like QuickBooks accounting software. Similar to Gusto, employees can access the platform to check pay stubs and tax forms. While we think most businesses will have no problem getting things up and running, we appreciate that with higher-tiered plans, someone from QuickBooks will review or assist your setup. We also like that you can do any payroll task from your phone thanks to QuickBooks’ mobile app.

Gusto vs. QuickBooks Payroll recap

Choose Gusto if:

• You want to integrate your payroll software with external business solutions.
• You need additional HR support at an affordable price. 
• You’re looking for a service that lets you offer excellent benefits, pay contractors and make international payments. 

Choose QuickBooks Payroll if:

• You want a functional mobile app for managing payroll on the go.
• You need to maintain cash flow with next-day or same-day direct deposit.
• You’re looking for a payroll solution that remains affordable as your business grows.

Yes, both Gusto and QuickBooks Payroll integrate with QuickBooks accounting software.