Businesses looking for full-service payroll software that offers HR tools might struggle to choose between Gusto and ADP. Gusto and ADP provide some of the best features for small business owners, including automatic payroll, direct deposit, tax filing, benefits administration, reporting, and software integrations to help streamline your payroll process.
Read on to learn which payroll software is the best in our 2023 review of Gusto vs. ADP.
Deciding Factors
| Gusto | ADP | |
| Price | Plans start at $46/month, or contractor-only plans start at $6/month | The first three months are free, and plans are custom-priced |
| Maximum Number of Users | There is no maximum number of users, but the platform is optimized for 200-250 employees | 1,000+ |
| Ease of Sharing With Accountants | Gusto partners with bookkeeping software that offers discounts to Gusto customers, and provides a Partner Directory where customers can find the right accountant and software for their business | ADP offers accounting software integrations as well as its free Accountant Connect service to accountants that enables them to process payroll and access reports from ADP software |
| Scalability | Multiple plans to choose from depending on your business’s size | Can upgrade plans as your business grows |
| Ease of Use | User-friendly website enables quick payroll runs | Easy to use, can run payroll from your laptop, desktop, or mobile device |
Gusto vs. ADP: Features
Gusto and ADP provide features that small business owners need, including payroll, tax filings, onboarding, benefits administration, reports, and integrations with other business software. ADP’s mobile app makes it easy for employees to clock in and out and for you to approve time cards, while Gusto’s mobile app enables employees to get paid up to two days early, save money, and view paychecks and tax documents.
Let’s compare the features included in ADP and Gusto’s plans.
Gusto Plans
Gusto offers payroll and HR services for small, mid-sized, and enterprise organizations. International contractor payments, state tax registration, workers’ comp, Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs), life and disability insurance, and retirement plans are all available as add-ons.
Simple: This plan starts at $40/month plus $6 per person and includes:
- Automated payroll
- Tax filings
- 2- and 4-day direct deposit
- Garnishments
- Unemployment insurance
- Onboarding
- Background checks
- Health insurance administration
- Custom reports
Plus: The Plus plan starts at $80/month plus $12 per person and includes everything in the Simple plan, as well as:
- Multi-state payroll
- Next day-direct deposit
- Time tracking
- Time off tools
- Expenses and reimbursements
- Customized document e-signing
- Job postings
- An applicant tracking system
Premium: This custom-priced plan includes everything in the Plus plan, as well as:
- Time kiosk for clocking in and out
- Health insurance broker integration
- Access to a dedicated customer success manager
- Compliance alerts
- Access to HR experts
Contractor Only: This plan starts at $6/month per contractor for your first six months, and then the base fee is $35/month plus $6/month per contractor. It includes nationwide contractor payments, new-hire reporting, and 4-day direct deposit.
ADP Plans
ADP offers payroll packages for businesses of all sizes. Time tracking, retirement plans, worker’s comp, and health insurance are available as add-ons.
Essential: This plan includes:
- Payroll
- 24/7 customer service
- Tax filing
- Reports
- Employee portal
- Direct deposit, payroll delivery, or debit card payment options
- Employment verification
- Onboarding
- Background checks
- Access to ADP Marketplace (a digital HR storefront for software integrations)
Enhanced: The Enhanced plan includes everything in the Essential plan, plus:
- Check signing
- Labor law poster compliance
- State Unemployment Insurance (SUI) management
- ZipRecruiter posting
Complete: This plan includes everything in the Enhanced plan, plus HR tools.
As far as features go, ADP and Gusto are well-matched. Gusto provides unlimited pay runs and HR features in all its plans, but you can’t run payroll from your mobile phone. While ADP does offer the ability to run payroll from any device and can support more employees, it only provides HR features with its higher-tier plans.
Gusto vs. ADP: Cost
So how much does this software cost? As far as Gusto pricing vs. ADP, if you’re looking for transparent pricing, Gusto wins. ADP doesn’t provide pricing on its website or over the phone unless you speak with a sales representative.
To get customized pricing from ADP, you must first answer a series of questions about your business and employees. However, ADP does offer your first three months free, which is a great deal. Gusto plans start at $46/month, while contractor-only plans start at just $6/month per contractor.
Gusto vs. ADP: User Reviews
Many users turn to online reviews to find out what real people have to say about the software they use. When it comes to Gusto vs. ADP on Reddit, Gusto is the clear winner, with users citing training, setup, and customer service issues with ADP and praising Gusto’s affordability, modernity, and ease of use.
As for online review sites, Gusto is also the clear winner. Customers on TrustPilot give ADP low marks (1.4 out of 5-star rating) primarily due to customer service issues. However, Gusto has a 3.4-star TrustPilot rating, with reviewers noting how easy it is to use its payroll software.
Gusto vs. ADP: Integration With Other Software:
When it comes to Gusto vs. ADP for integration with other software, they are evenly matched. Gusto and ADP integrate with hundreds of apps, including accounting, time tracking, employee benefits, productivity, expense management, recruitment, hiring, onboarding, analytics, compliance, tax prep, point of sale (POS), and performance management software.
ADP Or Gusto: Which Is Best For My Business Needs:
As far as Gusto payroll vs. ADP goes, Gusto’s payroll service comes out on top, as all of its plans offer unlimited payroll runs, an automated pay feature, garnishment services, and unemployment tax filing and payment. Only ADP’s higher-level plans offer garnishment and unemployment services, but if you need to manage payroll on the go, ADP’s mobile app is the better choice for you.
If you need accounting features, both Gusto and ADP integrate with popular accounting software, including QuickBooks and Xero.
For businesses that need help with benefits administration, Gusto wins. Gusto can function as your broker for benefits, or for $6/month per employee you can keep your old broker. Health insurance automatically syncs with payroll, and all its plans include health benefits administration (you only pay for the premiums). ADP offers health insurance as an add-on for all of its plans.
Gusto vs. ADP Comparison: The Final Verdict:
The winner of the battle of ADP vs. Gusto comes down to your business’s unique needs. If you have over 1,000 employees or need the ability to run payroll from your phone, ADP is the better choice. Both Gusto and ADP:
- Offer payroll services that include tax filing, multi-state payroll, direct deposit, wage garnishment, and unemployment tax services
- Integrate with business and productivity apps that can help save you time and scale your business
- Provide benefits administration, onboarding, and analytics tools
However, Gusto’s transparent pricing, better customer reviews, unlimited payrolls, and HR-inclusive plans make it the best choice for most small businesses.
FAQs
Is Gusto better than ADP?
Gusto is better than ADP for small businesses that need HR tools and unlimited payrolls.
