Rippling and Gusto offer cloud-based payroll and HR solutions for small and mid-sized businesses. Both offer a range of finance and workforce management features, reporting tools, tax filing services, and employee benefits through partner integrations. The key difference between the two is that Rippling is predominantly an HR platform, while Gusto specializes in payroll processes. Rippling stands out for its scalable structure that supports a broad suite of HR and IT functions, while Gusto scores higher on finance management capabilities and affordability. Here is our Rippling vs. Gusto comparison to help you decide which is best for your business.
Rippling vs. Gusto: Deciding Factors
Below is a comparison of the key factors that can help you choose between Rippling and Gusto.
| Rippling | Gusto | |
| Plans | Single scalable plan that allows you to add tools and services as required. | Three plans plus a contractor-only option. |
| Number of Users | 2-2000+ | 1-100+ |
| Pricing | $35/month base fee plus $8 per employee. Additional services are quote-based. | Simple: $40 base fee + $ 6/person Plus: $80 base fee + $12/person Premium: Quote-based Contractor-only: $35 base fee + $6/worker |
| Payment Options | Direct deposits, manual checks | Direct deposits, manual checks, pay cards |
| Free Trial | Not available | 30 days |
| Ease of Use | Excellent. User-friendly and interactive platform that integrates all HR, IT, payroll, and benefits functions. | Good. Clean and easily navigable dashboard. |
| Employee Access to Portal | Good. Employees can view pay stubs, acquire W-2 forms, and view or update benefits. | Excellent. Employees have lifetime access to the portal with options to view pay stubs, acquire W-2 forms, and edit their information. |
| Employee Benefits | Standard options only | Standard and non-standard options, including 529 college savings plans |
| Notable Features | Optional PEO and EOR services | Free Gusto Wallet for financial wellness management |
| Integrations | Over 500 | Over 130 |
| Support | Good. Weekdays-only live chat, email support, in-app video call facility. Access to HR advisers at an extra cost. | Excellent. Weekdays-only live chat, email, and phone support. HR advisory services are available for higher tiers. |
Rippling vs. Gusto Features
Features of Rippling
Rippling offers a core employee management platform, Rippling Unity, which you can customize with additional HR and IT services according to your business needs. The Rippling solution includes the following features:
Core functions:
- Global workforce management
- Access and approval management
- Policy management
- Workforce analytics
HR and IT products:
- US and global payroll
- Automated tax filing
- Expense management
- Time and attendance tracking
- Benefits management
- Recruiting
- Learning management
- PEO services
- App management
- Device management
Gusto Features
Launched in 2011 as a payroll SaaS company, Gusto has since expanded its offerings to include health and retirement benefits, onboarding, and collaboration features.
“From a product perspective, we’re here alongside businesses as they swerve with every curve that comes at them, helping them thrive and ultimately grow. And when they grow, so does Gusto.”
Eddie Kim, Gusto’s chief technology officer – a Business Insider feature
Gusto offers three affordable plans for small businesses, plus a contractor-only option for SMBs that engage contract workers.
Although the Gusto solution lacks advanced HR and IT functionalities, it includes full-service payroll, a range of financial wellness tools through Gusto Wallet, and some non-standard benefits options (such as college savings plans) that Rippling does not offer.
Gusto’s lowest tier includes the following capabilities:
- Full-service single-state payroll
- Hiring and onboarding
- Employee self-service features
- Employee financial benefits (some free and some paid options)
- Health insurance administration
- Integrations for accounting, expense management, and time-tracking
Each successive tier adds to the capabilities of the previous one. Additional features for higher tiers include:
- Multi-state payroll
- PTO management and policies
- Project tracking
- Workforce costing and reports
- Team management tools
- Compliance management
- Advanced support and advisory services
- Payroll migration and account setup
In the Gusto vs. Rippling comparison, Gusto is clearly the winner if your business primarily needs payroll calculation and processing. Besides its comprehensive payroll capabilities, Gusto also offers more payment options compared to Rippling. If you sign up for the Plus or Premium plan, you can also avail of next-day direct deposit.
Gusto is a more cost-effective solution for small businesses, businesses with part-time employees, or companies that hire contract workers.
On the other hand, Rippling is a better option for larger or tech-heavy organizations seeking an integrated platform for their payroll, HR, and IT requirements. Rippling also includes optional PEO services and an EOR solution for managing international employees and processing global payroll. Gusto does not offer PEO or EOR services.
Rippling vs. Gusto: Costs
Rippling is priced at $35 a month plus $8 per employee for the basic Rippling Unity platform. Pricing for all additional modules, including HR, IT, and finance, is quote-based. This modular structure ensures that you do not have to pay for services that your business does not need. However, your total costs can escalate if you need multiple HR, IT, and advisory services.
Rippling does not provide free trials but offers a free demo before you sign up.
Gusto stands out for its transparent pricing and multiple tiers that can fit the payroll needs of most SMBs. Gusto plans start at a base fee of $40 a month plus $6 per employee, which is a great alternative for companies with over 5 employees.
It also offers a contractor-only payroll plan for a $35 base fee and $6 per person. Contractor payroll fees are charged on a pay-per-use basis.
In the Gusto vs. Rippling cost comparison, Gusto scores higher on affordability for several reasons. Not only do its plans cost less for smaller organizations, but it also offers the following advantages:
- 30-day free trial for all plans
- Frequent promotional offers such as discounts and waived base fees (At the time of this writing, the company has waived 6 months’ base fees for the contractor-only plan. Note that promotional offers change from time to time.)
- Free account setup
Rippling vs. Gusto: Integration with Other Software
Rippling integrates with over 500 third-party applications, which includes almost all the leading software solutions like Google Workspace and Slack. This makes it a highly customizable solution for various business needs, including workflow automation, recruitment, training, accounting, and compliance management.
Gusto supports integrations with over 130 applications. This includes popular accounting solutions like QuickBooks and Xero and time-tracking apps like Homebase and QuickBooks Time. Although limited in HR functionality, Gusto’s integration options ensure that you get a comprehensive solution for all your payroll, accounting, and staff scheduling needs.
When Is Gusto a Better Choice?
Gusto is a good choice for affordable full-service payroll with basic HR functionality. Between Rippling and Gusto, Gusto is the better alternative for:
- Startups and small businesses in need of affordable, US-only payroll solutions
- Businesses that hire contractors
- Businesses that do not need a full suite of HR and IT services
- Companies that require comprehensive compliance coverage for benefits administration
When is Rippling a Better Fit?
Rippling is the best fit for tech-heavy companies in need of advanced HR and IT capabilities. It is a good option for:
- Mid-sized businesses seeking highly customizable, scalable, modular software solutions
- Businesses that require an integrated platform for workflow automation, employee management, benefits administration, and apps and device management
- Companies seeking PEO or EOR services
- Companies planning for global expansion
Rippling vs. Gusto – The Final Verdict
In the Rippling vs. Gusto comparison, the key differentiator is the scope of functionalities. Gusto offers a streamlined and affordable payroll solution, while Rippling’s robust integration options ensure higher scalability and flexibility.
Gusto is better for small, US-based businesses looking to streamline HR, payroll, and benefits administration. Its multitiered options and the inclusion of core HR functionalities in its entry-level plan make it a budget-friendly solution for SMBs with 100 employees or fewer.
Rippling is a better choice for mid-sized companies in an active growth phase due to its modular structure and wide range of HR, and IT features. It also supports hiring and paying a global workforce. Additionally, Rippling offers health insurance in all 50 states, while Gusto is limited to 37 at the time of this writing.
Frequently Asked Questions
What makes Rippling different?
Rippling stands out for its modular structure that offers a high level of scalability and flexibility for businesses in every stage of growth. Depending on your business’s short-term and long-term goals, you can add a range of features such as learning management, EOR services, expense management, and app provisioning to its integrated HRIS platform.
