Gusto vs. ADP: Prices, Features, User Reviews

Gusto vs. ADP: Payroll Comparison

Gusto is known as a very user-friendly platform for small businesses looking for a simple payroll and HR solution. ADP is a feature-rich platform that has service plans that can accommodate businesses as they scale. Gusto offers transparent pricing and three different service plans. ADP pricing is quote-based.

small business payroll service is a requirement for nearly every small business owner. The time you save by not having to add up hours, calculate payroll, pay taxes, and comply with federal regulations more than makes up for the cost of the software in most cases.

Two of the more popular cloud-based payroll software systems are Gusto and Automatic Data Processing—better known as ADP. Gusto is known as more of a tech-forward newcomer, having only launched in 2011. Even still, the company currently works with 100,000 businesses. ADP, on the other hand, has over 60 years of payroll experience and works with some 600,000 businesses.

Both can help you complete all the aforementioned payroll tasks and then some. But which is better specifically for your business?

In this Gusto vs. ADP comparison, we’re going to provide you an answer to that question by comparing each service based on four key criteria: features, price, ease of use, and customer reviews. By the end of this guide, you’ll know exactly which one can help you reach your business goals.

gusto vs adp

Gusto vs. ADP: Features

The most important thing to know about each payroll service is what they can do. So let’s start by talking about Gusto vs. ADP in terms of features. We’ll organize the features based on the service plan they are included in (in the next section, we’ll talk about the cost of each service plan).

gusto vs zenefits

A snapshot of the features Gusto offers. Image source: Gusto.

Gusto Features

Gusto has three service plans, each with ascending pricing and services. Gusto also has a new option for contractor-only employers, who simply pay the $6/employee rate and no base price. Here’s what you get with each plan:

Gusto Core

  • Manage tax filings
  • Receive paychecks via direct deposit
  • Receive paychecks via snail mail
  • Tip credits
  • Employee self-service
  • Employee profiles
  • Electronically sign I-9s and W-4s
  • Health benefits administration
  • Workers comp administration
  • PTO tracking
  • 24/7 phone, email, and live chat support

Gusto Complete (includes everything in the Gusto Core plan, plus)

  • Administrative permissions
  • PTO approvals
  • Send employee offer letters and onboarding documents
  • Employee directory
  • Employee surveys

Gusto Concierge (includes everything in the Gusto Complete plan, plus)

  • Direct access to certified HR professionals
  • Create custom employee handbooks and HR documents
  • Dedicated Gusto customer service team

Along with these features, Gusto has a handful of paid add-ons that are independent of any of their pricing plans. These include:

  • Health benefits: Allow your employees to enroll in health insurance through the Gusto platform. The only associated fee is the health premiums the employer must pay.
  • 401(k) plans: Offer your employees 401(k) plans at a cost of $8 per month per participant, plus a $500 setup fee.
  • Workers comp insurance: Pay-as-you-go workers comp plans that integrate with payroll.
  • 529 college savings plans: Allow employees to save for their kids’ college at a cost of  $6 per month per participant.
  • Tax-advantaged spending accounts: Offer health savings accounts ($2.50 per month per participant), flexible spending accounts ($4 per month per participant), and commuter benefits ($4 per month per participant) for an annual service charge of $200.

Lastly, Gusto integrates with a wide array of third-party applications, including QuickBooks, Xero, FreshBooks, TSheets, and more.

Get Started With Gusto Payroll

gusto vs adp

A snapshot of the features ADP offers. Image source: ADP

ADP Features

Next up, we’ll break down ADP’s payroll features in accordance with the service plans they offer. ADP offers two different payroll products for small businesses based on the number of employees they have. ADP Run, which we’ll discuss below, is for businesses with up to 49 employees. There is also ADP Workforce Now for 50 to 1,000 employees and two additional enterprise solutions for larger businesses.

Again, each service plan has increasing pricing and services.

ADP Run Essential

  • Manage tax filings
  • Receive paychecks via direct deposit
  • Payroll reports and analytics
  • Employee self-service
  • Employee profiles
  • 24/7 phone and email customer service
  • Access to library of HR forms and information
  • Workers compensation, health care, unemployment, and retirement plan assistance
  • Time and attendance tracking
  • PTO tracking and approvals
  • Overtime tracker
  • Create employee schedules
  • Access to ADP mobile app

ADP Run Enhanced (includes everything in the Essential plan, plus)

  • Receive paychecks via prepaid Visa debit card
  • Receive paychecks via snail mail
  • State unemployment insurance and wage garnishment assistance
  • Receive labor law posters

ADP Run Complete (includes everything in the Essential plan, plus)

  • ZipRecruiter integration for hiring
  • Employee handbook wizard
  • One-on-one assistance from ADP’s HR team
  • Send employee offer letters and onboarding documents
  • Conduct up to five background checks annually

ADP Run HR Pro (includes everything in the Complete plan, plus)

  • Employee discount program
  • Employee work-life assistance programs
  • Legal services
  • Dedicated team of HR business advisors
Get Started With ADP Payroll


Winner: ADP

Overall, ADP offers a more comprehensive set of features. Examples of features ADP offers that Gusto does not include the option to send paychecks via a prepaid Visa debit card, a labor law poster program, and an employee discount program. ADP also offers some features in their Essential plan that Gusto only includes in more advanced plans, such as PTO tracking and scheduling.

For reasons like these, we prefer ADP to Gusto when it comes to features.

Gusto vs. ADP: Cost

As you can already see, both Gusto and ADP offer tiered pricing models with different service plans offering a different array of features. Each payroll platform will charge you a monthly fee based on the service plan you’re using and the number of employees you’re running payroll for. Gusto also has some paid add-ons that will add to your monthly bill (if you add them to your plan).

gusto vs zenefits

Image source: Gusto

Gusto Cost

Here’s the cost breakdown for all three of Gusto’s service plans:[1]

  • Gusto Core: $39 per month, plus $6 per employee paid via the Gusto app
  • Gusto Complete: $39 per month, plus $12 per employee paid via the Gusto app
  • Gusto Concierge: $149 per month, plus $12 per employee paid via the Gusto app

Gusto offers a one-month free trial to all prospective customers.

ADP Cost

ADP Run is a quote-based product that’s designed for businesses with a maximum of 49 employees. We do know that each service plan for ADP Run—Essential, Enhanced, Complete, and HR Pro—feature increasing pricing. However, you would have to contact ADP directly for a quote based on your business, number of employees, and what features you need. ADP also offers three free months of ADP Run when you sign up.


Winner: Gusto

We’re selecting Gusto because we’re a proponent of transparent pricing. What’s more, unlike ADP, Gusto doesn’t limit your accessibility based on the size of your business. This means you can use Gusto as your business scales. With ADP, you’d have to change to their Workforce Now product once your business exceeds 49 employees. While Workforce Now does come with many of the same features as Run, having to change services can be a headache.

Gusto vs. ADP: Ease of Use

The reason you’re investing in payroll software is to save time. But you won’t be able to do that if your payroll software is difficult to utilize. So let’s compare the usability of both Gusto and ADP.

gusto vs zenefits

Image source: Gusto

Gusto Ease of Use

Gusto offers a simple step-by-step setup process and lots of information on how to use your software via their Help Center. Once you’re up and running, you’ll be able to manage your payroll with an intuitive interface and dashboard displays that include information on outstanding tasks and key metrics regarding payroll.

To make things even easier, Gusto provides an “AutoPilot” feature to run payroll based on information you provide about each employee (pay rate, payment preference, etc.). But if you want to process payroll manually, Gusto also makes it easy: Simply enter the employee’s hours plus vacation and sick time, then review and submit. Gusto will handle all the tax and benefits calculations.

gusto vs adp

An example of a Gusto payroll page. Source: Gusto.

ADP Run Ease of Use

The first time you log into your ADP account, you will be directed to the Company Setup Wizard. Here, you will provide some basic business information, arrange your payroll calendar, enter tax, earnings, benefits, deductions, and workers compensation information, and link your business bank account to the software.

To start paying employees, simply enter their name, date of hire, social security number, contact information, pay rate, and direct deposit information (if applicable). Like Gusto, ADP offers a fairly intuitive dashboard that makes it easy to add this information and perform other essential payroll functions.

When the next pay period comes, log into your account dashboard and select the “Run Payroll” option. From here you can view employee time cards and make any manual adjustments. Each employee’s pay should calculate automatically based on the information provided in their profile, minus any taxes. If everything looks good, select “Approve” to run payroll.


Winner: Tie

While Gusto is the more tech-forward company, ADP has made a lot of strides to match their new rival in the usability department. With both, you get sleek dashboards and obvious instructions on how to perform payroll. Both services also come with a setup wizard to walk you through the process of setting up your account, which is often the most complex aspect of running payroll.

As we mentioned in the features section, both tools offer 24/7 phone and email support if you ever run into issues.

Gusto vs. ADP: User Reviews

To help you decide between Gusto and ADP, let’s see what users have to say about both of these platforms.

Gusto User Reviews

General public sentiment towards Gusto is strong. User after user touts how Gusto makes processing and managing payroll easy. In particular, users say the Gusto interface has all the information they need, without feeling overwhelming. Customers also say Gusto makes it easy to find old pay stubs, track taxes, and add new employees to payroll. Other areas of praise include Gusto’s fair and transparent pricing.

“I’ve used both ADP and Gusto, and Gusto wins hands down,” Adam Creighton, county director for ACE America, told Fundera. “While ADP seems to have more robust services, they’re not designed for startups, and their costs are higher per employee. Gusto is nimble, responsive, intuitive, and their online systems are top-notch.”

One thing we should note, however, is that Gusto has a D- rating from the Better Business Bureau.[2] This is due to the fact that Gusto failed to respond to 16 complaints against their business.

In those negative reviews, multiple users complained of receiving bad information from Gusto’s customer support team. They also say Gusto sometimes makes errors with tax filings, causing their business to be hit with penalties from the IRS. In all fairness, Gusto received a majority of their complaints over two years ago, and the lack of more recent complaints indicates that they have likely addressed these issues with their software.

ADP User Reviews

The reviews of ADP Run aren’t quite as high as those of Gusto on major customer review websites, but they’re still solid. ADP gets a lot of praise from customers for their reporting and analytics tools, which provide insights to business owners that help them save money. The payroll platform also scores points with its customers for its helpful customer service, flexibility to work with lots of different types of businesses, and time and PTO tracking tools.

ADP gets an A+ rating from the Better Business Bureau.[3] While this doesn’t mean there are no complaints against the company, it does mean that ADP responds to their customer complaints. Overall, ADP has many more complaints levied against them than Gusto (over 300 and counting) and many are very recent.

The nature of the complaints vary widely, but some common themes include surprise fees, poor system security, errors with tax filings, and rude or unhelpful customer service.


Winner: Gusto

Based on the overall reviews, it seems Gusto is the preferred solution for business owners, thanks to its usability and cost. While ADP takes pains to try and resolve customer issues, it can’t seem to avoid creating them.

Final Verdict

So now that you know all there is to know about each payroll platform, let’s make a decision.

Overall, Gusto is an easy-to-use payroll software that won’t hit your bottom line too hard and will be a great choice for many business owners. However, ADP offers a wide array of features, and they may serve your business well too.

The fact is, every small business is different, and only you know what software will best-serve your business. We recommend signing up for any free trials and exploring each software system further before making a decision for your business.

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Matthew Speiser
Contributor at Fundera

Matthew Speiser

Matthew Speiser is a former staff writer at Fundera.

He has written extensively about ecommerce, marketing and sales, and payroll and HR solutions, but is particularly knowledgeable about merchant services. Prior to Fundera, Matthew was an editorial lead at Google and an intern reporter at Business Insider. Matthew was also a co-author for Startup Guide—a series of guidebooks designed to assist entrepreneurs in different cities around the world.

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