Gusto is rated #1 in payroll | G2 Fall 2025
Gusto vs. Paychex
What would you do with an extra 56 hours a year? That’s the average time Gusto customers save on taxes and compliance after switching from Paychex.¹
Gusto brings payroll, benefits, and HR together in one easy-to-use platform—that’s far easier to navigate than Paychex. See why over 500,000 businesses trust Gusto to pay and manage their teams.
Thinking of switching from Paychex? Make the move to Gusto in less than 7 days² and simplify payroll today. Learn more about switching.
4.5/5 stars
average rating from Gusto customers.*
56 hours/year
average time saved on tax and compliance work after switching from Paychex.
9 out of 10
customers would recommend Gusto*
Why Gusto over Paychex?
A platform built for today’s challenges
With Paychex, you get bogged down in old systems and lengthy contracts. With Gusto’s intuitive interface, you can focus on running your business—not running in circles.
Peace of mind with clear pricing
As opposed to Paychex, we offer simple, transparent plans with no surprise fees. Unlimited payroll runs and automatic tax filings are always included.
Award-winning customer support
When you need help, you’ll get support from a real person. Our team was ranked #1 in customer satisfaction by G2 in 2025‡, so you know you're in good hands.
Compare pricing and features: Gusto vs Paychex
What to consider when choosing a payroll provider?
Think about the features you need now and what you might need later.
As your company grows, you might need more features. Choose a payroll platform that doesn’t make you pay more every time you need something new.
Find a provider that can grow with you.
A payroll solution that focuses on enterprises might not give your business what it needs. Select a payroll company that will work for where you are today and where you want to go in the future.
Check that expert help is available when you need it.
Even with the most automated payroll services, you might need occasional help from a platform expert. You should have easy access to customer service through email, if not phone and live chat too.
Switch to Gusto in less than seven days.
While other providers charge extra for setting up, filing W-2’s, and off-cycle payroll runs, it’s all included with Gusto. Switch to see why we’re voted #1 (over and over again).
Time to switch source: Techvalidate survey of 712 Gusto Customers, October 2023
Comparison details: Gusto vs Paychex
Pricing
Setup and monthly fees
When you go with Gusto, there are no hidden fees. Our plans begin with a $49 monthly base fee, and you’ll pay an additional $6 per employee per month. Your fees cover multiple payroll runs, thorough and accurate tax filing and reporting, access to benefits, and more. We also don’t charge any setup fees. Learn more about our product plans and current promotions.
Paychex often charges a setup fee along with extra fees to enable direct deposit. The monthly cost fluctuates depending on features added and the number of employees you have.
Gusto | Paychex | |
Monthly fee | Starting at $49/mo + $6/mo per person | No upfront pricing |
Set up fee | Free | Extra fees |
Payroll
Running payroll
With Gusto, you can complete payroll in just a few clicks, whether you’re on your phone or a desktop. It takes our customers 8 minutes, on average, to process payroll† and you can even set up AutoPilot to process your payroll automatically.
Paychex offers online payroll processing from your phone or computer. You can also process payroll by phone or fax.
Processing payroll
Gusto doesn’t limit the number of times you can run payroll each month, no matter how many employees and contractors you have. We enable you to rapidly run payroll as many times as you need.
Paychex has payroll processing limits on one-time payments, and its base fee may increase as your company adds more employees.
Tax filings
It’s really important for your payroll service to accurately handle your taxes. At Gusto, we automatically file all tax forms, including new hire reporting, W-2s for full-time employees, and 1099s for contractors. We also calculate, file, and pay your end-of-year federal, state, and local taxes without charging you extra. Need to file taxes in multiple states? No problem, that’s also included.
Like Gusto, Paychex calculates, pays, and files federal and state payroll taxes—but not local taxes. While there are some local payroll taxes that Paychex will cover, some may need to be completed outside of Paychex. The platform also charges extra to issue W-2 and 1099 forms.
Gusto | Paychex | |
Unlimited Payrolls | ✔ | $ Pay per payroll |
File 1099’s | ✔ | $ Extra fees |
Benefits
Employee benefits
We know you want to give your employees the best. That’s why Gusto provides leading medical, dental, and vision benefits administration with all of our payroll plans. The only costs are the premiums for the plans you choose. Our team has licensed health insurance brokers in many U.S. states, so we can secure the best benefits for your employees.
Our health insurance options span more than 3,500 plans from top-tier networks like Humana, BlueCross BlueShield, United Healthcare, and more. Our licensed advisors will work with you to find affordable insurance options that keep your employees happy and healthy.
We can also help you transfer existing insurance plans to our platform without coverage interruptions, along with setting up and managing contributions to financial benefits. These benefits include flexible spending accounts, workers’ compensation, 401(k) retirement plans, and commuter plans.
You can also support your employees' financial health with Gusto Cashout™. Unique to Gusto, this benefit gives employees access to funds in between paydays, for free.
Paychex offers health insurance, 401 (k) retirement plans, and financial wellness programs.
Gusto | Paychex | |
Health benefits | Pay premiums only | Pay premiums only |
Workers’ comp | Pay premiums only | Premiums + fees |
The Cashout Program is issued by Sunrise Banks, N.A., Member FDIC. The Sunrise Banks, N.A. Privacy Policy can be found here.
HR tools
Expert HR help
Gusto can help generate and issue offer letters to potential employees. When new hires start, they can log into Gusto and enter their information to set up payroll and benefits. This minimizes human error and keeps their sensitive information secure. We also give employees ways to provide anonymous feedback to help you improve your business.
Our expert HR assistance doesn’t stop at onboarding. Our Premium plan and HR services add-on come with expert HR support including resources, templates, and real-time advice from SHRM and HRCI-certified professionals.
Paychex also offers access to HR features. However, only large customers who sign up for the Flex® Enterprise tier can use their HR tools. These tools include employee development resources, hiring services, and in-house teams of HR compliance experts.
Employee self-service
Gusto saves you time while giving employees power over their information. Your team can log into their employee portal and set up their profiles on their own, making their information more accurate and secure.
Employees of companies that use Paychex also have access to an online self-service tool, though it can only be used to view pay stubs and forms rather than edit information. The Paychex employee self-service portal does not include access to benefits information.
Gusto’s platform stands out because we give employees access to their information forever—even if they’re not working with you anymore. No matter how long it’s been since an employee left your company, they’ll always be able to access their W-2s and benefits information without having to contact anyone on your team.
Time management
When you sign up for Gusto’s Plus or Premium plans, you get straightforward tools for tracking employee hours and processing requests for paid time off. Our tools also integrate seamlessly with Homebase, TSheets, and other widely used time tracking platforms so you can automatically add employee hours.
Paychex offers time tracking through its Paychex Flex platform, which costs extra to add. It integrates with select time and schedule management platforms, including Dolce Software and OnShift. Paychex users who pay for higher-tier memberships can use additional HR tools that may prove helpful with time and schedule management software.
Customer service
Support team
At Gusto, we offer email, phone, and chat support. Our customer support team can be reached Monday through Friday, and we also have a comprehensive online FAQ and Help Center that’s readily accessible around the clock.
Paychex users can find ample information on the company’s website. Customers who need live assistance can also reach Paychex’s customer support and sales teams by phone. The support team is available 24 hours a day, 7 days a week.
Integrations
Integration capabilities
Our payroll platform integrates with leading software tools for time tracking, expense management, point of sale (POS), and accounting. We never charge extra for integrations. Our payroll integration partners currently include QuickBooks, Xero, Homebase, and Clover. Take a look at the full integrations list.
Paychex also offers integrations with benefits, HR, attendance, and accounting platforms. Some of its integration partners are Indeed, OnShift, QuickBooks Online, and Xero. Paychex also allows Paychex Flex users to recommend new integration partners.
*Competitive data on this page was collected as of June 27th, 2022 and is subject to change or update. Gusto does not make any representations as to the completeness or accuracy of the information on this page. All Gusto services listed in the payroll features comparison chart are provided by Gusto or by one of Gusto's trusted partners.
Best Payroll Software 2025 - Ranked #1
#1 Most Innovative Company in HR 2025
#1 Highest Satisfaction Software, G2 Review 2026
America's Best Online Platforms, Newsweek & Statista 2025
Gusto vs Paychex FAQs
Gusto helps businesses manage the incredible people that power their companies. Our payroll platform supports your employees from their first day all the way through retirement, and we don’t toss hidden fees at you in the process. Learn more about how we can help your business.
Gusto files your Forms W-2, W-4, 1099, and 944. We also file many state tax forms too, depending on where you’re filing. Use this list to see all the state tax forms we file.
Right now, we offer health benefits in more than half of all U.S. states – 27, to be exact. We’re constantly working to add new jurisdictions. Here’s an up-to-date list of the states where we offer health benefits.
There’s never a wrong time to sign up for Gusto. If you have 10 or more employees, our dedicated team will transfer all of your data into Gusto with no errors. When you’re ready to make the switch, have your EIN and your employees’ addresses, salaries, and Social Security Numbers in hand. For a mid-year switch, you’ll need to provide documentation for all the payroll taxes you’ve paid so far.
Email our sales team at [email protected], call them at (855) 590-3993, or use our live chat function. We’re available Monday through Friday from 6 a.m. to 5 p.m. PT.
Gusto is generally the better fit for early-stage startups that want simple, self-serve payroll and HR at a lower cost, while Paychex is built to support companies further into their growth that need dedicated HR support, PEO options, or more advisory-heavy compliance help.
Best for early-stage startups: Gusto's guided setup and transparent pricing suit founders running payroll themselves without dedicated HR staff.
Best for later-stage scaling: Paychex's dedicated support specialists and PEO/HRO options give growing companies a path to outsource more HR work as headcount increases.
No — Gusto doesn't offer PEO or HRO services. Paychex offers both, giving employers the option to co-employ through Paychex for outsourced HR, benefits administration, and compliance at scale, which Gusto's self-serve platform model doesn't include.
Paychex: offers PEO (co-employment) and HRO models for businesses that want to outsource more of HR and compliance as they grow.
Gusto: is software you use to run payroll and HR yourself — not a co-employment or outsourcing arrangement.
Gusto includes benefits administration bundled directly with payroll across its plans and adds unique features like free Gusto Cashout, while Paychex offers benefits through its broader HCM suite but reserves more robust HR-supported benefits guidance for higher-tier plans.
Included, not gated: Gusto's health, dental, vision, 401(k), and financial wellness features are available without needing Paychex's higher enterprise tiers.
Unique to Gusto: Gusto Cashout gives employees free access to already-earned pay between paydays — a benefit Paychex doesn't offer in the same form.
Paychex markets its app as offering broader administrative capability, but G2 user reviews rate Gusto higher on overall ease of use and payroll entry — so the honest answer depends on whether you value feature breadth or day-to-day usability more.
Paychex's positioning: Paychex describes its app as supporting more complete administrative tasks — running payroll, pulling reports, and updating profiles or benefits — from a single mobile app.
What users report: G2 reviewers rate Gusto's ease of use at 9.5 versus Paychex's 8.5, and Gusto's payroll entry experience at 9.4 versus Paychex's 8.7 — real-world usability and on-paper feature depth don't fully agree here.
Paychex offers expense management as part of its broader suite of business services, while Gusto's platform is focused on payroll, benefits, and core HR rather than dedicated expense tracking.
Paychex: bundles expense management alongside other add-on business services like workers' comp and scheduling.
Gusto: doesn't include native expense management — businesses that need it typically pair Gusto with a separate, purpose-built expense tool.
Yes, switching from Paychex to Gusto is a standard, supported migration — most businesses time the switch around a quarter or year-end boundary to avoid duplicate or missed payroll tax filings.
Best timing: Migrating at year-end (or a clean quarter boundary) is the cleanest way to avoid tax filing overlaps between the two systems.
What to expect: Plan for a short transition period, including a parallel payroll run or two, to confirm everything's accurate before fully cutting over.
In most entry-level comparisons, Gusto and Paychex list similar starting base rates, but Gusto's published price includes more by default — Paychex's advertised starting cost commonly excludes setup fees and add-ons that show up on the first invoice.
What's included at the base price: Gusto's plans include unlimited payroll runs and automated tax filing; Paychex's lower-tier plans may charge separately for some of what Gusto bundles in.
The real comparison is the full invoice: Because Paychex pricing is customized per business, the only way to know for certain is to compare a real Paychex quote against Gusto's published rate for your exact headcount.
Gusto publishes transparent, all-in pricing with no setup fees, while Paychex is quote-based and commonly adds a setup fee plus charges for features like direct deposit meaning two similar-looking monthly rates can result in very different total costs.
No setup fees, ever: Gusto doesn't charge a setup fee or a fee to enable direct deposit; Paychex has been reported to charge for both depending on plan and negotiated terms.
Contract terms affect total cost too: Gusto is month-to-month with no cancellation penalty. Paychex contract terms vary — some run 1–2 years with early termination fees — which matters if you're comparing true cost of ownership, not just the sticker price.
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¹ Source: Survey of 538 Gusto Customers, September 2024
**Gusto was ranked G2’s Best Payroll Software of 2025
†according to Gusto's internal payroll data May 2025.