Gusto vs Paylocity

A quick and easy comparison guide

Gusto vs Paylocity

HR software makes it easier to manage your team, simplify payroll, and stay compliant with federal and state regulations. But how do you decide which HR software is right for your business? Below, you can compare Gusto with Paylocity and decide which platform is best for your payroll and HR needs.

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Compare pricing and features: Gusto vs Paylocity

Gusto
Paylocity
Pricing
Monthly feeStarting at $40/mo + $6/mo per person
No upfront monthly pricing
Setup feeFree
10-20% of annual setup fee 10-20% of annual setup fee
Payroll
Unlimited payrollsCheckmark
Unknown
Automated federal and state tax filingCheckmark
Direct depositCheckmark
File W-2sCheckmark
Dollar$7 per employee
File 1099sCheckmark
Multiple pay rates and schedulesCheckmark
Multiple statesCheckmark(Plus and Premium)
Contractor paymentsCheckmark
CheckmarkAdditional fee may be required
E-sign I-9 and W-4Checkmark
Lifetime access for employeesCheckmark
Household employer payrollX
International payrollDollar(International contractor add-on)
CheckmarkAdditional fee may be required
Benefits
Health benefitsPay premiums only
Workers’ compPay premiums only
Premiums + fees
Available add-ons
  • Broker integration
  • 401(k) retirement
  • Commuter benefits
  • Life and disability
  • HSA and FSA
  • Broker integration 401(k) retirement Commuter benefits Life and disability HSA and FSA HRA POP COBRA TMA
HR tools
Time trackingCheckmark(Plus and Premium)
Workforce management softwareWorkforce management software
Team directory and org chartCheckmark(Plus and Premium)
Employee Experience PlatformEmployee Experience Platform
Time-off requestsCheckmark(Plus and Premium)
Workforce management softwareWorkforce management software
Online offer lettersCheckmark
Talent Management SystemTalent Management System
Secure document vault and e-signingCheckmark
Human Resources SoftwareHuman Resources Software
Custom employee handbookCheckmark(Premium and HR add-on)
Human Resources SoftwareHuman Resources Software
Job description and policy templatesCheckmark(Premium and HR add-on)
Talent Management SystemTalent Management System
Proactive compliance updatesCheckmark(Premium and HR add-on)
Human Resources SoftwareHuman Resources Software
Certified HR prosCheckmark(Premium and HR add-on)
Human Resources SoftwareHuman Resources Software
Direct phone line for dedicated supportCheckmark(Premium and HR add-on)
Custom Onboarding ChecklistCheckmark(Plus and Premium)
Talent Management SystemTalent Management System
Software ProvisioningCheckmark(Plus and Premium)
Integrations
QuickBooksCheckmark
XeroCheckmark
Google (G-suite) SSOCheckmark

*Competitive data on this page was collected as of March 20th, 2023 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.

Clipart of three people
Clipart of three people

What to consider when choosing a payroll provider?

  • What’s included in pricing?

    Many platforms offer lots of bells and whistles—but all at additional cost that can quickly add up. Look for a payroll provider that doesn’t charge extra for every feature you want to add.

  • See if the provider has experience with businesses like yours.

    Size is one of the most important factors to keep in mind. While some payroll solutions are great for large enterprises, they may not be able to cover the needs of small and midsize businesses. By choosing a payroll service that can serve you today and in the future, you can guarantee your needs will be met as your business grows.

  • Is it easy to switch?

    Migrating your payroll data could be a daunting task, and one that shouldn’t be taken lightly. Ask about this process, and ask about what kind of onboarding support they offer for new customers.

  • How can I get help when I need it?

    Getting in touch with customer support should be simple and easy, with ample resources at your fingertips to help you get the most of your new payroll software. Ask about online, email, chat, and phone support.

Comparison details: Gusto vs Paylocity

Pricing

Gusto offers straightforward monthly plans with options starting at a monthly base fee of $40, plus an additional $6 per employee per month. If you don’t have W-2 employees, you can use Gusto to pay your contractors for just $35/month plus $6/month per contractor (only in the months you pay them). There are no hidden fees, and our base price includes setup, tax filing, multiple payroll runs, reporting, and other essentials.

Paylocity doesn’t offer transparent pricing, and you’ll need to call them to get a quote. But you can expect to pay anywhere between $18 and $25 per employee per month, depending on the options you choose. 

In addition to higher fees, Paylocity typically charges a setup fee of 10–20% of your annual software fee.

Payroll

Running payroll

With Gusto, you can complete payroll in just a few clicks whether you’re at your desk or on the go. It takes our customers 11 minutes on average to process payroll, and you can even set up AutoPilot to process your payroll automatically. You have the power to set up multiple pay rates and schedules, and we offer next-day direct deposit and unlimited payrolls every month at no extra cost.

While Paylocity has a similar suite of payroll tools included, it’s unclear whether they charge extra for unlimited payrolls. 

Tax filings

Gusto automatically calculates, files, and pays all federal, state, and local taxes every time you run payroll. Both W-2s for your employees and 1099s for your contractors can be created and sent out right from the platform, all at no extra cost. 

Paylocity includes automated federal and state tax filing when you run payroll, but they charge $7 per employee to file W-2s.

Benefits

Employee Benefits

We know you want to give your employees the best. That’s why Gusto provides leading medical, dental, and vision benefits with all of our plans. Our team has licensed health insurance brokers in 37 U.S. states and counting offering 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. 

On top of traditional benefits, Gusto also offers a wide range of options such as workers’ comp, FSAs, and HSAs, along with no-cost and low-cost add-ons like commuter plans and the Gusto Wallet mobile app that lets employees manage their paychecks, save money, access emergency cash, and more. 

Paylocity offers traditional benefits administration as well as worker’s comp and flexible benefits like HSAs and FSAs, but they charge a fee in addition to your premiums. They also offer an  “on-demand” payment solution that lets employees access paychecks early for emergencies, but it’s not nearly as robust as Gusto’s no-cost benefits options.

HR tools

Employee self-service

Gusto’s self-onboarding makes adding new team members a breeze while confidential information stays confidential. Employees can check their accrued PTO, request time off, and clock in and out straight from the app.* And with Gusto’s lifetime employee access, employees will always be able to access their W-2s and benefits information without having to contact anyone on your team—no matter how long it’s been since they left the company.

Paylocity also offers the ability for employees to self-manage their time off, benefits, and tax info, though it’s unclear if they offer lifetime access once an employee leaves the company. 

*Time tracking comes included with our Plus and Premium plans

Hiring & onboarding

Gusto offers a full suite of tools to help you hire, onboard, and retain your team, including team directories and org charts, custom employee handbooks, and onboarding checklists. We also make it easy to manage the process with document e-signing, online offer letters, and a secure document vault that come included with all Gusto plans. 

While Paylocity also offers a full suite of talent management tools for recruiting, onboarding, and retaining your team, they aren’t included in the basic payroll pricing but instead come as part of their Talent Management System. 

Team management

Gusto’s Plus and Premium plans include time tracking, so employees can track hours, request paid time off, and easily view PTO straight from their accounts. And any approved hours automatically sync to payroll. 

Paylocity has a similar suite of team management tools, but they come as part of their Workforce Management software (separate from their Talent Management System). Because Paylocity lacks transparent pricing, it’s difficult to know how much you’ll pay to get the tools you need. 

Customer service

All of Gusto’s products come with full access to our friendly sales and customer support teams via phone, email, and chat Monday through Friday. And our FAQ and Help Center are available 24 hours a day, 7 days a week. Companies with more than 10 employees also benefit from our dedicated onboarding support team. 

Paylocity also has live phone and chat support Mondays to Fridays, an online FAQ and knowledge base, and a dedicated account manager. Just like Gusto, access to certified HR pros comes as an add-on with their HR software.

 

Integrations

Integration capabilities

Our payroll platform integrates with nearly 200 leading software tools for HR, time tracking, expense management, point of sale (POS), accounting, and more. And we never charge extra for integrations. Check out our full list of integrations here.

Paylocity has a similar set of available integrations, and like Gusto, they also offer the ability to customize integrations via API.

 

list of software integration logos

Gusto FAQs

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