Gusto vs ADP (2026): Transparent Pricing vs Enterprise Power — Which Is Right for You?

📋 Table of Contents

1. Overview: Two Different Philosophies
2. What Is Gusto?
3. What Is ADP?
4. Pricing Compared (Transparency vs Opacity)
5. Payroll Processing & Tax Filing
6. HR & People Management
7. Benefits Administration
8. Time & Attendance Tracking
9. Compliance & Tax Compliance
10. Integrations & API
11. Ease of Use & Onboarding
12. Customer Support
13. Contractor Payments & 1099s
14. Gusto: Pros & Cons
15. ADP: Pros & Cons
16. Total Cost of Ownership (20-Employee Business)
17. Best Use Cases for Each
18. Alternatives Worth Considering
19. FAQ

Overview: Two Different Philosophies

The Gusto vs ADP comparison isn't just about features — it's about two fundamentally different approaches to building a payroll company.

Gusto was founded in 2011 (originally as ZenPayroll) with a simple thesis: payroll and HR software for small businesses shouldn't require a sales call, a contract, or a PhD to operate. Gusto publishes its pricing on its website, offers month-to-month billing, includes benefits administration at no extra charge, and designs its interface for business owners who aren't HR professionals. As of 2026, Gusto serves over 300,000 businesses and processes payroll for more than 6 million employees nationwide.

ADP was founded in 1949 — six decades before Gusto existed. It's the largest payroll company in the world, publicly traded (NASDAQ: ADP) with over $19 billion in annual revenue, 1 million+ clients, and operations in 140+ countries. ADP processes payroll for an estimated 1 in 6 American workers. Its approach is enterprise-first: modular products, custom pricing, sales-driven onboarding, and capabilities that scale from a 5-person startup to a 50,000-employee multinational.

This fundamental difference shapes everything — pricing, user experience, support, and the trade-offs you'll make as a customer. Gusto optimizes for the small business owner who wants simplicity and predictability. ADP optimizes for the organization that needs power and scalability. Understanding which philosophy fits your business is the key to choosing correctly.

In 2026, the gap between these platforms has both narrowed and widened. Gusto has added more advanced HR features, expanded to all 50 states for benefits brokerage, and launched Gusto Embedded (payroll APIs for other platforms). ADP has modernized its small business product (ADP Run) and invested in AI-powered analytics. But the core difference remains: Gusto charges you what it says it will; ADP charges you what it negotiates with you — and those two approaches create very different customer experiences.

What Is Gusto?

Gusto is a cloud-based payroll, benefits, and HR platform headquartered in San Francisco and Denver. Founded in 2011 by Josh Reeves, Edward Kim, and Tomer London, Gusto has raised over $746 million in venture funding and was valued at approximately $9.5 billion as of its last funding round. The company serves over 300,000 businesses across all 50 U.S. states, with a focus on companies with 1-200 employees.

Gusto Plans (2026 Pricing)

Gusto is one of the few payroll providers that publishes pricing on its website — a deliberate philosophical choice that reflects its commitment to transparency:

• Simple — $49/month + $6/employee/month
  Full-service payroll, tax filing in all 50 states, employee self-service, basic hiring and onboarding tools, health insurance administration, employee financial benefits, Gusto-brokered health insurance, and integrations. Designed for straightforward payroll needs.
• Plus — $80/month + $12/employee/month
  Everything in Simple plus: full HR tools (employee directory, org chart, custom permissions), time tracking and PTO management, project tracking, workforce costing, hiring and applicant tracking, performance reviews, employee surveys, and advanced onboarding with custom checklists. The most popular plan for growing businesses.
• Premium — Custom pricing (25+ employees)
  Everything in Plus, plus: dedicated customer success manager, HR resource center with compliance alerts, access to certified HR experts, custom admin permissions, priority support, and migration assistance. Designed for established businesses with more complex HR needs.
• Contractor-only — $35/month + $6/contractor/month
  Pay contractors (W-2 not included), automatic Form 1099 filing, contractor self-service portal, and unlimited payments. Ideal for businesses that only work with independent contractors.

Gusto Core Capabilities

• Full-service payroll: Automated payroll with next-day or 2-day direct deposit. Run payroll in minutes with AutoPilot (fully automatic payroll for salaried employees). Handles hourly, salaried, and contract workers. Multiple pay schedules supported. Unlimited payroll runs at no extra charge — including off-cycle, bonus, and correction runs.
• Tax filing: Gusto calculates, files, and remits all federal, state, and local payroll taxes automatically. This includes quarterly (Form 941) and annual filings (Form 940, W-2, W-3, 1099). Gusto also handles state tax registration for new states at no additional charge — when you hire an employee in a new state, Gusto registers you automatically. This is a significant advantage over ADP, which often charges for this.
• Benefits administration: Gusto is a licensed insurance broker in all 50 states. Shop health, dental, vision, life, and disability insurance from multiple carriers directly within the platform. Benefits enrollment integrates with payroll for automatic deductions. Also offers HSAs, FSAs, commuter benefits, 529 college savings, and workers' compensation (pay-as-you-go).
• 401(k) retirement: Partnership with Guideline for affordable 401(k) plans. Plan administration, compliance testing, and employee self-service included. Guideline charges $49/month + $8/participant — significantly more affordable than traditional 401(k) providers.
• Hiring and onboarding: Job posting distribution, offer letter templates, digital document signing, custom onboarding checklists, I-9 and W-4 collection, and E-Verify integration. New employees complete paperwork before their first day.
• Gusto Wallet: A financial wellness app for employees that provides early wage access (Gusto Cashout — up to $1,000 between paychecks), fee-free savings accounts, budgeting tools, and spending accounts. No fees to employees or employers. This is a unique benefit that helps with employee retention.
• Time tracking (Plus/Premium): Built-in time tracking with GPS geolocation, mobile clock-in, project tracking, PTO management, and overtime calculations. Data flows directly to payroll. No add-on fee — included in Plus and Premium plans.
• HR tools (Plus/Premium): Employee directory, org chart, custom reporting, performance reviews, employee surveys, document storage, and compliance alerts. The Premium plan adds access to certified HR experts for employment law questions.
• Contractor payments: Pay contractors via direct deposit or check. Automatic Form 1099 generation and filing at year-end. Contractor self-service portal for invoice submission and tax document access. International contractor payments available in 80+ countries.
• Gusto Embedded: A payroll API that allows other software platforms to embed Gusto's payroll engine into their products. Used by accounting firms, vertical SaaS platforms, and fintech companies to offer payroll without building it from scratch.

Who Uses Gusto?

• Small businesses (1-50 employees) — Gusto's sweet spot. Simple, predictable pricing with everything included.
• Startups — No contracts, month-to-month billing, transparent pricing. Easy to start and easy to switch if needed.
• Businesses with mixed W-2 and 1099 workers — Gusto handles both employee payroll and contractor payments in one platform.
• Remote/distributed teams — Multi-state tax registration included free. Hire in new states without paperwork or extra fees.
• Accounting firms — Gusto for accountants offers a dedicated dashboard for firms managing payroll for multiple clients.
• Growing businesses (50-200 employees) — Plus and Premium plans scale with more advanced HR, performance management, and compliance tools.

What Is ADP?

ADP (Automatic Data Processing) is the world's largest payroll and human capital management (HCM) provider, founded in 1949 in Paterson, New Jersey. ADP is publicly traded (NASDAQ: ADP) with over $19 billion in annual revenue, approximately 64,000 employees, and operations in 140+ countries. ADP serves more than 1 million clients worldwide and pays an estimated 1 in 6 U.S. workers.

ADP Product Portfolio

ADP offers multiple products segmented by business size — which is both its strength (purpose-built for your scale) and its complexity (many products to navigate):

• ADP Run Powered by ADP (1-49 employees) — The small business platform with four tiers: Essential Payroll, Enhanced Payroll, Complete Payroll & HR, and HR Pro. Handles payroll, tax filing, new hire reporting, and basic-to-advanced HR depending on tier. The Complete and HR Pro tiers add ZipRecruiter job posting, employee handbook builder, proactive compliance alerts, and employee assistance programs.
• ADP Workforce Now (50-1,000+ employees) — The mid-market flagship platform. Modular design: Payroll, HR Management, Talent (recruitment, performance, compensation), Benefits, Time & Attendance, and Analytics. ADP's most popular product and strongest offering.
• ADP Vantage HCM (1,000+ employees) — Enterprise HCM suite with global payroll, comprehensive talent management, advanced analytics, and strategic workforce planning.
• ADP TotalSource (PEO, 5-250+ employees) — Professional Employer Organization providing co-employment with Fortune 500-level benefits, dedicated HR business partners, compliance management, and workers' comp administration.
• ADP GlobalView & Celergo — International payroll solutions for multinationals, covering 140+ countries through direct presence and local payroll partners.

ADP Core Capabilities

• Payroll processing: Industry-leading payroll engine handling every scenario: hourly, salaried, commission, tipped, multi-state, multi-country, garnishments, retroactive adjustments, and complex compensation structures. Same-day direct deposit available. Voice-activated payroll through Alexa/Google Assistant (ADP Run).
• Tax services: Comprehensive tax compliance across all 50 states, territories, and 140+ countries. Federal, state, local, and international tax filing. Year-end processing (W-2, 1099, ACA forms). Tax penalty guarantee.
• ADP Marketplace: 500+ pre-built integrations with certified partners covering accounting, benefits, time tracking, learning, talent, ERP, and more. The largest payroll integration ecosystem available.
• ADP DataCloud: People analytics powered by anonymized data from ADP's enormous client base. Benchmark compensation, turnover, diversity, and workforce trends against industry and geographic peers. No competitor has this dataset.
• Talent management (Workforce Now): Recruitment with ZipRecruiter integration, applicant tracking, onboarding, performance management, compensation planning, and succession planning.
• Wisely by ADP: Pay card and financial wellness platform for employees — fee-free ATM withdrawals, budgeting tools, and instant wage access.

Who Uses ADP?

• Mid-market businesses (50-1,000 employees) — ADP Workforce Now is the industry standard for this segment.
• Enterprise organizations (1,000+ employees) — ADP Vantage HCM and GlobalView serve Fortune 500 companies.
• Businesses with global employees — 140+ country payroll coverage is unmatched.
• Data-driven HR teams — ADP DataCloud's benchmarking is unique in the industry.
• High-growth companies — Start with ADP Run, scale to Workforce Now without migrating platforms.
• Small businesses (1-49) — ADP Run serves this segment, though Gusto often provides a better small-business experience.

Pricing Compared: Transparency vs Opacity

Pricing is the single biggest difference between Gusto and ADP — and it's not just about the dollar amounts. It's about the entire purchasing experience.

Gusto Pricing (Published, Transparent)

• Simple — $49/month + $6/employee/month
  Full-service payroll, tax filing, benefits admin, basic onboarding, employee self-service, Gusto Wallet, integrations. W-2/1099 filing included. Unlimited payroll runs.
• Plus — $80/month + $12/employee/month
  Everything in Simple + time tracking, PTO management, project tracking, hiring/ATS, performance reviews, employee surveys, workforce costing, advanced onboarding, custom permissions.
• Premium — Custom pricing (25+ employees)
  Everything in Plus + dedicated CSM, HR resource center, certified HR experts, priority support, compliance alerts, custom admin roles.
• Contractor-only — $35/month + $6/contractor/month
  Contractor payments, automatic 1099 filing, contractor self-service. No W-2 payroll.

✅ No setup fees. No year-end fees. No extra charge for state tax registration. No contract — cancel anytime. What you see is what you pay.

ADP Pricing (Unpublished, Quote-Based)

• ADP Run Essential — Estimated $59-$79/month base + $4-$8/employee. Basic payroll and tax filing.
• ADP Run Enhanced — Estimated $79-$120/month base + $6-$10/employee. Adds background checks, SUI management, ZipRecruiter.
• ADP Run Complete Payroll & HR — Estimated $120-$160+/month base + $8-$12/employee. Adds HR Help Desk, handbook, compliance alerts.
• ADP Run HR Pro — Estimated $160-$200+/month base + $10-$16/employee. Full HR suite with EAP.
• ADP Workforce Now — Estimated $10-$30+/employee/month (modular). Annual contracts standard.

⚠️ ADP does not publish pricing. These are estimates from industry reports and user data. Your actual quote will vary based on negotiation, location, and services selected. Common add-on charges include: W-2/1099 processing, state tax registration, setup fees, off-cycle payroll runs, and year-end processing.

The Real Cost Difference

On paper, ADP Run Essential appears slightly cheaper per employee than Gusto Simple. But the real cost includes what's not in that base price:

• Year-end processing: Gusto includes W-2 and 1099 filing. ADP may charge $50-$200+ for year-end forms.
• State tax registration: Gusto registers you in new states free. ADP often charges per state registration.
• Off-cycle payroll: Gusto offers unlimited runs. ADP may charge for additional payroll runs beyond your standard schedule.
• Setup/implementation: Gusto has no setup fee. ADP may charge $50-$200+ for implementation.
• Price increases: Gusto adjusts pricing transparently and occasionally (you'll see it on the website). ADP's annual contract renewals frequently include 5-15% increases that users report as unexpected.

Bottom line: When you factor in hidden fees, ADP typically costs 15-30% more than Gusto for a comparable small business setup. And Gusto's all-inclusive pricing means you'll never get an unexpected charge on your invoice.

Payroll Processing & Tax Filing

Both platforms excel at the fundamentals — but the experience of running payroll feels very different.

Gusto Payroll

• AutoPilot payroll: Gusto's signature feature. For salaried employees with consistent pay, set it once and payroll runs automatically on schedule with no manual intervention. You get a notification before each run and can cancel or adjust if needed. This alone saves hours per month.
• Unlimited payroll runs: Run payroll as many times as you need — regular runs, off-cycle payments, bonuses, commissions, corrections — all at no extra charge. ADP may charge for additional runs.
• Flexible pay types: Hourly, salaried, commission, bonus, tips, overtime, shift differentials, and retroactive pay adjustments.
• Direct deposit options: 2-day direct deposit standard, next-day available on Plus and Premium. Gusto Cashout gives employees early access to earned wages between paydays.
• Tax filing: Gusto calculates, files, and pays all federal, state, and local payroll taxes. Quarterly (941) and annual (940, W-2, 1099) filings included. State tax registration in new states handled automatically and free.
• Garnishments: Child support, tax levies, and creditor garnishments processed and remitted with proper priority handling.
• Payroll reports: Payroll journal, tax liability, paycheck details, department/location summaries, custom reports on Plus/Premium.
• Accounting integration: One-click sync with QuickBooks Online, Xero, and FreshBooks. Custom journal entry mapping available.

ADP Payroll

• Processing options: Online, mobile, or voice-activated (Alexa/Google Assistant on ADP Run). Manager approval workflows for payroll review before processing.
• Pay types: Everything Gusto handles plus multi-country payroll, piece-rate, draws, and extremely complex compensation structures. ADP's payroll engine handles edge cases that Gusto won't encounter.
• Direct deposit: Same-day and next-day options available. Paper checks and Wisely pay cards (wage access, budgeting, fee-free ATM) for employees without bank accounts.
• Tax filing: The most comprehensive tax engine in the industry. All 50 states, territories, and 140+ countries. Federal, state, local, and international jurisdictions. ACA reporting (1095-B/C). Tax penalty guarantee.
• Garnishments: Full garnishment management with multi-state compliance, creditor correspondence, and priority-based processing across complex scenarios.
• ADP DataCloud payroll analytics: Benchmark your payroll costs, overtime trends, and compensation data against ADP's massive anonymous dataset.
• General ledger integration: Native integrations with QuickBooks, Xero, Sage, NetSuite through ADP Marketplace.

🏆 Verdict: Payroll Processing

For small business payroll (1-100 employees), Gusto wins on experience. AutoPilot payroll, unlimited runs, free state registration, and a cleaner interface make running payroll genuinely effortless. The time savings from AutoPilot alone can be significant — you're not clicking "approve" every two weeks for salaried employees.

For complex or international payroll, ADP wins on power. Multi-country payroll, advanced garnishment handling, DataCloud analytics, and the deepest tax engine in the industry make ADP the right choice for businesses with complex payroll needs. If you're processing payroll in multiple countries, Gusto isn't an option — ADP (or Deel/Rippling) is.

HR & People Management

Gusto HR

• Employee directory & org chart (Plus/Premium): Visual org chart and searchable employee directory with custom fields.
• Onboarding: Digital offer letters, new hire paperwork (W-4, I-9, state forms), custom onboarding checklists, document signing, and welcome packages. Employees complete everything before day one.
• Performance reviews (Plus/Premium): Self-evaluations, manager reviews, peer reviews, and custom review templates. Review cycles with automated reminders.
• Employee surveys (Plus/Premium): Pulse surveys and engagement surveys to measure team sentiment. Anonymous option available.
• Document management: Store contracts, policies, certifications, and I-9s in a centralized, searchable repository.
• Compliance alerts (Premium): Proactive alerts about employment law changes affecting your business. Access to certified HR professionals for questions.
• Custom permissions (Plus/Premium): Role-based access control for managers, admins, and department leads.
• Reporting: Standard HR reports plus custom report builder on Plus and Premium. Headcount, turnover, compensation analysis.

ADP HR

• Onboarding: Customizable onboarding workflows with task assignment, welcome messages, and paperless new hire processing. Seamless transition from recruitment (if using ADP's ATS).
• Employee self-service (MyADP): One of the most downloaded HR apps globally. Employees manage pay stubs, benefits, PTO, and personal information.
• Talent acquisition (Workforce Now): Built-in ATS with ZipRecruiter integration, candidate screening, interview scheduling, and offer management.
• Performance management (Workforce Now): Goal alignment, continuous feedback, customizable review templates, calibration tools, and compensation planning tied to performance.
• Succession planning (Workforce Now/Vantage): Identify high-potential employees, create development paths, and plan leadership transitions.
• ADP DataCloud: Benchmark workforce metrics against millions of employees. Predict turnover risk, analyze compensation equity, track diversity trends.
• Compliance alerts (HR Pro): Proactive alerts about federal and state law changes. Employment law guidance and HR toolkit.
• Employee handbook builder (Complete/HR Pro): Create compliant handbooks with state-specific policies.

🏆 Verdict: HR

ADP wins for HR depth and enterprise capabilities — talent acquisition, succession planning, compensation management, and DataCloud analytics are leagues ahead of what Gusto offers. If you have a dedicated HR team that needs these tools, ADP Workforce Now is the right choice.

Gusto wins for HR that small businesses actually use. Performance reviews, onboarding, surveys, and compliance alerts cover 90% of what a 10-50 employee business needs. Gusto's advantage is that these features are included on Plus — not sold as separate modules at additional cost. For a small business without a dedicated HR department, Gusto gives you what you need without what you don't.

Benefits Administration

Benefits are where Gusto punches well above its weight — and where the comparison gets interesting.

Gusto Benefits

• Licensed insurance broker: Gusto is a licensed insurance broker in all 50 states. Shop health, dental, vision, life, and disability insurance from multiple carriers directly within the platform. This is included on all plans — no extra charge for benefits administration.
• Health insurance: Compare plans from major carriers (Aetna, BlueCross BlueShield, Cigna, Kaiser, UnitedHealthcare, and others depending on your state). Side-by-side plan comparison with estimated employee costs.
• 401(k) retirement: Integrated 401(k) through Guideline partnership. $49/month + $8/participant. Traditional 401(k), Roth 401(k), and safe harbor plans. Automated enrollment and payroll deduction sync.
• HSA/FSA/Commuter: Health savings accounts, flexible spending accounts (healthcare and dependent care), and commuter benefits (transit and parking). All administered within Gusto.
• Workers' compensation: Pay-as-you-go workers' comp that adjusts premiums based on actual payroll data. No large upfront deposits or year-end audit surprises.
• 529 college savings: Employer-sponsored 529 plans as an employee benefit.
• Gusto Wallet: Financial wellness for employees — earned wage access (Gusto Cashout up to $1,000), fee-free savings accounts, budgeting tools, and spending accounts. No cost to employer or employee.
• COBRA administration: COBRA notifications and enrollment managed within the platform.

ADP Benefits

• Benefits marketplace: ADP connects businesses to benefits through its massive employer network. Leverages group purchasing power across 1M+ clients for competitive rates.
• Workforce Now benefits module: Comprehensive benefits administration with plan configuration, open enrollment, qualifying life events, carrier EDI feeds, and automated deductions.
• ADP TotalSource (PEO): Fortune 500-level benefits for small businesses through co-employment — often at significantly lower rates than businesses could obtain independently.
• 401(k) and retirement: Full retirement plan administration with multiple investment provider options.
• Voluntary benefits: Accident, critical illness, legal, pet insurance, identity theft, and more through ADP's partner network.
• ACA compliance: Eligibility tracking, 1095 form generation/filing, measurement period management.
• Wisely by ADP: Pay cards with earned wage access and financial wellness tools.

🏆 Verdict: Benefits

Gusto wins for small businesses. The fact that benefits administration is included at no extra charge on every plan — including insurance brokerage in all 50 states — is remarkable. For a 20-person business setting up benefits for the first time, Gusto makes the process straightforward: shop plans, employees enroll online, deductions sync with payroll automatically. Gusto Wallet's financial wellness features (earned wage access, savings accounts) are also a genuine employee retention tool that ADP doesn't match at the same level for small businesses.

ADP wins for complex benefits environments — businesses with intricate eligibility rules, carrier EDI feeds, voluntary benefit packages, and large workforces. ADP TotalSource's PEO benefits (Fortune 500-level plans for small businesses) are also compelling if you're willing to enter a co-employment arrangement.

Time & Attendance Tracking

Gusto

• Built-in time tracking on Plus and Premium — no add-on fee
• Mobile clock-in with GPS geolocation
• Project-level time tracking for workforce costing
• PTO management with accrual tracking and approval workflows
• Overtime calculations with state-specific rules
• Timesheet approval workflows for managers
• Direct integration with payroll — approved time flows automatically to the next payroll run
• Simple plan users can integrate with third-party time tracking tools (When I Work, Homebase, TSheets, etc.)

ADP

• Time tracking available as an add-on module — additional cost
• Web, mobile, and physical time clock options (wall clocks, badge readers, biometric scanners)
• Geofencing for mobile clock-in (restrict to job site locations)
• PTO management with configurable accrual policies
• Employee scheduling with labor cost forecasting (Workforce Now)
• Overtime calculations with multi-state compliance
• Break and meal period attestation features
• Advanced scheduling with labor demand forecasting
• Physical time clock hardware options from ADP's catalog

🏆 Verdict: Time & Attendance

Gusto wins on value — time tracking is included on Plus and Premium, while ADP charges extra for it. For basic time tracking, PTO management, and payroll integration, Gusto covers the need without additional cost.

ADP wins on capability — physical time clocks (biometric, badge readers), geofencing, labor demand forecasting, and advanced scheduling are features Gusto doesn't offer. If you manage hourly workers across multiple locations, warehouse/manufacturing environments, or need physical clock-in hardware, ADP's time and attendance is more robust.

Compliance & Tax Compliance

Gusto Compliance

• Automatic state tax registration: When you hire in a new state, Gusto registers your business for state withholding and unemployment insurance automatically — at no additional charge. This is a significant advantage.
• Tax accuracy guarantee: Gusto covers penalties and interest from tax filing errors they cause.
• New hire reporting: Automated state new hire reporting for all 50 states.
• I-9 and E-Verify: Electronic I-9 completion with optional E-Verify integration.
• ACA compliance: Eligibility tracking and 1095-C form generation (for applicable large employers).
• Compliance alerts (Premium): Proactive notifications about employment law changes. Access to certified HR professionals for compliance questions.
• Workers' comp: Pay-as-you-go workers' compensation insurance with real-time payroll data integration.
• Document storage: Secure storage for I-9s, tax forms, and compliance documentation.

ADP Compliance

• Multi-state and international tax: The most comprehensive tax compliance system available — all 50 states, territories, and 140+ countries.
• Tax penalty guarantee: ADP covers penalties from their tax filing errors. One of the strongest guarantees in the industry given ADP's scale.
• Proactive compliance alerts (HR Pro): Legislative scanning with proactive alerts about new laws affecting your business, based on state and industry. Recommended actions included.
• ACA compliance: Full ACA management — eligibility tracking, measurement periods, 1095-B/C generation and electronic filing, penalty risk assessment.
• EEO reporting: EEO-1 report generation and diversity tracking across your workforce.
• Wage and hour compliance: FLSA tracking, break/meal period compliance, overtime alerts.
• I-9 and E-Verify: Electronic I-9 with E-Verify integration.
• Workers' comp: Pay-as-you-go with real-time payroll data. Year-end audit preparation.
• State tax registration: Available but may incur additional fees (unlike Gusto, which includes this free).

🏆 Verdict: Compliance

ADP wins for breadth — 140+ country coverage, comprehensive EEO reporting, and more sophisticated ACA management tools. For businesses in heavily regulated industries or with international operations, ADP's compliance infrastructure is deeper.

Gusto wins for value — automatic state tax registration at no extra charge is a genuine cost and time saver for growing businesses. When you hire your first employee in Texas or Florida, you don't need to research state requirements or pay $100+ for registration. Gusto handles it. For a standard U.S. small business, Gusto's compliance features cover everything you need.

Integrations & API

Gusto Integrations

• Accounting: QuickBooks Online, Xero, FreshBooks — one-click sync with automatic journal entries.
• Time tracking: When I Work, Homebase, TSheets/QuickBooks Time, Clockwork, and others.
• Expense management: Expensify, Brex, Ramp.
• Business tools: Slack, Google Workspace, Microsoft 365, Lattice, 15Five, and others.
• HR & benefits: Guideline (401k), various insurance carriers.
• Gusto API: REST API available for developers. Well-documented with sandbox environment. Powers Gusto Embedded for platform partners.
• Integration count: Approximately 100-150+ integrations — growing but significantly smaller than ADP's ecosystem.

ADP Integrations

• ADP Marketplace: 500+ pre-built integrations — the largest payroll integration ecosystem available. Certified partners across every business software category.
• Accounting: QuickBooks (Desktop + Online), Xero, Sage, NetSuite, and many others with two-way data sync.
• ERP: SAP, Oracle, and other enterprise platforms for large organizations.
• ADP API: The most mature payroll API in the industry. Comprehensive REST APIs with extensive documentation, developer sandbox, and robust authentication.
• Custom integrations: ADP's professional services team builds custom integrations for complex enterprise requirements.

🏆 Verdict: Integrations

ADP wins decisively. 500+ integrations vs ~150 isn't close. If your business relies on a complex tech stack with niche tools, ADP is far more likely to have a pre-built integration. ADP's API is also more mature for custom development.

That said, Gusto covers the integrations most small businesses actually need — QuickBooks, Xero, Slack, time tracking tools, and expense management. If your tech stack is QuickBooks + Slack + a time tracker, Gusto has you covered. The gap matters most for mid-market and enterprise businesses with specialized software needs.

Ease of Use & Onboarding

Gusto

• Consumer-grade UX: Gusto's interface looks and feels like a modern consumer app. Clean design, intuitive navigation, minimal jargon. Business owners with zero HR experience can navigate it.
• Self-service setup: Sign up online, add your business info, import employees, and run your first payroll — no sales call required. Typical setup takes 1-2 hours.
• AutoPilot: Set and forget payroll for salaried employees. No other platform makes recurring payroll this effortless.
• Mobile app: Well-designed for both admins and employees. Run payroll, approve PTO, view pay stubs — all from your phone.
• Learning curve: Minimal. Most business owners are fully comfortable within a day. Gusto provides guided setup with inline help at every step.
• Migration: Dedicated migration team helps import data from your previous provider (including ADP). Typically completes in 1-2 weeks.

ADP

• Sales-driven onboarding: You must contact sales for a quote, negotiate pricing, and sign a contract before getting started. This process can take days or weeks.
• ADP Run interface: Modernized and reasonably intuitive for basic payroll. Adequate for small businesses, though not as polished as Gusto.
• Workforce Now interface: More complex — powerful but busier with more menus, options, and configuration. Requires training for admin users.
• MyADP mobile app: Excellent for employee self-service (pay stubs, benefits, PTO). Admin mobile experience is adequate but not as clean.
• Learning curve: ADP Run is moderate. Workforce Now has a steeper learning curve with 2-4 weeks to full proficiency. ADP Bridge offers training courses.
• Implementation: ADP assigns an implementation team (for Workforce Now). Setup typically takes 2-6 weeks depending on complexity.

🏆 Verdict: Ease of Use

Gusto wins by a wide margin. From the moment you sign up (no sales call!) to the first payroll run (minutes, not days), Gusto is designed for business owners who aren't payroll professionals. AutoPilot payroll, inline guidance, and a consumer-grade interface make Gusto the easiest payroll platform available. ADP Run is adequate, but the sales-driven purchasing process and more traditional interface can't match Gusto's modern experience. If ease of use is your top priority, there's no contest.

Customer Support

Gusto Support

• Phone, email, and chat: Available during extended business hours (typically 7am-5pm PT on weekdays).
• Dedicated CSM (Premium): A named customer success manager who knows your business. Available on Premium plan.
• Certified HR experts (Premium): Access to HR professionals for employment law questions and compliance guidance.
• Help center: Comprehensive knowledge base with articles, videos, and step-by-step guides.
• Community: Active user community and webinars.
• Reputation: Gusto consistently earns high satisfaction scores. Users frequently cite support quality as a top reason for choosing Gusto.

⚠️ Gusto's main limitation: no 24/7 phone support. If you run payroll at 10pm and hit an issue, you'll need to wait for business hours. For most businesses, this isn't a problem — but it's worth noting.

ADP Support

• Phone support: Available during business hours. ADP Run customers typically reach a call center, not a dedicated representative.
• Account manager (Workforce Now): More personalized support with account managers, though not always a single named contact.
• Premium support packages: Faster response times and dedicated contacts available at additional cost.
• ADP Bridge: Learning platform with training courses for admins and end users.
• Knowledge base: Extensive articles and the SPARK blog for HR insights.
• Community: ADP user community and events.

⚠️ ADP's most common complaint from small business users: call center support with long wait times and agents who don't know your account. This is frequently cited in reviews as the biggest frustration with ADP Run.

🏆 Verdict: Support

Mixed. Gusto's support is more personal and helpful for the typical small business — users consistently rate it highly, and the team tends to know the product well. ADP's call center model for Run customers can be frustrating, with long hold times and agents who need to look up your account from scratch. However, ADP offers premium support packages and more extensive training resources. For businesses willing to pay for premium support (or those on Workforce Now), ADP's support improves significantly. For standard small business support, Gusto provides a better experience.

Contractor Payments & 1099s

If you work with independent contractors, this comparison matters — Gusto has a clear edge here.

Gusto

• Contractor-only plan available: $35/month + $6/contractor for businesses that only pay contractors (no W-2 employees).
• Contractor payments on all plans: Pay contractors via direct deposit alongside your regular payroll runs.
• Automatic 1099 filing: Gusto generates and files Form 1099-NEC for all contractors at year-end — included at no extra charge.
• Contractor self-service: Contractors access their own portal to submit invoices, view payment history, and download tax documents.
• International contractors: Pay contractors in 80+ countries with automatic currency conversion.
• W-9 collection: Automated W-9 collection from new contractors during onboarding.

ADP

• Contractor payments: Available through ADP Run and Workforce Now, but contractor management is less featured than Gusto's purpose-built tools.
• 1099 filing: ADP processes 1099 forms at year-end, though this may incur additional fees depending on your plan.
• Limited self-service: Contractor portal less robust than Gusto's dedicated contractor experience.
• International: ADP handles international contractor payments through its global payroll infrastructure, though primarily designed for employee payroll.

🏆 Verdict: Contractor Payments

Gusto wins clearly. A dedicated contractor-only plan, free 1099 filing, international contractor payments in 80+ countries, and a purpose-built contractor self-service portal make Gusto the best choice for businesses that work with independent contractors. If you have a mixed workforce of W-2 employees and 1099 contractors, Gusto handles both seamlessly in one platform with no additional per-contractor fees beyond the base plan.

Gusto: Pros & Cons

ADP: Pros & Cons

Total Cost of Ownership: 20-Employee Business

Let's model the realistic annual cost for a business with 20 employees needing payroll, HR, benefits administration, and time tracking.

Gusto Plus (Published Pricing)

• Base fee: $80/month
• Per employee: $12/mo × 20 = $240/month
• Time tracking: Included ✅
• Benefits admin: Included ✅
• Year-end W-2/1099 filing: Included ✅
• State tax registration: Included ✅
• Setup/implementation fee: $0 ✅
• Annual total: $3,840/year — no surprises

ADP Run Enhanced + Add-ons (Estimated)

• Base fee: ~$100/month
• Per employee: ~$8/mo × 20 = ~$160/month
• Time tracking add-on: ~$5/employee = ~$100/month
• Year-end W-2/1099 processing: ~$200-$400
• State tax registrations (2 new states): ~$100-$200
• Setup/implementation: ~$100-$200
• Miscellaneous add-on fees: ~$50-$100/month
• Estimated annual total: $5,320-$6,520/year

The Bottom Line

For a 20-employee business with comparable features, Gusto costs approximately $3,840/year while ADP costs approximately $5,320-$6,520/year — a difference of $1,480-$2,680 per year (38-70% more for ADP). And that gap isn't buying you much: for a business this size, Gusto's payroll, HR, benefits, and time tracking are more than sufficient.

The math changes at scale. For a 200-employee business needing Workforce Now's talent management, advanced analytics, and enterprise integrations, ADP's per-employee pricing may actually be more competitive — and the capabilities justify the premium. But for the typical small business evaluating "Gusto vs ADP," Gusto delivers equivalent or better value at a significantly lower and more predictable cost.

Best Use Cases for Each

Choose Gusto If:

• You're a small business (1-100 employees) that wants predictable pricing with no hidden fees.
• Ease of use is a top priority — you want payroll you can set up yourself without a sales call.
• You value pricing transparency — knowing exactly what you'll pay each month matters to you.
• You hire across multiple states — Gusto's free state tax registration saves time and money as you expand.
• You work with contractors — Gusto's contractor payments and automatic 1099 filing are best-in-class.
• You want benefits without the complexity — Gusto's built-in insurance brokerage makes benefits accessible for small businesses.
• You're a startup — month-to-month billing, no contracts, and transparent pricing let you start small and scale.
• You want payroll on autopilot — AutoPilot payroll is a genuine time-saver for salaried teams.
• Employee financial wellness matters — Gusto Wallet provides earned wage access and savings tools at no cost.

Choose ADP If:

• You're a growing mid-to-large business (50-1,000+ employees) that needs enterprise scalability.
• You have international employees — ADP's 140+ country payroll is essential if you employ people outside the U.S.
• You need deep integrations — ADP Marketplace's 500+ apps connect to virtually any business tool.
• Workforce analytics matter — ADP DataCloud provides benchmarking and predictive analytics no competitor can match.
• You need comprehensive talent management — recruitment, performance, compensation planning, and succession planning built into one platform.
• You expect rapid growth — starting with ADP Run and scaling to Workforce Now avoids a platform migration.
• You need physical time clocks — manufacturing, warehousing, or multi-location businesses benefit from ADP's hardware options.
• You want Fortune 500 benefits — ADP TotalSource (PEO) offers enterprise-level benefits packages for small businesses.
• Your industry requires advanced compliance — multi-state, multi-country, or heavily regulated businesses need ADP's deeper compliance tools.

Alternatives Worth Considering

If neither Gusto nor ADP is the perfect fit, here are other platforms worth evaluating:

• Paychex — The middle ground between Gusto and ADP. Paychex offers dedicated payroll specialists, direct insurance brokerage, and full-service 401(k) — with more hand-holding than Gusto and more simplicity than ADP. Best for businesses (10-500 employees) that want enterprise features with a personal touch. Quote-based pricing like ADP. See our Paychex vs ADP comparison →
• Rippling — Best for tech-forward businesses wanting unified HR, IT, and Finance. Combines payroll, benefits, device management, app management, and expense management on one platform. Starts around $8/employee/month. Exceptional for companies with remote teams needing device and app provisioning. See our Deel vs Rippling comparison →
• Deel — Best for international hiring. Global payroll, EOR services in 150+ countries, and contractor payments in 190+ countries. If you're hiring outside the U.S. (where Gusto can't help and ADP is complex), Deel is purpose-built for it. See our Deel vs Rippling comparison →
• OnPay — A simpler, more affordable alternative to Gusto for very small businesses. One plan at $40/month + $6/employee with payroll, HR, and benefits. Less feature-rich than Gusto Plus but excellent for businesses that just need reliable payroll.
• Justworks — PEO-first platform for startups wanting co-employment with transparent pricing ($59/employee/month). Access to large-group health insurance, compliance management, and HR tools without enterprise complexity.
• QuickBooks Payroll — Best for businesses already using QuickBooks for accounting. Tight integration between payroll and bookkeeping. Starts at $50/month + $6/employee. Less robust HR features than Gusto, but the QuickBooks ecosystem is hard to beat for accounting-first businesses.
• Patriot Software — Budget pick for basic payroll at the lowest cost. Full service payroll at $37/month + $4/employee. No-frills but reliable for businesses that just need paychecks processed accurately.

Frequently Asked Questions