Gusto vs ADP: The Honest Comparison You Actually Need
You're comparing Gusto and ADP because you need payroll software and don't want to waste money on the wrong choice. Here's the quick answer: Gusto is better for most small businesses under 50 employees. ADP makes more sense for larger companies with complex multi-state operations or those who need enterprise-level HR.
Now let's dig into the specifics.
Pricing: Gusto is Transparent, ADP is Not
This is the biggest difference you'll notice immediately. Gusto publishes their pricing. ADP makes you talk to a sales rep for a quote.
Gusto Pricing Breakdown
Gusto offers four main plans:
- Simple: $49/month + $6/employee - Full-service single-state payroll, employee self-service, basic hiring and onboarding tools
- Plus: $80/month + $12/employee - Everything in Simple plus multi-state payroll, next-day direct deposit, time tracking, PTO management
- Premium: $180/month + $22/employee - All Plus features plus dedicated customer success manager, HR resource center, compliance alerts, certified HR experts
- Contractor Only: $35/month + $6/contractor - For businesses that only pay contractors
Every Gusto plan includes unlimited payroll runs with no extra charge for off-cycle payrolls. It's month-to-month with no contracts—cancel anytime. Check out our full Gusto pricing breakdown for more details.
ADP Pricing Breakdown
ADP's entry-level product, RUN Powered by ADP, starts at $39/month + $5/employee for their Essential plan. However, ADP doesn't publish full pricing on their website—you need to request a quote.
ADP offers four RUN tiers for small businesses (1-49 employees):
- Essential: Basic payroll, taxes, compliance
- Enhanced: Essential plus ZipRecruiter integration, SUI management, background checks
- Complete: Enhanced plus basic HR support
- HR Pro: Complete plus enhanced HR support and employee perks
For businesses with 50+ employees, ADP offers Workforce Now with three additional tiers.
The problem with ADP's pricing model is the hidden costs. Many users report extra fees for W-2/1099 processing, garnishment handling, benefits administration, and HR compliance tools that can significantly increase costs over time.
The Real Cost Comparison
Let's do the math for a 10-employee company:
| Service | Monthly Cost (10 employees) |
|---|---|
| Gusto Simple | $109/month ($49 + $60) |
| Gusto Plus | $200/month ($80 + $120) |
| ADP Essential (estimated) | $89/month ($39 + $50) |
| ADP Enhanced+ (estimated) | $120-200+/month |
ADP looks cheaper at first glance, but once you add the features you actually need—like time tracking, HR support, or benefits administration—the costs often exceed Gusto. And you'll spend time on sales calls to find out.
Features: What Each Platform Does Best
Where Gusto Wins
- User Interface: Gusto is genuinely easy to use. The dashboard is clean, running payroll takes minutes, and employees can self-serve for tax documents and pay stubs.
- Transparent Pricing: You know exactly what you're paying for. No surprise fees.
- Modern Benefits: Health insurance, 401(k), HSA, FSA, commuter benefits—all integrated with payroll automatically.
- Onboarding: Smooth employee onboarding with digital document signing and self-service setup.
- Unlimited Payroll Runs: Run payroll as often as you need without extra charges.
Where ADP Wins
- Scalability: ADP serves over 900,000 small business clients and scales from 1 employee to enterprise-level. If you're growing fast and might hit 100+ employees, ADP won't require a platform switch.
- Enterprise Features: Advanced analytics with 200+ standard reports, turnover probability tools, pay equity explorer, compensation benchmarking.
- Multi-jurisdictional Expertise: ADP has 70+ years of payroll experience across 140+ countries. For complex multi-state or international payroll, they have deeper expertise.
- No Contract Required: RUN Powered by ADP is month-to-month with no contract required.
- Contractor Payments: ADP lets you add contractor pay alongside W-2 employees in the same run—a time saver.
Customer Support Comparison
Gusto offers phone, email, and chat support across all plans. Premium plan users get a dedicated customer success manager and priority support with access to certified HR experts.
ADP provides 24/7 customer support and dedicated account resources, but user reviews are mixed. Some Trustpilot reviews mention long hold times and impersonal service. However, ADP's expert support on compliance and evolving regulations is a genuine strength—they flag potential payroll errors before they become costly penalties.
Integration and Software Ecosystem
Both platforms integrate with major accounting software, but here's the difference:
Gusto integrates seamlessly with QuickBooks, Xero, FreshBooks, and other popular small business tools. The integrations are generally plug-and-play.
ADP offers broader enterprise integrations including ERP systems, POS systems, and advanced business tools. They claim to "automate tasks, streamline processes and share data seamlessly."
For most small businesses, Gusto's integrations cover everything you need. ADP's integrations matter more if you're running complex enterprise software stacks.
Who Should Choose Gusto
- Small businesses under 50 employees
- Companies that want transparent, predictable pricing
- Businesses that value a modern, intuitive interface
- Teams that need solid benefits administration (health, 401k, etc.)
- Companies operating in a single state or a few states
- Anyone who hates talking to sales reps to get a price
Try Gusto free and see if it fits your workflow.
Who Should Choose ADP
- Growing businesses that expect to scale past 50 employees
- Companies with complex multi-state or international payroll needs
- Enterprises needing advanced HR analytics and benchmarking
- Businesses that need deep customization and extensive reporting
- Organizations with established relationships with ADP (switching is painful)
The Bottom Line
For small businesses under 50 employees, Gusto is the better choice 9 times out of 10. It's easier to use, pricing is transparent, and you get a modern platform without nickel-and-diming on essential features.
ADP makes sense if you're a larger organization, need enterprise-grade HR tools, or have complex multi-state/international needs. Just be prepared to spend time on sales calls and potentially deal with surprise add-on costs.
Both platforms handle the basics well—payroll processing, tax filings, direct deposit. The difference is in the experience. Gusto was built for small business simplicity. ADP was built for enterprise scale and complexity, then adapted for small business.
If you're still weighing options, also check out our comparisons of Gusto vs Paychex, Gusto vs QuickBooks Payroll, and Gusto vs Rippling. We also have a complete Gusto review and breakdown of Gusto's true cost if you want more details on that platform specifically.
Need more options? Our roundup of the best payroll software for small business covers additional alternatives worth considering.