Gusto vs QuickBooks Payroll: A Straightforward Comparison

If you're here, you're probably trying to figure out whether Gusto or QuickBooks Payroll is the right fit for your business. Both are solid options, both have their fans, and both will get your people paid. But they're not the same product, and the right choice depends entirely on what you actually need.

I've dug into both platforms extensively. Here's the real breakdown—no marketing fluff, just the stuff that matters.

The Quick Answer

Choose Gusto if: You need solid HR features alongside payroll, you want broader benefits options, or you're a startup/small business that wants everything in one place without needing QuickBooks accounting software.

Choose QuickBooks Payroll if: You already use QuickBooks Online for accounting, you need same-day direct deposit, or you want seamless payroll-to-books integration without third-party syncing.

Pricing Comparison: Breaking Down the Numbers

Let's get specific about what you'll actually pay.

Gusto Pricing

• Simple: $49/month + $6/employee — Single-state payroll, basic onboarding, two-day or four-day direct deposit
• Plus: $80/month + $12/employee — Multi-state payroll, next-day direct deposit, time tracking, PTO management
• Premium: Custom pricing (starts around $135/month + $16.50/employee) — Dedicated support, HR resource center, compliance alerts
• Contractor Only: $35/month + $6/contractor (first 6 months: $0 base fee)

Gusto increased their Simple plan from $40 to $49/month in March. Not a huge jump, but worth noting if you're price-sensitive.

QuickBooks Payroll Pricing

• Core: $50/month + $6/employee — Full-service payroll, next-day direct deposit, basic benefits
• Premium: $85/month + $9/employee — Same-day direct deposit, time tracking via QuickBooks Time, HR support center
• Elite: $130-134/month + $11-12/employee — Tax penalty protection (up to $25,000), expert setup, 24/7 support
• Contractor Payments: $15/month for up to 20 contractors, $2/additional contractor

QuickBooks frequently runs 50% off promotions for the first three months, so factor that in if you're signing up.

Price Comparison for a 10-Employee Business

At the entry level, they're nearly identical. As you scale up tiers, QuickBooks becomes more cost-effective per employee. But Gusto includes more HR features at each level, so you're comparing apples to slightly different apples.

For a deeper dive into Gusto's pricing tiers, check out our Gusto pricing breakdown.

Payroll Features: Where They Match and Where They Don't

What Both Do Well

• Unlimited payroll runs — Neither charges extra for off-cycle payments
• Automatic tax filing — Federal and state taxes calculated and filed automatically
• Employee self-service — W-2s, pay stubs, and basic info accessible to employees
• Direct deposit — Both offer it, though timing differs
• Contractor payments — 1099 filing and contractor management included

Where QuickBooks Payroll Wins

Same-day direct deposit: This is a big one. QuickBooks Premium and Elite plans offer same-day direct deposit if you submit by 7 AM PT. Gusto's fastest option is next-day (Plus plan and above), with the Simple plan requiring 2-4 business days.

QuickBooks ecosystem integration: If you're already running your books on QuickBooks Online, the payroll integration is seamless. Data syncs automatically, no exports or third-party connectors needed. This alone is a major time-saver.

GPS time tracking: QuickBooks' higher-tier plans include GPS tracking with geofencing—employees get prompted to clock in/out when entering job sites. Useful for construction, field service, or any business with mobile workers.

Tax penalty protection: Elite plan users get up to $25,000 in coverage if the IRS hits you with a penalty. QuickBooks' tax resolution team also helps you sort out any issues. Gusto doesn't offer this.

Where Gusto Wins

HR features: Gusto is built as a people platform, not just payroll software. You get org charts, employee directories, customizable profiles, online offer letters, performance review tools, and employee surveys. QuickBooks' HR features are comparatively basic.

Benefits breadth: Gusto connects you to over 9,000 health insurance plans and offers HSAs, FSAs, 401(k)s, commuter benefits, college savings (529 plans), and workers' comp. QuickBooks offers health insurance and 401(k), but the menu is smaller.

Accounting software flexibility: QuickBooks Payroll works best with QuickBooks accounting. Gusto integrates with QuickBooks, sure, but also Xero, FreshBooks, Sage, and others. If you're not locked into the Intuit ecosystem, Gusto gives you more options.

Onboarding tools: Job postings, offer letter templates, customizable onboarding checklists, document management—Gusto handles the whole new-hire workflow. QuickBooks has onboarding, but it's less robust.

Autopilot for hourly workers: Gusto's time tracking integrates directly with payroll, so you can fully automate payroll for hourly employees. QuickBooks can auto-run payroll for salaried workers, but hourly requires manual steps.

User Experience and Setup

Both platforms are designed for non-accountants to use. Modern interfaces, clean dashboards, nothing scary.

Gusto claims their average customer runs payroll in about 8 minutes. Setup can be done in under 30 minutes if you have your employee info ready. They also let you use the software free until you actually run your first payroll—nice for kicking the tires.

QuickBooks offers expert setup assistance on the Elite plan and setup review on Premium. If you're nervous about getting it right, that hand-holding might be worth the upgrade.

One Gusto quirk: no master search bar. You have to navigate menus manually. Minor annoyance, but worth mentioning.

Customer Support

Both offer phone, email, and chat support during business hours. Gusto's support is Monday-Friday, and they have a help center available 24/7.

QuickBooks Elite plan gives you 24/7 phone support and access to a dedicated HR advisor through their partner Mineral. If you're running payroll at weird hours or need compliance guidance, that's valuable.

User reviews mention inconsistent support quality for both platforms, though Gusto generally gets better marks for friendliness and QuickBooks for technical depth.

Who Should Choose What

Go With Gusto If:

• You're a startup or small business under 50 employees
• You need HR tools, not just payroll
• You want comprehensive benefits administration
• You use accounting software other than QuickBooks
• You have international contractors to pay
• You want autopilot payroll for hourly workers

Try Gusto →

Go With QuickBooks Payroll If:

• You already use QuickBooks Online for accounting
• Same-day direct deposit is critical for your cash flow
• You have employees across multiple states (multi-state included in Core)
• You need GPS time tracking for field workers
• You want tax penalty protection
• You prefer bundled accounting + payroll pricing

What About Contractors?

Both platforms handle contractor payments, but the pricing differs significantly.

QuickBooks charges $15/month for up to 20 contractors, then $2 per additional contractor. If you have 20 contractors, that's $15/month total.

Gusto's Contractor Only plan is $35/month + $6/contractor. For 20 contractors, that's $155/month. The first 6 months have a $0 base fee, but after that, QuickBooks is substantially cheaper for contractor-heavy businesses.

If you're running a business that's mostly contractors with few W-2 employees, QuickBooks has the edge on price.

The Hidden Costs to Watch

Neither platform is perfect on transparency. Here's what can sneak up on you:

Gusto:

• Next-day direct deposit costs an extra $15/month + $3/person on the Simple plan
• Priority support is $30/month + $3/employee as an add-on
• Advanced HR resources are $50/month + $5/employee as an add-on
• Health benefits through your own broker costs $6/employee/month (free if you use Gusto as broker)

QuickBooks:

• Time tracking (QuickBooks Time) is only included in Premium and Elite—standalone it's $20-40/month base + $8-10/user
• Multi-state payroll is included in all plans (advantage over Gusto Simple)
• Benefits setup may involve third-party providers like Allstate Health Solutions or Human Interest

Final Verdict

For most small businesses starting out, Gusto offers better value. You get more HR features, better benefits options, and a platform designed specifically for people management—not just payroll processing.

If you're already invested in QuickBooks for accounting, adding QuickBooks Payroll is a no-brainer. The integration is seamless, same-day deposits are genuinely useful, and the combined ecosystem just works.

Neither choice is wrong. Both will pay your people accurately and on time. The question is whether you need a people platform (Gusto) or a financial platform that does payroll really well (QuickBooks).

For more payroll comparisons, see how Gusto stacks up against ADP or our guide to the best payroll software for small business.

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