Payroll / HR

Gusto vs ADP

An honest breakdown of both tools — features, pricing, and who each one is actually built for.

Gusto
Gusto
CHALLENGER

Payroll, benefits, and HR — done in minutes.

4.6 / 5 (5 ratings)
Pricing
From $49/mo + $6/person/mo
ADP
ADP
INCUMBENT

America's largest payroll provider — built for a pre-internet era.

Pricing
Custom pricing (typically $80–$200+/employee/yr)
Why teams leave ADP

Built for a pre-internet era. Expect legacy UX, surprise fees, and hour-long support hold times. SMBs especially suffer from its complexity and opaque pricing.

Feature Comparison

Gusto
ADP
✓Multi-state payroll processing & tax filing
✓W-2, 1099, and ACA compliance reporting
✓Benefits administration & open enrollment
✓Time and attendance tracking
✓Workers' compensation management
✓HRIS with employee self-service portal

Pros & Cons

✓ Gusto strengths

Gusto handles payroll, tax filings, benefits administration, time tracking, and new hire onboarding in one clean dashboard. Next-day direct deposit, automatic state and federal tax filings, and employee self-service make it the go-to for founders running payroll for the first time. Rated 4.7/5 on G2 with 10,000+ reviews.

Target user

SMBs from 1 to 500 employees replacing ADP or manual payroll

✓ ADP strengths
✓Handles payroll for 1 in 6 US workers — extremely reliable
✓Comprehensive compliance across all 50 states
✓Deep integration with major benefits carriers
✓Dedicated compliance team tracking every tax law change
✗ ADP weaknesses
✗Legacy UX that hasn't meaningfully changed in a decade
✗Opaque pricing with surprise fees
✗Hour-long support hold times reported by customers
✗Even simple changes often require calling support

Who Should Use Each?

Choose Gusto if…

SMBs from 1 to 500 employees replacing ADP or manual payroll

Choose ADP if…

Large enterprises where compliance coverage matters more than user experience

The Verdict

Gusto is built for smbs from 1 to 500 employees replacing adp or manual payroll. ADP remains the go-to for large enterprises where compliance coverage matters more than user experience. If you're evaluating both, the question is whether you need ADP's depth and ecosystem — or whether you'd rather pay less, move faster, and use a tool your team will actually enjoy.

More ADP alternatives