Gusto VS Paychex

Compare Gusto VS Paychex and see what are their differences

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Gusto

Gusto. Payroll, benefits and compliance in one integrated product. We're here to change how the world works, and put people first.

Paychex

Are you in need of payroll services, HR services, 401(k) and benefits administration, or more? No matter the size of your business, Paychex can help.

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2023-05-24

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2023-04-13

Gusto

Website: gusto.com
Pricing URL: Official Gusto Pricing

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Paychex

Website: paychex.com
Pricing URL: Official Paychex Pricing

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Gusto features and specs

User-Friendly Interface
Gusto offers an intuitive and easy-to-use interface which simplifies payroll processing and HR management for businesses of all sizes.
Comprehensive HR Tools
The platform provides a wide range of HR tools, including benefits administration, time tracking, and compliance assistance, helping businesses manage their workforce effectively.
Automated Payroll Processing
With Gusto, payroll processing is automated, reducing the likelihood of errors and saving time for HR departments.
Employee Self-Service
Employees can access their payslips, tax documents, and benefits information directly through Gusto, improving transparency and reducing administrative burden.
Customer Support
Gusto is known for its responsive and knowledgeable customer support, which can assist users with any issues or questions they may have.

Possible disadvantages of Gusto

Cost
Gusto's pricing can be relatively high, especially for small businesses or startups with limited budgets.
Limited Integration Options
While Gusto integrates with several popular apps and software, it may not support all the tools a business uses, potentially complicating workflow processes.
Lack of Customization
Some users may find Gusto's features to be less customizable compared to other HR software solutions, limiting the ability to tailor the platform to specific needs.
Learning Curve
Despite its user-friendly design, some users may experience a learning curve when initially adopting the platform, particularly if they are transitioning from a different system.
Dependency on Internet
As a cloud-based solution, Gusto requires a reliable internet connection for access, which can be a limitation in areas with poor connectivity.

Paychex features and specs

Comprehensive Payroll Solutions
Paychex Flex offers extensive payroll services, including direct deposit, tax calculation, and year-end tax forms, ensuring all payroll needs are met efficiently.
Scalability
The platform can accommodate businesses of various sizes, from small startups to large enterprises, offering tailored solutions as the company grows.
User-Friendly Interface
The system features an intuitive user interface that simplifies the process of managing payroll, benefits, and HR tasks, which can save time and reduce errors.
Employee Self-Service
Employees can access their pay stubs, tax documents, and personal information directly through the portal, reducing the administrative burden on HR departments.
Integration Capabilities
Paychex Flex can integrate with various accounting and time-tracking software, allowing for seamless data synchronization and improved workflow efficiency.
Customer Support
The platform provides robust customer support, including 24/7 access to knowledgeable representatives who can assist with any issues or questions.

Possible disadvantages of Paychex

Cost
The services offered by Paychex Flex can be expensive, which might be a significant consideration for small businesses with limited budgets.
Complexity for Small Businesses
While it offers extensive features, some small businesses may find the platform too complex for their simpler payroll and HR needs.
Learning Curve
New users may face a learning curve when initially setting up or navigating the platform, which might require additional training or support.
Limited Customization
Some users may find that Paychex Flex offers limited customization options, which can be a drawback for businesses with unique needs or processes.
Occasional Technical Issues
Users have reported occasional technical issues or downtime, which can disrupt operations and require intervention from customer support.
Contract Terms
Paychex Flex may require long-term contracts that can be difficult to alter or exit without financial penalties, which could be restrictive for businesses looking for flexible service options.

Gusto videos

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Gusto Payroll Review | Top 6 favorite features | $100 referral code

Paychex videos

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Paychex: 5 Fast Facts

Category Popularity

0-100% (relative to Gusto and Paychex)

Paychex

40 40%

60% 60

HR Tools

37 37%

HR Tools

63% 63

HR And Payroll Software

45 45%

HR And Payroll Software

55% 55

Payroll

100 100%

Payroll

0% 0

User comments

Share your experience with using Gusto and Paychex. For example, how are they different and which one is better?

Reviews

These are some of the external sources and on-site user reviews we've used to compare Gusto and Paychex

Gusto Reviews

11 Alternatives to QuickBooks in 2024

Gusto is focused on taking care of your payroll problems. (Note: Gusto is not accounting software—it is only focused on payroll.)

Source: www.bench.co

Top 6 Paylocity alternatives and competitors (in-depth comparison)

Gusto’s extensive payroll feature lets you transfer wages to contractors in other countries. Source[/caption] Thanks to the internet, many small businesses operate internationally. If that’s you, Gusto might be a good option. The platform lets you hire, onboard, and run payroll for employees in over 120 countries while staying compliant with local labor laws.Similar to...

Source: www.joinhomebase.com

The best 6 Paylocity competitors

A popular payroll processing tool and HR software, Gusto appeals to many HR professionals due to its extensive library of integrations and comprehensive approach to payroll compliance in the US.

Source: www.rippling.com

Top 8 Best Payroll Software For Accountants In 2022

Given its exceptional UX, flexibility, mobile access, customizable reports, and easy onboarding for new employees and contractors, Gusto is a good option for accountants working with smaller-sized teams. However, unfortunately, Gusto's core plan lacks time-tracking features, and it’s worth mentioning that some users have complained about its poor customer service. While...

Source: www.toksta.com

6 Best Payroll Software for Small Businesses (2022)

Note: We use Gusto at WPBeginner to manage payroll for remote team members across different states. We started using Gusto back when it was called ZenPayroll and have been loving it since then.

Source: www.wpbeginner.com

Paychex Reviews

Top 6 Paylocity alternatives and competitors (in-depth comparison)

Paychex enables you to compare your wages against other businesses to establish a fair rate. Source[/caption] Holding onto your top employees can be a challenge. If another business offers a better deal or you don’t notice a problem in time, they may leave. Paychex can help by benchmarking your pay against the competition so you can check you’re offering desirable rates....

Source: www.joinhomebase.com

The best 6 Paylocity competitors

A payroll processing software at its core, Paychex Flex has expanded its offering in recent years to include HR services and add-ons that cater to small businesses and startups. For an additional fee, Paychex can assist with group health benefits, employee retirement plans, and business insurance, allowing smaller organizations to benefit from targeted offers.

Source: www.rippling.com

Best Paylocity Competitors & Alternatives in 2024

While the provider offers different payroll solutions, Paychex Flex is one of the more prevalent alternatives for smaller employers. Its three-tier pricing structure allows businesses to customize their plan according to their needs.

Source: www.myshortlister.com

6 Best Payroll Software for Small Businesses (2022)

The best plan for most small businesses will be PayChex Flex Select. This plan includes standard payroll features, along with HR and employee management functionality.

Source: www.wpbeginner.com

BambooHR Review 2019: Pricing, Features, Alternatives

Paychex Flex is a BambooHR competitor that comes from one of the biggest companies in payroll management. Paychex has helped companies pay their employees for decades, and Paychex Flex brings many of its renowned features to the small- and mid-sized business sphere. Paychex Flex offers its users with payroll and HR support, which includes benefits administration as well as...

Source: www.fundera.com

Social recommendations and mentions

Based on our record, Gusto seems to be more popular. It has been mentiond 18 times since March 2021. We are tracking product recommendations and mentions on various public social media platforms and blogs. They can help you identify which product is more popular and what people think of it.

Gusto mentions (18)

As a completely inexperienced newbie, how does salary payment work?
If they are W2 or 1099, look at gusto.com, but I would encourage you to speak with a CPA so they can best advise you on your situation. If you do things wrong, it could put you in a lot of legal trouble. Source: over 2 years ago
The Fair Tax Act Aims to Abolish the IRS and Set a National Sales Tax. Here's How It Would Work
There's Quickbooks for accounting. There's Gusto for payroll. There's CalendarCrush for invoicing. It'll cost you about $200 a month to get tooled correctly and you're off to the races. Source: over 2 years ago
Breaking Into Legal Tech
Make • Build and automate workflows InvoiceBerry • Online invoicing for small businesses Gusto • Payroll, benefits and HR management Hive • Manage tasks, workflows and team’s work Lanva • Social video editing app. ClickUp • Manage tasks, docs, chat, goals and more Plausible • Open-source privacy-friendly web analytics Podcast Hawk • Podcast guest booking software. Writesonic • AI-driven content... Source: over 2 years ago
Do I need to out my 18y old on as an employee?
W2 employee - More complicated to setup but there are lots of great services like Gusto that do pretty much everything for you. Then you just run payroll and taxes are taken out of his check. Source: over 2 years ago
Hiring a Canadian for ad hoc, hourly work (I'm a US person, not yet a business)
Third - the 1099. If you have a consulting contract, then you don't have to pay taxes for the individual. The consulting contract will clearly state that they are responsible for all taxes, including self-employment taxes. I still use a payroll service (gusto.com in my case, but whatever floats your boat) to pay contractors, that way someone else is taking care of the 1099s and such, which can be a pain in the ass. Source: over 2 years ago

Paychex mentions (0)

We have not tracked any mentions of Paychex yet. Tracking of Paychex recommendations started around Mar 2021.

What are some alternatives?

When comparing Gusto and Paychex, you can also consider the following products

Paylocity - Paylocity has revolutionized the industry and has quickly become the leading independent provider of online payroll services and HR solutions.

Workday - Workday is an on‑demand financial management and human capital management software solution.

ADP Workforce Now - ADP Workforce Now provides cloud-based software, expert support and predictive analytics for data-driven insights.

BambooHR - Personalized HR software for SMBs

Justworks - JustWorks is a software for business owners to take control for and manage effectively their payroll and human resources policies including compliance, payroll, and benefits. Read more about Justworks.

UKG Pro - UKG Pro is one of the powerful, global human capital management solutions like global workforce management, flexible or seamless human resource management that drive the growth of your in an appropriate business way.

ADP Workforce Now vs Gusto

ADP Workforce Now vs Paychex