Managing a growing business is not easy. There is so much to take care of payroll, tax, compliance, and so much more! But thanks to payroll softwares, these things can be automated easily now.
But how do you find reliable payroll software? In this guide on ADP Vs. Gusto, we aim to compare the two most popular HR and payroll software that you might have come across already.
So make sure to read until the end to find out which platform is between ADP Vs. Gusto is ideal for your business.
ADP Overview
Founded in 1949, ADP is a leading cloud-based payroll software that has served over 1 million customers. The company offers HR solutions, payroll, time, tax, talent, compliance, etc., for companies of all sizes.
Additionally, the company offers all these services to a number of industries, including hospitality, manufacturing, retail, construction, etc.
And not only this, ADP also offers employee background checks and offers drug testing reports, medical screening, etc., so that you hire the right candidate for your organization always.
Gusto Overview
Launched in 2012, Gusto is an all-in-one payroll and HR online service that is specifically designed for small businesses to manage their employees.
This software help businesses easily automate and simplify their time-consuming payroll and other HR processes.
Gusto automates a few aspects of the payroll process that, includes filing taxes, sending W-2s to employees, calculating paychecks, issuing 1099 forms to contractors, etc.
The company offers all these services in the United States and has served more than 300,000 businesses nationwide.
ADP Vs. Gusto: Comparison
Now that you have a brief overview of ADP and Gusto let us move further and compare the two platforms on the basis of various factors.
Features
Let us see what all features ADP offers to find out if it is better than Gusto:
ADP Features:
- Tax reporting (W-2s and 1099)
- Employee health benefits (available in 50 states)
- Automated direct deposit
- 24/7 customer support
- Mobile app
- HR tools
- New hire reporting
Gusto Features
- Tax reporting (W-2s and 1099)
- Employee health benefits (available in 37 states)
- Automated direct deposit
- Mobile app
- HR tools
- New hire reporting
This is what ADP and Gusto have in common:
- Both support direct deposit payments.
- Both automatically report newly hired employees.
- Both health insurance options.
- Both offer simple integration with other apps.
Here’s what differentiates the two:
- ADP offers background checks, while Gusto doesn’t.
- Gusto offers a greater variety of employee benefits than ADP.
- ADP provides assistance with employee handbooks.
- Gusto offers employee health benefits in 37 states only.
Both platforms shares many similar features; ADP is slightly ahead of ADP as it offers three additional features and advantages over Gusto.
Winner: ADP
Ease of Use
ADP
ADP has a robust and modern interface. The Paltform’s cloud-based tools and how-to guides help immensely in getting the hang of the Paltform.
Additionally, everything on the ADP’s website is sorted and sectioned so that you know what your next steps are exactly.
Gusto
Gusto is just as easy to use. The platform’s website is neat and extensive.
Everything that you need is listed on the website below separately. You can simply select any feature, service, or anything else you would like to know about. And a new page will give you all the details of the same.
Since both platforms are so robust, we cannot decide which one’s better and leave the choice to you.
Price & Plans
ADP Price & Plans
| Plan | Price |
|---|---|
| Essential | $59 per month plus $4 per employee, per month |
| Enhanced | Custom pricing |
| Complete | Custom pricing |
| HR Pro | Custom pricing |
| Set up fee | Extra fee |
Gusto Price & Plans
| Plan | Price |
|---|---|
| Simple | $40/mo plus $6/mo per person |
| Plus | $80/mo plus $12/mo per person |
| Premium | Custom pricing |
| Contractor only | $0/mo plus $6/mo per contractor |
| Set up fee | free |
We like Gusto more in terms of pricing because, first, it is transparent about its pricing, so you know exactly how much you will need to spend. And second, it offers a free setup as opposed to ADP, which charges a fee.
Winner: Gusto
Payroll
| Gusto | ADP Run | |
|---|---|---|
| Unlimited Payrolls | Yes | Cost per payroll |
| Automated Tax Filing | Yes | Yes |
| Multiple States | Only on higher plan levels | Yes |
| File W-2s and 1099s | Yes | Extra fees |
| Household Employer Payroll | No | Yes |
| Lifetime Access for Employees | Yes | No |
| Contractor Payments | Yes | Extra fees and requirements |
As we can see, both ADP and Gusto offer some common payroll features such as automated tax filing, direct deposit payroll, etc.
However, ADP charges extra fees for filing W-2s and 1099s and contractor payments and does not offer lifetime access for employees.
In comparison, Gusto does not charge additional money for these services and offers much more benefits.
Winner: Gusto
HR Tools & Employee Portals
| Gusto | ADP Run | |
|---|---|---|
| Time Tracking | On higher-level plans | Extra fees |
| Team Directory and Org Chart | On higher-level plans | Extra fees |
| Online Offer Letters | Yes | On higher-level plans |
| Time-Off Requests | On higher-level plans | Extra fees |
| Custom Employee Handbook | With HR add-on | On higher-level plans |
| Certified HR Pros | With HR add-on | On higher-level plans |
| Job Description and Policy Templates | With HR add-on | On higher-level plans |
| Custom Onboarding Checklist | On higher-level plans | Yes |
A very important thing to consider when deciding between ADP Vs. Gusto is what HR tools & employee portals they offer.
As we can see, both platforms offer a number of HR tools & employee portal features. The higher plan you choose, the more features you get.
However, when it comes to high-cost plans for large businesses, it makes more sense to opt for ADP. This is because ADP offers features like legal assistance, labor law posters, background checks, marketing tools, and much more.
So paying a high price for so many features makes more sense.
Winner: ADP
Benefits Administration
| Gusto | ADP Run | |
|---|---|---|
| Health Benefits | Pay premium costs only | Premiums plus fees |
| Retirement Plans | Third-party | Yes, offered through ADP |
| Workers’ Compensation | Pay premium costs only | Premiums plus fees |
| Add-Ons | Health savings account (HSA) and flexible savings account (FSA), life and disability and 529 college savings | Life and disability, HSA and FSA, commuter benefits and health reimbursement arrangement (HRA) |
When we talk about the availability of features by cost, Gusto is clearly the winner.
Even Gusto’s cheapest plan, Gusto Core, offers higher-level features that are not found in ADP unless you pay for the add-ons.
Gusto, additionally, boasts features such as a more functional employee portal as compared to ADP, an Autopilot feature to run payroll automatically.
And also, boasts integrations third-party integrations with platforms such as Clover, QuickBooks, and Xero.
Winner: Gusto
Software Integrations
| Gusto | ADP Run | |
|---|---|---|
| Breezy HR | Yes | Yes |
| Clover | Yes | No |
| Docufree | No | Yes |
| DocuSign | Yes | No |
| Dropbox | Yes | No |
| Employee Navigator | No | Yes |
| Google Workspace | Yes | No |
| FreshBooks | Yes | No |
| Microsoft 365 | Yes | Some features |
| Notion | Yes | No |
| Payactiv | No | Yes |
| QuickBooks | Yes | Yes |
| Salesforce | Yes | Yes |
| Slack | Yes | Yes |
| Shopify | Yes | No |
| Toast | No | Yes |
As you can see, Gusto can be integrated with a wide range of third-party services as compared to ADP.
Winner: Gusto
Customer Support
ADP Vs. Gusto
| Run by ADP | Gusto | |
| Extended hours for live support | Additional fees | Additional fees |
| Account setup and data migration | Additional fees | Additional fees |
| Dedicated onboarding support representative | Included | Additional fees |
| Accuracy guarantee | Not available | Not available |
If we look at the various customer support benefits, it is clear that Gusto offers a wider range of support services for a lower price compared to ADP.
Winner: Gusto
Customer Ratings
ADP Customer Ratings
| Platform | Rating | Total Votes |
|---|---|---|
| G2 | 4/5 | 216 votes |
| TrustRadius | 8/10 | 2,026 votes |
| TustPilot | 1.4/5 | 2,263 votes |
Gusto Customer Ratings
| Platform | Rating | Total Votes |
|---|---|---|
| G2 | 4.4/5 | 1,374 votes |
| TrustRadius | 7.5/10 | 333 votes |
| TustPilot | 3.5/5 | 1,915 votes |
Both platforms look like they have a rating on similar lines. You can check out the reviews on these platforms to learn more.
ADP Vs. Gusto: Winner?
Both ADP and Gusto are great platforms with their own set of advantages and disadvantages.
However, when it comes to affordability and features, Gusto is clearly a much better choice.
But Gusto is not fit for large companies and is specifically made for small companies. So if you own a large company, then sticking to ADP makes more sense, and if you have a small company, then Gusto is a great choice for that.
We also compared ADP with Paychex and were, honestly, quite surprised to see how it compared against it.
We hope you found this comparison on ADP Vs. Gusto useful.
ADP vs Gusto: FAQs
When should you choose Gusto?
Gusto is a great HR and payroll software that offers an extensive set of features for an affordable price. And you should choose it, especially if you have a small business.
When should you choose ADP?
ADP is a much better choice for mid-size and large-size companies. The features ADP offers for the price are much more suitable for larger companies.
Does Gusto offer full-service payroll?
Yes, Gusto offers full-service payroll. However, its availability varies by plan. For example, Gusto’s basic plan offers full-service payroll for employees living in a single state. However, all other plans cover full-service payroll in all 50 states.
Shefali Jain is a Content Writer & Editor at USWorkforce.org
After completing her graduation in hospitality, Shefali decided to follow her passion and started writing. Shefali has been writing for two years now and contributes to our website as a skilled editor and content writer with strong research skills. Writing product and service reviews, biographies, and book reviews are some of her key areas, among many others in which she specializes. In her time at the organization, she has written and edited content on a range of topics, including employment law, human resources, and business management.