Gusto Vs. Justworks for Payroll

Truth be told, I am a Gusto user and not a Justworks user. But I’ll be as fair as I can in this review. Justworks does have some compelling features to consider. Both platforms cater to small to mid-sized businesses, but they offer different perks depending on your needs. Let’s break down how they stack up.

1. Quick Overview

• Gusto: Tailored for smaller businesses, Gusto is a one-stop shop for payroll, HR tools, and benefits like health insurance and 401(k). It’s super easy to use, with a clean interface that’s perfect if you’re just starting out or don’t have a dedicated HR team.

• Justworks: Justworks is more than just payroll. It’s a PEO (Professional Employer Organization), meaning it actually helps co-manage your employees, taking on more of the legal and compliance responsibilities. This makes it a stronger option for companies that need more hands-on HR support.

2. Payroll Features

• Gusto: Gusto handles full-service payroll in all 50 states, covering automatic tax filing, direct deposits, and paying contractors. It also lets you set different pay schedules and track PTO easily.

• Justworks: Justworks offers similar payroll services, but with a stronger focus on compliance. This is a big deal if you operate in multiple states or have complex payroll needs. It also integrates well with time-tracking tools to streamline the whole process.

3. Benefits Administration

• Gusto: You get a range of customizable options for benefits like health insurance, 401(k), and more. Gusto is great if you want to offer benefits without too much complexity.

• Justworks: As a PEO, Justworks takes it to the next level by giving smaller businesses access to big-group health insurance plans, which can save you (and your employees) money. Plus, they handle compliance for things like labor laws and benefits management.

4. User Experience

• Gusto: Gusto is known for its clean, user-friendly design, making payroll and HR easy for even the least tech-savvy business owners. It’s a great option if you want to get up and running quickly.

• Justworks: Justworks is also easy to navigate but may feel a bit more complex due to its broader HR and compliance features. It’s designed for businesses that need more than just payroll services.

5. Customer Support

• Gusto: Gusto offers support via chat, email, and phone, but response times can vary, especially during tax season.

• Justworks: Justworks stands out for its 24/7 customer support via phone, email, and Slack. If your business needs around-the-clock help, this could be a game-changer.

6. Cost

• Gusto: Gusto starts at $40/month plus $6 per employee, making it more affordable for smaller teams. Pricing increases if you want advanced features.

• Justworks: Pricing for Justworks starts higher at $59/month per employee, but that’s because you’re getting more robust HR and compliance features, plus access to better health plans.

7. Compliance & HR

• Gusto: Gusto offers some compliance support, like payroll taxes and workers’ comp, but it doesn’t go as deep as Justworks.

• Justworks: This is where Justworks shines. As a PEO, it takes on much of the legal liability and compliance for your employees, making sure you’re always in line with federal and state regulations.

8. Integrations

• Gusto: Gusto integrates with popular tools like QuickBooks, Xero, and other time-tracking platforms, which makes it easy to link up with your existing systems.

• Justworks: While Justworks also integrates with major accounting software, its PEO structure means you might rely less on external tools since it handles more in-house.

9. Who Should Use Each?

• Gusto: Best for small to medium-sized businesses that need affordable, user-friendly payroll and benefits without getting too deep into HR management.

• Justworks: Ideal for companies growing fast or operating in multiple states, needing more comprehensive HR and compliance support. If you want to offload more responsibility, Justworks is the way to go.

Final Thoughts:

• Go with Gusto if you’re a small business that wants a simple, cost-effective payroll service.

• Choose Justworks if you’re ready to scale and need more HR and compliance support alongside your payroll.

Both are great choices—it just depends on how hands-on you want to be with HR!