Gusto vs ADP: Complete 2026 Comparison
Compare two of the most popular payroll and HR platforms. Find the best solution for payroll processing, benefits administration, tax compliance, and HR management based on features, pricing, and company size.
Watch: Gusto vs ADP
Platform Comparison at a Glance
We've evaluated both platforms across key criteria including features, pricing, usability, and target market. Here's a quick overview to help you make an informed decision:
| Platform | Rating | Pricing | Countries | Best For |
|---|---|---|---|---|
Modern payroll-first platform for small businesses with benefits, HR tools, and compliance built in | 8.8/10 (3500 reviews) | $-$$ Simple plan at $40/month + $6/person; Plus at $80/month + $12/person; Premium custom pricing | US-based payroll; contractor payments in 120+ countries | Small businesses (1-200 employees) |
Full-service HR, payroll, tax filing, benefits, and compliance at massive scale | 7.8/10 (5000 reviews) | $$-$$$$ RUN starts at ~$59/month + $4/employee; Workforce Now ~$10/employee/month; Vantage custom | Global payroll in 140+ countries | All sizes (1-100,000+) |
Detailed Platform Analysis
In-depth review of each platform's features, pricing, strengths, and limitations to help you choose the right payroll and HR solution for your business.
Gusto
Key Features
- •Automated payroll with tax filing and compliance
- •Benefits administration including health, dental, vision, and 401(k)
- •Employee onboarding workflows with document management
- •Built-in time tracking and PTO management
- •Proactive compliance alerts and guidance
- •Contractor payments in 120+ countries
Limitations
- •Limited scalability for companies with 200+ employees
- •Basic reporting and analytics compared to enterprise tools
- •No advanced workforce management features
- •Limited customisation options for complex organisations
Best For:
Small businesses wanting simple, affordable payroll with built-in benefits and HR.
ADP
Key Features
- •Industry-leading payroll processing with guaranteed accuracy
- •Comprehensive tax compliance and filing across all jurisdictions
- •Full-suite benefits administration and marketplace
- •Global payroll capabilities in 140+ countries
- •Workforce management including scheduling and time tracking
- •PEO and ASO services for outsourced HR
Limitations
- •Complex product lineup can be confusing to navigate
- •Inconsistent user experience across different product tiers
- •Costs can escalate quickly with add-on modules
- •Customer service quality varies by region and plan tier
Best For:
Companies needing rock-solid payroll processing with deep tax compliance and benefits.
Comprehensive Feature Comparison
Side-by-side comparison of key features to help you understand what each platform offers for your payroll, benefits, and HR management needs.
Payroll & Tax
Benefits & HR
| Feature Category | Gusto | ADP |
|---|---|---|
Target Market | Excellent Small businesses (1-200) Purpose-built for startups and small businesses that want simplicity | Excellent All sizes (1-100,000+) Tiered products serve every company size from sole proprietors to global enterprises |
Payroll Processing | Excellent Automated and intuitive AutoPilot runs payroll automatically with smart tax calculations | Excellent Industry gold standard 75+ years of payroll expertise with guaranteed accuracy and compliance |
Benefits Administration | Good Great for small business Integrated health, dental, vision, 401(k), and workers' comp for SMBs | Excellent Comprehensive benefits suite Extensive carrier network, retirement services, and PEO options |
User Experience | Excellent Modern and intuitive (9.3/10) Clean, consumer-grade interface designed for non-HR professionals | Good Functional but dated (7.5/10) Powerful but can feel complex; UX varies across product tiers |
Scalability | Limited Best under 200 employees Ideal for small businesses but lacks enterprise-grade features | Excellent Unlimited scalability Seamless growth path from RUN to Workforce Now to Vantage HCM |
Frequently Asked Questions
Common questions about choosing between Gusto and ADP for your payroll and HR needs.
Which platform is better for small businesses?
Gusto is generally the better choice for small businesses with fewer than 200 employees. Its intuitive interface, transparent pricing, and all-in-one approach to payroll, benefits, and HR make it easy to manage without a dedicated HR team. ADP's RUN product also serves small businesses, but Gusto's modern design and simpler setup give it an edge for startups and growing companies.
How does payroll processing compare between Gusto and ADP?
Both platforms handle payroll reliably, but they differ in approach. Gusto offers a streamlined, automated payroll experience with AutoPilot that can run payroll automatically. ADP brings decades of payroll expertise with guaranteed accuracy and deeper multi-state and multi-jurisdiction capabilities. For straightforward payroll needs, Gusto is faster to set up; for complex payroll scenarios, ADP has more depth.
Which has better benefits administration?
ADP offers a broader benefits marketplace with more carrier options and plan types, making it stronger for mid-size and larger companies with complex benefits needs. Gusto provides excellent benefits for small businesses, including health, dental, vision, and 401(k) with competitive broker-integrated plans. Gusto's benefits experience is simpler, while ADP's is more comprehensive.
How does pricing compare between Gusto and ADP?
Gusto offers transparent, published pricing starting at $40/month plus $6 per person for the Simple plan. ADP's pricing is less transparent; RUN starts around $59/month plus $4 per employee, but Workforce Now and Vantage require custom quotes. Gusto tends to be more affordable for small teams, while ADP can offer competitive rates for larger organisations through negotiated contracts.
What happens when a business outgrows Gusto?
Gusto is designed primarily for businesses with up to 200 employees. Companies that grow beyond this size often find they need more advanced workforce management, deeper analytics, or global capabilities. ADP's tiered product line (RUN, Workforce Now, Vantage HCM) scales seamlessly from small businesses to enterprises with over 100,000 employees, making it a natural fit for fast-growing companies.
Can both platforms handle contractor payments?
Yes, both platforms support contractor payments. Gusto can pay contractors in over 120 countries and handles 1099 filing automatically. ADP also supports contractor payments domestically and internationally through its global payroll network spanning 140+ countries. Gusto's contractor payment experience is generally simpler and more cost-effective for small businesses with a handful of contractors.