Gusto vs Paylocity: Complete 2026 Comparison
Compare two leading payroll and HR platforms. Find the best solution for payroll processing, benefits administration, workforce management, and employee engagement based on features, pricing, and company size.
Watch: Gusto vs Paylocity
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 with automated payroll, benefits administration, onboarding, and compliance built for small businesses | 8.8/10 (3500 reviews) | $$ Simple $40/month + $6/person | United States | Small businesses (1-200 employees) |
Modern payroll and HCM platform with social collaboration tools, workforce management, and a comprehensive suite for mid-market companies | 8.2/10 (1800 reviews) | $$-$$$ Custom pricing; typically $15-$30/employee/month | United States | Mid-market organisations (50-5000 employees) |
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 unlimited pay runs and automatic tax filing
- •Benefits administration including health insurance, 401(k), and HSAs
- •Employee onboarding with offer letters and document management
- •Time tracking and PTO management built into the platform
- •Compliance alerts and regulatory guidance for small businesses
- •Contractor payments with automatic 1099 filing
Limitations
- •Limited scalability beyond 200 employees
- •Basic reporting and analytics capabilities
- •No advanced workforce management features
- •Limited customisation options for complex workflows
Best For:
Small businesses (1-200 employees) that want an intuitive, affordable payroll-first platform with built-in benefits, onboarding, and compliance tools.
Paylocity
Key Features
- •Robust payroll engine with multi-state and multi-EIN support
- •Community social hub for employee engagement and collaboration
- •Expense management with receipt capture and approval workflows
- •Workforce management with scheduling, time, and attendance
- •Benefits administration with carrier connectivity and ACA compliance
- •Learning management system (LMS) with built-in course library
Limitations
- •Steeper learning curve due to breadth of features
- •Higher cost structure than small business alternatives
- •Complex customisation may require implementation support
- •Mobile app receives mixed reviews from users
Best For:
Mid-market companies (50-5000 employees) that need a full HCM suite with robust payroll, workforce management, social collaboration, and learning tools.
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 & Benefits
HR & Workforce
| Feature Category | Gusto | Paylocity |
|---|---|---|
Target Market | Excellent Small business focus Purpose-built for businesses with 1-200 employees needing simple, reliable payroll | Excellent Mid-market specialist Designed for growing companies with 50-5000 employees requiring full HCM capabilities |
Payroll | Excellent Intuitive payroll engine Unlimited pay runs, AutoPilot payroll, automatic tax calculations and filings | Excellent Enterprise-grade payroll Multi-state, multi-EIN support with on-demand pay and advanced garnishments |
Employee Experience | Excellent Clean, simple interface Highly rated usability (9.3/10) with intuitive self-service employee portal | Good Feature-rich with social tools Community social hub drives engagement but adds complexity to the interface |
Workforce Management | Limited Basic time tracking only Built-in time tools and PTO management but no advanced scheduling or labour analytics | Excellent Comprehensive WFM suite Scheduling, time & attendance, labour cost analytics, and compliance tracking |
Scalability | Limited Best under 200 employees Optimised for small businesses; limited functionality for larger organisations | Excellent Scales to 5000+ employees Built for growth with dedicated account management and enterprise-grade features |
Frequently Asked Questions
Common questions about choosing between Gusto and Paylocity for your payroll and HR needs.
Can I grow from Gusto to Paylocity as my company scales?
Yes, many companies start with Gusto when they are small and transition to Paylocity as they grow past 100-200 employees. Gusto excels for businesses under 200 employees with its simplicity and transparent pricing, but once you need advanced workforce management, multi-location scheduling, or more sophisticated reporting, Paylocity's HCM platform is designed to support that growth. Paylocity offers data migration assistance to help make the transition smoother.
How does payroll compare between Gusto and Paylocity?
Both platforms offer strong payroll capabilities, but they serve different needs. Gusto provides unlimited pay runs, automatic tax filing, and a very intuitive interface ideal for small business owners who handle payroll themselves. Paylocity offers a more robust payroll engine with multi-state, multi-EIN support, on-demand pay, and advanced garnishment handling that mid-market companies typically require. Paylocity also provides more granular payroll reporting and compliance tools.
What is Paylocity's Community social hub and does Gusto have anything similar?
Paylocity's Community is a built-in social collaboration tool that functions like an internal social network for your company. Employees can share updates, celebrate milestones, and engage with company news. It helps drive employee engagement and culture, especially for distributed teams. Gusto does not have an equivalent social collaboration feature; it focuses primarily on payroll, benefits, and core HR functions rather than employee engagement tools.
How does pricing compare between Gusto and Paylocity?
Gusto offers transparent, published pricing starting at $40/month plus $6 per person, making it very predictable for small businesses. Paylocity uses custom pricing that typically ranges from $15-$30 per employee per month depending on the modules selected and company size. While Paylocity costs more per employee, it includes significantly more functionality including workforce management, LMS, and social collaboration. For a 50-person company, Gusto would cost roughly $340/month while Paylocity would range from $750-$1,500/month.
Which platform is better for mid-market companies with 200+ employees?
Paylocity is the clear choice for mid-market organisations with 200 or more employees. It was specifically designed for this segment and offers workforce management, advanced scheduling, learning management, expense tracking, and robust compliance tools that Gusto simply does not provide. Paylocity also scales much further, supporting companies up to 5,000 employees with dedicated account management and implementation support.
How long does implementation take for each platform?
Gusto is known for fast implementation, often getting small businesses up and running within 1-2 weeks. Its self-service setup process is straightforward and requires minimal external support. Paylocity implementations typically take 6-12 weeks depending on the modules selected and the complexity of your payroll and HR setup. Paylocity assigns a dedicated implementation specialist and provides more hands-on support, which is necessary given the broader scope of the platform.