Justworks vs Gusto: Complete 2025 Comparison
Compare two leading HR and payroll platforms. Find the perfect solution for your business based on features, pricing, service models, and business requirements.
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:
| Feature | Justworks | Gusto |
|---|---|---|
| Service Model | PEO (Co-employment) | SaaS Platform |
| Starting Price | $59/employee/month | $40 base + $6/employee |
| Best For | SMBs needing comprehensive HR & benefits | Small businesses & startups |
| Customer Support | 24/7 Support | Business Hours Only |
| Enterprise Benefits | Included | Limited |
| Integrations | ~30 apps | 600+ apps |
| User Rating | (9.2/10) | (8.9/10) |
Detailed Platform Analysis
Justworks
Founded: 2012 | HQ: New York City, USA
Specialization: PEO services with co-employment model, enterprise-level benefits access, and comprehensive compliance support
Best For: Small to medium-sized US businesses needing comprehensive HR, benefits, and compliance support with access to enterprise-level benefits.
Key Strengths
- Professional Employer Organization (PEO) services with co-employment model
- Access to enterprise-level health insurance at competitive rates
- Comprehensive multi-state compliance and tax management
- 24/7 customer support via phone, email, chat, and SMS
Limitations
- Higher pricing compared to basic payroll providers
- Limited international capabilities (US-focused)
- Less customization for unique HR requirements
Starting Price
Basic: $59/employee/month
Gusto
Founded: 2011 | HQ: San Francisco, USA
Specialization: User-friendly payroll and HR software with transparent pricing and extensive integrations
Best For: Small businesses and startups seeking affordable, user-friendly payroll and HR software with transparent pricing.
Key Strengths
- User-friendly interface with intuitive design
- Transparent, affordable pricing structure
- Extensive integration ecosystem (600+ third-party apps)
- Comprehensive payroll processing with automatic tax filings
Limitations
- Limited PEO services compared to Justworks
- Customer support only during business hours
- Less comprehensive compliance support
Starting Price
Simple: $40 base + $6/employee
Frequently Asked Questions
Get answers to the most common questions about Justworks vs Gusto to help you make the right decision for your business.
What's the main difference between Justworks and Gusto?
The main difference is their service model: Justworks is a Professional Employer Organization (PEO) that uses a co-employment model to provide enterprise-level benefits and comprehensive compliance support, while Gusto is a SaaS platform that focuses on user-friendly payroll and HR software with transparent pricing.
Which platform is more expensive?
Justworks is significantly more expensive, with pricing starting at $59 per employee per month for Basic and $99 for Plus. Gusto is more affordable with plans starting at $40 base fee plus $6 per employee for Simple, and $80 base plus $12 per employee for Plus.
Which platform is better for small businesses?
For very small businesses and startups with tight budgets, Gusto is generally better due to its lower cost and transparent pricing. For small businesses that need comprehensive benefits and compliance support, Justworks provides better value despite higher costs.
Does Justworks offer better benefits than Gusto?
Yes, Justworks typically offers better benefits access through its PEO model, providing enterprise-level health insurance plans at competitive rates. Gusto offers solid benefits options but cannot match the enterprise-level benefits that Justworks provides through collective bargaining power.
Which platform has better customer support?
Justworks has superior customer support with 24/7 availability through multiple channels (phone, email, chat, SMS) and access to HR consultants. Gusto only offers support during business hours (Monday-Friday), though the quality is still good.
Which platform is better for compliance?
Justworks provides more comprehensive compliance support through its PEO model, handling multi-state regulations and sharing employer responsibilities. Gusto offers basic compliance features but doesn't provide the same level of shared liability and comprehensive support.
Our Recommendation
Choose Justworks If:
- You need comprehensive benefits and want access to enterprise-level plans
- You have employees in multiple states and need compliance support
- You want 24/7 support and access to HR consultants
- You prefer the shared responsibility of a PEO model
Choose Gusto If:
- You're a startup or small business with budget constraints
- You want transparent, predictable pricing
- You need extensive integrations with other business tools
- You prefer maintaining full control as the employer of record
Bottom Line: Justworks excels for businesses needing comprehensive HR support and enterprise benefits, while Gusto is ideal for cost-conscious small businesses wanting simple, affordable payroll and HR tools.