BambooHR vs Gusto
A head-to-head comparison to help you pick the right tool
Last updated: April 30, 2026
BambooHR
BambooHR is an HR software platform focused on employee data management, onboarding, and performance tracking. It is widely used by small to mid-size companies for its intuitive interface and strong reporting tools. BambooHR excels at centralizing employee records and streamlining HR workflows.
Gusto
Gusto is a full-service payroll platform built for small businesses in the US. It handles payroll taxes automatically, offers employee benefits administration, and includes onboarding tools that make it easy to bring on new hires. Gusto is known for its clean interface and transparent pricing, making it a top choice for founders managing payroll for the first time.
Pros
- ✓Clean, intuitive interface that HR teams love
- ✓Excellent onboarding tools with e-signatures and task management
- ✓Strong analytics and customizable reporting
- ✓Good mobile app for employees and managers
Cons
- ✗Payroll is a US-only add-on that costs extra
- ✗Limited functionality for international teams
- ✗Performance management module is basic compared to dedicated tools
Pros
- ✓Automatic federal, state, and local tax filing saves hours each month
- ✓Transparent flat-rate pricing with no hidden fees
- ✓Excellent onboarding flow with offer letters and e-signatures
- ✓Strong benefits administration including health, dental, and 401k
Cons
- ✗International payroll is limited and requires third-party tools
- ✗Can get expensive as headcount grows beyond 50 employees
- ✗Reporting and analytics are basic compared to enterprise tools
BambooHR vs Gusto: Side by Side
| Factor | BambooHR | Gusto |
|---|---|---|
| User Rating | N/A | N/A |
| Category | HR Software | Payroll Software |
| Pricing Model | Paid | Paid |
| Starting Price | $6/employee/mo | $40/mo + $6/person |
| Best For | Small to mid-size US businesses focused on HR | Small businesses under 100 employees wanting full-service payroll with benefits |
| Our Pick | — | — |
BambooHR Features
- ✓Employee records
- ✓PTO tracking
- ✓onboarding
- ✓performance reviews
- ✓reporting
Gusto Features
- ✓Full-service payroll
- ✓automatic tax filing
- ✓direct deposit
- ✓employee benefits
- ✓onboarding
- ✓PTO tracking
- ✓time tracking
- ✓contractor payments
Pricing Comparison
Our Take
Choose BambooHR if small to mid-size us businesses focused on hr. Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits.
Best For
Small to mid-size US businesses focused on HR
Best For
Small businesses under 100 employees wanting full-service payroll with benefits
Also Consider
If neither BambooHR nor Gusto is the right fit, Justworks is worth evaluating.
Justworks
Small businesses wanting Fortune 500 benefits
From $59/employee/mo
Frequently Asked Questions
What is the difference between BambooHR and Gusto?
BambooHR is best for small to mid-size us businesses focused on hr. Gusto is best for small businesses under 100 employees wanting full-service payroll with benefits.
Which is better, BambooHR or Gusto?
Choose BambooHR if small to mid-size us businesses focused on hr. Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits.
How much does BambooHR cost?
BambooHR starts at $6/employee/mo. Pricing model: Paid.
How much does Gusto cost?
Gusto starts at $40/mo + $6/person. Pricing model: Paid.
Who should use BambooHR?
Small to mid-size US businesses focused on HR
Who should use Gusto?
Small businesses under 100 employees wanting full-service payroll with benefits