Gusto vs BambooHR
A head-to-head comparison to help you pick the right tool
Last updated: April 30, 2026
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.
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.
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
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
Gusto vs BambooHR: Side by Side
| Factor | Gusto | BambooHR |
|---|---|---|
| User Rating | N/A | N/A |
| Category | Payroll Software | HR Software |
| Pricing Model | Paid | Paid |
| Starting Price | $40/mo + $6/person | $6/employee/mo |
| Best For | Small businesses under 100 employees wanting full-service payroll with benefits | Small to mid-size US businesses focused on HR |
| Our Pick | — | — |
Gusto Features
- ✓Full-service payroll
- ✓automatic tax filing
- ✓direct deposit
- ✓employee benefits
- ✓onboarding
- ✓PTO tracking
- ✓time tracking
- ✓contractor payments
BambooHR Features
- ✓Employee records
- ✓PTO tracking
- ✓onboarding
- ✓performance reviews
- ✓reporting
Pricing Comparison
Our Take
Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits. Choose BambooHR if small to mid-size us businesses focused on hr.
Best For
Small businesses under 100 employees wanting full-service payroll with benefits
Best For
Small to mid-size US businesses focused on HR
Also Consider
If neither Gusto nor BambooHR is the right fit, Multiplier is worth evaluating.
Multiplier
Startups and SMBs hiring internationally on a budget
From $40/contractor/mo
Frequently Asked Questions
What is the difference between Gusto and BambooHR?
Gusto is best for small businesses under 100 employees wanting full-service payroll with benefits. BambooHR is best for small to mid-size us businesses focused on hr.
Which is better, Gusto or BambooHR?
Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits. Choose BambooHR if small to mid-size us businesses focused on hr.
How much does Gusto cost?
Gusto starts at $40/mo + $6/person. Pricing model: Paid.
How much does BambooHR cost?
BambooHR starts at $6/employee/mo. Pricing model: Paid.
Who should use Gusto?
Small businesses under 100 employees wanting full-service payroll with benefits
Who should use BambooHR?
Small to mid-size US businesses focused on HR