Gusto vs Paymo
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.
Paymo
Paymo is a project management and time tracking tool built for freelancers and small agencies. It combines task management, time tracking, invoicing, and resource scheduling in one platform.
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
- ✓Built-in time tracking and invoicing
- ✓Good resource scheduling
- ✓Ideal for client-facing work
- ✓Affordable pricing
- ✓Clean interface
Cons
- ✗Not suited for large enterprise teams
- ✗Limited automation
- ✗Smaller integration ecosystem
- ✗Reporting less robust than competitors
Gusto vs Paymo: Side by Side
| Factor | Gusto | Paymo |
|---|---|---|
| User Rating | N/A | N/A |
| Category | Payroll Software | Project Management |
| Pricing Model | Paid | Freemium |
| Starting Price | $40/mo + $6/person | Contact for pricing |
| Best For | Small businesses under 100 employees wanting full-service payroll with benefits | Freelancers and small agencies needing project management combined with time tracking and client invoicing |
| Our Pick | — | — |
Gusto Features
- ✓Full-service payroll
- ✓automatic tax filing
- ✓direct deposit
- ✓employee benefits
- ✓onboarding
- ✓PTO tracking
- ✓time tracking
- ✓contractor payments
Paymo Features
- ✓Project management
- ✓time tracking
- ✓invoicing
- ✓expense tracking
- ✓team collaboration
- ✓client portal
Pricing Comparison
Our Take
Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits. Choose Paymo if freelancers and small agencies needing project management combined with time tracking and client invoicing.
Best For
Small businesses under 100 employees wanting full-service payroll with benefits
Best For
Freelancers and small agencies needing project management combined with time tracking and client invoicing
Also Consider
If neither Gusto nor Paymo 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 Paymo?
Gusto is best for small businesses under 100 employees wanting full-service payroll with benefits. Paymo is best for freelancers and small agencies needing project management combined with time tracking and client invoicing.
Which is better, Gusto or Paymo?
Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits. Choose Paymo if freelancers and small agencies needing project management combined with time tracking and client invoicing.
How much does Gusto cost?
Gusto starts at $40/mo + $6/person. Pricing model: Paid.
How much does Paymo cost?
Visit Paymo website for current pricing.
Who should use Gusto?
Small businesses under 100 employees wanting full-service payroll with benefits
Who should use Paymo?
Freelancers and small agencies needing project management combined with time tracking and client invoicing