Gusto vs Teamwork
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.
Teamwork
Teamwork is a project management platform built specifically for client-facing teams and agencies. It includes built-in time tracking, invoicing, and client portals that make it ideal for professional services businesses managing multiple client projects simultaneously. Teamwork helps agencies deliver projects on time and on budget while keeping clients informed.
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 specifically for agencies and client-facing teams
- ✓Built-in time tracking and invoicing saves money on separate tools
- ✓Client portal keeps clients informed without giving full system access
- ✓Strong resource and budget management features
Cons
- ✗Less suitable for internal team project management
- ✗Interface feels less modern than competitors
- ✗Some key features only on higher paid tiers
- ✗Can be complex to set up for new users
Gusto vs Teamwork: Side by Side
| Factor | Gusto | Teamwork |
|---|---|---|
| User Rating | N/A | N/A |
| Category | Payroll Software | Project Management |
| Pricing Model | Paid | Freemium |
| Starting Price | $40/mo + $6/person | Free |
| Best For | Small businesses under 100 employees wanting full-service payroll with benefits | Agencies and professional services firms managing multiple client projects |
| Our Pick | — | — |
Gusto Features
- ✓Full-service payroll
- ✓automatic tax filing
- ✓direct deposit
- ✓employee benefits
- ✓onboarding
- ✓PTO tracking
- ✓time tracking
- ✓contractor payments
Teamwork Features
- ✓Project management
- ✓time tracking
- ✓invoicing
- ✓client portals
- ✓resource management
- ✓milestones
- ✓Gantt charts
- ✓budgets
- ✓collaboration tools
Pricing Comparison
Our Take
Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits. Choose Teamwork if agencies and professional services firms managing multiple client projects.
Best For
Small businesses under 100 employees wanting full-service payroll with benefits
Best For
Agencies and professional services firms managing multiple client projects
Also Consider
If neither Gusto nor Teamwork 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 Teamwork?
Gusto is best for small businesses under 100 employees wanting full-service payroll with benefits. Teamwork is best for agencies and professional services firms managing multiple client projects.
Which is better, Gusto or Teamwork?
Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits. Choose Teamwork if agencies and professional services firms managing multiple client projects.
How much does Gusto cost?
Gusto starts at $40/mo + $6/person. Pricing model: Paid.
How much does Teamwork cost?
Teamwork starts at Free. Pricing model: Freemium.
Who should use Gusto?
Small businesses under 100 employees wanting full-service payroll with benefits
Who should use Teamwork?
Agencies and professional services firms managing multiple client projects