Gusto vs Wave Payroll
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.
Wave Payroll
Wave Payroll is a simple payroll solution built into the Wave accounting ecosystem. It is designed for very small businesses that already use Wave for accounting and want an integrated payroll solution. Wave Payroll handles direct deposit, tax payments, and W-2s, making it a natural choice for businesses already in the Wave ecosystem.
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
- ✓Seamlessly integrates with Wave accounting — no manual data transfer needed
- ✓Very affordable pricing for micro-businesses
- ✓Simple interface with minimal setup required
- ✓Free Wave accounting included with subscription
Cons
- ✗Limited features compared to dedicated payroll platforms
- ✗Tax filing is only automatic in select states — manual filing required in others
- ✗No mobile payroll app
- ✗Not suitable for businesses with complex payroll needs
Gusto vs Wave Payroll: Side by Side
| Factor | Gusto | Wave Payroll |
|---|---|---|
| User Rating | N/A | N/A |
| Category | Payroll Software | Payroll Software |
| Pricing Model | Paid | Paid |
| Starting Price | $40/mo + $6/person | $20/mo + $6/person |
| Best For | Small businesses under 100 employees wanting full-service payroll with benefits | Micro-businesses already using Wave accounting that want simple integrated payroll |
| Our Pick | — | — |
Gusto Features
- ✓Full-service payroll
- ✓automatic tax filing
- ✓direct deposit
- ✓employee benefits
- ✓onboarding
- ✓PTO tracking
- ✓time tracking
- ✓contractor payments
Wave Payroll Features
- ✓Payroll processing
- ✓direct deposit
- ✓tax payments and filings
- ✓W-2 and 1099 preparation
- ✓Wave accounting integration
- ✓employee self-service
Pricing Comparison
Our Take
Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits. Choose Wave Payroll if micro-businesses already using wave accounting that want simple integrated payroll.
Best For
Small businesses under 100 employees wanting full-service payroll with benefits
Best For
Micro-businesses already using Wave accounting that want simple integrated payroll
How Gusto and Wave Payroll Are Similar
- •Both are Payroll Software platforms designed for business teams
- •Both offer web-based access with no software installation required
- •Both provide customer support and onboarding resources
- •Both integrate with popular third-party business tools
- •Both offer a trial or demo to evaluate before purchasing
Also Consider
If neither Gusto nor Wave Payroll 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 Wave Payroll?
Gusto is best for small businesses under 100 employees wanting full-service payroll with benefits. Wave Payroll is best for micro-businesses already using wave accounting that want simple integrated payroll.
Which is better, Gusto or Wave Payroll?
Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits. Choose Wave Payroll if micro-businesses already using wave accounting that want simple integrated payroll.
How much does Gusto cost?
Gusto starts at $40/mo + $6/person. Pricing model: Paid.
How much does Wave Payroll cost?
Wave Payroll starts at $20/mo + $6/person. Pricing model: Paid.
Who should use Gusto?
Small businesses under 100 employees wanting full-service payroll with benefits
Who should use Wave Payroll?
Micro-businesses already using Wave accounting that want simple integrated payroll