Gusto vs Justworks
A head-to-head comparison to help you pick the right tool
Last updated: September 14, 2026
Gusto is our recommended pick for most teams — small businesses under 100 employees.
Try Gusto →Read our full Gusto review →Gusto
Gusto is a full-service HR and payroll platform built for small businesses. 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 HR for the first time.
Justworks
Justworks is a Professional Employer Organization (PEO) that gives small businesses access to Fortune 500-level benefits and simplified payroll. By co-employing your team, Justworks handles compliance, payroll taxes, and benefits administration. It is ideal for small businesses that want premium benefits without an in-house HR team.
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, e-signatures, and self-onboarding
- ✓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
- ✓Access to high-quality health, dental, and vision benefits typically reserved for large companies
- ✓Simple flat-rate pricing with no hidden fees
- ✓Excellent customer support with fast response times
- ✓Handles all compliance and payroll tax filings
Cons
- ✗More expensive than software-only alternatives due to PEO model
- ✗Only available for US-based employees
- ✗Less flexible than standalone HR software for customization
Gusto vs Justworks: Side by Side
| Factor | Gusto | Justworks |
|---|---|---|
| User Rating | 4.6/5 ★ | 4.6/5 ★ |
| Category | HR Software | HR Software |
| Pricing Model | Paid | Paid |
| Starting Price | $40/mo + $6/employee | $59/employee/mo |
| Best For | Small businesses under 100 employees | Small businesses wanting Fortune 500 benefits |
| Our Pick | 🏆 Recommended | — |
Gusto Features
- ✓Payroll automation
- ✓benefits administration
- ✓onboarding
- ✓time tracking
- ✓compliance
Justworks Features
- ✓PEO co-employment
- ✓payroll
- ✓benefits access
- ✓compliance
- ✓HR support
Pricing Comparison
Gusto
PaidStarts at $40/mo + $6/employee
Simple: $40/mo + $6/employee · Plus: $80/mo + $12/employee · Premium: $180/mo + $22/employee
See full pricing →Justworks
PaidStarts at $59/employee/mo
Justworks: $59/employee/mo · Plus: $99/employee/mo
See full pricing →Best Use Cases
Gusto
- →US small businesses running payroll for the first time
- →Startups wanting automated tax filing
- →Companies needing combined payroll and benefits administration
Justworks
- →US startups and small businesses wanting full PEO services
- →Companies wanting to offer Fortune 500 benefits to small teams
- →Businesses wanting to outsource HR compliance
Who Should NOT Use These Tools
Gusto is NOT ideal for:
- ✗Companies with international employees
- ✗Large enterprises needing complex payroll rules
- ✗Businesses outside the United States
Justworks is NOT ideal for:
- ✗Companies with international employees
- ✗Businesses wanting full control over HR processes
- ✗Large enterprises with dedicated HR teams
Integrations
Gusto
QuickBooks, Xero, FreshBooks, Clover, When I Work, Deputy, BambooHR, Greenhouse
Justworks
QuickBooks, Xero, Slack, Google Workspace, Microsoft 365, Greenhouse
Our Take
Choose Gusto if small businesses under 100 employees. Choose Justworks if small businesses wanting fortune 500 benefits.
Best For
Small businesses under 100 employees
Best For
Small businesses wanting Fortune 500 benefits
How Gusto and Justworks Are Similar
- •Both are HR 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 Justworks is the right fit, Breezy HR is worth evaluating.
Breezy HR
Small businesses and startups needing simple recruiting
From $9/user/mo
Frequently Asked Questions
What is the difference between Gusto and Justworks?
Gusto is best for small businesses under 100 employees. Justworks is best for small businesses wanting fortune 500 benefits.
Which is better, Gusto or Justworks?
Choose Gusto if small businesses under 100 employees. Choose Justworks if small businesses wanting fortune 500 benefits.
How much does Gusto cost?
Gusto starts at $40/mo + $6/employee. Pricing model: Paid.
How much does Justworks cost?
Justworks starts at $59/employee/mo. Pricing model: Paid.
Who should use Gusto?
Small businesses under 100 employees
Who should use Justworks?
Small businesses wanting Fortune 500 benefits