Gusto vs Paymo
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.
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, 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
- ✓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 | 4.6/5 ★ | N/A |
| Category | HR Software | Project Management |
| Pricing Model | Paid | Freemium |
| Starting Price | $40/mo + $6/employee | Contact for pricing |
| Best For | Small businesses under 100 employees | Freelancers and small agencies needing project management combined with time tracking and client invoicing |
| Our Pick | 🏆 Recommended | — |
Gusto Features
- ✓Payroll automation
- ✓benefits administration
- ✓onboarding
- ✓time tracking
- ✓compliance
Paymo Features
- ✓Project management
- ✓time tracking
- ✓invoicing
- ✓expense tracking
- ✓team collaboration
- ✓client portal
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 →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
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
Integrations
Gusto
QuickBooks, Xero, FreshBooks, Clover, When I Work, Deputy, BambooHR, Greenhouse
Our Take
Choose Gusto if small businesses under 100 employees. Choose Paymo if freelancers and small agencies needing project management combined with time tracking and client invoicing.
Best For
Small businesses under 100 employees
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, Justworks is worth evaluating.
Justworks
Small businesses wanting Fortune 500 benefits
From $59/employee/mo
Frequently Asked Questions
What is the difference between Gusto and Paymo?
Gusto is best for small businesses under 100 employees. 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. 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/employee. Pricing model: Paid.
How much does Paymo cost?
Visit Paymo website for current pricing.
Who should use Gusto?
Small businesses under 100 employees
Who should use Paymo?
Freelancers and small agencies needing project management combined with time tracking and client invoicing