Gusto vs Workday
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.
Workday
Workday is an enterprise-grade HCM platform used by large organizations worldwide. It covers HR, payroll, finance, and planning in a deeply integrated suite. Workday is the gold standard for enterprise HR but requires significant implementation resources and budget.
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
- ✓Extremely powerful and configurable for complex enterprise needs
- ✓Best-in-class financial and workforce planning tools
- ✓Strong compliance and audit capabilities
- ✓Extensive global payroll coverage
Cons
- ✗Very expensive with long implementation timelines of 6-12 months
- ✗Overkill and unaffordable for companies under 500 employees
- ✗UI can feel dated and complex for everyday users
Gusto vs Workday: Side by Side
| Factor | Gusto | Workday |
|---|---|---|
| User Rating | 4.6/5 ★ | N/A |
| Category | HR Software | HR Software |
| Pricing Model | Paid | Paid |
| Starting Price | $40/mo + $6/employee | $34/user/mo |
| Best For | Small businesses under 100 employees | Large enterprises with 500+ employees |
| Our Pick | 🏆 Recommended | — |
Gusto Features
- ✓Payroll automation
- ✓benefits administration
- ✓onboarding
- ✓time tracking
- ✓compliance
Workday Features
- ✓HR
- ✓payroll
- ✓finance
- ✓planning
- ✓analytics
- ✓learning management
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 Workday if large enterprises with 500+ employees.
Best For
Small businesses under 100 employees
Best For
Large enterprises with 500+ employees
How Gusto and Workday 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 Workday 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 Workday?
Gusto is best for small businesses under 100 employees. Workday is best for large enterprises with 500+ employees.
Which is better, Gusto or Workday?
Choose Gusto if small businesses under 100 employees. Choose Workday if large enterprises with 500+ employees.
How much does Gusto cost?
Gusto starts at $40/mo + $6/employee. Pricing model: Paid.
How much does Workday cost?
Workday starts at $34/user/mo. Pricing model: Paid.
Who should use Gusto?
Small businesses under 100 employees
Who should use Workday?
Large enterprises with 500+ employees