Justworks vs Gusto
A head-to-head comparison to help you pick the right tool
Last updated: September 14, 2026
Justworks is our recommended pick for most teams — small businesses wanting fortune 500 benefits.
Try Justworks →Read our full Justworks review →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.
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.
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
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
Justworks vs Gusto: Side by Side
| Factor | Justworks | Gusto |
|---|---|---|
| User Rating | 4.6/5 ★ | N/A |
| Category | HR Software | Payroll Software |
| Pricing Model | Paid | Paid |
| Starting Price | $59/employee/mo | $40/mo + $6/person |
| Best For | Small businesses wanting Fortune 500 benefits | Small businesses under 100 employees wanting full-service payroll with benefits |
| Our Pick | 🏆 Recommended | — |
Justworks Features
- ✓PEO co-employment
- ✓payroll
- ✓benefits access
- ✓compliance
- ✓HR support
Gusto Features
- ✓Full-service payroll
- ✓automatic tax filing
- ✓direct deposit
- ✓employee benefits
- ✓onboarding
- ✓PTO tracking
- ✓time tracking
- ✓contractor payments
Pricing Comparison
Justworks
PaidStarts at $59/employee/mo
Justworks: $59/employee/mo · Plus: $99/employee/mo
See full pricing →Best Use Cases
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
Justworks is NOT ideal for:
- ✗Companies with international employees
- ✗Businesses wanting full control over HR processes
- ✗Large enterprises with dedicated HR teams
Integrations
Justworks
QuickBooks, Xero, Slack, Google Workspace, Microsoft 365, Greenhouse
Our Take
Choose Justworks if small businesses wanting fortune 500 benefits. Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits.
Best For
Small businesses wanting Fortune 500 benefits
Best For
Small businesses under 100 employees wanting full-service payroll with benefits
Also Consider
If neither Justworks nor Gusto 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 Justworks and Gusto?
Justworks is best for small businesses wanting fortune 500 benefits. Gusto is best for small businesses under 100 employees wanting full-service payroll with benefits.
Which is better, Justworks or Gusto?
Choose Justworks if small businesses wanting fortune 500 benefits. Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits.
How much does Justworks cost?
Justworks starts at $59/employee/mo. Pricing model: Paid.
How much does Gusto cost?
Gusto starts at $40/mo + $6/person. Pricing model: Paid.
Who should use Justworks?
Small businesses wanting Fortune 500 benefits
Who should use Gusto?
Small businesses under 100 employees wanting full-service payroll with benefits