Paylocity vs Gusto
A head-to-head comparison to help you pick the right tool
Last updated: April 30, 2026
Gusto is our recommended pick for most teams — small businesses under 100 employees.
Try Gusto →Read our full Gusto review →Paylocity
Paylocity is a modern HR and payroll platform designed for mid-market businesses. It combines payroll processing with employee engagement tools, learning management, and workforce analytics. Paylocity stands out for its strong mobile experience and focus on building connected, engaged workplaces.
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.
Pros
- ✓Strong employee engagement and communication tools
- ✓Excellent mobile app for both managers and employees
- ✓Modern UI with good user adoption rates
- ✓Robust payroll with strong compliance features
Cons
- ✗Pricing requires a sales call and is not published online
- ✗Implementation can be complex for larger organizations
- ✗Some advanced features require additional modules at extra cost
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
Paylocity vs Gusto: Side by Side
| Factor | Paylocity | Gusto |
|---|---|---|
| User Rating | N/A | 4.6/5 ★ |
| Category | HR Software | HR Software |
| Pricing Model | Paid | Paid |
| Starting Price | Custom pricing | $40/mo + $6/employee |
| Best For | Mid-market businesses with 20-1000 employees | Small businesses under 100 employees |
| Our Pick | — | 🏆 Recommended |
Paylocity Features
- ✓Payroll
- ✓benefits
- ✓talent management
- ✓workforce management
- ✓analytics
- ✓employee self-service
Gusto Features
- ✓Payroll automation
- ✓benefits administration
- ✓onboarding
- ✓time tracking
- ✓compliance
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 Paylocity if mid-market businesses with 20-1000 employees. Choose Gusto if small businesses under 100 employees.
Best For
Mid-market businesses with 20-1000 employees
Best For
Small businesses under 100 employees
How Paylocity and Gusto 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 Paylocity nor Gusto 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 Paylocity and Gusto?
Paylocity is best for mid-market businesses with 20-1000 employees. Gusto is best for small businesses under 100 employees.
Which is better, Paylocity or Gusto?
Choose Paylocity if mid-market businesses with 20-1000 employees. Choose Gusto if small businesses under 100 employees.
How much does Paylocity cost?
Paylocity starts at Custom pricing. Pricing model: Paid.
How much does Gusto cost?
Gusto starts at $40/mo + $6/employee. Pricing model: Paid.
Who should use Paylocity?
Mid-market businesses with 20-1000 employees
Who should use Gusto?
Small businesses under 100 employees