Paylocity vs Gusto
A head-to-head comparison to help you pick the right tool
Last updated: April 30, 2026
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 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
- ✓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 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
Paylocity vs Gusto: Side by Side
| Factor | Paylocity | Gusto |
|---|---|---|
| User Rating | N/A | N/A |
| Category | HR Software | Payroll Software |
| Pricing Model | Paid | Paid |
| Starting Price | Custom pricing | $40/mo + $6/person |
| Best For | Mid-market businesses with 20-1000 employees | Small businesses under 100 employees wanting full-service payroll with benefits |
| Our Pick | — | — |
Paylocity Features
- ✓Payroll
- ✓benefits
- ✓talent management
- ✓workforce management
- ✓analytics
- ✓employee self-service
Gusto Features
- ✓Full-service payroll
- ✓automatic tax filing
- ✓direct deposit
- ✓employee benefits
- ✓onboarding
- ✓PTO tracking
- ✓time tracking
- ✓contractor payments
Pricing Comparison
Our Take
Choose Paylocity if mid-market businesses with 20-1000 employees. Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits.
Best For
Mid-market businesses with 20-1000 employees
Best For
Small businesses under 100 employees wanting full-service payroll with benefits
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 wanting full-service payroll with benefits.
Which is better, Paylocity or Gusto?
Choose Paylocity if mid-market businesses with 20-1000 employees. Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits.
How much does Paylocity cost?
Paylocity starts at Custom pricing. Pricing model: Paid.
How much does Gusto cost?
Gusto starts at $40/mo + $6/person. Pricing model: Paid.
Who should use Paylocity?
Mid-market businesses with 20-1000 employees
Who should use Gusto?
Small businesses under 100 employees wanting full-service payroll with benefits