Square Payroll 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 →Square Payroll
Square Payroll is a simple and affordable payroll solution built for small businesses, especially those already using Square for payments. It handles full-service payroll, tax filings, and tip management automatically.
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
- ✓Very easy to use
- ✓Affordable flat pricing
- ✓Seamless Square POS integration
- ✓Handles tips and hourly workers well
- ✓Full-service tax filing included
Cons
- ✗Limited features for complex payroll needs
- ✗Not suited for larger businesses
- ✗HR features are basic
- ✗Best value only for Square ecosystem users
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
Square Payroll vs Gusto: Side by Side
| Factor | Square Payroll | Gusto |
|---|---|---|
| User Rating | N/A | 4.6/5 ★ |
| Category | Payroll Software | HR Software |
| Pricing Model | Paid | Paid |
| Starting Price | Contact for pricing | $40/mo + $6/employee |
| Best For | Small businesses and restaurants already using Square POS wanting a simple integrated payroll solution | Small businesses under 100 employees |
| Our Pick | — | 🏆 Recommended |
Square Payroll Features
- ✓Payroll processing
- ✓tax filing
- ✓benefits administration
- ✓direct deposit
- ✓employee self-service
- ✓reporting
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 Square Payroll if small businesses and restaurants already using square pos wanting a simple integrated payroll solution. Choose Gusto if small businesses under 100 employees.
Best For
Small businesses and restaurants already using Square POS wanting a simple integrated payroll solution
Best For
Small businesses under 100 employees
Also Consider
If neither Square Payroll nor Gusto is the right fit, Multiplier is worth evaluating.
Multiplier
Startups and SMBs hiring internationally on a budget
From $40/contractor/mo
Frequently Asked Questions
What is the difference between Square Payroll and Gusto?
Square Payroll is best for small businesses and restaurants already using square pos wanting a simple integrated payroll solution. Gusto is best for small businesses under 100 employees.
Which is better, Square Payroll or Gusto?
Choose Square Payroll if small businesses and restaurants already using square pos wanting a simple integrated payroll solution. Choose Gusto if small businesses under 100 employees.
How much does Square Payroll cost?
Visit Square Payroll website for current pricing.
How much does Gusto cost?
Gusto starts at $40/mo + $6/employee. Pricing model: Paid.
Who should use Square Payroll?
Small businesses and restaurants already using Square POS wanting a simple integrated payroll solution
Who should use Gusto?
Small businesses under 100 employees