Square Payroll vs Gusto
A head-to-head comparison to help you pick the right tool
Last updated: April 30, 2026
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 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
- ✓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 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
Square Payroll vs Gusto: Side by Side
| Factor | Square Payroll | Gusto |
|---|---|---|
| User Rating | N/A | N/A |
| Category | Payroll Software | Payroll Software |
| Pricing Model | Paid | Paid |
| Starting Price | Contact for pricing | $40/mo + $6/person |
| Best For | Small businesses and restaurants already using Square POS wanting a simple integrated payroll solution | Small businesses under 100 employees wanting full-service payroll with benefits |
| Our Pick | — | — |
Square Payroll Features
- ✓Payroll processing
- ✓tax filing
- ✓benefits administration
- ✓direct deposit
- ✓employee self-service
- ✓reporting
Gusto Features
- ✓Full-service payroll
- ✓automatic tax filing
- ✓direct deposit
- ✓employee benefits
- ✓onboarding
- ✓PTO tracking
- ✓time tracking
- ✓contractor payments
Pricing Comparison
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 wanting full-service payroll with benefits.
Best For
Small businesses and restaurants already using Square POS wanting a simple integrated payroll solution
Best For
Small businesses under 100 employees wanting full-service payroll with benefits
How Square Payroll and Gusto Are Similar
- •Both are Payroll 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 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 wanting full-service payroll with benefits.
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 wanting full-service payroll with benefits.
How much does Square Payroll cost?
Visit Square Payroll website for current pricing.
How much does Gusto cost?
Gusto starts at $40/mo + $6/person. 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 wanting full-service payroll with benefits