Workday vs Gusto
A head-to-head comparison to help you pick the right tool
Last updated: April 30, 2026
Workday
Workday is an enterprise-grade HCM platform used by large organizations worldwide. It covers HR, payroll, finance, and planning in a deeply integrated suite. Workday is the gold standard for enterprise HR but requires significant implementation resources and budget.
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
- ✓Extremely powerful and configurable for complex enterprise needs
- ✓Best-in-class financial and workforce planning tools
- ✓Strong compliance and audit capabilities
- ✓Extensive global payroll coverage
Cons
- ✗Very expensive with long implementation timelines of 6-12 months
- ✗Overkill and unaffordable for companies under 500 employees
- ✗UI can feel dated and complex for everyday 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
Workday vs Gusto: Side by Side
| Factor | Workday | Gusto |
|---|---|---|
| User Rating | N/A | N/A |
| Category | HR Software | Payroll Software |
| Pricing Model | Paid | Paid |
| Starting Price | $34/user/mo | $40/mo + $6/person |
| Best For | Large enterprises with 500+ employees | Small businesses under 100 employees wanting full-service payroll with benefits |
| Our Pick | — | — |
Workday Features
- ✓HR
- ✓payroll
- ✓finance
- ✓planning
- ✓analytics
- ✓learning management
Gusto Features
- ✓Full-service payroll
- ✓automatic tax filing
- ✓direct deposit
- ✓employee benefits
- ✓onboarding
- ✓PTO tracking
- ✓time tracking
- ✓contractor payments
Pricing Comparison
Our Take
Choose Workday if large enterprises with 500+ employees. Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits.
Best For
Large enterprises with 500+ employees
Best For
Small businesses under 100 employees wanting full-service payroll with benefits
Also Consider
If neither Workday 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 Workday and Gusto?
Workday is best for large enterprises with 500+ employees. Gusto is best for small businesses under 100 employees wanting full-service payroll with benefits.
Which is better, Workday or Gusto?
Choose Workday if large enterprises with 500+ employees. Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits.
How much does Workday cost?
Workday starts at $34/user/mo. Pricing model: Paid.
How much does Gusto cost?
Gusto starts at $40/mo + $6/person. Pricing model: Paid.
Who should use Workday?
Large enterprises with 500+ employees
Who should use Gusto?
Small businesses under 100 employees wanting full-service payroll with benefits