When it comes to choosing a payroll solution for your small business, you often find yourself comparing two strong contenders: Gusto Payroll and QuickBooks Payroll. Both options come with a robust suite of features designed to simplify payroll processing, tax filings, and benefits management. In this post, we’ll explore in detail how these two platforms stack up against each other—from their pricing structures and payroll capabilities to HR tools, integrations, customer support, mobile apps, and scalability. Read on for a comprehensive guide on which solution might fit your business best.

Introduction

Payroll is one of the most critical functions of any business. Processing employee wages, deducting appropriate taxes and benefits, filing forms, and ensuring compliance with ever-changing government regulations are time-consuming tasks. For small and growing companies, a payroll solution that not only automates these tasks but also adds HR value and integrates with other business software is crucial.

In this blog post, we dive deeply into the comparison of Gusto Payroll versus QuickBooks Payroll. We’ll cover the following key topics:

• Pricing and plans
• Payroll processing and tax filing
• HR features and benefits administration
• Integrations with third‑party applications
• Mobile functionality and user experience
• Scalability and target audience
• Pros and cons of each platform

By the end of this article, you should have a clear picture of which payroll solution might be better for your business.

Pricing

One of the first aspects many business owners consider is cost. Both Gusto and QuickBooks Payroll provide transparent pricing structures, although the base fees and per-employee costs differ slightly.

Gusto Pricing

Gusto offers multiple pricing tiers designed to meet the different needs of small businesses:

• Simple Plan:
  • Base fee: Approximately $40 or $49 per month
  • Per-employee fee: Around $6 per month
  • Ideal for small businesses with basic payroll needs and single-state processing
• Plus Plan:
  • Base fee: Around $80 per month
  • Per-employee fee: Approximately $12 per month
  • Includes multi-state payroll, advanced hiring and onboarding tools, and next-day direct deposit options
• Premium Plan:
  • Price is quote based
  • Designed for larger organizations that need a comprehensive solution, including dedicated HR support and additional benefits options
• Contractor-Only Plan:
  • Base fee: Roughly $35 per month (sometimes with discounts for the first six months)
  • Per-contractor fee: $6 per contractor per month
  • Suitable if you need to process payments for independent contractors

Gusto’s pricing is structured to offer you ample HR and benefits administration built right into the product, making it more than just a payroll tool. However, extra features such as next-day deposit are available only on the higher-priced tiers.

QuickBooks Payroll Pricing

QuickBooks Payroll, part of the Intuit ecosystem, offers competitive pricing plans that are especially appealing if you already use QuickBooks Online for your accounting:

• Core Plan:
  • Base fee: Approximately $45 to $50 per month
  • Per-employee fee: About $6 per month
  • Provides full-service payroll, automated tax filing, and next-day direct deposit (in the entry-level package)
• Premium Plan:
  • Base fee: Around $85 per month
  • Per-employee fee: Approximately $9 per month
  • Adds local tax filing, automatic state new hire reporting, and enhanced HR support
• Elite Plan:
  • Base fee: Around $130 per month
  • Per-employee fee: About $11 per month
  • Includes advanced features like same-day direct deposit, tax penalty protection (up to $25,000), and personalized HR advisor support
• Contractor Payments Plan:
  • Base plan: $15 for up to 20 contractors, plus an additional $2 per contractor beyond the initial quota

QuickBooks Payroll provides a strong option for businesses that prefer to keep their accounting and payroll under one umbrella. The addition of tax penalty protection in the Elite plan provides extra peace of mind. However, some useful HR features need upgrading to higher-tier plans, which can drive up costs as your business grows or if you manage more complex payroll needs.

Comparing the Two

While both platforms charge monthly base fees plus per-employee or per-user fees, your choice might come down to your overall needs. Gusto tends to be more attractive if you value a robust HR ecosystem and benefits administration, whereas QuickBooks Payroll is a smart choice when you already use QuickBooks Online and need seamless integration between your accounting and payroll.

Payroll Processing and Tax Filing

A major purpose of any payroll system is to ensure that employees are paid accurately and on time while meeting tax compliance requirements.

Running Payroll

Gusto Payroll:

• Designed to simplify the payroll process so that you can run payroll with just a few clicks—often in as little as 11 minutes per run.
• Its user-friendly interface guides you step-by-step through each payroll run.
• Offers options for automated payroll on pre-set dates, so you can save time by allowing the system to process payroll automatically.
• Provides full-service payroll for both salaried and hourly employees.
• With Gusto’s system, every run of payroll is accompanied by detailed summaries that help you double-check accuracy before submission.

QuickBooks Payroll:

• Also offers unlimited payroll runs, which is useful if you need to process payroll frequently.
• Being an extension of the QuickBooks ecosystem, it tries to integrate closely with your accounting records.
• The platform automatically calculates payroll for salaried employees, while hourly workers may require additional information.
• Offers seamless synchronization between payroll data and the general ledger, ensuring that all transactions are recorded in detail.

Tax Filings

Gusto:

• Automatically calculates, deducts, files, and pays federal, state, and local payroll taxes.
• Provides automatic preparation and filing of forms such as W‑2 and 1099.
• Files all tax returns without additional fees even if you are filing in multiple states.
• This integrated tax process minimizes the risk of manual errors and penalties.

QuickBooks Payroll:

• Offers similar automatic tax calculation, filing, and payment features.
• However, local tax filing is included only in the higher-tier plans (Premium or Elite). In the Core plan, this may be limited.
• Additionally, QuickBooks Payroll offers tax penalty protection on the Elite plan. If a penalty is incurred due to an error on their system, they cover it up to a certain limit.
• The seamless posting of payroll entries to your general ledger is a significant advantage if you are also using QuickBooks Online for accounting.

Summary

Both platforms take the worry out of payroll processing and tax filings by automating many of the complex processes. Gusto’s tax filing is all-inclusive across all tiers, while QuickBooks Payroll requires you to upgrade for local tax filing and extra safety nets like penalty protection. Your decision here will depend on the specific tax and regulatory needs of your business.

HR Tools and Employee Benefits

Payroll software today is more than just paying employees—it’s also about managing human resources and benefits effectively.

Gusto Payroll:

• Offers a wide range of HR functionalities along with payroll. In addition to basic onboarding and employee self-service portals, Gusto includes features like:
  • Hiring tools with customizable job postings and online offer letters.
  • Performance review management and employee surveys.
  • Tools to manage paid time off (PTO) and attendance tracking.
• Gusto’s integrated benefits administration is comprehensive; it includes access to health, dental, vision benefits as well as 401(k), HSAs, FSAs, commuter benefits and even 529 college savings plans.
• The platform automatically handles the paperwork and filings associated with benefits enrollment.
• For businesses growing rapidly or those that value a well-rounded HR ecosystem, Gusto’s HR features are a major draw.

QuickBooks Payroll:

• Provides HR tools as well, but these tend to be more basic unless you upgrade to Premium or Elite plans.
• The entry-level plans focus more on payroll processing, with additional HR support such as customizable job descriptions, onboarding checklists, and an employee self-service portal.
• Health benefits and retirement plan options are available, although the selection may not be as wide or well-integrated as Gusto’s.
• QuickBooks’ HR support comes through partnerships (e.g., with Allstate for health insurance) and is best if you already use QuickBooks accounting software.

Which One Excels?

Gusto clearly wins in terms of comprehensive HR support and benefits administration. If you are looking for a payroll system that also functions as a full-service HR solution, especially for a growing business that might require more advanced HR functions, Gusto is the stronger option. QuickBooks Payroll, on the other hand, is ideal for companies that emphasize tight integration with accounting functions and can live with simpler HR features.

Integrations

In today’s software ecosystem, integrations allow you to connect your payroll system with other tools and platforms, saving you time and reducing duplicate data entry.

Gusto Integrations:

• Gusto is known for its robust integration capabilities. It works well with a wide range of third-party applications including:
  • Accounting software like QuickBooks Online, Xero, and FreshBooks.
  • Time tracking tools such as TSheets, Homebase, and others.
  • HR and benefits- related solutions.
  • Point-of-sale (POS) and expense management systems.
• All of these integrations come at no extra cost and help create a seamless workflow between payroll, accounting, and HR systems.
• The flexibility of Gusto’s ecosystem is especially attractive if you use multiple software solutions in your business.

QuickBooks Payroll Integrations:

• As part of the Intuit family, QuickBooks Payroll integrates very tightly with other QuickBooks products.
  • This includes synchronization with QuickBooks Online accounting software, ensuring that every payroll transaction is automatically recorded in your books.
• It also supports some third-party integrations, but these are far less extensive than Gusto’s offerings.
• If you rely on QuickBooks for your accounting, the native integration between your accounting and payroll systems can simplify financial management considerably.

Bottom Line on Integrations

For businesses that use a variety of applications across accounting, HR, time tracking, and beyond, Gusto offers a more versatile integration ecosystem. However, if your workflow is centralized around QuickBooks Online, then QuickBooks Payroll’s tight integration may be the simpler choice.

Mobile Experience and Ease of Use

A modern payroll solution should be easy to use and accessible on the go. Let’s examine how Gusto and QuickBooks Payroll fare in these areas.

Gusto Payroll:

• Gusto’s web-based platform is known for its clean and intuitive design.
• The interface is designed with small business owners in mind, with clear step‑by‑step instructions for running payroll, enrolling employees, and managing benefits.
• Although Gusto is mobile-friendly, it does not currently offer a dedicated mobile app for running payroll. Employees can access their pay stubs and tax documents through the online portal on mobile devices, but employers may have to use a web browser.
• This limitation might be a concern for business owners who need to process payroll quickly while away from their desktop.

QuickBooks Payroll:

• QuickBooks Payroll offers a fully functional mobile app available on both iOS and Android platforms.
• The mobile app allows employers to run payroll, view reports, edit employee details, and even file taxes on the go.
• This flexibility is especially beneficial for business owners who are often out of the office or travel frequently.
• As part of the broader QuickBooks ecosystem, the mobile experience is closely integrated with other financial and accounting data.

Which Is More User-Friendly?

Both solutions are designed for ease of use, but the difference lies in mobility. QuickBooks Payroll’s dedicated mobile app gives it an edge for business owners who prefer to manage payroll from anywhere. If you demand on‑the‑go access, QuickBooks Payroll might be the more convenient option.

Scalability and Target Audience

Another important factor is how well each system scales with your business. Consider your current size, your future growth plans, and whether the software can handle increased complexity.

Gusto Payroll:

• Gusto is built to serve a wide range of small to mid-sized businesses.
• It works well for companies from just a few employees up to several hundred employees.
• With its comprehensive HR tools, benefits administration, and modern approach to onboarding and employee management, Gusto is an excellent choice for businesses planning to grow.
• Larger organizations that value a deep HR ecosystem will appreciate Gusto’s extensive features.
• However, there can be a compounding cost effect as you add more employees, so it’s important to evaluate your long-term needs.

QuickBooks Payroll:

• QuickBooks Payroll is optimized for small businesses that typically have fewer than 50 employees.
• The platform is ideal if you are already using QuickBooks Online for accounting due to the seamless integration.
• It may not be the best fit for businesses with more complex HR requirements or very large workforces.
• As your business grows, you might find that you need advanced HR, time tracking, and reporting functionalities that require an upgrade to the Premium or Elite plans.

Summary

If you are planning for rapid growth and need a payroll system that scales with extensive HR and benefits features, Gusto might be the better long‑term choice. Conversely, if your business is small, relatively static, and you prefer a tight integration with QuickBooks accounting, then QuickBooks Payroll is a solid option.

Pros and Cons

To wrap up the feature-by-feature comparison, here is a quick look at some of the key pros and cons of each solution.

Gusto Payroll Pros

• Comprehensive HR Features: In addition to payroll, Gusto offers robust HR tools like onboarding, performance reviews, benefits administration, and PTO management.
• All-Inclusive Tax Filing: Automatically calculates, files, and pays federal, state, and local taxes across all tiers.
• Flexible Integrations: Easily integrates with over 100 third-party applications in accounting, time tracking, and business operations.
• User-Friendly Design: Intuitive web interface that simplifies complex processes into a few easy steps.

Gusto Payroll Cons

• Mobile Limitations: Lacks a dedicated mobile app for running payroll, which might inconvenience some users.
• Potentially Higher Cost: As you add more employees or require premium features, the cost per employee increases.
• Direct Deposit Timing: Next-day or two-day deposit times may not be fast enough for businesses needing same‑day processing.

QuickBooks Payroll Pros

• Seamless Integration with Accounting: Native integration with QuickBooks Online ensures your payroll data syncs automatically with your accounting records.
• Mobile App Access: Offers a fully functional mobile app for processing payroll and managing employee information on the go.
• Tax Penalty Protection: Elite plan includes coverage for tax penalties, providing added peace of mind.
• Familiarity for Existing Users: If you already use QuickBooks for accounting, adding payroll is simple and reduces the learning curve.

QuickBooks Payroll Cons

• Limited HR Tools: The basic plans offer fewer HR features unless you upgrade to higher-tier plans.
• Local Tax Filing Limitations: Local tax filings are available only in the Premium and Elite plans.
• Interface Complexity: For those not familiar with QuickBooks, the interface may seem more complex initially.
• Third‑Party Integrations: Fewer integrations outside of the Intuit ecosystem compared to Gusto.

Final Considerations

Ultimately, the choice between Gusto Payroll and QuickBooks Payroll comes down to your business’s unique needs and priorities.

• Choose Gusto Payroll if…
  • You need a full-service payroll solution with an extensive suite of HR and benefits management tools.
  • Your business plans to scale and you want a partner that can provide a robust ecosystem for employee onboarding, performance management, and comprehensive compliance.
  • You value integration with a variety of third-party applications for a more dynamic workflow.
• Choose QuickBooks Payroll if…
  • Your company already uses QuickBooks Online for accounting, and you prefer tight integration between payroll and accounting systems.
  • You require a mobile payroll solution that allows hands‑on management of employee data from anywhere.
  • Your business is small with relatively simple payroll needs, and you are looking for cost-effective and reliable payroll processing with added tax penalty protection.

Assess your current requirements, growth plans, and any specific challenges—whether that’s managing multi‑state tax filings, offering a broad range of employee benefits, or having a flexible mobile solution—and compare those with what each platform offers.

Conclusion

Both Gusto Payroll and QuickBooks Payroll provide solid, reliable solutions for managing payroll, taxes, and HR functions. Gusto stands out with its comprehensive HR features, intuitive user interface, and robust integrations with diverse business tools. It is particularly well‑suited for small to mid‑sized businesses that need more than just payroll processing; it’s an all-in-one solution designed to grow alongside your company.

On the other hand, QuickBooks Payroll appeals strongly to businesses already embedded in the QuickBooks ecosystem. Its seamless integration with accounting, dedicated mobile app, and tax penalty protection in higher tiers make it the preferred choice for companies that prioritize tight integration with their financial systems and require on‑the‑go access.

As you weigh your options, consider factors such as the size of your business, the complexity of your payroll needs, integration requirements, and budget. Both platforms are highly rated by users and come with their own set of advantages and trade‑offs. Whether you choose Gusto Payroll for its human‑centered, full‑service approach or QuickBooks Payroll for its strong accounting integration and mobile capabilities, you can be confident that you are investing in a platform designed to reduce administrative burdens and help your business thrive.

By taking the time to evaluate your needs and understanding the strengths of each provider, you will be well‑equipped to make an informed decision that supports your long‑term business goals. Happy payroll processing!

Do you have any questions or experiences using either Gusto Payroll or QuickBooks Payroll? Feel free to share your thoughts in the comments below, and let’s continue the conversation about how to best streamline your payroll and HR processes!