When you’re a small business owner, choosing the right payroll solution is a key decision for running your business smoothly. In today’s marketplace, two of the most popular payroll platforms are QuickBooks Online Payroll and Gusto. Both tools help you process payroll, calculate and file taxes, and even manage numerous human resource (HR) tasks. In this post, we’ll explore the differences between QuickBooks and Gusto, compare pricing, features, integrations, ease of use, and more, so you can decide which solution best suits your business needs.

Table of Contents

• Overview
• Key Features Comparison
  • Payroll Processing
  • HR and Employee Management
  • Time Tracking and Reporting
• Pricing Plans
• Integrations and Ecosystem
• Ease of Use and Mobile Accessibility
• Who Should Choose Which?
• Final Thoughts

Overview

QuickBooks Online Payroll and Gusto are both cloud-based payroll platforms that have grown in popularity among small and medium-sized businesses. QuickBooks Online Payroll is designed to work seamlessly with other QuickBooks accounting products. It is best for businesses that want to combine accounting with payroll in one integrated solution. Gusto, on the other hand, is known for its comprehensive HR features and user-friendly design, making it suitable for business owners who need not only payroll but also hiring, onboarding, and benefits administration.

These platforms automate many of the tasks that would otherwise consume valuable time. From calculating employee wages to filing federal, state, and local taxes automatically, both services aim to reduce human error and improve efficiency. However, there are some important differences in how they work and the additional services they offer.

Key Features Comparison

In order to properly decide between QuickBooks and Gusto, it is essential to compare the core features they offer. Here are several key areas to consider:

Payroll Processing

Both QuickBooks and Gusto offer highly automated payroll systems that process payments, calculate taxes, and help manage direct deposits efficiently.

• Speed of Direct Deposit:
  QuickBooks offers same-day direct deposit options in its higher-tier plans, while its basic plan provides next-day deposit. Gusto generally processes direct deposits in one to two business days. For businesses where speed is essential, QuickBooks may have a slight edge.
• Tax Calculations and Filings:
  Both platforms automatically calculate, file, and pay federal and state taxes. QuickBooks even provides a penalty-free guarantee for errors in tax filings on its Elite plan, offering extra peace of mind. Gusto also handles local tax filings even in its lower-tier plans.
• Flexibility in Pay Runs:
  Gusto is notable for offering unlimited payroll runs with no additional fees. This flexibility can be beneficial if you need to process bonus payments, commissions, or run off-cycle payrolls. QuickBooks Online Payroll also supports unlimited payroll runs but may charge extra for off-cycle processing in some cases.

HR and Employee Management

Human resource functionality is an important consideration if you need to handle more than just payroll.

• Employee Onboarding and HR Tools:
  Gusto stands out with its HR features that include job postings, onboarding support, online offer letters, customizable employee profiles, and performance reviews. The platform offers an HR resource center and, for higher-tier plans, access to HR advisors.
• Self-Service Portal:
  Both QuickBooks and Gusto give employees access to a self-service portal where they can view pay stubs, W-2s/1099s, and update personal details. However, Gusto’s portal is more focused on HR engagement and benefits management.
• Benefits Management:
  Gusto offers a wider range of benefits options with support for health insurance (covering roughly 38 states plus Washington, D.C.), 401(k) plans, commuter benefits, and even college savings plans. QuickBooks Payroll offers health benefits as well, but its coverage is available in 48 states. Depending on your geographic needs, this difference might be crucial.

Time Tracking and Reporting

Accurate time tracking is crucial, especially if you have a mix of hourly and salaried employees.

• Time Tracking Tools:
  QuickBooks Online Payroll seamlessly integrates with QuickBooks Time (formerly TSheets) to offer robust time tracking features. These tools include GPS tracking, mileage tracking, and the ability to set up geofencing – all beneficial for businesses with remote or mobile teams.
  Gusto offers basic time tracking capabilities in its higher-tier plans, but may not be as in-depth as QuickBooks’ integration with its native time tracking solution.
• Reporting and Analytics:
  Both platforms provide a range of customizable reports such as payroll history, tax liability, benefit expenses, and more. Gusto takes it a step further by including more detailed reporting options for HR analytics and employee performance, which can help with strategic decision-making and financial planning. QuickBooks, favored for its accounting prowess, generates detailed financial reports that sync directly with payroll entries.

Pricing Plans

Pricing is a critical factor for small business owners, so let’s compare the fee structures:

Gusto Pricing

Gusto offers several pricing plans to accommodate businesses of different sizes and needs:

• Simple Plan:
  • Base fee: Around $40–$49 per month
  • Additional: Approximately $6 per employee per month
  • Designed for small businesses needing full-service payroll, basic HR tools, and local tax filings.
• Plus Plan:
  • Base fee: Around $80 per month
  • Additional: Approximately $12 per employee per month
  • Includes multi-state payroll, next-day direct deposits, time tracking, and more robust HR features such as performance reviews and onboarding tools.
• Premium Plan:
  • Custom pricing available upon request
  • Geared toward larger enterprises requiring comprehensive HR consulting, enhanced employee benefits administration, and dedicated support.
• Contractor-Only Plan:
  • Base fee: Around $35 per month (sometimes free for the first six months)
  • Additional: Approximately $6 per contractor per month
  • Designed for businesses that solely contract with non-employee workers.

QuickBooks Online Payroll Pricing

QuickBooks Online Payroll is available in three main plans:

• Core Plan:
  • Base fee: About $45–$50 per month
  • Additional: Approximately $5–$6 per employee per month
  • Best for small businesses that need a straightforward payroll solution, with next-day direct deposits and basic employee management features.
• Premium Plan:
  • Base fee: Roughly $85 per month
  • Additional: Approximately $9 per employee per month
  • Adds benefits like mobile time tracking, additional HR support, and local tax filings that are absent in the Core plan.
• Elite Plan:
  • Base fee: Approximately $130 per month
  • Additional: Around $10–$11 per employee per month
  • Includes advanced features such as same-day direct deposit, tax penalty protection (up to $25,000), and a personal HR advisor.

Both platforms have transparent pricing with no hidden fees, but which one is more affordable can depend on your business size and specific needs. For example, for a small business with 15 employees, the monthly fees are comparable. However, if you plan to scale or need more HR features, Gusto may offer better value despite a higher per-employee cost.

Integrations and Ecosystem

Integration capabilities are vital for ensuring that payroll data flows seamlessly into your other business systems. Let’s break it down:

• QuickBooks Ecosystem:
  QuickBooks Online Payroll is part of the larger QuickBooks suite. If you already use QuickBooks for accounting or inventory management, integrating payroll is nearly effortless. Data automatically syncs into your general ledger, saving time during reconciliations and reducing manual input errors. The system also integrates natively with QuickBooks Time for time tracking and with TurboTax for simplified tax filing.
• Gusto Integrations:
  Gusto is known for its broad third-party integrations. It connects with a wide range of accounting platforms (including QuickBooks), time tracking apps, HR management tools, and benefits administration services. This flexibility is particularly useful if your company uses multiple software solutions and needs them to work together smoothly. Additionally, Gusto’s open API (when it becomes available) is expected to further enhance integration options over time.

Overall, if a seamless connection to your accounting system is critical, QuickBooks’ native integration offers a clear advantage. However, if you require broader HR integrations and flexibility, Gusto takes the lead.

Ease of Use and Mobile Accessibility

No matter how feature-rich a payroll solution is, it needs to be user-friendly for both administrators and employees.

• QuickBooks Online Payroll Interface:
  Since it is designed alongside the QuickBooks accounting platform, its interface is streamlined for those already familiar with QuickBooks. The platform aggregates payroll and financial transactions into one view, reducing the need to switch between multiple tools. Users also benefit from a dedicated mobile app that allows payroll processing on the go. This mobile app offers functionalities such as running payroll, viewing reports, and editing employee details—ideal for busy managers.
• Gusto User Experience:
  Gusto has built a reputation for its intuitive and visually appealing interface. It is often praised by users for its simplicity and ease of navigation, even for those who are new to payroll systems. While Gusto does not have a standalone mobile app for payroll (its mobile site is mobile-friendly), its web-based functionality is optimized for modern browsers and works well on tablets and mobile devices. Gusto’s clear step-by-step setup guides and a robust resource center make onboarding quick and stress-free.

Who Should Choose Which?

The choice between QuickBooks and Gusto ultimately depends on your company’s current software infrastructure, the complexity of your payroll needs, and your HR requirements.

• Choose QuickBooks Online Payroll if:
  • You’re already using QuickBooks accounting software.
  • You need fast, reliable payroll processing with options for same-day direct deposit in higher-tier plans.
  • You prefer detailed accounting integration with robust financial reporting.
  • Your business is relatively small (fewer than 50 employees) and has simpler HR needs.
• Choose Gusto if:
  • You need a comprehensive payroll solution that includes a strong HR platform with onboarding, job postings, performance reviews, and employee surveys.
  • You plan to scale your business beyond 50 employees and want tools that support HR as well as payroll.
  • You require extensive third-party integrations to connect your various business processes.
  • You are looking for flexible benefit management options and a user-friendly interface.

In many cases, the decision also hinges on geographic requirements: QuickBooks offers health benefits in 48 states, while Gusto covers around 38 states plus the District of Columbia—which might be a critical factor if you operate in states that are covered by one solution and not the other.

Final Thoughts

Both QuickBooks Online Payroll and Gusto represent reputable, feature-rich payroll solutions that have helped thousands of small business owners streamline their operations. They reduce manual errors, ensure timely tax filings, and offer a range of additional tools beyond payroll processing.

QuickBooks Online Payroll is ideal for businesses deeply integrated with the QuickBooks ecosystem. It offers efficient payroll processing along with seamless accounting and tax filing features. If your business already uses QuickBooks for accounting, adding payroll becomes an almost frictionless process that results in highly detailed financial records and a unified view of your business finances.

Conversely, Gusto is a holistic solution that not only handles payroll but also provides robust HR functionalities. Its ease of use, wide range of integrations with other HR and business applications, and comprehensive benefits administration make it particularly attractive to startups and growing businesses that need more than just payroll. Gusto’s extensive HR tools—from onboarding to performance management—help businesses engage and retain talent effectively.

Ultimately, the decision between QuickBooks vs Gusto boils down to your immediate business needs and long-term growth plans. Consider the size of your organization, your existing software ecosystem, and whether you need a platform that can scale with both payroll and HR demands. Both platforms are highly rated by users, and many businesses have found success with either choice based on their unique operational requirements.

In summary:

• If you value integrated accounting, fast direct deposits, and detailed financial reporting, QuickBooks Online Payroll is a strong choice.
• If you need a user-friendly solution with in-depth HR features and flexible benefits management, Gusto might be the better option.

Regardless of your choice, both platforms constantly evolve and add new features. It’s always a good idea to take advantage of free trials or product demos (both Gusto and QuickBooks offer these options) to see which one aligns best with your workflow and business processes.

Final Recommendations

When deciding between QuickBooks vs Gusto, ask yourself the following questions:

1. Do you already use QuickBooks for accounting?
   • If yes, QuickBooks Online Payroll offers seamless integration and a familiar interface.
2. How complex are your HR needs?
   • If you need robust HR features such as onboarding tools, job postings, and performance reviews, Gusto provides a more comprehensive solution.
3. What is your business growth plan?
   • For a business that expects rapid scaling and will require extensive HR support, Gusto is a better long-term investment.
4. Is fast direct deposit a priority?
   • QuickBooks’ same-day direct deposit options in higher-tier plans might be more appealing if cash flow management is critical.
5. What are your geographic requirements for benefits?
   • Check which states are covered under each plan’s health benefits offerings to ensure compliance with your business location.

By carefully evaluating these aspects, you can select the payroll software that most effectively balances your operational efficiency with your employee management needs.

In choosing the best option, consider not just the functionality but also the potential for future growth. As your company expands, you may wish to reevaluate your payroll system to ensure that it continues to meet your evolving needs. Many businesses start with one solution and later migrate or integrate additional tools as they scale.

Both QuickBooks Online Payroll and Gusto have received positive reviews from thousands of users worldwide. Their commitment to automating payroll tasks, ensuring compliance, and simplifying the lives of small business owners have made them leaders in their industry.

Ultimately, it’s not just about processing payroll—it’s about empowering your business with the tools it needs to thrive. Whether you choose QuickBooks for its deep accounting integration or Gusto for its all-encompassing HR support, you’ll be better equipped to manage your finances, support your employees, and focus on growing your business.

As you move forward with your decision, take the time to explore demos, read user reviews, and even consult with a bookkeeping or HR expert. This will ensure that your final choice is well-informed and aligns with your long-term business strategy.

Happy payroll processing!