Paylocity vs. Gusto – Which Payroll System Is Best For Your Business?

Choosing the appropriate payroll software is essential for any company, as it has an effect on efficacy, precision, and the level of satisfaction experienced by employees. There are two names that frequently take the lead in the conversation: Paylocity and Gusto. Both of these products have outstanding features and solid reputations, but which one comes out on top when it comes to meeting your specific requirements? Be sure to fasten your seatbelts, because this article will help you determine which payroll system is the best for your organization by analyzing their respective advantages, disadvantages, and important distinctions.

Feature Face-Off: Unveiling the Powerhouses

Both of these platforms include fundamental payroll operations such as tax compliance, direct deposit, and reporting; however, their feature sets differ in several areas, including the following:


  • Integration King: Boasting over 350 integrations, Paylocity seamlessly connects with diverse business systems, fostering a flexible and interconnected ecosystem.
  • Security Sentinel: Emphasizing compliance and data security, Paylocity might be ideal for businesses with stricter regulations.
  • User-Friendly Edge: Reviews consistently praise Paylocity’s intuitive design and ease of use, simplifying setup and administration.


  • HR Feature Haven: Gusto shines in native HR functionalities like benefits management and performance reviews, offering a more comprehensive HR suite.
  • Small Business Champion: With transparent pricing and plans starting at $40/month, Gusto caters to smaller companies seeking affordability and core features.
  • Mobile-First Approach: Their user-friendly mobile app empowers both employers and employees with on-the-go access to payroll functions.

Paylocity vs. Gusto: A Comparison Table

Feature Paylocity Gusto
Core Payroll Features
Tax Compliance & Filing
Direct Deposit & Check Printing
Reporting & Analytics
Integrations 350+ 130+
Product Updates & Innovation Frequent Moderate
Ease of Use High High
Native HR Features Limited Strong
Benefits Management Integration required Native feature
Performance Management Integration required Native feature
Security & Compliance Very strong Strong
User Satisfaction Rating (G2) 4.4/5 4.6/5
Pricing Potentially higher (not publicly available) Transparent, starting at $40/month
Ideal for Larger companies with complex needs, diverse software, and focus on security Smaller businesses with simpler needs, budget constraints, and mobile-first approach

Strengths & Weaknesses: Understanding the Trade-Offs

No software is perfect, and both Paylocity and Gusto have their Achilles’ heels:


  • Price Point Ponder: While exact pricing varies, Paylocity might be the more expensive option, especially for smaller businesses.
  • HR Feature Gap: While integrations bridge the gap, Paylocity’s native HR features lag behind Gusto, potentially requiring additional software.


  • Integration Imbalance: With fewer integrations (around 130+), Gusto’s connectivity suffers compared to Paylocity, potentially limiting flexibility.
  • Limited Support for Complexities: Gusto’s focus on smaller businesses might not cater perfectly to highly complex payroll needs.

Comparing Modules of Paylocity and Gusto

Both Paylocity and Gusto offer a range of modules, but they differ in their specific offerings and strengths. Here’s a breakdown:

Paylocity Modules

  • Core Payroll: Payroll processing, tax compliance, direct deposit, checks, garnishments, reporting.
  • Time & Attendance: Time tracking, scheduling, overtime management, mobile access.
  • HR Management: Onboarding, employee self-service, compliance management, performance management (integration required), learning management (integration required).
  • Talent Management: Recruitment, applicant tracking, onboarding (included in HR Management).
  • Benefits Administration: Full-service benefits administration (integrations available), including group health, dental, vision, and retirement plans.
  • Tax Services: W-2/1099 filing, state and local tax compliance.
  • Reporting & Analytics: Comprehensive reports on all modules, data visualization tools.

Gusto Modules

  • Payroll: Full-service payroll processing, tax compliance, direct deposit, checks, garnishments.
  • Time & Attendance: Time tracking, mobile app, GPS tracking, time-off requests, overtime management.
  • HR Management: Onboarding, employee self-service, compliance management, performance management, benefits administration (included in Core).
  • Talent Management: Recruiting, applicant tracking system (ATS).
  • Learning Management: Not available (integrations possible).
  • Benefits Administration: Full-service benefits administration, including group health, dental, vision, and retirement plans.
  • Tax Services: W-2/1099 filing, state and local tax compliance.
  • Reporting & Analytics: Comprehensive reports on all modules, data visualization tools.

The Decisive Round: Matching Software to Your Needs

Choosing the ultimate champion boils down to understanding your unique requirements:

  • Company Size & Needs: Larger companies with complex needs and diverse software might favor Paylocity’s integrations and security focus. Smaller businesses seeking affordability, core features, and a mobile-first approach might lean towards Gusto.
  • HR Focus: If robust HR functionalities are crucial, Gusto’s native features hold the edge.
  • Budget Constraints: Gusto’s transparent pricing structure caters to cost-conscious companies, while Paylocity might be a better fit for those prioritizing cutting-edge features and extensive integrations.
  • Existing Software: Assess which platform integrates better with your current systems to avoid disruptions.

Beyond the Features: Unveiling the Hidden Gems

Remember, software is about more than just features. Consider these additional factors:

  • Customer Support: Research both platforms’ reputation for responsiveness, expertise, and overall support quality.
  • Implementation & Training: Understand the level of support offered during implementation and ongoing employee training.
  • Reputation & Reviews: Dig into user reviews and industry insights to gauge real-world experiences and satisfaction levels.

The Final Verdict: It’s All About You

There’s no one-size-fits-all answer to the Paylocity vs. Gusto debate. By carefully evaluating your specific needs, priorities, and budget constraints, you can identify the platform that truly empowers your payroll efficiency and elevates your HR experience. Remember, the ideal software should seamlessly integrate with your existing systems, provide exceptional support, and evolve alongside your growing business. With a clear understanding of your requirements and the insights provided here, you can confidently crown the payroll champion for your company’s success.

Leave a Reply

Your email address will not be published. Required fields are marked *