Quickbooks Payroll vs Gusto: Which Payroll Is Right?
Choosing the right payroll software can be a game-changer for your business, saving you time, money, and headaches. With so many options available, it’s crucial to understand the nuances of each platform to make an informed decision. Two popular choices that often top the list are QuickBooks Payroll and Gusto.
Both QuickBooks Payroll and Gusto offer robust features designed to streamline your payroll process, from calculating wages and taxes to handling employee benefits. However, they cater to different business needs and offer unique strengths. This comparison will delve deep, helping you decide which payroll solution aligns best with your specific requirements.
We’ll examine their key features, pricing, ease of use, and customer support to provide a comprehensive overview. Whether you’re a small startup or an established enterprise, understanding the differences between QuickBooks Payroll and Gusto is essential for optimizing your payroll operations and ensuring compliance.
Specs at a Glance
| Feature | QuickBooks Payroll | Gusto |
|---|---|---|
| Full-Service Payroll | Yes | Yes |
| Tax Filing & Payments | Yes | Yes |
| Employee Self-Service Portal | Yes | Yes |
| Direct Deposit | Yes | Yes |
| New Hire Onboarding | Yes | Yes |
| Time Tracking Integration | Yes | Yes |
| HR Support | Yes | Yes |
| Benefits Administration | Yes | Yes |
| Workers’ Compensation Administration | Yes | Yes |
| Accounting Software Integration | Yes | Yes |
| Reporting | Yes | Yes |
| Mobile App | Yes | Yes |
Feature-by-Feature Breakdown
Pricing and Plans
- Quickbooks Payroll: QuickBooks offers various payroll plans with different pricing tiers based on features and employee count. Pricing can be complex and may require add-ons for essential features. The higher tiers offer more advanced features, but it can be more expensive than competitors.
- Gusto: Gusto’s pricing is generally considered more transparent and straightforward, with tiered plans based on features and employee count. They offer competitive pricing and often include features that are add-ons in QuickBooks. Some users find Gusto to be a more budget-friendly option.
- Winner: Gusto
Ease of Use and Setup
- Quickbooks Payroll: QuickBooks Payroll can have a steeper learning curve, especially for users new to payroll processing. The initial setup can be time-consuming, and navigating the interface may require some training. However, it integrates well with existing QuickBooks accounting software.
- Gusto: Gusto is known for its user-friendly interface and intuitive design, making it easier to set up and manage payroll. The platform guides users through the setup process and offers a more streamlined experience, especially for those without prior payroll experience.
- Winner: Gusto
Payroll Processing Capabilities
- Quickbooks Payroll: QuickBooks Payroll offers robust payroll processing capabilities, including automated payroll runs, tax calculations, and direct deposit. The software handles various pay types and deductions. However, users sometimes report issues with tax filings and compliance.
- Gusto: Gusto provides comprehensive payroll processing with features like automated payroll, tax filing, and direct deposit. It supports various pay types and deductions. Gusto is particularly praised for its accuracy and reliability in tax filings and compliance.
- Winner: Gusto
Employee Benefits Administration
- Quickbooks Payroll: QuickBooks Payroll offers some basic benefits administration features, but the offerings are often limited. Integration with third-party benefits providers might be required for more comprehensive benefits management. The features depend on the plan chosen.
- Gusto: Gusto excels in benefits administration, offering a wide range of benefits options, including health insurance, 401(k) plans, and other perks. Gusto often includes these features in its base plans, and the platform has strong partnerships with benefits providers.
- Winner: Gusto
Tax Filing and Compliance
- Quickbooks Payroll: QuickBooks Payroll handles federal and state tax filings, but users sometimes report issues or complexities with tax filing accuracy. Compliance features are generally adequate but may require additional attention to ensure accuracy.
- Gusto: Gusto is highly regarded for its tax filing and compliance capabilities. The platform automatically calculates, files, and pays payroll taxes. Gusto takes responsibility for tax filings, offering peace of mind to users.
- Winner: Gusto
Reporting and Analytics
- Quickbooks Payroll: QuickBooks Payroll offers standard payroll reports and some basic analytics. Users have access to a variety of reports, but advanced reporting features may be limited, and the reports aren’t as customizable as some competitors.
- Gusto: Gusto provides a range of payroll reports and analytics, allowing users to track important metrics. Gusto’s reporting features are generally considered user-friendly and offer insights into payroll data.
- Winner: Gusto
Customer Support
- Quickbooks Payroll: QuickBooks offers customer support through various channels, including phone, email, and online resources. Support quality can vary depending on the plan and the complexity of the issue. Response times may also vary.
- Gusto: Gusto is known for its responsive and helpful customer support, offering support through phone, email, and chat. Customers often praise Gusto for its knowledgeable and readily available support staff.
- Winner: Gusto
Integrations
- Quickbooks Payroll: QuickBooks Payroll seamlessly integrates with other QuickBooks products and offers integrations with various third-party apps, especially accounting and time-tracking software. However, some integrations may require additional setup or fees.
- Gusto: Gusto integrates with a variety of third-party apps, including accounting software, time tracking tools, and HR platforms. The integrations are generally easy to set up and use, improving the overall workflow.
- Winner: QuickBooks
Winner by Category
| Category | Winner |
|---|---|
| Ease of Use | Gusto |
| Accounting Integration | QuickBooks Payroll |
| Benefits Administration | Gusto |
| Customer Support | Gusto |
| Overall Value | Tie |
What They Have in Common
- Full-Service Payroll: Both QuickBooks Payroll and Gusto offer full-service payroll, handling tax filings, payments, and other payroll-related tasks, ensuring accuracy and compliance. This helps businesses save time and reduce the risk of errors.
- Employee Self-Service Portal: Both platforms provide employee self-service portals, allowing employees to access pay stubs, W-2s, and other important documents. This improves employee satisfaction and reduces the burden on HR departments.
- Direct Deposit: Both QuickBooks Payroll and Gusto support direct deposit, making it easy and convenient for employees to receive their paychecks electronically. This eliminates the need for paper checks and provides faster access to funds.
- Tax Filing & Payments: Both services handle tax filings and payments, including federal, state, and local taxes. They calculate, file, and pay taxes on your behalf, ensuring compliance with tax regulations.
- New Hire Onboarding: Both platforms offer new hire onboarding features, allowing businesses to streamline the process of adding new employees to their payroll and benefits systems. This includes collecting necessary information and completing required paperwork.
- Benefits Administration: Both QuickBooks Payroll and Gusto offer benefits administration, helping businesses manage employee benefits such as health insurance, retirement plans, and other perks. This simplifies the process of providing and managing benefits.
Quickbooks Payroll Vs Gusto Buying Guide
Pricing and Plans
QuickBooks Payroll offers a tiered pricing structure with options for self-service, full-service, and contractor-only payroll. This can be appealing for businesses of various sizes. Gusto, on the other hand, also provides different plans, often with a more streamlined and transparent pricing model. Gusto’s plans often include features like health insurance administration and workers’ compensation support, which can be valuable. Consider your business’s specific needs, budget, and desired level of support when comparing the costs and features of each platform. Evaluate the total cost of ownership including add-ons.
Ease of Use and Interface
Both QuickBooks Payroll and Gusto are designed to be user-friendly, but they have different strengths. QuickBooks Payroll integrates seamlessly with the broader QuickBooks ecosystem, which is a major advantage if you already use other QuickBooks products. Gusto is known for its intuitive interface, providing a smooth and easy experience for both employers and employees. Its focus on user experience makes it a popular choice for businesses that want a simple and efficient payroll process. Consider which interface aligns better with your team’s tech comfort.
Payroll Features
Both platforms offer core payroll features, including automated tax calculations, direct deposit, and tax filing. QuickBooks Payroll typically supports a wider range of state and local tax regulations, making it suitable for businesses with complex tax requirements. Gusto also provides robust payroll features and excels in areas like employee benefits administration and time tracking integrations. Evaluate your specific payroll needs, such as the complexity of your tax situation and integration requirements, to determine which platform offers the necessary features.
Employee Benefits and HR Support
Gusto often excels in employee benefits administration, offering integrations with insurance providers and helping manage benefits enrollment and compliance. QuickBooks Payroll also offers some benefits features, particularly through its higher-tier plans. However, it may not be as comprehensive as Gusto in this area. If managing employee benefits is a significant aspect of your business, Gusto’s features may be particularly attractive. Consider the level of HR support you need, as both platforms offer varying levels of assistance and resources.
Integrations
QuickBooks Payroll, with its tight integration within the QuickBooks ecosystem, offers strong accounting integrations. This is a significant advantage if you use other QuickBooks products, streamlining your financial processes. Gusto also provides integrations with accounting software, time tracking tools, and other business applications. Evaluate which integrations are most crucial for your business. Consider the ease of data transfer and the overall compatibility with your existing software stack when making your decision.
Customer Support
Both QuickBooks Payroll and Gusto offer customer support, but the quality and availability may vary. QuickBooks Payroll, being part of a larger company, provides support through various channels, including phone, chat, and online resources. Gusto is known for its responsive customer service and helpful support team. Consider the importance of responsive customer service and the availability of support channels when making your decision. Research user reviews to understand the experience others have had with each platform’s support.
Who Should Buy What?
Buy QuickBooks Payroll If…
- You already use QuickBooks accounting software and want seamless integration.
- You need advanced payroll features and customization options.
- You prefer a robust platform with a wide range of features, even if some are not immediately needed.
- You want a well-established payroll provider with a large user base.
Buy Gusto If…
- You want a user-friendly and intuitive payroll experience.
- You prioritize a modern and engaging platform for both employers and employees.
- You value excellent customer service and support.
- You are looking for a payroll solution that emphasizes employee benefits and HR tools.
Frequently Asked Questions
What is the primary difference between QuickBooks Payroll and Gusto?
The primary difference lies in their focus and approach. QuickBooks Payroll emphasizes integration within the broader QuickBooks ecosystem, making it a strong choice for businesses already using QuickBooks accounting software. Gusto prioritizes user experience and offers a more streamlined interface, often with a stronger focus on employee benefits administration and HR features. This makes it a great choice for businesses prioritizing ease of use.
Which platform is better for small businesses?
Both platforms are suitable for small businesses, but the best choice depends on specific needs. Gusto often appeals to small businesses due to its user-friendly interface and comprehensive benefits features. QuickBooks Payroll can be a good option if you already use QuickBooks accounting software. Evaluate ease of use, cost, and the specific features you require to determine the best fit.
Does QuickBooks Payroll offer employee benefits?
Yes, QuickBooks Payroll offers employee benefits, but the scope and features vary depending on the plan. Higher-tier plans typically include more comprehensive benefits administration capabilities. Gusto is often considered stronger in this area, offering seamless integrations with insurance providers and helping manage benefits enrollment and compliance. Carefully compare features to see what works best.
Is Gusto more expensive than QuickBooks Payroll?
Pricing varies depending on the plan and the size of your business. Generally, both offer tiered pricing structures. It’s essential to compare the features included in each plan and calculate the total cost, including add-ons, to determine which platform offers the best value for your specific needs. Consider the features your business requires and compare the costs accordingly.
Which platform offers better customer support?
Both platforms offer customer support. QuickBooks Payroll provides support through various channels, including phone, chat, and online resources. Gusto is often praised for its responsive customer service and helpful support team. The best platform depends on your preferred support channel and the importance you place on responsiveness. Research reviews to gauge user experiences.
Can both platforms handle international payroll?
Neither QuickBooks Payroll nor Gusto currently offer full support for international payroll. Both platforms primarily focus on payroll within the United States. If you have employees outside the US, you will likely need to explore specialized payroll solutions that cater to international payroll requirements and tax laws. Research specific solutions for international needs.
How do I choose between QuickBooks Payroll and Gusto?
To choose between QuickBooks Payroll and Gusto, consider your business’s needs, budget, and priorities. Evaluate ease of use, integration needs, employee benefits administration requirements, and customer support preferences. Compare the features and pricing of each platform to determine which one best aligns with your specific needs and offers the best value for your business. Consider a trial period if available.
Final Verdict
Both QuickBooks Payroll and Gusto are excellent payroll solutions, each with its strengths. QuickBooks Payroll excels with its accounting integrations and broad tax support, while Gusto shines with its user-friendly interface and comprehensive benefits features. Ultimately, the best choice depends on your specific business needs and priorities. For businesses prioritizing ease of use and employee benefits, Gusto is the winner.
Winner: Gusto