Gusto vs QuickBooks Payroll: A Straightforward Comparison

If you're here, you're probably trying to figure out whether Gusto or QuickBooks Payroll is the right fit for your business. Both are solid options, both have their fans, and both will get your people paid. But they're not the same product, and the right choice depends entirely on what you actually need.

I've dug into both platforms extensively. Here's the real breakdown-no marketing fluff, just the stuff that matters.

The Quick Answer

Choose Gusto if: You need solid HR features alongside payroll, you want broader benefits options, or you're a startup/small business that wants everything in one place without needing QuickBooks accounting software.

Choose QuickBooks Payroll if: You already use QuickBooks Online for accounting, you need same-day direct deposit, or you want seamless payroll-to-books integration without third-party syncing.

Pricing Comparison: Breaking Down the Numbers

Let's get specific about what you'll actually pay. Pricing is one of the most important factors, and both platforms have recently adjusted their rates.

Gusto Pricing

Gusto increased their Simple plan from $40 to $49/month in March. Not a huge jump, but worth noting if you're price-sensitive. The Plus plan offers a 25% discount for the first three months, which can help with initial costs.

QuickBooks Payroll Pricing

QuickBooks recently updated their pricing structure effective July and August of this year. They frequently run 50% off promotions for the first three months, so factor that in if you're signing up. These introductory discounts can make a significant difference in your first-year costs.

Price Comparison for a 10-Employee Business

Plan LevelGustoQuickBooks
Basic$109/month$115/month
Mid-tier$200/month$188/month
Premium~$300/month$254/month

At the entry level, they're nearly identical. As you scale up tiers, QuickBooks becomes more cost-effective per employee. But Gusto includes more HR features at each level, so you're comparing apples to slightly different apples.

For a deeper dive into Gusto's pricing tiers, check out our Gusto pricing breakdown.

Payroll Features: Where They Match and Where They Don't

What Both Do Well

Where QuickBooks Payroll Wins

Same-day direct deposit: This is a big one. QuickBooks Premium and Elite plans offer same-day direct deposit if you submit by 7 AM PT on the day you want employees paid. Gusto's fastest option is next-day (Plus plan and above), with the Simple plan requiring 2-4 business days.

QuickBooks ecosystem integration: If you're already running your books on QuickBooks Online, the payroll integration is seamless. Data syncs automatically, no exports or third-party connectors needed. This alone is a major time-saver. The real-time syncing between payroll and accounting means your books are always up-to-date without manual data entry.

GPS time tracking: QuickBooks' higher-tier plans include GPS tracking with geofencing-employees get prompted to clock in/out when entering job sites. Useful for construction, field service, or any business with mobile workers. You can set up location-based reminders that automatically trigger when workers arrive at a designated job site.

Tax penalty protection: Elite plan users get up to $25,000 in coverage if the IRS hits you with a penalty. QuickBooks' tax resolution team also helps you sort out any issues. Gusto doesn't offer this level of protection, which can be valuable for businesses concerned about compliance risks.

Multi-state payroll from day one: All QuickBooks plans include multi-state payroll as standard. Gusto requires you to upgrade to the Plus plan ($80/month base) to handle employees across multiple states. If you're operating in multiple states from the start, QuickBooks has an immediate cost advantage.

Where Gusto Wins

HR features: Gusto is built as a people platform, not just payroll software. You get org charts, employee directories, customizable profiles, online offer letters, performance review tools, and employee surveys. QuickBooks' HR features are comparatively basic-their HR support center provides templates and guides, but doesn't offer the same depth of people management tools.

Benefits breadth: Gusto connects you to over 9,000 health insurance plans across all 50 states and offers HSAs, FSAs, 401(k)s, commuter benefits, college savings (529 plans), and workers' comp. QuickBooks offers health insurance and 401(k), but the menu is smaller and health benefits are only available through partnerships with Allstate Health Solutions and similar providers.

Accounting software flexibility: QuickBooks Payroll works best with QuickBooks accounting. Gusto integrates with QuickBooks, sure, but also Xero, FreshBooks, Sage, and over 200 other third-party applications. If you're not locked into the Intuit ecosystem, Gusto gives you more options.

Onboarding tools: Job postings, offer letter templates, customizable onboarding checklists, document management, digital signatures for I-9s and W-4s, and automated new hire reporting-Gusto handles the whole new-hire workflow. QuickBooks has onboarding, but it's less robust and doesn't include the same level of customization.

Autopilot for hourly workers: Gusto's time tracking integrates directly with payroll, so you can fully automate payroll for hourly employees. The system pulls approved time cards and processes payroll automatically. QuickBooks can auto-run payroll for salaried workers, but hourly requires manual review and approval steps.

Contractor-friendly features: Gusto allows you to pay international contractors in over 120 countries through their global contractor payment add-on. This is particularly valuable for remote-first companies or businesses working with overseas freelancers. QuickBooks limits contractor payments to domestic 1099 workers.

User Experience and Setup

Both platforms are designed for non-accountants to use. Modern interfaces, clean dashboards, nothing scary.

Gusto claims their average customer runs payroll in about 8 minutes. Setup can be done in under 30 minutes if you have your employee info ready. They also let you use the software free until you actually run your first payroll-nice for kicking the tires. The setup process walks you through adding employees, setting up bank accounts, and configuring pay schedules with guided prompts.

QuickBooks offers expert setup assistance on the Elite plan and setup review on Premium. If you're nervous about getting it right, that hand-holding might be worth the upgrade. Their implementation typically takes 2-4 weeks if you're migrating from another system, though you can get started faster if you're new to payroll.

One Gusto quirk: no master search bar. You have to navigate menus manually. Minor annoyance, but worth mentioning. QuickBooks has a global search function that makes finding specific employees, reports, or settings faster.

Mobile Access and Apps

Both platforms offer mobile access for administrators and employees. Gusto's mobile app (Gusto Wallet) gives employees access to pay stubs, tax documents, time-off balances, and even early paydays for a fee. The app also includes budgeting tools and optional savings accounts.

QuickBooks Workforce app allows employees to view paystubs, W-2s, and update personal information. Admins can approve time sheets and manage payroll functions on the go through the main QuickBooks mobile app.

HR and People Management

Gusto's HR Capabilities

This is where Gusto really shines. Beyond basic payroll, Gusto offers:

QuickBooks HR Tools

QuickBooks takes a lighter approach to HR:

Bottom line: If HR is a priority, Gusto offers significantly more functionality. If you mainly need payroll with light HR support, QuickBooks covers the basics.

Benefits Administration: A Detailed Look

Health Insurance

Gusto partners with over 9,000 health insurance plans across all 50 states. They can act as your benefits broker at no additional cost, or you can integrate your existing broker for $6/employee/month. Gusto's benefits team helps with plan selection, enrollment, and ongoing administration. All deductions sync automatically with payroll.

QuickBooks offers health insurance through Allstate Health Solutions, but the selection is more limited. Setup typically requires working with third-party providers, and the integration isn't as seamless as Gusto's native benefits platform.

Retirement Plans

Both platforms offer 401(k) plan integration:

Gusto: Integrates with major providers including Human Interest, Guideline, and Vestwell. The integration allows automatic deduction calculations and contributions. Gusto also offers solo 401(k) options for owner-only businesses.

QuickBooks: Partners with Human Interest and Accrue for 401(k) plans. The integration syncs contribution data, but setup and management happen through the third-party provider's platform.

Additional Benefits

Gusto offers several benefits that QuickBooks doesn't:

QuickBooks focuses primarily on health insurance and 401(k) plans, with workers' comp administration available on higher tiers.

Time Tracking and Attendance

Gusto Time Tracking

Available on Plus and Premium plans, Gusto's time tracking includes:

The Simple plan doesn't include time tracking natively, but you can add it as an add-on for $6/employee/month (after a 2-month free trial).

QuickBooks Time (formerly TSheets)

Included in Premium and Elite plans, QuickBooks Time offers:

If you need QuickBooks Time on the Core plan, it costs an additional $8-10/user/month plus $20-40 base fee. The GPS and geofencing features make QuickBooks Time particularly strong for businesses with mobile workforces.

Integrations and Ecosystem

Gusto Integrations

Gusto offers 200+ integrations across multiple categories:

Accounting: QuickBooks Online, Xero, FreshBooks, Sage Intacct, Wave, and others

Time tracking: Homebase, Deputy, When I Work, TSheets (now QuickBooks Time)

Expense management: Expensify, Receipt Bank, Divvy

HR tools: BambooHR, Namely, Zenefits

Benefits providers: Direct integrations with major health insurance carriers and 401(k) providers

Gusto also has an open API for custom integrations, making it flexible for businesses with unique tech stacks.

QuickBooks Integrations

QuickBooks Payroll is designed to work seamlessly with the QuickBooks ecosystem:

Native integration: QuickBooks Online accounting software (this is where it really shines)

Time tracking: QuickBooks Time (included in higher plans)

Payments: QuickBooks Payments for processing customer payments

Third-party apps: While QuickBooks has an app marketplace, payroll-specific integrations are more limited than Gusto

The advantage here is depth over breadth. If you're in the QuickBooks ecosystem, everything works together perfectly. If you're not, the integration options are more limited.

Customer Support

Both offer phone, email, and chat support during business hours. Gusto's support is Monday-Friday, and they have a help center available 24/7. Users generally praise Gusto's support team for being friendly and responsive, though some report longer wait times during peak periods.

QuickBooks Elite plan gives you 24/7 phone support and access to a dedicated HR advisor through their partner Mineral. Premium users get priority support. Core plan users have access to standard support during business hours.

User reviews mention inconsistent support quality for both platforms, though Gusto generally gets better marks for friendliness and QuickBooks for technical depth.

Self-Service Resources

Both platforms offer extensive knowledge bases:

Gusto: Help Center with articles, video tutorials, and setup guides. The community forum allows users to share tips and get advice from other Gusto users.

QuickBooks: Comprehensive knowledge base with thousands of articles, video tutorials, and community forums. As a more established platform, QuickBooks has more extensive documentation.

Compliance and Tax Filing

Tax Filing Capabilities

Both Gusto and QuickBooks handle federal and state payroll tax calculations, filing, and payments automatically.

Gusto: All plans include federal, state, and local tax filing. The system automatically calculates FICA, federal income tax, state income tax, and local taxes where applicable. New hire reporting is automatic, and W-2s and 1099s are prepared and filed electronically.

QuickBooks: Core plan includes federal and state tax filing. Local tax filing is included in Premium and Elite plans. Tax forms (W-2s, 1099s) are prepared and can be printed or e-filed.

Key difference: Gusto includes local tax filing on all plans; QuickBooks reserves this for higher tiers.

Tax Penalty Protection

This is a QuickBooks-only feature. The Elite plan includes up to $25,000 in tax penalty protection. If you receive an IRS penalty due to a QuickBooks error, they'll pay the penalty and help resolve the issue through their tax resolution team.

Gusto doesn't offer this level of protection, though they do guarantee accurate tax calculations and filing. If an error occurs on their end, they'll work to resolve it, but there's no formal penalty payment guarantee.

Compliance Alerts and Support

Gusto's Premium plan includes compliance alerts for changing regulations, access to certified HR experts, and an HR resource center with state-specific compliance guidance. This is particularly valuable for businesses expanding to new states or dealing with complex employment law questions.

QuickBooks Elite users get access to HR compliance resources through Mineral, including policy templates, compliance guides, and the ability to ask questions to HR advisors.

Who Should Choose What

Go With Gusto If:

Try Gusto →

Go With QuickBooks Payroll If:

What About Contractors?

Both platforms handle contractor payments, but the pricing differs significantly.

QuickBooks charges $15/month for up to 20 contractors, then $2 per additional contractor. If you have 20 contractors, that's $15/month total. For 30 contractors, it's $35/month.

Gusto's Contractor Only plan is $35/month + $6/contractor. For 20 contractors, that's $155/month. The first 6 months have a $0 base fee promotion, but after that, QuickBooks is substantially cheaper for contractor-heavy businesses.

However, Gusto allows you to pay international contractors in over 120 countries, which QuickBooks doesn't support. If you have a global contractor workforce, that feature might be worth the price difference.

If you're running a business that's mostly contractors with few W-2 employees, QuickBooks has the edge on price for domestic contractors.

The Hidden Costs to Watch

Neither platform is perfect on transparency. Here's what can sneak up on you:

Gusto:

QuickBooks:

Implementation and Migration

Switching to Gusto

Gusto claims you can switch from another payroll provider in less than 7 days. The migration team helps transfer employee data, historical payroll information, and tax filings. You can start using the platform immediately after setup, and Gusto handles the transition of tax accounts and bank connections.

The platform is designed for quick implementation-most businesses can be up and running within 1-2 weeks, including employee onboarding and first payroll run.

Switching to QuickBooks

QuickBooks migration typically takes 2-4 weeks, especially if you're moving from a different payroll system. Elite plan users get expert setup assistance, which includes data migration, employee setup, and payroll configuration. Premium users get setup review to ensure everything is configured correctly.

The advantage of QuickBooks is that if you're already using QuickBooks Online for accounting, adding payroll is seamless and requires minimal additional setup.

Reporting and Analytics

Gusto Reports

Gusto offers comprehensive payroll and HR reports:

The Plus and Premium plans include more advanced reporting options, including custom report builders and scheduled report delivery. You can export data to Excel or CSV for further analysis.

QuickBooks Reports

QuickBooks offers robust reporting, especially when integrated with QuickBooks Online accounting:

The integration with QuickBooks accounting means you can create comprehensive financial reports that include payroll data without manual reconciliation. This is a significant advantage for businesses that need detailed financial reporting.

Security and Data Protection

Both platforms take security seriously and comply with industry standards:

Gusto:

QuickBooks:

Both platforms store data securely and comply with federal and state data protection regulations. Neither has had significant security breaches in recent years.

Scalability: Growing With Your Business

Gusto's Growth Path

Gusto is designed for businesses with fewer than 150 employees. The platform works well as you scale from a handful of employees to 100+, and you can upgrade plans as you add features. The Premium plan with dedicated support and advanced HR tools is designed for businesses with 50-100+ employees.

However, if you grow beyond 150 employees or need enterprise-level features like advanced workforce planning or complex organizational structures, you may eventually outgrow Gusto.

QuickBooks Scalability

QuickBooks Payroll can scale from solo businesses to companies with several hundred employees. The Elite plan is designed for businesses with more complex needs, including multi-location businesses and companies with 50+ employees.

QuickBooks also offers QuickBooks Desktop Enterprise for larger businesses, which includes more advanced features. However, many businesses that grow significantly eventually transition to dedicated HCM platforms like ADP, Paychex, or Workday.

Real User Feedback: What People Actually Say

Common Gusto Praise

Common Gusto Complaints

Common QuickBooks Praise

Common QuickBooks Complaints

Industry-Specific Considerations

Best for Service Businesses

Gusto tends to work better for service-based businesses (agencies, consulting firms, tech startups) that don't need complex job costing or GPS tracking. The HR features and benefits administration are more valuable for office-based or remote teams.

Best for Field Services

QuickBooks is stronger for field service businesses (construction, landscaping, HVAC, plumbing) that need GPS time tracking, geofencing, and job costing. The ability to track time by project and location makes payroll more accurate for mobile workforces.

Best for Retail and Hospitality

Both work for retail and hospitality, but consider your specific needs. If you need shift scheduling and time-off management, Gusto's Plus plan includes these features. If you need integration with POS systems and tighter accounting integration, QuickBooks might be better.

Best for Remote-First Companies

Gusto has an edge for remote-first companies with its international contractor payment capabilities, modern employee experience (Gusto Wallet app), and cloud-based HR tools. The employee self-service features work well for distributed teams.

Final Verdict

For most small businesses starting out, Gusto offers better value. You get more HR features, better benefits options, and a platform designed specifically for people management-not just payroll processing. The modern interface, comprehensive onboarding tools, and employee-friendly features make it ideal for startups and growing small businesses that want an all-in-one solution.

If you're already invested in QuickBooks for accounting, adding QuickBooks Payroll is a no-brainer. The integration is seamless, same-day deposits are genuinely useful, and the combined ecosystem just works. The time saved on reconciliation and data entry alone justifies the choice. Plus, if you're a field service business needing GPS tracking and job costing, QuickBooks is the clear winner.

For contractor-heavy businesses, QuickBooks wins on domestic contractor pricing. But if you have international contractors, Gusto's global payment capabilities might be worth the premium.

For businesses needing strong HR, Gusto is superior. Performance management, employee surveys, comprehensive onboarding, and access to HR experts (on Premium plan) make it more of a true people platform rather than just payroll software.

For multi-state businesses from day one, QuickBooks includes this in all plans, while Gusto requires an upgrade to Plus ($80/month base versus $49/month for Simple).

Neither choice is wrong. Both will pay your people accurately and on time. The question is whether you need a people platform (Gusto) or a financial platform that does payroll really well (QuickBooks).

Consider your current tech stack, your growth trajectory, whether you have field workers or office workers, and how important HR features are to your business operations. The right answer depends on your specific situation.

For more payroll comparisons, see how Gusto stacks up against ADP or our guide to the best payroll software for small business.

Get started with Gusto →