Gusto vs. Justworks: Differences, pros and cons in 2024

If you are seeking the best cloud-based payroll and HR solution for your startup, small or midsize business, Gusto and Justworks are both strong contenders in this space and worthy of consideration. Both provide basic payroll solutions, trustworthy tax compliance and access to robust HR add-on features and benefits administration.

Gusto’s payroll software takes the spotlight for the payroll features it includes, even those on its lowest-tiered, Simple plan. Features include unlimited monthly payrolls, W-2 filings, off-cycle payroll runs and automatic tax payments and filings at no extra cost. It’s also a good fit for growing organizations that need future access to automations, HR tools and add-ons as they scale.

Justworks is a solid choice for two specific types of users. First, it is a good fit for startups or small businesses looking for a streamlined, budget-friendly payroll option. Second, it serves companies with under 200 employees seeking a comprehensive payroll and PEO option.

In this comparison, we will dig into the primary features Gusto and Justworks offer to help business owners make an informed decision on the best fit for their business needs.

Gusto vs. Justworks side-by-side comparison

Small-business pricing

Winner: Gusto

Justworks payroll plans

If basic payroll is all you need, Justworks has an intuitive and low-cost solution available with its Justworks Payroll plan. It also offers comprehensive PEO services. Here is a look at its plan offerings: 

• Justworks Payroll: This plan starts at $10 per month plus $5 per employee and is designed to be a lightweight option for users that just want the basics. Its features include payroll for employees and contractors with generated W-2 and 1099s, flexible pay cycles, quarterly and annual state and federal tax filings, employee onboarding, reporting and a Quickbooks Online integration option. However, its important to note that Justworks Payroll is only available in New York, California, Texas, Florida, Massachusetts, Illinois, New Jersey, Georgia, Ohio, Maine and DC. 
• Justworks Basic PEO: Justworks Basic PEO starts at $59 per employee per month and includes payroll processing tools, benefits administration, HR tools and compliance assistance. 
• Justworks Plus plan: Its Plus PEO plan adds access to medical, dental and vision insurance options, plus health advocacy services starting at $99 a month per employee. 

Justworks does have a few key limitations. First, its payroll plan is only available in a handful of states and only serves up to 30 employees. And its PEO plan only serves up to 200 W-2 employees, making it unfit for companies planning to grow considerably. 

Gusto plans

Gusto lands in the middle of our best payroll software list. In comparison to Justworks, it offers more “bang for your buck” due to the features and tools included in its Simple plan and array of other plans for every budget. Here is a look at its plans: 

• Simple plan: The Simple plan is best for startups and small businesses that operate in one state. For $40 per month plus $6 per person, the Simple plan is a fairly comprehensive payroll option that includes Gusto-brokered health insurance. Its other features include key payroll functions, employee financial benefits, employee onboarding tools, reporting, health insurance administration and full customer support by phone, email or chat.
• Plus plan: Its Plus plan is $80 a month plus $12 per person and adds several additional features such as time and project tracking, PTO management and policies, workforce costing and reporting and employee performance reviews and surveys. 
• Premium plan: Its quote-based Premium plan includes health insurance broker integrations, federal and state compliance alerts, access to certified HR experts, an HR resource center, full-service migration and setup, waived fees and a dedicated customer support manager. 
• Contractor-only plan: Gusto’s contractor-only plan starts at $0 per month for six months, then $35 per month plus $6 per person. It offers unlimited contractor details across all 50 U.S. states, 1099-NECs at the end of the year, new-hire reporting and an international contractor payment add-on option. 

Both Gusto and Justworks offer plans that are affordable for small businesses. And, while Justwork’s most basic plan is a bare-bones option compared to Gusto’s Simple plan, its price reflects the difference, making it a great option for startups needing a payroll software solution on a very tight budget. Its main drawback is that it’s only available in a handful of states. 

In contrast, Gusto’s Simple plan is best for established small businesses looking to begin attracting top talent with employee benefits and HR best practices. The software can then be scaled to higher-tiered plans as the company grows. Its Basic plan, however, only offers payroll services for one state. To cover multi-state payroll processing, you must upgrade to a higher, pricier tier. Despite this and in contrast to Justworks, it is available in all 50 U.S. states. 

Payroll tools

Winner: Gusto

Gusto offers the full package when it comes to payroll tools. Included in its payroll solution are unlimited payrolls per month to employees (available in all 50 U.S. states), automated tax filings and payments, generated W-2s and 1099s, next-day direct deposits, wage garnishments, reimbursement management tools, payroll on autopilot and unemployment insurance. You can also use its contractor-only plan to pay national and international contract workers.

In addition, employees can receive paychecks directly into Gusto Wallet, a card-based spending account, complete with automated savings features, financial goals and a debit card. The Gusto Wallet app also give employees access to account features like direct deposit up to two days early, earned interest on savings and access no-charge withdrawals at 37,000 ATMs nationwide. And it can be used to track your work hours.

Justworks Payroll has some similar payroll features, including automated payroll processing, off-cycle and flexible payment options, contractor payments, two to four-day direct deposit capabilities and unemployment insurance. However, it is only designed to pay up to 30 employees in a handful of states. Even its premium plan only offers the ability to pay up to 200 employees, making it a poor fit for companies that are scaling or expanding operations throughout the U.S.

Automated tax filing

Winner: Justworks

Both Gusto and Justworks provide automated payments, tax calculations and withholdings.

However, when it comes to compliance, Justworks takes the slight win here for its tax compliance support. Its stated mission is to act as “a shield against government complexity for employers.” Plans include compliance support for state and federal taxes, workers compensation, Affordable Care Act (ACA) filings, employment practices liability insurance (EPLI) and required compliance training. Justworks helps users stay on top of ever-changing regulations through its help center, resource center and monthly newsletter.

Even though Gusto offers an accuracy guarantee for its tax filing feature, compliance alerts are only available within its Premium plan. However, Gusto does offer tax compliance information in its help center, including a federal compliance resource center, and state-by-state database of tax forms, information on state laws and mandates and other relevant compliance information. 

Time tracking

Winner: Gusto

Both Gusto and Justworks offer time tracking options, but Gusto makes it straightforward to track employee time within its Plus and Premium plans. Users can quickly turn timesheets and work hours into payroll reporting with Gusto’s tax workflows, and automatic time tracking ensures that PTO and sick leave balances are always up-to-date. The system also automatically tracks overtime, breaks and missed breaks so you can stay in compliance with labor laws. Time tracking is synced to payroll for automatic accuracy. Users can even tag their time by project so you know where the most time is being spent or if more labor support is needed.

Employees can use any web browser or the Gusto Wallet app to clock in and out and keep an accurate log of their hours. The time tracking feature also includes geolocation and geofencing for remote employees. In addition, U.S.-based contractors can submit billable hours. Finally, Gusto’s Time Kiosk lets users turn any tablet into a time clock for easy clocking in and out.

Justworks offers Justworks Hours, and while it has similar features like geo-location, overtime alerts and a centralized punch-in clock, it’s only available as an add-on option. However, if you need to be able to prompt employees to take meal and rest breaks and manage labor budgets with overtime alerts and detailed reporting, Justworks has an edge here.

Interestingly, Gusto provides Justworks Hours as one of its 20 time tracking software integration options. 

Benefits administration

Winner: Justworks (PEO)

Gusto is no lightweight when it comes to benefits offerings. It offers health insurance administration in all its plans and provides access (through plan upgrades) to workers’ compensation, health savings accounts (HSAs), flexible spending accounts (FSAs), life and disability insurance, 401(k) plans, 529 college savings plans and commuter benefits. If eligible, users can also integrate current health insurance brokers and plans into Gusto, which is a significant plus, considering one downside to Gusto’s brokered medical insurance is that it is currently only available in 37 states.

However, benefits are where Justworks shines. As a professional employer organization (PEO), Justworks was built to provide these services. Both its Basic and Plus plans offer workers’ compensation, with its Basic plan providing access to commuter benefits, health and wellness perks, fitness memberships, life and disability insurance and 401(k) plans.

Justworks Plus includes COBRA administration, health advocacy services and One Medical (where available), with access to the same options as Basic, plus medical, dental and vision Insurance and HSA and FSA accounts. It can also take on administrative tasks for you. Finally, its group buying power gives you access to high-quality benefits plans at more affordable prices.

One important caveat to remember is that Gusto is designed as a payroll and HR software company that offers access to robust HR tools and benefits features. In contrast, Justworks is designed as a professional employer organization (PEO). A PEO is built to perform as a co-employer, allowing businesses to outsource much of their workforce support and management needs, including benefits administration. A clear understanding of your current business needs and future goals will help you make the best choice for your organization. 

Customer support 

Winner: Justworks

Justworks PEO is the clear winner here with 24/7 customer support available via email, phone, Slack, text message or online chat. Its PEO plans also include access to HR expert support. However, Justworks Payroll offers a lighter version of support with a guaranteed response time of one U.S. business day in any time zone by phone or email.

Gusto’s support is a little less flexible. Its customer service team is available:

Simple plan: Monday through Friday, 9 a.m. to 4 p.m. Pacific Time by phone and email. 

Plus and Premium plan: Monday through Friday, 9 a.m. to 4 p.m. Pacific Time by phone, email and chat support.

Gusto encourages users to email the team even outside of these hours with the assurance that someone will respond as soon as possible. It also offers an online help center and the option to access extended hours for an added fee. 

Gusto vs. Justworks alternatives

Rippling

Rippling offers a unique fit for business owners seeking a truly customizable global payroll solution. Rather than tiered plans, Rippling provides a central platform where users can add the features they need as they go. With an extensive selection of features and integration options, this payroll solution also offers access to a full HR, finance and IT software suite customizable for global workforce needs.

Rippling pricing starts at $8 per month per user, but businesses must contact sales for more insight on its base software platform pricing. While this lack of pricing transparency could mean that Gusto and Justworks end up being cheaper options, Rippling’s customizability, primarily positive customer ratings (4.8 stars out of five on G2) and global workforce management features make Rippling worth a closer look. 

The main difference between Rippling, Gusto and Justworks payroll processing capabilities is Rippling’s ability to create customized payroll and benefits solutions for large global workforces. Justworks and Gusto are better fits for small or mid-sized companies, while Rippling will most likely be worth its pricing for companies with large global workforces and budgets to match.

Roll by ADP

While Gusto and Justworks offer a full suite of payroll, HR and benefits administration features, Roll by ADP focuses primarily on mobile payroll processing tools and capabilities. Its software works on mobile devices and payroll processing is completed using text-based commands. However, its payroll processing features include some that Gusto and Justworks don’t offer, like instant deposits, payroll alerts, instant bonuses and AI-powered to-do lists based on your normal payroll processing cycles. 

In summary, while Justworks and Gusto are best for small to mid-sized companies needing a full suite of HR, benefits administration and payroll processing features, Roll by ADP is best for companies that need an affordable payroll processing solution for on-the-go teams, such as sales teams, construction companies or in-home service companies. 

Learn more: Gusto vs. Roll by ADP

Patriot

Patriot Payroll is a bare-bones option for companies needing strictly payroll processing software on a budget. Its plans start at $17 per month plus $4 per employee and include unlimited payroll runs per month, direct deposit capabilities, an employee portal, the ability to process all pay frequencies and payroll processing in multiple locations. 

However, unlike Gusto and Justworks, Patriot does not offer benefits administration, HR tools or time-tracking capabilities. It also does not offer automated tax filings in its Basic plan. As such, while Gusto and Justworks are good options for companies needing a well-rounded payroll, HR and benefits administration software, Patriot is best for companies looking for only payroll processing features for a very affordable monthly price. 

Gusto vs. Justworks customer feedback

Gusto’s customer ratings are primarily positive. It earns 4.1 out of five stars based on 1,281 G2 reviews, while Justworks has a 4.6 out of five-star rating and 391 G2 reviews. This positive trend continues on Capterra, with Gusto rated at 4.6 out of five stars and Justworks with a 4.7 out of five-star user rating. 

Positive user reviews praise Gusto’s ease of use, sleek interface and value for the money. However, the main complaints from Gusto customers are in regards to Gusto’s unsatisfactory customer support and significant response time delays.

According to our testers, Gusto’s homepage is sleek and intuitive to navigate. It showcases a centrally-located tasks menu so users can prioritize tasks by due date. The payroll processing page provides thorough instructions to guide users through payroll runs, and the software makes it simple to search for employee names, edit hours, select payment types and add notes from this same screen. Our testers also noted that users can pay domestic and international contractors from the main payroll page. 

Note: Paying international contractors does require a small non-specified exchange fee.

“This (Gusto) was exactly what we needed for our small company that just needed basic payroll. There is more functionality should we ever need it but the basic set up is a great price and covers our payroll needs… The bare bones Gusto program gave great value for low cost. It is a plug and play system that requires little effort to run the payroll every other week,” says Jack S. in an online review. 

Justworks is praised for providing a good user interface and supportive customer service. However, complaints center around its pricing and lack of user-friendly and customizable features.

“It really checked off a good amount of needs that we’re currently and foresee facing in the next few years as we scale as a company. At 30 people, it provides a comprehensive service and platform which allows for a hands-off approach to HR and Payroll administration served up with a sexy and intuitive interface. We’re approaching a new day in HR software and the freedom of time created simply by the employee onboarding features in Justworks are enough to create the consideration to move off of these more archaic platforms”, says Liam M. in another online review.

Final verdict 

Winner: Gusto

“Pick a software that you grow into, not one that just serves your current needs,” says Stephanie Heredia, CEO of Taxes Tampa LLC. “Not all software comes with the ability to streamline things like insurance, retirement, etc. Most make you do those payments manually outside of their systems. So think about finding software that is automation heavy, customer service heavy and easy to set up.” 

Gusto and Justworks are both highly-rated, user-friendly platforms that prioritize automation. However, they stand out for different reasons. In a comparison of features, employee experience, software integrations, automation and customer feedback, we give Gusto the win. Gusto is the payroll software sweet-spot between Justworks’ Payroll only option and its full-bodied PEO plans.

Gusto provides nearly everything a startup or small business could need to get started in its Simple plan while providing two more tiers for scalability. Gusto also offers a myriad of software integrations, access to HR support, employee hiring and onboarding tools and a custom wallet app for direct deposit and employee time tracking. In addition, many users rave about its value, ease-of-use and simple-to-navigate platform. 

Who is Gusto best for?

Gusto is best for business owners seeking a comprehensive, all-in-one payroll and HR solution that can grow with them. With its built-in automation features, an extensive library of third-party integrations, ability to pay contractors in more than 120 countries and its access to robust benefits administration services, Gusto is a great fit for small to mid-sized businesses. Its Contractor and Simple plans are especially well-tailored to self-employed and small business owners looking for software with automation capabilities to help them scale as they grow. 

Who is Justworks best for?

Justworks Payroll is best for startups and small businesses looking for a basic, lightweight, and budget-friendly payroll solution that allows upgrading to the Justworks PEO plans as they grow in size. Justworks PEO plans are a great fit for business owners looking for a software solution that will do the heavy lifting of HR and workforce management for them, as well as provide around-the-clock support. However, it’s not designed to meet the needs of large organizations.