Gusto vs ADP Payroll Software: Detailed Comparison for Small Businesses

Introduction: Why This Comparison Matters for Small Business Owners

When it comes to payroll software in the USA, two names dominate the small business conversation more than any others — Gusto and ADP. Both handle the core job of paying your people accurately and on time. Both file your taxes automatically. And both have built strong reputations in the American small business market.

But they are built for very different kinds of business owners.

Gusto launched in 2012 with one clear goal — make payroll simple enough that any small business owner could run it without a payroll specialist. ADP has been processing payroll since 1949 and brings decades of compliance experience, enterprise-level features, and a support infrastructure that few competitors can match.

So which one is right for your business? If you're a small business owner in the USA trying to make this call, this comparison covers everything that actually matters — pricing, ease of use, tax filing, direct deposit, onboarding, mobile experience, and real-world use cases. By the end, you'll know exactly which payroll platform fits your business today and where you're heading tomorrow.

Head-to-Head Comparison Table

Gusto Payroll Overview

Gusto is the platform most people think of when they picture modern, small business payroll software. It's clean, fast to set up, and designed so that someone with zero payroll experience can process their first payroll run in the same afternoon they sign up. That accessibility is what put Gusto on the map — and it's still the biggest reason small business owners in the USA choose it.

On the payroll side, every Gusto plan includes automatic federal and state tax filing, direct deposit, contractor payments, and year-end W-2 and 1099 processing. There's no chasing down forms or manually submitting to the IRS — Gusto handles it in the background.

Where Gusto really pulls ahead of most competitors is in its built-in HR tools. Even on the entry-level Simple plan, you get employee onboarding documents, offer letters, PTO tracking, and an employee self-service portal where your team can view pay stubs, update banking information, and download tax forms without looping in anyone from management. The Plus plan adds multi-state payroll, team management tools, and next-day direct deposit.

Pricing Tiers:

• Simple: $40/month + $6/employee/month

• Plus: $80/month + $12/employee/month

• Premium: Custom pricing (dedicated support, compliance alerts, HR resource center)

• Contractor-only plan: $6/contractor/month (no base fee)

Pros:

• Transparent, predictable pricing — no surprise quotes

• Fast and painless setup — most businesses are live the same day

• Excellent built-in HR tools included at no extra cost

• Clean employee self-service portal

• Strong integration with QuickBooks, Xero, and other accounting platforms

• Contractor-only plan is a smart option for freelancer-heavy businesses

Cons:

• Per-employee pricing adds up quickly as your headcount grows

• Multi-state payroll is locked behind the Plus plan

• Customer support is not available 24/7 on lower-tier plans

• Less customizable than ADP for complex payroll structures

ADP Run Payroll Overview

ADP Run is the small business version of ADP's broader payroll ecosystem — and it carries the full weight of ADP's experience, compliance infrastructure, and reliability behind it. If Gusto is built for simplicity, ADP Run is built for confidence. It's the platform you choose when payroll errors are not an option and compliance is something you think about seriously.

ADP Run covers everything from basic payroll processing to new hire reporting, garnishment management, workers' compensation insurance integration, multi-state compliance, and detailed reporting. Its compliance engine is one of the strongest in the industry — it automatically updates to reflect changes in federal, state, and local tax laws, which matters a lot for businesses operating across multiple states or in regulated industries.

Unlike Gusto, ADP doesn't publish its pricing publicly. You have to contact their sales team for a quote, and the actual cost depends on your team size, plan, and any add-ons. Industry estimates put the starting price around $59/month plus a per-employee fee, but many businesses report paying more once add-ons like time tracking, HR support, or benefits administration are included.

The tradeoff for all that power is complexity. ADP Run takes longer to set up than Gusto, the interface isn't as modern, and new users often need onboarding support or training time to get comfortable with the platform. That said, ADP's 24/7 customer support is a genuine advantage — you can reach a live payroll specialist at any time, which is reassuring when something urgent comes up before payday.

Pricing Tiers:

• Essential: Custom pricing

• Enhanced: Custom pricing (adds background checks, ZipRecruiter integration)

• Complete: Custom pricing (adds HR tools and employee training)

• HR Pro: Custom pricing (full HR management suite)

Pros:

• Industry-leading compliance and tax tools — ideal for multi-state businesses

• 24/7 live customer support available on all plans

• Scales cleanly from small teams to 100+ employees

• Strong reporting and payroll analytics

• Wide integration library with accounting, time-tracking, and HR platforms

• Trusted by millions of USA businesses across every industry

Cons:

• No public pricing — requires a sales conversation to get a quote

• Setup and onboarding takes longer than Gusto

• Interface is functional but feels less modern

• HR tools and advanced features often cost extra as add-ons

Side-by-Side Feature Breakdown

Tax Filing

Both platforms handle automatic federal and state tax filing, including calculating withholdings, making tax deposits, and submitting quarterly filings. Year-end W-2 and 1099 forms are generated automatically on both. ADP's compliance engine is slightly more robust for businesses dealing with complex, multi-state situations or heavily regulated industries. For a straightforward single-state business, Gusto handles tax filing just as well.

Direct Deposit

Gusto's standard plans process direct deposit in two to four business days. The Plus plan and above unlock next-day direct deposit. ADP Run offers next-day direct deposit as a standard feature across most of its plans — a clear edge if fast payment turnaround is important to your team.

Onboarding and HR Tools

This is where Gusto takes the lead for most small businesses. Gusto includes employee onboarding, offer letters, PTO policies, and document signing as part of its base plan — not as an add-on. New hires can complete their onboarding paperwork through a self-service portal before their first day. ADP offers onboarding tools too, but they're typically part of higher-tier plans or available at additional cost.

Mobile App

Both Gusto and ADP have mobile apps for iOS and Android. Gusto's app is cleaner and more intuitive — employees can view pay stubs, check PTO balances, and update their information with ease. ADP's mobile app is more feature-rich but carries the same learning curve as the desktop platform. For employee self-service use, Gusto's mobile experience is generally rated higher. For administrator use, both apps are functional.

Best Use Cases: Who Should Choose Which?

Choose Gusto if you are:

• A small business owner in the USA processing payroll for the first time

• Running a team of 1 to 25 employees and want simple, clean payroll without a learning curve

• Looking for built-in HR tools — onboarding, PTO, benefits — without paying extra

• A freelancer-heavy business that needs contractor payments and 1099 filing

• Operating in a single state or a small number of states

• Prioritizing transparent, predictable monthly pricing

Choose ADP Run if you are:

• A growing small business heading toward 30, 50, or 100 employees

• Operating across multiple states and dealing with complex compliance requirements

• In a regulated industry where payroll errors carry real legal or financial consequences

• Looking for 24/7 live support from experienced payroll specialists

• Wanting a platform that can grow alongside your business into mid-market territory

• Willing to trade a slightly steeper learning curve for deeper features and reliability

Frequently Asked Questions

Is Gusto or ADP better for a very small business? For businesses with fewer than 20 employees, Gusto is typically the better fit. It's easier to set up, more affordable on a per-employee basis, and includes HR tools that small teams actually use. ADP becomes more competitive as your team and compliance needs grow.

Does ADP charge more than Gusto? Generally yes, though it's hard to compare directly since ADP doesn't publish pricing. Gusto's transparent pricing model — $40/month base plus $6 per employee — makes it easy to budget. ADP's quotes vary based on team size, plan tier, and add-ons, and many business owners report the total cost being higher than expected once everything is added up.

Which payroll software is easier to set up? Gusto is significantly easier to set up. Most small businesses are processing their first payroll within hours of signing up. ADP takes longer due to its more complex configuration and onboarding process — expect a few days and possibly a call with their support team to get fully up and running.

Can both Gusto and ADP handle contractor payments? Yes. Both platforms support contractor payments and generate 1099 forms at year end. Gusto even offers a contractor-only plan at $6 per contractor per month with no monthly base fee, which is a great option for businesses that work primarily with freelancers and don't have W-2 employees yet.

Which payroll software has better customer support? ADP wins on support availability — it offers 24/7 live phone support across all plans. Gusto's support hours are more limited and vary by plan tier. If around-the-clock access to a payroll specialist matters to you, ADP is the stronger choice.

Which Payroll Software Wins?

Both Gusto and ADP are excellent payroll platforms for small businesses in the USA — but they serve different business profiles, and the right answer depends entirely on where your business stands right now.

Gusto is the winner for most small businesses starting out or operating with a lean team. The pricing is transparent, the setup is fast, the HR tools are genuinely useful, and the overall experience is built for business owners — not payroll specialists. If you want to stop worrying about payroll without spending a lot of time or money getting started, Gusto is the right call.

ADP Run is the winner when compliance and scale are the priority. If your business operates across multiple states, you're in a regulated industry, or you're heading toward 50+ employees in the next couple of years, ADP's depth and reliability justify the extra cost and the steeper learning curve. The 24/7 support alone is worth a lot when something goes wrong right before payday.

Start with Gusto if you're small and want simplicity. Graduate to ADP when your business demands it.