Gusto vs Paylocity
Gusto and Paylocity are both popular options in this category. After extensive testing, Gusto leads with a 9/10 rating, though the best choice depends on your specific needs.
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Quick Answer
Gusto beats Paylocity for most users. It scores 9/10 vs 8.4/10 and full-service payroll included. Choose Paylocity if you need modern, engaging interface.
Gusto
WinnerAll-in-one payroll, benefits, and HR platform
Starting from
$40/mo
Paylocity
Modern HCM with employee engagement focus
Starting from
Free
Feature Comparison
| Feature | ||
|---|---|---|
| Overall Rating | 9.0/10 | 8.4/10 |
| Starting Price | $40/mo | Free |
| User Reviews | ||
| Core HR | ||
| Payroll | ||
| Benefits Admin | ||
| Time Tracking | ||
| PTO Management | ||
| Talent | ||
| ATS/Recruiting | ||
| Onboarding | ||
| Performance Management | Add-on | |
| Features | ||
| Employee Self-Service | ||
| Compliance Tools | ||
| Mobile App | ||
| Reporting | ||
Pros & Cons Breakdown
Gusto
- Full-service payroll included
- Excellent benefits administration
- Very user-friendly
- Automated tax filing
- Great for small businesses
- Transparent pricing
- Limited for larger companies
- Some features cost extra
- International payroll limited
Paylocity
- Modern, engaging interface
- Strong social features
- Video messaging built-in
- Good employee experience
- Strong payroll
- Community feature unique
- Pricing can add up
- Implementation time
- Some learning curve
Key Difference
The key difference: Gusto offers tax filing while Paylocity provides performance management. This fundamental distinction shapes who each product serves best.
Which Should You Choose?
Gusto
Choose Gusto if you prioritize full-service payroll included, want to start with a free tier, or value excellent benefits administration.
Paylocity
Choose Paylocity if you prioritize modern, engaging interface, want to start with a free tier, or value strong social features.
Our Verdict
After thorough testing, Gusto is our winner with a rating of 9/10 compared to Paylocity's 8.4/10. Gusto stands out for its full-service payroll included and excellent benefits administration. While Paylocity is more affordable, Gusto's advantages justify the price difference for most users. However, Paylocity remains an excellent choice if modern, engaging interface is your priority. There's no universally "wrong" choice here - both are quality options that serve their target audiences well.
Thinking of Switching?
Consider the migration effort before switching. Most services offer data export, but rebuilding workflows and configurations takes time. Evaluate whether the benefits outweigh the switching costs.
Frequently Asked Questions
Is Gusto better than Paylocity?
Gusto scores higher in our testing (9/10 vs 8.4/10). Gusto excels at full-service payroll included, while Paylocity is better for modern, engaging interface.
Which is cheaper, Gusto or Paylocity?
Paylocity is more affordable at $0.00/mo vs $40.00/mo. Paylocity offers 100% savings.
Gusto vs Paylocity: which should I choose?
Choose Gusto if you prioritize full-service payroll included. Choose Paylocity if you need modern, engaging interface. Both are solid hr software options.
What's the main difference between Gusto and Paylocity?
The main difference is Gusto offers all-in-one payroll, benefits, and hr platform, while Paylocity focuses on modern hcm with employee engagement focus.