Paylocity vs Gusto
Paylocity and Gusto 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.
Paylocity
Modern HCM with employee engagement focus
Starting from
Free
Gusto
WinnerAll-in-one payroll, benefits, and HR platform
Starting from
$40/mo
Feature Comparison
| Feature | ||
|---|---|---|
| Overall Rating | 8.4/10 | 9.0/10 |
| Starting Price | Free | $40/mo |
| 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
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
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
Key Difference
The key difference: Paylocity offers performance management while Gusto provides tax filing. This fundamental distinction shapes who each product serves best.
Which Should You Choose?
Paylocity
Choose Paylocity if you prioritize modern, engaging interface, want to start with a free tier, or value strong social features.
Gusto
Choose Gusto if you prioritize full-service payroll included, want to start with a free tier, or value excellent benefits administration.
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 Paylocity better than Gusto?
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, Paylocity or Gusto?
Paylocity is more affordable at $0.00/mo vs $40.00/mo. Paylocity offers 100% savings.
Paylocity vs Gusto: which should I choose?
Choose Paylocity if you prioritize modern, engaging interface. Choose Gusto if you need full-service payroll included. Both are solid hr software options.
What's the main difference between Paylocity and Gusto?
The main difference is Paylocity offers modern hcm with employee engagement focus, while Gusto focuses on all-in-one payroll, benefits, and hr platform.