ADP
Gusto
| Feature | ADP | Gusto |
|---|---|---|
| Pricing | From $79/mo | From $40/mo |
| Free Plan | ✗ No | ✗ No |
| Rating | 4.1 / 5 | 4.4 / 5 |
| Best For | small-businesses, mid-market-companies, enterprises, multi-state-employers | small-businesses, startups, accountants, us-companies |
| Founded | 1949 | 2011 |
| Payroll Processing | ✓ | ✗ |
| Tax Filing | ✓ | ✓ |
| Benefits Administration | ✓ | ✗ |
| Time Attendance | ✓ | ✗ |
| Hr Management | ✓ | ✗ |
| Talent Management | ✓ | ✗ |
| Compliance | ✓ | ✓ |
| Payroll | ✗ | ✓ |
| Benefits | ✗ | ✓ |
| Onboarding | ✗ | ✓ |
| Time Tracking | ✗ | ✓ |
| Hiring | ✗ | ✓ |
✓ ADP Pros
- Industry leader with 70+ years of payroll expertise
- Scalable from 1 employee to 100,000+
- Automatic tax filing and compliance updates
- Comprehensive benefits and retirement administration
✗ ADP Cons
- Pricing requires custom quote (not transparent)
- Interface feels dated compared to modern HR tools
- Customer service quality varies by region
✓ Gusto Pros
- Easiest payroll software to set up and run
- Automatic federal, state, and local tax filings
- Health insurance and 401(k) brokering built-in
- Excellent employee onboarding experience
✗ Gusto Cons
- US-only — no international payroll
- Gets expensive as headcount grows
- Limited HR features compared to BambooHR
The Verdict
ADP is built for small businesses and mid market companies, with a focus on payroll-processing and tax-filing. Gusto targets small businesses and startups and leads with payroll and benefits.
On pricing, Gusto is the clear winner for budget-conscious users — starting at $40/mo compared to $79/mo for ADP. That $39/mo difference adds up quickly for growing teams.
Neither tool offers a free plan, so factor the subscription cost into your decision from the start.
Gusto edges out on user ratings (4.4 vs 4.1). While both are well-regarded, that gap reflects real differences in user satisfaction worth considering.
Both tools are a solid fit for small businesses — in those cases, the decision often comes down to workflow style and how your team prefers to organize work.
Bottom line: Gusto has a slight overall edge — but if industry leader with 70+ years of payroll expertise matters most to you, ADP may still be the right call.