Gusto
Paylocity
| Feature | Gusto | Paylocity |
|---|---|---|
| Pricing | From $40/mo | Contact sales |
| Free Plan | ✗ No | ✗ No |
| Rating | 4.4 / 5 | 4.3 / 5 |
| Best For | small-businesses, startups, accountants, us-companies | mid-size-businesses, hr-teams, payroll-managers, growing-companies |
| Founded | 2011 | 1997 |
| Payroll | ✓ | ✓ |
| Benefits | ✓ | ✗ |
| Tax Filing | ✓ | ✗ |
| Onboarding | ✓ | ✗ |
| Time Tracking | ✓ | ✗ |
| Hiring | ✓ | ✗ |
| Compliance | ✓ | ✗ |
| Benefits Administration | ✗ | ✓ |
| Talent Management | ✗ | ✓ |
| Time Attendance | ✗ | ✓ |
| Hr Analytics | ✗ | ✓ |
| Employee Experience | ✗ | ✓ |
✓ 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
✓ Paylocity Pros
- Strong payroll processing
- Good employee self-service
- Modern community features
- Comprehensive benefits admin
✗ Paylocity Cons
- Implementation can be lengthy
- Pricing not transparent
- Customer support varies
The Verdict
Gusto is built for small businesses and startups, with a focus on payroll and benefits. Paylocity targets mid size businesses and hr teams and leads with payroll and benefits-administration.
Paylocity uses custom enterprise pricing, while Gusto starts at $40/mo — a tangible advantage for teams with a fixed budget.
Neither tool offers a free plan, so factor the subscription cost into your decision from the start.
Feature-wise, Gusto offers broader built-in capabilities (7 features vs 6), while Paylocity takes a more focused approach — which can mean a simpler, faster onboarding experience.
This is a genuinely close comparison. If you can, sign up for both free trials (where available) and run a one-week test with your actual team tasks before deciding.