Gusto
Wave
| Feature | Gusto | Wave |
|---|---|---|
| Pricing | From $40/mo | Free / from $16/mo |
| Free Plan | ✗ No | ✓ Yes |
| Rating | 4.4 / 5 | 4.2 / 5 |
| Best For | small-businesses, startups, accountants, us-companies | freelancers, solopreneurs, micro-businesses, side-hustlers |
| Founded | 2011 | 2010 |
| Payroll | ✓ | ✗ |
| Benefits | ✓ | ✗ |
| Tax Filing | ✓ | ✗ |
| Onboarding | ✓ | ✗ |
| Time Tracking | ✓ | ✗ |
| Hiring | ✓ | ✗ |
| Compliance | ✓ | ✗ |
| Accounting | ✗ | ✓ |
| Invoicing | ✗ | ✓ |
| Receipt Scanning | ✗ | ✓ |
| Bank Connections | ✗ | ✓ |
| Financial Reports | ✗ | ✓ |
| Payroll Addon | ✗ | ✓ |
| Payments Addon | ✗ | ✓ |
✓ 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
✓ Wave Pros
- Core accounting and invoicing completely free
- Unlimited income and expense tracking
- Receipt scanning with OCR included
- Simple enough for non-accountants
✗ Wave Cons
- Payroll and payments are paid add-ons
- No inventory or project tracking
- Limited integrations compared to competitors
The Verdict
Gusto is built for small businesses and startups, with a focus on payroll and benefits. Wave targets freelancers and solopreneurs and leads with accounting and invoicing.
On pricing, Wave is the clear winner for budget-conscious users — starting at $16/mo compared to $40/mo for Gusto. That $24/mo difference adds up quickly for growing teams.
Wave has a free plan, which gives it a meaningful edge for individuals and small teams exploring their options. Gusto requires a paid subscription from day one.
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.