Gusto vs. ADP: Payroll comparison and best alternatives

Selecting the right payroll and HR platform for your business is crucial. It’s not just about paying your employees on time—it’s about choosing a comprehensive, reliable system that can handle a wide range of processes and workflows, from benefits administration (healthcare, PTO, commuter benefits, and more) to accounting integrations and compliance issues like unemployment insurance and workers comp. 

For many HR managers and executives, this decision often comes down to Gusto vs. ADP. These two payroll providers frequently top customer reviews on sites like G2 and TrustRadius, and they became household names for their wide range of payroll and HR features.

Over the years, Gusto has earned a reputation for user-friendliness and transparent pricing, while ADP—including ADP Run and ADP Workforce Now—is known for scalability, customization, and robust benefits administration. This comparison will walk you through ADP vs. Gusto, looking at how they handle payroll processing, benefits management, and more. By the end, you’ll be ready to choose the right system for your organization. And if neither fits perfectly, you’ll also learn why Rippling stands out as a great alternative that can streamline payroll and HR tasks, making paying your employees (and contractors) easier than ever.

Gusto vs. ADP: Overview

Gusto for payroll is known for straightforward, affordable pricing, user-friendly design, and all-in-one features suited for small and medium-sized businesses. Gusto prioritizes simplicity, offering benefits management, benefits administration, and access to group health insurance plans that integrate seamlessly with your payroll. 

Meanwhile, ADP payroll—including its ADP Run and ADP Workforce Now platforms—delivers a more customizable approach. ADP solutions, especially ADP payroll, provide advanced management capabilities, robust compliance tools, and a massive ecosystem of third party add-ons and marketing tools. From basic payroll to complex HR processes, ADP can scale from small businesses all the way up to large enterprises.

Below is a quick feature comparison of Gusto and ADP:

Gusto vs. ADP: Pros and cons

While both Gusto and ADP offer many features for businesses, there are benefits and drawbacks to both payroll platforms. When choosing an HR and payroll provider, it’s important to zoom out and get a complete view of all your options, which means weighing the pros and the cons. With that in mind, here’s a comparison of the upsides and downsides of Gusto and ADP.

Gusto pros and cons

Gusto excels at delivering a user-friendly platform that simplifies payroll and benefits administration, especially for small businesses. Many customer reviews highlight that it’s simple, straightforward, and affordable, making it easy for SMBs to get started without hefty fees or complicated add-ons.

Pros

• Affordable pricing for small businesses, making Gusto for payroll accessible
• User-friendly interface for employees, HR managers, and administrators
• Comprehensive benefits administration, making it easier to access insurance, workers comp, group health, and commuter benefits

Cons

• Limited scalability for much larger organizations; Eventually, growing organizations may need to consider an enterprise-grade solution like ADP Workforce Now.
• Fewer advanced payroll features compared to ADP, limiting customization and complexity
• While Gusto excels for smaller operations, big growth or specialized needs might require third party add-ons.

ADP pros and cons

ADP payroll, especially ADP Run and the company’s more comprehensive HR platform, ADP Workforce Now, provides advanced features and broad HR management options. Large or complex organizations that need integrations between payroll and accounting, compliance with state unemployment laws, and enterprise-level benefits management often turn to ADP payroll.

Pros

• ADP offers highly customizable payroll solutions, like ADP Run for small businesses and ADP Workforce Now for larger or scaling organizations.
• Extensive compliance tools handle requirements like state unemployment insurance and workers comp on your behalf
• Strong integration options with third party applications like OnPay, SurePayroll by Paychex, and accounting software for more comprehensive HR and benefits management

Cons

• Higher fees and premium add-ons may make ADP payroll less accessible to small businesses, especially those that prefer minimal packages.
• Steeper learning curve due to advanced features; ADP Workforce Now (and even ADP Run) can feel complex for teams that don’t have an HR pro on staff.

Gusto vs. ADP: Payroll

When weighing Gusto payroll vs. ADP, note that Gusto focuses on a simple, automatic approach to payroll. You can easily run payroll for employees and contractors, automate payroll runs, manage state unemployment filings, and maintain compliance. Gusto’s HR and benefits administration integrate, making sure insurance, workers comp, and benefits deductions happen automatically.

ADP payroll, particularly via ADP Workforce Now, is more flexible and scalable, supporting complex pay structures (for example, pay based on commission or multiple hourly rates for different tasks or roles), multiple pay premium models, and broader compliance needs. Large firms that need custom run plans or advanced benefits management often pick ADP payroll. The flip side is more complexity—ADP payroll sometimes requires specialized administrators, HR pro expertise, and third party add-ons. Still, many customer reviews give high ratings to ADP payroll due to its depth and adaptability.

Gusto vs. ADP: Benefits

Both Gusto and ADP offer benefits administration and benefits management, from group health insurance to retirement plans and workers comp.

Gusto integrates benefits management directly into its easy-to-use platform, offering access to a wide variety of employee benefits, from health insurance to wellness benefits, workers comp, commuter benefits, and more. Gusto’s straightforward approach suits businesses that don’t want to juggle extensive add-ons or fees for multiple platforms.

ADP Workforce Now, however, allows you to build custom benefits management solutions, choose various premium packages, and tap into a huge network of third party providers to access employee benefits. This can mean extra fees, but also far greater flexibility. Enterprises handling complex benefit structures or unique insurance types may find that ADP better fits their needs.

Gusto vs. ADP: Customer support

Customer service is crucial when it comes to HR software. When you have an issue with a payroll run, time is of the essence, and delays contacting customer support can be the difference between paying your employees on time or not.

Gusto is widely praised in customer reviews for its responsive and friendly customer support, ensuring administrators can quickly solve payroll, benefits, and compliance issues. Mobile, email, and live chat support are all available, with live customer service agents reachable from 5am to 5pm Pacific time, Monday through Friday.

ADP takes a broader approach to customer service, with support available 24/7, plus other resources, like webinars and blogs, accessible online. Additionally, ADP payroll offers access to HR Pros with many of its plans—if you have a big operation and need specialized payroll assistance, being able to contact ADP experts is valuable. Still, some customer reviews note that ADP provides various channels, but navigating them can be challenging.

Gusto vs. ADP: Integrations and scalability

Gusto integrates with popular accounting systems, time-tracking apps, and several other third party connections. This suits smaller companies that don’t need a massive accounting ecosystem or specialized marketing tools.
ADP payroll, especially through ADP Workforce Now, offers a wide range of third party integrations. Larger, fast-growing businesses that need to expand their IT ecosystem may find ADP more scalable, accommodating advanced add-ons that make it easier to adjust as you grow or switch focus.

Who are Gusto and ADP for?

Gusto

Gusto is ideal for small to medium-sized businesses that want simplicity, transparent pricing, and all-in-one payroll plus benefits management.

If your HR team isn’t large, you don’t have a dedicated HR pro, and you value an intuitive interface, Gusto will likely be a breath of fresh air. With minimal fees and straightforward packages, Gusto appeals to companies that just want to pay their employees and manage insurance, workers comp, and other benefits without a headache. Many customer reviews show Gusto as top-rated in user-friendliness.

ADP

ADP payroll, including ADP Run and ADP Workforce, is built for businesses of all sizes, including those with complex HR and payroll demands.

If you have multiple legal entities, unique pay structures, or need advanced compliance tools, ADP payroll might be your best bet. ADP excels at delivering HR management, benefits administration, and customizable packages designed for complexity. While you may pay higher fees, you gain robust controls, advanced tools, and the ability to integrate specialized add-ons. According to many customer reviews, ADP payroll is a trusted name in the industry. If you need more than a basic solution, or if you foresee significant growth and complexity, ADP is ready to handle it.

Rippling: The best alternative to Gusto and ADP 

If you’re looking for an alternative to ADP and Gusto, you’ll want to consider Rippling.

Rippling Payroll is intuitive, easy to use, and has a 100% error-free guarantee on every pay run. It also offers 600+ integrations, automatic and accurate tax registration and filing, and a dedicated mobile app where your employees can view their W-2s and paystubs, submit expenses directly, and more. With Rippling, you can:

• Pay employees and contractors in the same platform
• Manage time and attendance natively 
• Run unlimited off-cycle pay runs at no extra cost 
• Set up multiple pay schedules, pay rates, and pay types in just a few clicks 
• Add recurring reimbursements (like cell phone payments, gym memberships, etc.) that are automatically paid out every pay period, monthly, or at whatever interval you choose
• Automatically calculate prorated pay runs for new or promoted employees 
• Manage all currency conversions, including payroll adjustments 
• Automatically calculate overtime for every country 
• Make changes after submitting payroll

But Rippling is much more than just payroll software—it’s a powerful HCM that makes your HR department more strategic and productive with time-saving automations, better decision-making, and a modern, intuitive experience employees love. Rippling is the only true all-in-one HR platform. Our product breadth and depth mean you’ll save all the time and money you currently spend connecting disparate systems. See how companies that run on Rippling perform better.

Frequently asked questions about Gusto vs. ADP

What are the main differences between Gusto and ADP payroll for employees?

Gusto is known for its simple interface that makes it easy for employees at smaller organizations to manage their profiles, benefits, and pay details.

In contrast, ADP payroll offers more complex features suitable for larger teams, with advanced reporting and compliance tracking for all employees—but fewer self-service features and a steeper learning curve for those who aren’t familiar with managing employees in HR software.

Is integrating accounting software accounts simpler with Gusto or ADP payroll?

Both Gusto and ADP payroll integrate well with popular accounting platforms. However, Gusto tends to streamline the process with its easy-to-use platform, making it easy to reconcile accounts, while ADP payroll excels in larger, multi-accounting system environments. The choice depends on your company’s scale and the complexity of your employees’ data.

What do reviews say about Gusto and ADP payroll?

On platforms like G2 and Trustradius, reviews often highlight Gusto’s user-friendliness for employees and its straightforward approach, while ADP payroll receives praise for its comprehensive feature set. Some reviews note that larger companies lean toward ADP payroll for its advanced compliance and customization capabilities, whereas smaller teams appreciate Gusto’s simplicity.

This blog is based on information available to Rippling as of December 11, 2024.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.