Gusto vs. QuickBooks: 2024 payroll comparison

Gusto and QuickBooks are popular software platforms that offer expansive payroll and HR features for small businesses. Companies can use either system to save time on administrative work, reduce the likelihood of manual errors, and bolster compliance with tax and employment laws. 

And while Gusto and QuickBooks share common capabilities across payroll (like direct deposits, tax-filing, and reporting) and HR (including benefits administration, time-tracking, and employee self-service), they also have key differences a business should keep top of mind if it’s in the market for help paying and managing its workforce.

So how exactly do the two providers stack up? This guide unpacks what you need to know. 

Gusto vs. QuickBooks overview

Before we get into the finer details, here’s a snapshot of how Gusto’s and QuickBook’s features compare.

Payroll features

Payroll software helps businesses of all sizes automatically calculate employee wages—withholding and filing all relevant taxes—and compensate workforces punctually, accurately, and compliantly every pay run. Gusto and QuickBooks both have features that streamline the payroll process and reduce the risk of manual errors. Here’s a look at Gusto vs. QuickBooks for payroll. 

Gusto

Gusto allows small businesses and startups to pay employees within minutes. Companies can use Gusto to automatically run payroll on pre-set dates, make unlimited pay runs, and compensate both hourly and salaried team members. 

1. Payroll for hourly workers

With Gusto, time-tracking syncs directly with payroll, meaning wages are automatically calculated based on every hourly employee’s approved timecard. 

2. Payroll reports

With Gusto, administrators can run customizable payroll reports, allowing teams to track time off balances, workers comp usage, payroll by department, and more. Users can choose from different employee details to include in reports like role, earnings breakdowns, and tax deductions. You can also tee up reports to auto-run annually, quarterly, monthly, or at whatever custom date you prefer. 

3. Next day deposit

Gusto also offers automatic direct deposit capabilities, with next-day payments available on its Simple, Plus, and Premium membership plans. The provider also has two and four-day payment speed options. 

QuickBooks

QuickBooks offers automated payroll services to small businesses of up to 150 employees. QuickBooks Payroll has tax filing and payment services, benefits administration integrations, and ledger reports that help companies manage cash flow. 

1. Same-day direct deposit

QuickBooks Payroll offers same-day direct deposit on its Premium and Elite plans, and next-day direct deposit on its less expensive Core plan. 

2. Tax penalty protection

The Elite membership plan of QuickBooks Payroll comes with a protection policy that pays up to $25,000 in IRS penalties on your company’s behalf in the event of late or missed filings (excluding things like non sufficient funds holds, labor law violations, and penalties from errors made before using QuickBooks). 

3. Worker’s comp

QuickBooks also lets companies sync their workers’ comp policies to payroll, offering a pay as you go option in lieu of making lump sum payments. You can also submit automatic payments and get premiums calculated automatically.

HR features

HR software helps businesses save time on administrative tasks and monitor compliance with federal, state, and local employment laws. In addition to payroll software for small businesses, Gusto and QuickBooks both offer a slate of HR features that help companies with everything from streamlining onboarding and administering benefits to managing PTO and advising on compliance. Here’s a closer look at the standout HR tools for each platform. 

Gusto

While Gusto is primarily known for its payroll services, it also has HR software that automates tasks across the employee lifecycle. Its HR features include:

1. 401(k), HSA, FSA, 529

Gusto provides access to more than 9,000 healthcare plans across more than 30 carriers. It allows companies to sync health, dental, vision coverage with payroll and can automatically deduct 401(k) contributions through integrations with a range of providers. Through Gusto, employees can also enroll in health savings accounts (HSAs), flexible spending accounts (FSAs), 529 plans, disability insurance, life insurance, and commuter benefits. Employees can view spending accounts and savings tools through a mobile app known as the Gusto Wallet. 

2. PTO

Gusto’s time and attendance features allow employees to submit vacation, sick days, and other PTO to managers for approval, with approved hours automatically syncing to payroll. The platform also tracks PTO accruals in real-time, so employees always know how many days they have available, in accordance with their employer’s time-off policy. 

3. Hiring and onboarding

Gusto offers a centralized applicant tracking system (ATS) that helps companies send out custom job posts and source candidates. And once a candidate accepts an offer, Gusto comes with onboarding workflows—like e-signatures, document storage, and background checks—that help quickly ramp new hires up. 

4. Talent management

Gusto also has performance review templates, goal-tracking features, and engagement survey tools that help companies source employee feedback.

QuickBooks

Companies can add HR features like time-tracking (which includes both mileage tracking and geofencing), 401(k) and healthcare administration, and compliance support onto QuickBooks’ payroll services. 

1. 401(k)

QuickBooks offers 401(k) features administered by Guideline, allowing companies to quickly set up retirement accounts and match recurring contributions. 

2. Health benefits

The platform also provides access to affordable healthcare packages across more than 200 local and national carriers through a partnership with Allstate Health Solutions. 

3. Personal HR advisor

QuickBooks’ Elite membership plan connects companies with an HR advisor who can answer compliance questions and troubleshoot issues as needed. And the platform’s Premium plan comes with a customer support center that can answer payroll questions, help teams craft job descriptions, and solve other HR issues. 

4. Employee portal

Through QuickBooks, employees can access paystubs, W-2s, and other documents through a secure self-service portal—either online or via mobile app.

Integrations

Integrations can expand the capabilities of HR and payroll software and save teams from repeating the same work across different solutions. Gusto and QuickBooks both have integrations that bring different workforce management processes—like time-tracking, scheduling, and bookkeeping, to name a few—under the same interoperable umbrella. While most of Gusto’s integrations are through third party platforms, QuickBooks mainly integrates through fellow Intuit apps. Below is a sampling of some of the integrations each system offers. 

Gusto

Does Gusto do bookkeeping? Not in and of itself, but the platform offers offers integrations with dozens of platforms across accounting, scheduling, time-tracking, and much more, including:

1. Xero

Gusto integrates with Xero’s online accounting features for small businesses, allowing companies to sync payroll to their general ledger. 

2. 7Shifts

Restaurant owners use 7Shifts to schedule work allotments across for service staff and track labor costs. Gusto offers a 7Shifts integration that can unify time-tracking, restaurant shift scheduling, and payroll. 

3. QuickBooks Time

Companies that want to merge Gusto’s payroll with QuickBooks’ time-tracking can do this data sync within Gusto’s platform. Companies can also set up a separate Quickbooks-Gusto integration to combine the former’s bookkeeping with the latter’s payroll. 

QuickBooks

QuickBooks’ HR and payroll services seamlessly integrate with other Intuit products—like the Intuit QuickBooks accounting software, Turbotax, QuickBooks Time for time-tracking, and its inventory management features. While QuickBooks supports third-party integrations with Square and PayPal, its compatibility is otherwise limited to other Intuit services. 

1. TurboTax

Companies can import QuickBooks data directly into TurboTax (since they’re both Intuit products), which can simplify payroll taxes deductions, and bookkeeping. 

2. Inventory management

QuickBooks also has inventory-tracking features that automatically update logs after sales and shipments, help businesses plan purchases, and schedule vendor payments. These tools are available in the QuickBooks Payroll’s Premium membership tier. 

3. Square

Companies can also integrate QuickBooks’ accounting software with Square’s point of sale system to sync daily sales transactions and automatically capture receipt details. 

Customer support

Standout customer support can be the difference between solid and exceptional business software providers. To minimize errors, proactively address compliance concerns, and access expert HR guidance for everything from benefits administration to performance management, companies should look for systems that place a premium on quick, thorough, and thoughtful customer service. Here’s how Gusto and QuickBooks’ support services stack up.

Gusto

Gusto’s customer support features include:

1. Live customer support Monday through Friday

Gusto offers live customer support over the phone with hours from 5am to 5pm Pacific Time, Monday through Friday. 

2. Chat and email support

Gusto also has live chat and email support to help quickly answer time-sensitive questions, as well as a search bar that gives users tailored troubleshooting recommendations across topics. 

3. Resources center

The platform comes with a resources center with step-by-step guides, how-tos, and other informative blogs that provide expert guidance across HR and payroll topics. 

QuickBooks

QuickBooks’ customer support features include:

1. Live chat support

QuickBooks offers live chat support from 5am to 6pm Pacific Time Monday through Friday, and from 6am to 3pm Pacific Time on Saturdays. 

2. Phone support

Customers can schedule call backs and talk to live experts over the phone from Monday through Friday every week. 

3. Resources center

QuickBooks comes with self-service guides, video tutorials, and other informative resources. Customers can also crowdsource help through access to its large community of users with experience across Intuit’s tech stack. 

Who are Gusto and QuickBooks for?

When evaluating Gusto vs. QuickBooks vs. other HR and payroll providers, keep in mind that different solutions work better for different sized businesses. Here’s a quick look into how headcount (both now and in the future if you plan to scale) plays into software fit. 

Gusto

Gusto may be the better option for businesses with more than 50 employees, or smaller-sized companies with high growth plans that’d stretch their headcount.

This is because Gusto has more in-house HR capabilities than QuickBooks and can help growing teams handle different processes across the employee lifecycle from a single solution. But if your team grows to the point of needing multiple EINs, you may need an even more scalable platform—with more integrations as well as native finance and IT capabilities that Gusto doesn’t offer.

QuickBooks

Pre-existing small business customers who already use QuickBooks for accounting may find it easier to add on QuickBooks’ payroll services instead of finding a third party alternative and connecting disparate systems. The QuickBooks vs. Gusto calculation may also tilt in QuickBooks’ favor for businesses with fewer than 50 employees who don’t need extensive HR services. QuickBooks also has a mobile app that makes payroll easier for admins to run from anywhere.

Pros and cons of Gusto vs. QuickBooks

Now that we’ve gone through key features of Gusto and QuickBooks, let’s unpack some of the biggest advantages and disadvantages of each platform. 

Pros of Gusto

Gusto’s easy-to-use platform comes with smooth integrations and extensive HR features. Biggest perks include:

1. User-friendly interface

Gusto is known for its clean UI and low barriers to entry for setting up full-service payroll. It also offers onboarding checklists, time-tracking features, and customizable automations. 

2. Smooth integration with third-party applications

Gusto easily syncs with more than 100 apps across accounting, expense management, tax preparation, and more, allowing companies to merge disparate workforce management processes.

3. Breadth of HR services

While QuickBooks is known for its accounting services, Gusto has more HR features, including hiring and onboarding workflows, PTO management, and contractor management. 

Cons of Gusto

Potential downsides of Gusto include:

1. Limited scalability

While Gusto can help small businesses scale, it may struggle to accommodate large, international headcounts. The platform doesn’t handle multiple EINs, has sparse IT automations to help with device management during onboarding, and gets clunky when customers try to transition from smaller to larger group benefits. 

2. Less customization

Gusto has fewer pre-built reports than some alternative solutions. And while it comes with expense reimbursement features, it lacks robust spend management capabilities and the natively built accounting tools that QuickBooks has. 

3. Support mainly through email and chat

Gusto doesn’t offer live video calls with screen-sharing. It also doesn’t auto-connect customers to product specialists for troubleshooting. 

Pros of QuickBooks

QuickBooks has mobile-friendly self-service portals, straightforward tax filing workflows, and smooth accounting integrations with fellow Intuit products. 

1. Employee self-service portal

With QuickBooks, employees can view paystubs, tax forms, and PTO balances without any assistance from HR administrators. The platform also offers a mobile app employees can use for time-tracking and administrators can use to run payroll. 

2. Automated tax filing

The platform automatically calculates, files, and pays federal and state payroll taxes. Its Elite membership tier comes with tax penalty protections. 

3. Integration with QuickBooks’ accounting software

QuickBooks’ accounting solution helps businesses save time reconciling expenses, managing cash flow, and logging transactions for bookkeeping. Pre-existing QuickBooks accounting users can add on the vendor’s payroll and HR features to unify bookkeeping, pay runs, and time-tracking. 

Cons of QuickBooks

Potential snags with QuickBooks include:

1. Tax filing restrictions

QuickBooks only offers tax filings in multiple states under its Elite membership plan.

2. Fewer HR features

QuickBooks is primarily known for its accounting system and has fewer HR capabilities than Gusto and other HR software competitors. The system, for instance, doesn’t have hiring and onboarding workflows, performance management, PTO tracking, or scheduling. 

3. Limited benefits management

QuickBooks offers benefits administration for healthcare and 401(k) contributions, but doesn’t offer access to robust coverage for HSA, FSA, 529 savings, and commuter benefits like Gusto does. 

Rippling: The best alternative to Gusto and QuickBooks

Gusto and QuickBooks each offer small businesses and dependable slate of payroll and HR features. But if you’re in the market for more integrations, time-saving automations, and workforce management capabilities—not just in payroll and HR but also across finance and IT—you want Rippling. The all-in-one platform supports businesses of all sizes, growth plans, and geographic makeups. 

Rippling offers comprehensive HR and payroll services, built on top of a single source of truth for employee data. That means your employee data isn’t tied to one specific app—it’s the same across payroll, time and attendance, onboarding, performance management, and any other apps you use within our unified platform. 

What does that mean for you and your team? For starters, you have a single source of truth for up-to-the-minute employee information. It also means that your team doesn’t have to reenter information across systems when an employee gets promoted or moves to a different city to work remotely. 

From changing security permissions to updating PTO policies, Rippling triggers automatic updates to employee information in a single flow. It allows you to do more with less—less money, less headcount, and less time. And all with a 100% error-free guarantee, 600+ integrations, automatic and accurate tax registration and filing, a dedicated mobile app where your employees can view their W-2s and paystubs, submit expenses directly, and more.

This blog is based on information available to Rippling as of December 3, 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.