Gusto vs Justworks Comparison 2025: Which One is Best?

Thinking about streamlining payroll and HR but not sure which platform to choose, Gusto vs Justworks? Picking the right solution for payroll, benefits, and compliance can feel overwhelming. In this article, we’ll break down the key differences between Gusto and Justworks in a clear, user-focused way, so you can confidently select the platform that best fits your business needs and makes HR management simpler.

What is Gusto?[toc=What is Gusto]

Gusto is a cloud-based payroll software and HR management platform designed for small businesses and mid sized businesses. It streamlines payroll processing, benefits administration, and other essential HR tasks into a single intuitive dashboard. With Gusto, companies can run automated payroll, handle tax filings with ease, and manage employee benefits while paying both local staff and international employees.

Key Features of Gusto:

• Automated payroll, direct deposit, and tax calculations for US and global employees.
• Integrated benefits management including health, retirement, and commuter plans.
• Employee self-service portal for pay stubs, tax forms, and benefits enrollment.
• Time tracking and expense management tools for easy reporting and reimbursements. These tools also help small business owners monitor employee hours accurately, ensuring fair pay and compliance with labor laws.
• Seamless integrations with accounting, HR, and business apps like QuickBooks and Xero.
• Robust security: data encryption, two-factor authentication, and compliance certifications.

What is Justworks?[toc=What is Justworks]

Justworks is a cloud-based Professional Employer Organization providing PEO services, making it ideal for small to medium-sized businesses that want to manage payroll, manage employee benefits, and maintain compliance under a co-employment model. It delivers enterprise level benefits, HR functions, payroll processing, and compliance support, making it a trusted payroll provider.

Key Features of Justworks:

• Runs payroll automatically for staff and contractors, with direct deposits and tax filings.
• Provides health benefits, dental, vision, retirement, commuter, and wellness benefits. It also helps businesses offer attractive employee perks that improve retention and workplace satisfaction.
• Ensures compliance with tax, labor, and employment laws across multiple states.
• Tracks time, manages PTO, and sets custom leave policies.
• Offers easy digital onboarding, document storage, and employee self-service.
• Gives 24/7 support, mobile access, and reporting with app integrations.

Why should you compare Gusto vs Justworks?[toc=Gusto vs Justworks Comparison]

With so many payroll and HR platforms in the market, it’s essential to know the strengths and limitations of each. Gusto and Justworks stand out as top solutions for businesses needing streamlined payroll, compliance, and benefits. Let’s see how these platforms stack up for coverage, compliance support, pricing, and overall  HR management experience.

Curious about payroll service pricing? Check out our in-depth article on "Payroll Services Pricing Comparison" for detailed breakdowns of plans, features, and costs.

What are the pros and cons of Gusto?[toc=Pros & Cons of Gusto]

Many small businesses aiming to streamline payroll and HR for global teams see Gusto as an intuitive, cost-effective platform for small and midsize companies. Based on our experience helping companies with payroll and workforce management, Gusto’s user-friendly setup and scalable plans are strong points, though organizations should be aware of its limited international coverage.

What are the pros and cons of Justworks?[toc=Pros & Cons of Justworks]

Many companies choose Justworks for its all-in-one payroll, benefits, and PEO services compliance platform. Drawing on our experience in helping companies with payroll, it offers great usability, top-tier benefits, and strong multi-state compliance, though its high cost, US-focused app, and limited global reach are key considerations.

What real challenges are users facing with Gusto and Justworks?[toc=Real challenges]

For many small businesses, Gusto and Justworks are popular choices for payroll, benefits, and compliance. But as companies grow, some users run into issues, like managing benefits, filing taxes, and scaling HR, despite the platforms’ strong features. We’ve listed these common challenges below.

What can go wrong when using Gusto?

• Missing Features & Confusing Reports: Some small businesses using Gusto for payroll management and benefits administration find it lacking in advanced HR tools. Reporting features can be confusing, making it harder to access critical employee data and insights for workforce management.
• Inconsistent Customer Support: While Gusto offers compliance support and tax filings, users have reported inconsistent assistance, with delays in resolving issues related to payroll processing, tax forms, and direct deposits. 
• Limited Customization: Businesses seeking flexible HR software or comprehensive HR solutions note that Gusto offers limited customization for benefits management, reporting, and HR tasks, which can affect efficiency.
• Payroll Issues & Account Lockouts: A subset of users has faced challenges such as delayed full service payroll, errors in automatic tax filings, and unexpected account lockouts, raising concerns about overall reliability for small businesses and payroll providers.

Note: These insights are drawn from verified user feedback shared on G2 reviews on Gusto.

What can go wrong when using Justworks?

• Complex User Interface: While Justworks is known for its HR software solution with strong compliance and PEO features, its interface can feel overly complex, especially for small businesses new to HR tech. This can make it harder for teams to access pay stubs, manage employee perks, or track flexible spending accounts efficiently. [Read more on Rippling]
• Limited Customization: Justworks offers fewer customization options compared to Gusto, which may not be suitable for businesses with specific or complex needs. [Read more on Rippling]
• Fewer Integrations: Justworks has fewer integration options than Gusto, primarily focusing on accounting software connections. [Read more on Tryfondo]

When should you choose Gusto?[toc=When to Choose Gusto]

If you’re a growing business seeking a simple, affordable payroll software and HR platform, with the flexibility to manage both employees and contractors, Gusto is often the best fit. Its intuitive design, strong automation, and built‑in compliance tools make it perfect for small to midsize companies without large HR or accounting teams.

Consider Gusto if:

• You want an easy‑to‑use dashboard for payroll, pay stubs, tax filing, and benefits that both employers and employees can navigate with minimal training.
• Payroll essentials like automated runs, direct deposit, and accurate tax filings are your top priorities.
• You need built‑in HR tools, onboarding checklists, offer letters, handbook templates, and compliance updates, all in one system.
• Benefits administration (health, dental, vision, retirement) is important, but you don’t require highly complex or custom plans. If conducting regular performance reviews is also part of your HR process, Gusto’s built-in tools can help streamline feedback and evaluations.
• You value seamless integrations with accounting, HR, and business platforms for a more connected workflow.
• Transparent pricing and plan flexibility are key as your team grows.

When should you choose Justworks?[toc=When to Choose Justworks]

Justworks is best suited for companies that want to streamline HR, payroll, and benefits by outsourcing administration and compliance. As a leading PEO, it serves as the employer of record for tax and payroll, helping small to midsize businesses reduce administrative burden, stay compliant, and offer competitive employee benefits.

Consider Justworks if:

• Your business is small to medium-sized (typically 1–50 employees, but can scale higher) and you want a unified solution for HR, onboarding, payroll, and compliance.
• Comprehensive HR support matters, beyond just payroll, you want help with benefits administration, compliance guidance, and built-in HR tools and onboarding tools.
• You prefer to outsource payroll, benefits, and most HR tasks, freeing up time to focus on your core business rather than back-office admin.
• Access to high-quality employee benefits, including retirement plans, at competitive rates is a priority; Justworks’ PEO model pools employees for better coverage options.
• Your team lacks deep in-house HR expertise and could benefit from Justworks’ built-in support and compliance experts.

When should you use Wisemonk?[toc=When to Choose Wisemonk]

Wisemonk is the best Employer of Record (EOR) in India for companies looking to switch and simplify workforce management. When you move to Wisemonk, you get:

• Reliable payroll management ensuring accurate, timely salary processing and compliance.
• Expert recruiting and onboarding services to help you hire and integrate your international workforce smoothly.
• Transparent pricing with no hidden fees, so you always know what you’re paying for.
• Dedicated HR support and an easy-to-use employee portal.
• Support for equipment procurement and office setup if needed for your team.

What should you consider when choosing a global payroll platform?[toc=Key Considerations]

Based on extensive research and consulting with global companies navigating global hiring, we’ve seen that several critical factors make or break your choice of a global payroll services provider:

• Compliance and Local Expertise: Choose a platform that ensures payroll compliance with local tax laws, labor rules, social security, and data privacy (like GDPR), and can offer in-country guidance to handle complex regulations.
• Global coverage and scalability: Ensure the provider covers payroll in all your current and target countries, and can easily scale as your workforce or locations grow.
• Technology and features: Look for robust automation (payroll runs, tax filings), powerful reporting, analytics, and seamless integration with your HR, accounting, and time-tracking systems.
• Employee Experience and Support: A user-friendly employee self-service portal and access to knowledgeable, responsive support (ideally with a dedicated account manager and local expertise) are essential.
• Cost and pricing: Select platforms with straightforward, upfront pricing and no hidden fees. Assess ROI by comparing the cost to the platform’s features, savings in administrative time, accuracy, and compliance improvements.

Look for solutions that integrate seamlessly with your HR tech stack. For more information, check our article on "What is an HRIS?".

What are the common mistakes to avoid while selecting a payroll and HR services platform?[toc=Mistakes to Avoid]

From our extensive work with global businesses and deep industry research, we’ve observed these critical mistakes many organizations make when choosing a payroll and HR services platform for global expansion, payroll management, and compliance:

• Focusing Only on Price: Opting for the cheapest option may result in missing critical features, robust compliance, or adequate support. The right balance between cost and value is essential—cheap software can lead to more errors and expenses in the long run.
• Underestimating Integration Requirements: Not verifying whether the platform integrates smoothly with your existing HR, accounting, or time-tracking systems can create data silos and inefficiencies.
• Skipping Data Security Evaluation: Payroll data includes highly sensitive employee and financial information. Make sure your provider offers strong encryption, compliance with privacy laws, and robust access controls.
• Not Considering Customer Support Quality: Poor or inflexible support (like no 24/7 help) can cause frustrating delays during critical payroll periods. Review user feedback about support responsiveness and the quality of help resources.
• Missing Out on Employee Self-Service: Platforms without a dedicated portal for employees to access pay slips, tax documents, and personal information put more burden on your HR team and reduce employee satisfaction.

Why choose Wisemonk for payroll and hiring?[toc=How Wisemonk helps]

Wisemonk makes it easy to hire, pay, and manage employees in India, without setting up a local entity. We handle recruitment, onboarding, payroll, benefits, compliance, and even equipment for your team, giving you expert support every step of the way.

Key highlights:

• Payroll & compliance – Automated payroll, tax filings, and all statutory requirements.
• Easy hiring & onboarding – Recruit and manage employees or contractors quickly.
• Full Employer of Record service – We take care of all legal employment, payroll, and compliance.

Wisemonk is your end-to-end partner for smooth, compliant HR and payroll operations. Contact us.

FAQs

Is Gusto the best payroll software?

Both Gusto and other payroll platforms compete closely, but Gusto is one of the top payroll solutions for small to mid-sized businesses, offering user-friendly tools, automated tax filing, and strong benefits integration.

What are the alternatives to Gusto and Justworks?

Here are some alternatives to consider:

• Wisemonk (India specialist)
• ADP (its alternative)
• Rippling (its alternative)
• Multiplier (its alternative)
• Oyster HR (its alternative)

Is Justworks worth it?

Yes, Justworks is worth considering if you need a Professional Employer Organization (PEO) that bundles payroll with HR compliance, benefits, and onboarding. It’s ideal for growing companies that want outsourced HR.

What was Gusto called before?

Before rebranding as Gusto, the company operated under the name ZenPayroll. The new name marked its evolution from a payroll-only service to a full service payroll platform offering payroll, HR, and employee benefits management.

Is Gusto a PEO?

No, Gusto isn't a professional employer organization (PEO). Gusto offers payroll, HR, and benefits tools, but it doesn’t provide PEO services like employee co-employment or access to enterprise-level benefits. Businesses needing PEO services would need to look at other platforms, like Rippling, as Gusto focuses on being an HRIS solution.

Is Gusto better than ADP?

Gusto is generally more affordable and easier to use for small businesses, while ADP offers highly scalable solutions with advanced reporting and enterprise-level features.