Gusto vs Justworks Comparison 2026: Which One is Best?

Choosing between Gusto vs Justworks for your business? Here's what you need to know upfront: Gusto is a payroll software platform you manage yourself with automated tools and transparent pricing starting at $49/month base fee, while Justworks is a Professional Employer Organization (PEO) that becomes your co-employer and handles payroll, HR, compliance, and benefits for you at $59+ per employee monthly. The core difference comes down to control versus convenience, Gusto gives you full control with DIY tools, while Justworks provides white-glove service through a co-employment model.

This distinction matters significantly for your business growth. According to NAPEO's industry research, businesses using a Professional Employer Organization like Justworks grow 7-9% faster annually and experience 10-14% lower employee turnover compared to those managing HR in-house. However, that premium service comes at a higher cost, Justworks typically runs 2-3x more expensive than Gusto for small teams under 25 employees.

In this guide, we'll break down the key differences between Gusto vs Justworks across pricing, features, compliance support, and ideal use cases, so you can confidently select the platform that best fits your business size, budget, and HR management style.

What is Gusto?[toc=What is Gusto]

Gusto is a cloud-based HR platform and full service payroll solution built for small businesses and mid-sized businesses that want to simplify payroll processing, paying employees, tax filings, and benefits management, all in one place. Gusto helps businesses consolidate HR tasks like onboarding tools, tracking paid time off, and health insurance into a single dashboard.

Gusto Global, powered by Remote, lets companies hire international employees or contractors, all while keeping compliance support, global payroll capabilities, and payroll and benefits administration unified.

Key Features of Gusto:

• Full service payroll with automatic tax filings and direct deposits
• Pay both employees and contractors, including international employees
• Benefits administration for health, dental, vision insurance, commuter benefits, and retirement plans
• Employee self-service for pay stubs, tax forms, and benefits tools
• Onboarding tools with digital forms and new hire checklists
• Time tracking and PTO management with labor law compliance support
• Secure payroll platform with compliance assistance and HR resource center

What is Justworks?[toc=What is Justworks]

Justworks is a cloud-based Professional Employer Organization (PEO) that provides PEO services under a co-employment relationship. It helps small and mid-sized businesses manage payroll, offer employee benefits, and stay compliant with labor laws through bundled payroll and HR support.

Key Features of Justworks:

• Run payroll automatically with direct deposits, pay stubs, and tax filings
• Provide health insurance, dental and vision insurance, retirement plans, commuter benefits, and other employee perks
• Compliance assistance for labor law compliance, payroll tax, and multi state payroll
• Time tracking, PTO management, and custom leave policies
• Digital onboarding tools, document storage, and employee self service
• 24/7 extended live support hours, mobile app, and HR platform integrations

Gusto vs Justworks: Which one is better?[toc=Feature 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]

Based on analysis of 4,100+ verified user reviews on G2 and Capterra, here's an honest assessment of Gusto's strengths and limitations for small to mid-sized businesses:

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

Based on 700+ verified reviews and our analysis of PEO service models, here's what small businesses should know about Justworks' trade-offs:

What real challenges are users facing with Gusto and Justworks?[toc=Challenges Faced by Users]

These issues come up repeatedly in G2 reviews and user reports. They’re not deal-breakers for everyone, but they're worth knowing.

What can go wrong when using Gusto?

• Poor customer support: slow responses, inconsistent follow-through, especially with tax filing errors. [Read more on G2]
• Weak reporting & limited HR tools: users say advanced reporting, flexible payroll schedules, and non-standard HR tasks are restricted. [Read more on G2]
• Login reliability & UI glitches: occasional account lockouts, slow interface, and login issues. [Read more on G2]
• Cost escalation as businesses scale: moving from base plans to Premium, many features are locked unless you pay more. [Read more on Employ Borderless]

What can go wrong when using Justworks?

• Poor customer service regarding benefits or insurance questions. Requests to talk to benefits/insurance experts often refused, only lower-level reps respond. [Read more on Reddit]
• Delays in resolving issues related to health plan coverage or claims. Users feel stuck in loops without clear decisions. [Read more on Reddit]
• Pricing jumps: Some medical rates increase significantly year over year, causing shock for small/mid businesses. [Read more on Reddit]

Gusto vs Justworks: Which one should you choose?[toc=When to Choose]

The key difference is that Gusto is a self-service payroll software where you maintain full control and manage payroll yourself using automated tools. Justworks is a Professional Employer Organization (PEO) that becomes your legal co-employer and manages everything for you from payroll to compliance to benefits administration.

When should you choose Gusto?

Best for: Small to mid-sized businesses (5-100 employees) that want affordable, automated payroll software without outsourcing HR responsibilities.

Gusto is the right choice if you:

• Want to keep control of your payroll and HR processes while using automation tools
• Need transparent pricing starting at $49/month base + $6-22 per employee depending on plan tier
• Require 200+ integrations with accounting software like QuickBooks, Xero, and FreshBooks
• Have basic HR needs like automated payroll runs, tax filings, onboarding tools, and benefits enrollment
• Don't need enterprise-level benefits or pooled health insurance rates
• Prefer self-service with email/chat support rather than dedicated HR consultants
• Want to pay contractors easily (120+ countries supported through Gusto Global)

When should you choose Justworks?

Best for: Small businesses and mid-sized businesses (10-100 employees) wanting to outsource payroll, benefits administration, and compliance support through a Professional Employer Organization (PEO).

Justworks is the right choice if you:

• Want a PEO co-employment relationship where Justworks handles payroll processing, compliance assistance, and benefits management
• Need enterprise-level employee benefits like health insurance, dental and vision insurance, retirement plans, commuter benefits, and disability insurance
• Require comprehensive HR support with 24/7 extended live support hours and access to HR experts for compliance guidance
• Operate across multiple states and need multi-state payroll, labor law compliance, and automated payroll tax filings
• Lack in-house HR expertise and prefer a unified HR platform with employee self-service for pay stubs, tax forms, and benefits tools
• Value benefits administration including HSA/FSA, COBRA, employee perks, and PTO management in one system
• Want onboarding tools with digital forms and reduced administrative burden through Professional Employer Organization services

When should you use Wisemonk?

Wisemonk is the best Employer of Record (EOR) 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 do Gusto users say?[toc=Gusto User Reviews]

Gusto positive reviews:

"it is easy to setup and good for small sized companies and startups"
- Verified User in Computer Software, Small-Business, rated 3.5/5 stars on G2

"As an employee, I find Gusto easy to use for tracking daily hours, planning time off, and budgeting. Correcting mistakes is straightforward, and the user interface is intuitive. I appreciate the document sections for quickly reviewing my agreements and expectations. I also like the option to split my paycheck, which allows part of it to be deposited elsewhere - this feature helps me save and invest more easily."
- Vanessa G., Customer Success, Small-Business, rated 4/5 stars on G2

Gusto negative reviews:

"running a payroll in different states is not easy to integrate. if you miss one payment it is extremely difficult to reactivate your account, the support team is terrible"
- Verified User in Computer Software, Small-Business, rated 3.5/5 stars on G2

"It is limiting not to be able to edit future hours. My role at the company requires that I input time for holidays, but in order to do so, I have to remember to add the hours after the date has passed and hope that I've recorded them before the pay cycle."
- Vanessa G., Customer Success, Small-Business, rated 4/5 stars on G2

What do Justworks users say?[toc=Justworks User Reviews]

Justworks positive reviews:

"I appreciate the ability for my employees to control their time tracking, PTO requests, benefits, etc. It's easy for me to approve hours and PTO. I also like having it all under one site that's easy to access."
- Angela C., CEO, Small-Business, rated 4/5 stars on G2

"It's honestly just way easier than juggling a bunch of different systems - we get our payroll, health insurance, 401(k)s, PTO tracking, etc. in one spot. Their support team actually responds when you need help (what a concept!), and we don't have to stress about compliance issues. The whole experience from getting new people set up to handling departures is pretty smooth too. I use it several times a day!"
- Mick S., Senior Executive Assistant and Operations Coordinator, Mid-Market, rated 5/5 stars on G2

Justworks negative reviews:

"For weekly pay periods, there is a tiny window of time to approve hours. If there's a holiday somewhere in there, I have to submit approvals before the week is even finished... leaving me to guess the hours for Friday and Saturday. It's very stressful working around holidays. If the weekly payroll could be offset by one week, that would make my job much, much easier. Also, two of us have been told to expect modified W-2s, but it's May, and we still have not received them. This is costing me money with my accountant, which is disappointing."
- Angela C., CEO, Small-Business, rated 4/5 stars on G2

"Some of the admin tools feel limited or clunky — for example, bulk actions, document management, or org visibility aren’t as flexible as we’d like."
- Mick S., Senior Executive Assistant and Operations Coordinator, Mid-Market, rated 5/5 stars on G2

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

In our experience helping global companies manage payroll and compliance, these are the non-negotiables to check before you decide:

In our experience supporting global companies, these are the questions that matter most before you pick a provider:

• What size team are you running today, and tomorrow?
  Some payroll software fits small businesses well, but won’t keep pace once you expand to multi-state payroll or international employees. Choose a system that works for your current headcount and can scale with growth.
• Can the platform manage compliance without gaps?
  Make sure it covers payroll tax filings, labor law compliance, data privacy (like GDPR), and has local experts who understand in-country rules.
• Are essential HR features included upfront?
  Many providers add extra charges for basics such as time tracking, onboarding tools, or benefits administration. Go with one that offers core HR functions in its standard plan.
• Will switching disrupt payroll cycles?
  Ask how they handle data migration and onboarding. A smooth transition with clear timelines reduces the risk of missed pay runs or lost employee data.
• Does it support multi-country growth?
  If global expansion is on your roadmap, check for true global payroll capabilities, multiple currencies, contractor payments, and flexible pay cycles.
• How reliable is customer support?
  Quick help matters when payroll deadlines hit. Prioritize providers with extended live support hours or dedicated account managers for compliance and tax issues.
• Is the pricing model straightforward?
  Look for transparent per-employee or per-contractor pricing. Hidden costs for compliance features or add-ons can erode ROI.

What are the common mistakes to avoid while selecting a payroll and HR services platform?[toc=Common 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:

• Choosing only by price: Cheap payroll software often lacks compliance support, advanced payroll features, or reliable HR support. Short-term savings can lead to payroll tax errors and costly fixes later.
• Ignoring integrations: A platform that doesn’t sync with your HR software, accounting tools, or time tracking system creates manual work and data silos.
• Overlooking data security: Payroll systems handle sensitive employee data. Confirm encryption, GDPR compliance, and strict access controls are in place.
• Undervaluing customer support: Without 24/7 or extended live support hours, payroll issues during tax filings or direct deposits can stall operations.
• Skipping employee self-service: Platforms without portals for pay stubs, tax forms, and benefits tools add unnecessary administrative tasks and frustrate employees.

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

Wisemonk is a trusted Employer of Record (EOR), helping global businesses hire, pay, and manage talent without the need to set up a local entity. While platforms like Gusto and Justworks focus primarily on US payroll and PEO services, Wisemonk specializes in providing end-to-end support for India operations, from compliant payroll processing to workforce management.

Here’s why companies expanding into India choose Wisemonk:

• Official Employer of Record: We become the legal employer for your team in India, managing compliant contracts, payroll management, and statutory benefits.
• Effortless Hiring & Onboarding: Employees and contractors can be onboarded within 2–4 days with digital documentation and HR support.
• Full Payroll & Compliance: We handle payroll processing, tax filings, labor law compliance, and contributions to PF, ESI, and gratuity.
• Flexible Benefits Administration: Provide employees with statutory and custom benefits, including health insurance, vision insurance, commuter benefits, and employee perks.
• Contractor Management: Pay contractors accurately and on time, with compliance support for local tax regulations.
• Workforce Management Tools: Employee self-service portal for pay stubs, leave, and tax forms; onboarding tools; HR resource center; and ongoing compliance assistance.
• Beyond Payroll: Support for Global Capability Centers (GCCs) setup, company registration in India, equipment procurement, and background verification to ensure compliant, productive teams.

Wisemonk is more than a payroll platform, we’re a strategic partner for scaling into India. From simplifying HR tasks to ensuring labor law compliance, our solutions are built for global founders who want speed, transparency, and peace of mind.

Looking to streamline your India expansion? Connect with Wisemonk to explore your options or get personalized guidance for your business needs.

Customer Reviews:

"Working with the Wisemonk team in India has been a genuinely positive experience from day one. They've been consistently accessible and are building fantastic relationships with our local team. As someone based in the UK, I value the quality of compliance Wisemonk brings — I have full confidence when it comes to financial, legal, and HR matters. They've ensured our team is managed in line with local employment law and have also been flexible when we've wanted to go beyond statutory requirements. Whether it's increasing annual leave or tailoring health insurance, they've offered clear guidance to help us enhance the benefits we provide. It's been a great partnership."
- Lisa Jones, Chief People Officer at Couch Health

"I'm very happy that I discovered Wisemonk. They have been a pure pleasure to work with, and their attention to detail is impressive. They helped us understand their pricing model, find top-qualified individuals, interview them, and then onboard them. I gave them criteria for the type of people we sought, and they delivered. The individuals they were able to find have been some of the best engineers I have ever worked with. I recommend Wisemonk to anyone who is in need of staffing assistance."
- Dan Sampson, Head of Engineering at Cobu