Managing payroll entails much more than paying your employees in a timely manner. Surely, it’s an important factor, but it also includes managing taxes, ensuring compliance with labor laws, and maintaining accurate records for both employees and regulatory bodies. That’s why you need a reliable payroll solution.
ADP, Gusto, and QuickBooks are among the top-rated payroll software, each having its own strengths and weaknesses. Find out more about which is the right fit for your business in this comprehensive ADP Vs Gusto Vs QuickBooks comparison article.
- ADP: Suitable for businesses of all sizes, ADP offers payroll management, tax compliance, HR tools, benefits administration, and workforce analytics, making it a versatile platform
- Gusto: Designed for small to mid-sized businesses, Gusto HR software is a comprehensive human resource (HR) and payroll platform with a focus on ease of use and integration with other business software
- QuickBooks: For small and medium-sized businesses, QuickBooks is primarily an accounting software that also offers payroll services
Features | ADP | Gusto | QuickBooks Online |
Ease of Use | Moderate training required | Highly user-friendly, designed for ease | Simple interface, intuitive for users |
Payroll | Advanced, global payroll capabilities | Automated payroll with unlimited runs | Basic payroll integrated with accounting |
Mobile App | Robust app with payroll and HR features | User-friendly app for payroll tasks | Versatile app for accounting and payroll |
Integrations | Extensive integrations with HR tools | Integrates with many business platforms | Strong integration with QuickBooks accounting |
Time Tracking | Available as an add-on | Built-in time tracking for employees | Time tracking available via add-ons |
ADP is a versatile, feature-rich payroll and human resource management (HRM) platform. Its payroll system is renowned for its accuracy, reliability, and ease of use, enabling companies to process employee payments seamlessly.
The platform handles various aspects of payroll, including wage calculations, overtime, tax withholdings, and deductions, ensuring compliance with federal, state, and local regulations. With automated updates for tax law changes, ADP minimizes errors and reduces the administrative burden on businesses, making payroll management efficient and hassle-free. It also supports payments through direct deposit, prepaid debit cards, and paper checks, offering flexibility to employers and employees alike.
Unique Features Of ADP
- Certified Payroll Experts: ADP provides round-the-clock access to payroll professionals for assistance with payroll queries, compliance concerns, and technical issues
- HR Outsourcing: This feature allows businesses to delegate HR tasks like benefits administration, talent acquisition, and compliance management to ADP experts
- ADP SmartCompliance: It automates and streamlines compliance-related tasks, including tax filings and wage garnishments, reducing risks and administrative burdens
ADP Pros And Cons
Companies prefer ADP due to its robust feature set and global payroll processing capabilities. The professional employer organization (PEO) model, in particular, is appreciated by users.
A user said:
“Their PEO is a good model because it allows you to take the benefits of a company with a large group of employees and I think they can lock in your rates for 1 or maybe 2 years.”
Source: Reddit
While users are appreciative of ADP’s features, many have voiced their concerns about tax issues and other aspects of running payroll.
According to a user review:
“The learning curve was steep, but after a few months, we started to get the hang of it. The key is to take advantage of all the support and training they offer. The tax issues are concerning, though—those should definitely be addressed ASAP. If you’re still struggling after a few more months, it might be time to evaluate whether ADP is the best fit for your company.”
Source: Reddit
A user in a neutral review said:
“I run payroll through ADP Workforce Now. I don't love but i also don't hate it.”
Source: Reddit
ADP As Compared To Alternatives
ADP stands out for its powerful features, making it a top choice for businesses of all sizes, especially those with global payroll needs. Its comprehensive platform includes payroll, HR management, tax compliance, and workforce analytics.
When compared to Gusto and QuickBooks, ADP is more suited for larger enterprises or those with complex payroll and compliance needs. That said, while it excels in features, smaller businesses might find its pricing and complexity less appealing compared to Gusto’s user-friendly approach or QuickBooks’ integration with accounting services.
Gusto is a comprehensive platform that streamlines payroll, benefits, and human resource management for businesses. Its user-friendly interface simplifies complex tasks, allowing employers to manage employee onboarding, benefits administration, and compliance seamlessly.
The software stands out for its payroll capabilities. It automates payroll processing, including tax filings and deductions, ensuring accuracy and compliance with federal and state regulations. Employers can run unlimited payrolls with just a few clicks, and Gusto handles the rest, from calculating wages to managing direct deposits.
It also offers support for global payroll processing, making it suitable for companies dealing with international workers.
Unique Features Of Gusto
- Hiring And Onboarding: Gusto streamlines the hiring process with customizable offer letters, digital onboarding checklists, and automated tax form collection, making it easy to welcome new employees
- Contractors-Only Model: It offers a specialized plan for businesses that work exclusively with 1099 contractors, providing tools for easy payment, tax form management, and year-end 1099 filings
Gusto Pros And Cons
Gusto is a full-service HR platform that is recognized for its simple interface and advanced features. The platform is also appreciated for its affordability.
A user reported:
“I've been using Gusto for 4 years and have had generally had a great experience. We have 6 employees, pay 5 contractors, and offer things like health insurance, PTO, and 401k matching. All run through Gusto.”
Source: Reddit
Highlighting its economic and accurate payroll processing, a user said:
“Gusto is so damn cheap compared to traditional payroll ala ADP/Paychex. I fired two employees a few months ago and their last paychecks were processed direct deposit with zero issues. Anecdote for anecdote lol.”
Source: Reddit
A user highlighted that:
“I’ve been with Gusto for 7 years without incident. They are the single best platform I use to help manage the entire business (11 staff). It just works and works very well.”
Source: Reddit
While the software offers many functions, it is not suitable for companies with a higher number of employees. Highlighting this fact, a user said that:
“My experience with Gusto is that it is great for certain types of businesses. Solopreneurs (Sole Props, LLCs), startups with a few employees and/or large contractor base. They do have a new EOR feature which is helpful for international footprint. Once you get to the 25-50 employee range, I'm not so sure. I hear more businesses having issues with timely payroll.”
Source: Reddit
Gusto As Compared To Competitors
Gusto is preferred by small and mid-sized businesses for its simplicity, affordability, and integration capabilities. Its automated payroll processing, contractor-only model, and user-friendly interface make it a standout choice for growing businesses.
Compared to ADP, Gusto is more accessible for startups and smaller organizations, though it may not scale as effectively for larger enterprises. In contrast to QuickBooks, Gusto offers a broader suite of HR features, such as benefits administration and onboarding, making it a more holistic solution for payroll and HR needs.
QuickBooks Online, by Intuit, is a versatile accounting solution designed to help businesses manage their finances efficiently. It offers features such as income and expense tracking, invoicing, and financial reporting, all accessible through a user-friendly interface.
A notable feature of QuickBooks Online is its robust payroll capabilities. The platform automates payroll processing, including calculating wages, withholding taxes, and managing deductions, ensuring compliance with federal and state regulations. Employers can pay their employees and contractors via direct deposit or paper checks, with the system handling payroll taxes on their behalf.
Unique Features Of QuickBooks Online
- Expense Tracking: QuickBooks simplifies expense management by automatically categorizing transactions, syncing with bank accounts, and providing real-time expense reports for accurate financial tracking
- Project Management: It offers tools to track project expenses, assign billable hours, and monitor profitability, helping businesses manage projects effectively from start to finish
QuickBooks Online Pros And Cons
QuickBooks Online is appreciated for its simple interface and suitability for small businesses.
A user said that:
“QuickBooks is the industry standard, and it is a very good product. They have a huge percentage of the small business accounting software market.”
Source: Reddit
That said, there have been concerns about QuickBooks’ pricing and its performance on different versions.
According to user reviews:
“I’ve been using quick books for the last year for my company and we have been very happy with it. My father has been using it for his company for years as well and also likes it. The one caveat is we both use the desktop version and I have been told the desktop version is much better than the web browser.”
Source: Reddit
“The issue with Quickbooks is that they are moving to a monthly subscription model and it is very costly now. They want you to use Quickbooks Online. You can't buy their desktop version anymore for a one time fee.”
Source: Reddit
QuickBooks Online As Compared To Alternatives
QuickBooks Online is primarily recognized as a powerful accounting software that seamlessly integrates payroll features. Its strengths lie in financial management, expense tracking, and project management, making it an ideal choice for small businesses focused on accounting.
Compared to ADP, QuickBooks is less feature-rich in HR and compliance but significantly more affordable for small enterprises. Unlike Gusto, which excels in HR-centric functionalities, QuickBooks places greater emphasis on financial oversight, providing detailed reports and robust accounting tools.
Choosing between ADP, Gusto, and QuickBooks Online depends on your business size, needs, and priorities. ADP is the go-to solution for large businesses or those requiring global payroll and advanced HR functionalities. Gusto shines as a user-friendly and affordable platform for small to mid-sized businesses. QuickBooks Online, on the other hand, remains a strong contender for small businesses prioritizing accounting integration with basic payroll features.
Each platform has its strengths and trade-offs. So, carefully assess your operational requirements, budget, and growth plans to select the payroll software that aligns with your business objectives.