When it comes to managing payroll, compliance, and employee benefits, businesses need tools that are reliable and efficient. Deel and Gusto are two of the standout platforms in the payroll and human resources (HR) space, which address different needs and business structures.
The choice depends on your business size, workforce location, and specific HR needs. Read this Deel vs Gusto comparison to learn about the core features, strengths, and drawbacks of both platforms. This will help you determine which solution is the best fit for your organization.
At A Glance
Feature
Gusto
Deel
Employee Onboarding
Employee onboarding with digital forms and e-signatures
Global onboarding with customizable contracts
Benefits Administration
Health insurance, 401(k) retirement plans, and PTO management
Benefits packages for global employees with flexible options
Taxes and Reporting
Automatic tax filing at the federal, state, and local levels
In addition to tax filings at local levels, it works internationally too
Mobile App
iOS and Android app for payroll and HR management
Mobile app available for contractors and employees worldwide
Pricing
Starting at $40/month
Deel Payroll plan starts at $29/employee/month
What Is Deel?
Deel is a cloud-based platform designed to help businesses manage international teams of employees and contractors. It simplifies onboarding, payroll, compliance, and tax processes for companies operating across multiple countries.
By handling the complexities of local labor laws and currency conversions, Deel enables businesses to scale globally without legal or administrative headaches.
Unique Features Of Deel
Global Compliance Management: Deel ensures businesses remain compliant with labor laws, tax requirements, and local regulations
Multi-Currency Payroll: Pays contractors and employees in their preferred currency through various payment methods
Deel Plugins: It offers slack plugins that let teams collaborate effectively
Who Are The Main Users?
Deel caters to the industries and sectors of various sizes, including:
Healthcare
Financial services
Enterprise
Mid-market
Startups
Pros And Cons of Deel
Pros:
Supports payroll and compliance in 150+ countries
Flexible payment options, including cryptocurrency
Excellent customer support with multilingual assistance
Cons:
Users mention that it takes time to launch the app
Waiting time for the queries is a bit longer
What Is Gusto?
Gusto HR Software is a payroll and HR management platform tailored for small to medium-sized businesses, providing tools to simplify payroll processing, tax filings, and employee benefits administration. With a user-friendly interface and automated processes, the software simplifies HR management while ensuring employees are paid accurately and on time.
Unique Features Of Gusto
Paperless Onboarding: Optimizes onboarding with digital forms, e-signatures, and built-in compliance tools
Gusto Wallet: A mobile app that allows employees to access pay advances, savings tools, and financial wellness resources
Time Tracking and PTO Management: Built-in tools for tracking employee hours, overtime, and paid time off
Who Are The Main Users?
The main users of Gusto include:
Small businesses
US-based companies
Entrepreneurs and startups
HR teams
Pros And Cons Of Gusto
Pros:
Easy to set up and use, even for non-technical users
Users appreciate its affordable pricing plans for small businesses
Regular updates to improve features and stay compliant
Cons:
Not ideal for businesses with complex compliance needs
Offers limited integration with third-party apps
Deel Vs Gusto: Side-By-Side Comparison
Payroll Management
Deel payroll management is designed for businesses managing global teams. It allows companies to pay employees and contractors in over 150 countries. The software supports multiple payment methods, including direct bank transfers, PayPal, Wise, and even cryptocurrency, which ensures flexibility for international workers.
Gusto focuses on simplifying payroll for small to medium-sized businesses. It automates all aspects of payroll processing, including calculating wages, withholding taxes, and filing federal, state, and local taxes. Moreover, the software also supports contractor payments and helps businesses stay compliant with payroll laws.
Winner: It’s a tie! If you have an international workforce, Deel is the clear choice. While for businesses with a domestic focus, Gusto's automated tax filings make it the preferred option
Onboarding And Compliance
Deel offers onboarding by generating legally compliant contracts based on the worker’s country of residence. The platform also provides worker classification tools to help companies decide whether to hire a person as a contractor or a full-time employee, which minimizes legal risks.
With Gusto, new hires can complete all necessary forms, such as W-4s and I-9s, electronically. It also allows employers to set up custom onboarding checklists and automatically handle compliance requirements like workers’ compensation and unemployment insurance.
Winner: Deel takes the edge here because its onboarding tools are designed to handle operations globally
Contractor Management
Deel enables businesses to hire, onboard, and pay contractors globally. It provides legally compliant, customizable contract templates that ensure adherence to labor laws. Additionally, Deel includes tax documentation, like providing 1099s in the U.S., and helps businesses avoid misclassification risks, such as back taxes and reputational damage.
Gusto also supports contractor payments that allow businesses to pay contractors via direct deposit and generates year-end 1099 tax forms automatically. There's also a Contractor Only plan for businesses without W-2 employees, applying no charges for months when contractors aren’t paid.
Winner: Deel takes the lead with its ability to hire, onboard, and pay contractors worldwide while ensuring full legal compliance
Benefits Administration
Deel provides access to health insurance, retirement plans, and equity options in multiple countries. It partners with local providers to offer region-specific benefits, ensuring that employees receive perks comparable to those in their home countries. Its benefits are flexible and scalable, which makes it a go-to choice for businesses expanding globally.
Gusto offers a wide range of benefits, including health, dental, and vision insurance, 401(k) retirement plans, commuter benefits, and more. Gusto integrates benefits into payroll, automatically deducting premiums and handling tax compliance. Its user-friendly interface makes it easy for employees to enroll and manage their benefits.
Winner: Gusto emerges as the winner for U.S.-based businesses with its comprehensive range of benefits and easy integration with payroll
Pricing
Deel offers different pricing plans for different operations. The hiring and payroll and HR operations plans are as follows:
HR operations:
Deel HR – Free
Deel Engage – $20/employee/month
Hiring and payroll:
Deel Contractor – Starting at $49/month
Deel EOR – Starting at $599/month
Deel Payroll – Starting at $29/employee/month
Deel US Payroll – Starting at $19/employee/month
Deel US PEO – Starting at $89/employee/month
Gusto offers a flexible pricing structure to suit businesses of different sizes and requirements:
Simple Plan: $40/month + $6/month per person
Plus Plan: $80/month + $12/month per person
Premium Plan: $180/month + $22/month per person
For contractor-only businesses, Gusto provides a dedicated Contractor Only Plan at $35/month + $6/month per person.
The Bottom Line: Which Payroll Software Is The Best?
Deel shines as the go-to solution for businesses navigating the complexities of global payroll and compliance. On the other hand, Gusto stands out for small to medium-sized businesses focused on simplicity and efficiency in payroll and HR management. Choosing between Deel vs Gusto ultimately comes down to the unique needs of your business as both platforms deliver exceptional value within their respective niches.
The best software depends on where your team is located and what level of complexity you’re managing. With both platforms excelling in their own rights, the true winner is the one that aligns with your business’s specific goals and workforce composition.
