When it comes to payroll, every business has unique needs. Small startups look for an affordable, user-friendly solution, while established companies require advanced tools for tax compliance and benefits management. Gusto and Intuit Payroll have emerged as two key players in this space, both offering tools to simplify payroll and enhance employee management.
But which one truly delivers on its promise? Do you prioritize ease of use and automation, or are tax compliance and scalability more important?
When you compare them head-to-head, their differences become clear. In this detailed guide, we’ll explore how each software stacks up in terms of features, pricing, and usability. It will help you maximize your return on investment and choose the right solution for your payroll needs.
At A Glance
Standout Feature
Gusto
Intuit Payroll
Payroll Automation
Automatic payroll runs, tax filing, and employee self-service tools
Automates payroll processing and includes same-day direct deposit
Tax Compliance
Handles federal, state, and local tax filings automatically, with error-free guarantees
Automatic federal and state tax filings, with the ability to manage tax penalties
Employee Benefits
Offers integrated health insurance, 401(k) plans, and wellness benefits directly in the platform
Provides benefits management; offers health benefits
Integration Capabilities
Works with popular tools like QuickBooks, Xero, and other HR and accounting apps
Integration with TurboTax for accounting and tax filing needs
Pricing
Transparent, tiered pricing starting from $35/month
Tiered plans with varying features; starting from $40/month
What Is Gusto?
Gusto is an advanced, cloud-based payroll and HR software designed to simplify the way small and medium-sized businesses manage their teams. With Gusto, businesses can handle payroll processing, benefits management, compliance, and employee onboarding from one centralized platform. Its strength lies in its ability to cater to businesses with limited HR resources by offering tools that save time and ensure accuracy.
Gusto aims for empowering businesses to take control of their HR operations and offering employees benefits that boost retention and satisfaction. It is a go-to platform for startups and growing businesses looking to create a better workplace environment without adding complexity to their day-to-day operations.
Unique Features Of Gusto
Onboarding With E-Signatures: Simplifies employee onboarding by allowing new hires to sign contracts, complete tax forms, and set up benefits online
Gusto Wallet App: Employees can access their paychecks early, manage finances, and save money directly through Gusto’s app.
Customized Offer Letter: Allows you to send the customized offer letter to any selected employee right away.
Main Users Of Gusto
Gusto is best suited for businesses of various sizes and specialties, including:
Healthcare
Manufacturing
Retail
Construction
Pros And Cons Of Gusto
Pro
Users report consistent, error-free tax calculations and filings
Full-service benefits integration makes it easy to retain employees
Helps businesses stay on top of important deadlines and compliance changes
Cons
Users struggles with highly complicated payroll scenarios
Slower support response during tax season
What Is Intuit Payroll?
Intuit Payroll is a payroll solution known for its advanced automation and strong focus on compliance, Intuit Payroll caters to businesses looking for an efficient way to handle payroll and taxes with minimal manual effort. Its biggest advantage is QuickBooks which allows business owners to manage their accounting and payroll in one place.
Intuit Payroll’s offering can cater to a range of business sizes, with solutions for small startups to self-employed initiatives who need a reliable payroll partner. With its extensive reporting, tax management tools, and scalable plans, Intuit Payroll is a trusted name in the payroll space.
Unique Features Of Intuit Payroll
Mobile-Friendly Tools: Manage payroll, tax filings, and employee records directly from the Intuit Payroll mobile app.
Track Miles: Offers automatic GPS tracking, detecting your driving activity through your phone's location, or allowing you to manually add trips for seamless mileage tracking.
E-Commerce Accounting: Automatically imports orders and payouts from connected online sales channels for the accounting process for e-commerce businesses.
Main Users Of Intuit Payroll
Intuit Payroll is ideal for small to mid-sized business owners, addressing various specialties, including:
Professional service
Retail
Non-profit
Legal
Restaurants
Pros And Cons Of Intuit Payroll
Pros
Provides peace of mind with financial protection for tax errors
Features and plans cater to businesses as they expand
Allows users to manage payroll on-the-go with a highly functional app
Cons
Users report a lack of advanced self-service tools for employees
Gusto optimizes payroll processing with its automation-focused design that allows businesses to set up and run payroll in a few clicks. Its standout capability lies in automatic payroll runs, where employers can set up recurring payroll schedules, ensuring that employees are paid on time without manual intervention.
The software calculates all necessary withholdings, including federal, state, and local taxes, and handles complex situations like multiple pay rates, contractor payments, and overtime calculations.
Intuit Payroll is similarly built to simplify payroll processing and one of its strongest features is same-day direct deposit, which allows businesses to process payroll quickly and still ensure that employees receive their paychecks the same day. Intuit’s integration with QuickBooks enhances its payroll workflow by automatically syncing payroll expenses into the accounting system.
This is particularly useful for businesses that already rely on QuickBooks, as it eliminates the need for redundant data entry.
Winner:Gusto takes the edge here because of its user-friendly automation and broader capabilities for small businesses, like contractor payments
2. Tax Compliance
Gusto completely automates federal, state, and local tax filings. It ensures that businesses never miss deadlines by calculating, filing, and paying payroll taxes directly through the platform. Gusto also guarantees accuracy by covering penalties for any errors that occur due to miscalculations on its part.
This feature is especially valuable for small businesses without dedicated HR or accounting departments. Additionally, Gusto prepares and distributes tax forms like W-2s and 1099s to employees and contractors for year-end reporting. Its compliance extends to state-specific requirements, which makes it a great tool for businesses operating in multiple jurisdictions.
Intuit Payroll is equally reliable when it comes to tax compliance and offers features that calculate, file, and pay federal and state payroll taxes automatically. For users, the software provides an exclusive Tax Penalty Protection feature, which covers up to $25,000 in penalties if Intuit makes a mistake.
This level of financial assurance makes it appealing for businesses that prioritize risk mitigation. Like Gusto, Intuit also generates W-2s and 1099s and ensures timely filings. Its smooth QuickBooks integration further simplifies tax-related accounting, which makes it easier to track tax obligations and deductions.
Winner:Intuit Payroll takes the edge here because of its Tax Penalty Protection feature, which provides peace of mind for businesses dealing with complex tax regulations
3. Time Tracking
Gusto simplifies time tracking by offering built-in tools that allow employees to log their work hours directly in the platform. The time-tracking module integrates smoothly with payroll and automatically syncs logged hours, overtime, and paid time off (PTO) data for accurate calculations during payroll runs. Additionally, Gusto supports time-tracking integrations with third-party apps like QuickBooks Time, Homebase, and When I Work, providing businesses with flexibility if they already use external systems.
For businesses with hourly employees, Gusto ensures compliance with federal and state labor laws by tracking overtime hours correctly and allowing employers to monitor hours worked against schedules. The platform also includes features like geolocation tracking, which can verify whether employees clocked in from the correct location, particularly useful for remote or on-site workforces.
Intuit Payroll offers advanced time tracking through its integration with QuickBooks Time, a highly regarded time-tracking solution. Employees can clock in and out using various methods, such as mobile apps or web browsers using geofencing technology.
The integration with QuickBooks Time supports advanced features like job and shift scheduling, which gives businesses detailed insights into how time is spent across projects or departments. This makes Intuit Payroll a powerful option for businesses that need precise labor cost tracking and project-level time data. The feature also ensures a smooth flow of time-tracking data directly into payroll, which enables accurate calculations of wages, overtime, and PTO without manual intervention.
Winner:Intuit Payroll takes the edge here because of its powerful integration with QuickBooks Time, which offers advanced features like job tracking and geofencing
4. Reporting And Analytics
Gusto reporting and analytics features are designed to give businesses actionable insights into their payroll and HR data. The platform offers a wide variety of pre-built reports, including payroll summaries, tax liability breakdowns, benefits usage, and employee details. These reports are easy to generate and feature an intuitive layout that doesn’t require extensive financial expertise to interpret. Gusto’s reports help business owners track labor costs, identify trends in benefits utilization, and ensure compliance with tax regulations.
A particularly notable feature of Gusto’s reporting system is its focus on employee-centric data, such as tracking PTO balances, sick leave usage, and benefits enrollment. Employers can generate reports to evaluate workforce trends, such as average hours worked or turnover rates. Additionally, Gusto includes specialized reports for compliance, helping employers stay on top of regulations.
Intuit Payroll reporting capabilities allow users to create fully customizable reports that combine payroll and accounting data. Employers can track detailed labor costs, break down expenses by department or project, and monitor tax liabilities across multiple states.
Intuit’s advanced analytics also extend to workforce management that enables employers to track employee earnings over time, monitor payroll trends, and evaluate profitability based on payroll expenses. Additionally, Intuit Payroll allows users to schedule recurring reports to ensure access to the latest data without manually generating reports every time.
Winner:Intuit Payroll takes the edge for reporting and analytics because of its advanced customization for payroll and accounting reports
5. Pricing Comparison
Gusto provides transparent and flexible pricing options for payroll and HR services, ensuring there are no hidden fees. The pricing plans include:
Simple: $40 per month, plus $6 per month for each additional employee
Plus: $80 per month, plus $12 per employee
Premium: $180 per month, plus $22 per employee
For businesses with only contractors and no W-2 employees, Gusto offers a specialized plan:
Contractor Only Plan: $35 per month, plus $6 per contractor
Intuit Payroll offers flexible pricing plans for every kind of business, along with a free 30-day trial. The plans include,
Simple Start - $35/month
Essentials - $65/month
Plus - $99/month
Advanced - $235/month
The Bottom Line: Choosing The Right Payroll Solution
Both Gusto and Intuit Payroll offer advanced solutions that cater to different business needs. The key to choosing between them lies in understanding the unique priorities of your business; whether it’s integrations, advanced reporting, or a user-friendly experience. Each software excels in its own right by offering strong payroll processing, tax compliance, and essential HR tools.
What truly sets them apart is their ability to align with specific business workflows, so businesses need to carefully consider their existing systems, scale, and future growth. Whichever you choose, both Gusto and Intuit Payroll are trusted names in the industry and offer the tools you need to manage your payroll and compliance efficiently.