Effectively managing human resources (HR) can be both a complex and tedious task, especially for businesses navigating payroll, compliance, and employee benefits. The right software can transform these challenges into streamlined processes, saving time and reducing stress for HR professionals and organizations. 

Gusto and Justworks are two widely recognized solutions designed to address these HR needs. Gusto offers a range of tools focused on simplifying payroll, benefits administration, and compliance management. Meanwhile, Justworks, operating as a Professional Employer Organization (PEO), provides a full-service HR platform, emphasizing extensive compliance support and access to solid employee benefits. 

In this blog, we’ll compare Gusto vs Justworks in terms of features, benefits, and usability, helping you decide which solution is best for your business. 

Gusto Vs Justworks – At A Glance

Feature

Gusto

Justworks

Payroll

Comprehensive payroll solution with unlimited runs, automated tax filing, and seamless integration capabilities

Reliable payroll service with W-2/1099 handling, custom notifications, and cohesive integration with HR tools

Benefits Administration

Offers licensed benefits advisors, health insurance, 401(k), HSAs/FSAs, and easy online management

Offers commuter benefits, 24/7 support, and compliance resources for HIPAA and ACA standards

Time Tracking

Provides flexible time tracking via Gusto Wallet app and Time Kiosk for on-site clock-ins

Offers multi-platform time tracking via web, mobile, Slack, with overtime alerts and meal/rest break reminders

Integrations

Extensive integrations with QuickBooks, Xero, BreezyHR, and AttendanceBot for streamlined payroll and recruitment tasks

Tailored integrations with Greenhouse, Lever, and NetSuite to enhance recruitment and financial management

Price

Starts at $40/month plus $6 per month per user

Starts at $50 as a base fee plus $8 per month per user

What Is Gusto?

gusto-logo

Gusto HR Software is a comprehensive HR platform tailored for small to medium-sized businesses, offering solutions in payroll, benefits administration, compliance, and talent management. It streamlines HR processes and employee management through features such as automated payroll processing, health benefits administration, time tracking, and onboarding tools. Gusto emphasizes a people-first approach, aiming to simplify complex HR tasks and enhance the overall employee experience. 

Moreover, the software serves businesses across various industries, including professional services, healthcare, retail, and manufacturing. Its scalable solutions are designed to meet the needs of companies ranging from startups to established enterprises. This makes Gusto a versatile choice for organizations seeking efficient and user-friendly HR management tools. 

Unique Features Of Gusto 

  • Gusto Wallet App: Gusto offers the Gusto Wallet app, enabling employees to access their paychecks, manage finances, and set up savings goals directly from their mobile devices
  • AutoPilot Payroll: Gusto's AutoPilot feature allows businesses to automate payroll runs, ensuring timely and accurate payments without manual intervention
  • Edit Recorded Hours: Time tracking tools enable both remote and on-site team members to adjust their recorded hours, providing enhanced flexibility and ensuring accuracy

Gusto Pros And Cons 

Pros: 

  • Users appreciate the benefits administration platform
  • Clear and simple onboarding process
  • Regular updates and improvements

Cons: 

  • Cannot map payroll to sub-accounts
  • The state tax compliance service could be improved

What Is Justworks?

justworks-logo

Justworks is a Professional Employer Organization (PEO) that provides small businesses with extensive HR solutions. The platform offers features such as automated payroll processing, access to health insurance plans from national and regional carriers, compliance resources to navigate federal, state, and local employment laws, and HR tools for onboarding, time tracking, and document management.

By consolidating these services into a single platform, Justworks simplifies employee management and allows businesses to focus on growth and operations. The software also caters to small businesses across various industries, including technology, nonprofit organizations, and professional services. Its scalable solutions are designed to meet the needs of multiple startups to mid-size companies. 

Unique Features Of Justworks 

  • 24/7 Support: Justworks provides round-the-clock support for both administrators and employees, ensuring assistance is available whenever needed
  • Custom Overtime Alerts: The software provides tailored overtime alerts and automated meal and rest break reminders, promoting employee well-being
  • PEO Services: The platform operates as a certified PEO, offering co-employment arrangements with comprehensive HR, payroll, and compliance solutions for businesses

Justworks Pros And Cons 

Pros: 

  • Easy to implement
  • Enrolling benefits is simple
  • Extensive knowledge base

Cons: 

  • Integrations can be expanded
  • Reporting feature can be improved

Gusto Vs Justworks – Key Features Comparison

Payroll 

Gusto offers a strong payroll solution that aims to simplify the payroll process for businesses. Key features include automated calculations, direct deposit, and tax filing, ensuring compliance with federal, state, and local tax regulations. The platform supports unlimited payroll runs, allowing businesses to process payroll as frequently as needed without additional costs.

Gusto also integrates with various accounting and time-tracking software, further smoothening data management. Additionally, employees have access to digital pay stubs and can manage their personal information, boosting transparency and convenience.

Justworks provides a strong payroll service tailored for small businesses, focusing on ease of use and reliability. The platform enables businesses to run payroll effortlessly, accommodating both automated and one-time payments for employees and contractors. Justworks handles the issuance of W-2 and 1099 tax forms and offers extensive reporting features to assist in financial planning and analysis.

The system also allows HR personnel to set up notifications and reminders so that no pay period gets overlooked. By integrating payroll with HR tools and benefits administration, Justworks offers a cohesive solution that eases complex payroll tasks and supports business growth.

Winner: Gusto edges ahead as the winner with its unlimited payroll runs and smooth integration capabilities.

Benefits Administration 

Gusto offers a simplified benefits administration platform designed for small and mid-sized businesses, providing access to a wide range of employee benefits. These benefits include health insurance, dental and vision coverage, 401(k) retirement plans, health savings accounts (HSAs), and flexible spending accounts (FSAs).

The platform allows employees to easily enroll in benefits, add dependents, and review plan details through their Gusto accounts. Additionally, Gusto's team of licensed benefits advisors is available to assist employers in selecting suitable plans and to address employee inquiries, ensuring an exceptional benefits management experience.

Justworks provides small businesses with access to a variety of employee benefits, including health insurance plans, 401(k) retirement savings plans, HSAs, FSAs, and commuter benefits. The platform simplifies benefits administration by offering an intuitive online interface where employees can enroll in and manage their benefits

The software ensures compliance with regulations such as HIPAA and ACA, providing resources to facilitate adherence to these standards. Furthermore, the platform offers 24/7 support for both administrators and employees, ensuring that any benefits-related questions or issues are promptly addressed.

Winner: Gusto takes the lead with its licensed benefits advisors, offering personalized guidance and support to employers and employees.

Time Tracking 

Gusto's time-tracking solution is designed to simplify employee attendance management. Employees can clock in and out using any web browser or the Gusto Wallet app available on iOS and Android devices. For on-site teams, Gusto's Time Kiosk feature allows any tablet to function as a time clock, facilitating easy clock-ins and clock-outs.

The platform also automates overtime calculations and stores wage records, aiding in compliance with labor laws. Additionally, Gusto provides automatic reminders for employees and notifies managers when timesheets are ready for review, smoothing the approval process.

Justworks' intuitive time-tracking system integrates seamlessly with its HR solutions. Employees can manage their time from any device, with approved shifts being automatically synced. The platform supports compliance by providing custom overtime alerts and automated meal and rest break reminders, helping businesses adhere to labor laws.

Justworks also offers flexible time tracking options, including mobile, web, Slack, and on-site capabilities, accommodating various work environments. Detailed reporting features allow employers to gain insights into timesheets, payroll, and overtime, facilitating informed decision-making.

Winner: Justworks stands out as the winner with its flexible tracking options across multiple platforms, including Slack, catering to diverse work environments.

Integrations 

Gusto augments its HR and payroll capabilities through a wide range of integrations designed to meet business needs. Connecting with accounting platforms like QuickBooks, Xero, and FreshBooks simplifies financial tracking and reporting.

Time tracking becomes seamless with tools such as Homebase and AttendanceBot, while integrations with recruitment software like Breezy HR and JazzHR streamline the hiring and onboarding process. These connections ensure data flows effortlessly between systems.

Justworks strengthens its functionality by offering well-chosen integrations that cater to small business operations. The platform supports accounting tools like QuickBooks and NetSuite, making financial management straightforward. 

It also integrates with recruitment platforms such as Greenhouse and Lever, helping businesses optimize hiring workflows. These integrations are designed to create cohesive processes by automating data sharing and eliminating redundancies, allowing businesses to operate more smoothly.

Winner: Gusto and Justworks tie in integration capabilities, each offering connections that streamline HR, payroll, and recruitment processes to meet diverse business needs.

Pricing 

Gusto offers three main pricing plans: the Simple plan starts at $40 per month plus $6/month/user, the Plus plan is $80 per month plus $12/month/user, and the Premium plan is available at $180 per month plus $22/month/user.

Justworks provides flexible pricing options. The PEO Basic plan is available at $59 per month per employee, while the PEO Plus plan is priced at $109 per month per employee. Additionally, the Payroll plan costs $8 per employee per month with an additional $50/month/employee as a base fee, and the Employer of Record (EOR) services are offered at $599 per month per employee.

Winner: Justworks takes the lead with its extensive PEO plans, offering extensive services like compliance support and HR consulting, making it ideal for businesses seeking an all-in-one solution

Taking The Next Step: Gusto Or Justworks?

Choosing between Gusto vs Justworks depends on your business needs. Gusto excels in user-friendly payroll and benefits features, while Justworks offers exemplary PEO services and comprehensive compliance support. Both platforms deliver reliable HR solutions, but Gusto suits businesses seeking an intuitive, scalable platform, and Justworks is ideal for companies that require extensive HR outsourcing. Evaluate your priorities and decide which solution aligns better with your organization’s goals.