Managing payroll and HR tasks effectively requires the right software to save time, reduce costs, and improve overall efficiency. Whether for a small startup or a growing enterprise, HR tools that handle payroll, benefits, and compliance need to be both efficient and reliable.
Two popular solutions in this space, Gusto and Paycom, offer distinct approaches to addressing these challenges.
In this comparison, we’ll examine Gusto and Paycom, breaking down their features, benefits, and pricing to help you make an informed decision.
Gusto Vs Paycom: At A Glance
Feature
Gusto
Paycom
Payroll Processing
Automated payrolls, direct deposit, tax fillings
Advanced payroll processing
HR Management
Employee onboarding, document management
Self-service portal
Reporting And Analytics
Reporting options for payroll and benefits
Analytics and custom reporting options
Mobile App
Android and iOS app
Android and iOS app
Tax Filing
Automatic federal and state tax filing
Tax filing and compliance automation
Pricing
Starts at $40/month plus $6 per employee
Offers a customized pricing plan
What Is Gusto?
Gusto HR Software is a cloud-based payroll and HR platform designed to simplify payroll processing and employee management for small and medium-sized businesses (SMBs). It has built a reputation for its appealing interface, user-friendly tools, and focus on small business needs. The software helps businesses save time and ensure accuracy in their HR processes by providing them with advanced features.
Unique Feature Of Gusto
Workers’ Comp: Gusto offers fast and easy workers' comp enrollment to ensure your team is covered, with compliance in many states
Gusto Global: Gusto Global simplifies hiring, paying, and managing international contractors and employees on one platform
Talent Management: The software offers talent management tools for performance evaluations and career development
Who Are The Main Users?
Gusto is ideal for startups and SMBs across various industries, including:
Real Estate
Professional services
Retail
Healthcare
Construction
Pros And Cons Of Gusto
Pros:
Quick and reliable automated tax filings and payroll runs
Excellent customer support, especially for small businesses
Easy-to-navigate interface, even for users with minimal payroll experience
Cons:
Not ideal for businesses with highly complex payroll needs
The simple plan offers limited features
What Is Paycom
Paycom is an online HR and payroll platform tailored to businesses of all sizes, especially mid-sized to large organizations. It offers a all-in-one HR solution that consolidates HR processes, including payroll management, time and attendance tracking, benefits administration, and onboarding, into a single platform.
Unique Features Of Paycom
Beti®: The software offers an employee-guided payroll system, Beti, that allows workers to review and correct their own payroll data before submission, ensuring accuracy and reducing compliance risks
Manager On-The-Go®: Paycom’s ‘Manager on-the-Go' tool streamlines essential administrative functions, such as approving time-off requests, managing expenses, editing schedules, and responding to employee inquiries, all in one mobile application
Clue: It allows users to maintain compliance and safety by offering an intuitive interface for tracking vaccination and testing data effectively
Who Are The Main Users?
Paycom addresses mid-sized and large enterprises across various industries, including:
Healthcare
Manufacturing
Retail
Education
Pros And Cons Of Paycom
Pros:
Integrated tools for onboarding and talent acquisition
Customizable workflows to suit complex business needs
Continuous updates and meaningful innovations
Cons:
Mobile app lacks some desktop features
Overwhelming for smaller businesses with simpler needs
Gusto And Paycom: Side-By-Side Feature Comparison
Payroll Processing
Gusto simplifies payroll processing with automated tax filings, direct deposits, and error detection. It supports multi-state payroll and offers features like ‘Pro-Rated Pay’ for mid-cycle hires. The platform’s interface makes it easy for administrators to run payroll in a few clicks, and employees can access pay stubs, tax forms, and benefits directly through the self-service portal.
Paycom payroll processing is designed for scalability and precision. It supports complex payroll structures, including custom pay schedules and wage garnishments. Its self-managed payroll feature lets employees correct payroll errors directly, which reduces administrative workload.
Winner:Paycom takes the edge here due to its advanced payroll customization and employee-managed payroll corrections
Benefits Administration
Gusto offers benefits administration with integrated health insurance, 401(k) plans, and workers' compensation. It simplifies the enrollment process and provides a clear overview for employees. The software allows you to sync medical, dental, and vision insurance with payroll at no extra cost.
Paycom offers a comprehensive benefits platform that includes health, dental, vision, life insurance, and retirement plans. The platform provides advanced tools for managing complex benefit plans and integrates benefits with payroll to prevent discrepancies.
Winner:Gusto takes the lead here by offering integrated benefits administration at no extra cost
Time Tracking And Attendance
Gusto time-tracking features are built to handle basic scheduling and attendance needs. Employees can log their hours directly through the platform, and managers can track paid time off (PTO) balances and approvals. This time data syncs with payroll, which reduces errors and streamlines pay for hourly employees.
Paycom also offers an advanced time and attendance module that includes tools for shift scheduling, absence management, and overtime calculations. Real-time attendance data ensures payroll is always accurate, and the system can flag compliance risks, such as exceeding maximum work hours or missed breaks.
Winner:Gusto and Paycom both excel in time-tracking, with smooth payroll integration and effective management of scheduling
Employee Self-Service
With Gusto, employees can access their pay stubs, W-2, and benefits information directly through the platform, saving HR teams from answering routine queries. The ‘Gusto Wallet’ feature enhances the self-service experience by allowing employees to manage their earned wages and savings.
Paycom employee self-service tools are among its most praised features. Employees can not only view their payroll and benefits data but also update their own tax withholdings, edit direct deposit information, and correct payroll errors using the self-managed payroll feature.
Winner:Paycom takes the edge with its comprehensive self-service tools, which empower employees to manage their own payroll
Reporting And Analytics
With Gusto, offers customizable reports, anonymous team surveys, and automatic compliance alerts to help businesses gain a clearer picture of their performance and streamline processes. Companies can easily access and analyze data to uncover valuable insights, such as understanding workforce costs, project tracking, and identifying tax credits.
With Paycom, businesses can generate in-depth reports on workforce trends, payroll discrepancies, compliance risks, and benefits usage. Its advanced analytics are ideal for larger organizations looking for data-driven insights to optimize their HR strategies.
Winner:Gusto wins with its customizable reports and intuitive analytic tools that make it easy to utilize advanced features without any complexity
Gusto Vs Paycom: Which Payroll And HR Should You Choose?
When choosing between Gusto and Paycom, it ultimately comes down to the unique needs of your business. Both platforms offer powerful payroll and HR solutions, but they cater to different business sizes and complexities.
However, if you're a larger business with more complex HR processes, Paycom may be the right fit. Its advanced features, scalability, and ability to manage intricate payroll and compliance needs make it ideal for growing organizations.
