gusto vs homebase

Whether you’re a small business owner or managing a growing workforce, efficient payroll, time tracking, and HR management solutions can save time and reduce errors. Two popular options in this space are Homebase and Gusto, each catering to different aspects of workforce management.

In this comparison, we’ll explore the key features, pricing, and usability of Homebase and Gusto to help you have a clear understanding of which platform aligns better with your specific business needs.

At A Glance

Features

Homebase

Gusto

Core Function

  • Employee Scheduling and Time Tracking
  • Payroll and HR management

Payroll Processing

  • Automation of payroll for small businesses
  • Fully automated payroll with tax filings

Time Tracking

  • Clock-in/Clock-out, timesheet management, overtime tracking
  • Timesheet integration with payroll, PTO management

Integrations

  • QuickBooks, POS systems
  • QuickBooks Online, Xero, and many others

Pricing

  • Starting at $0/month
  • Starting at $40/month

What Is Homebase?

homebase hr

Homebase is a workforce management software designed to simplify employee scheduling, time tracking, and team communication for small businesses. Homebase payroll primarily focuses on making labor management efficient and compliant, helping businesses save time on tracking hours and ensuring adherence to labor laws.

Unique Features Of Homebase

  • Drag-And-Drop Scheduling: Users can create, share, and modify employee schedules with a drag-and-drop interface
  • Shift Coverage Management: Employees can trade or cover shifts with the manager's approval
  • Employee Happiness: The software offers tools and perks to attract and retain great people of the team

Who Are The Main Users?

Homebase caters to various industries, including:

  • Small businesses
  • Restaurants and cafes
  • Retail Stores
  • Medical and veterinary

Pros And Cons Of Homebase

Pros:

  • The mobile app enables remote management
  • Labor law compliance alerts save businesses from penalties
  • Helps reduce absenteeism with proactive communication tools

Cons:

  • Payroll often requires integration with external solutions
  • Limited focus on benefits and HR management

What Is Gusto?

gusto hr

Gusto HR software focuses on simplifying complex payroll operations, tax filings, and HR tasks, making it a one-stop solution for companies looking to manage employee payments and benefits. The platform is well-known for its automated workflows and integration with accounting software. It stands out by offering a suite of benefits administration options, including health insurance and retirement plans.

Unique Features Of Gusto

  • Employee Self-Service Portal: Employees can access pay stubs, tax forms, and benefits enrollment directly
  • HR Experts And Resources: It provides HR advisory services and compliance support to assist businesses with regulations
  • Gusto Global: The feature makes it easy to hire, pay, and manage international contractors and employees on an all-in-one platform

Who Are The Main Users?

Gusto is ideal for small business and industries, including:

  • Real Estate
  • Healthcare
  • Dentists
  • Retail
  • Manufacturing

Pros And Cons Of Gusto

Pros:

  • Scalable pricing plans for growing businesses
  • The self-service tools reduce administrative workload
  • Responsive customer service team ensures quick resolutions

Cons:

  • Advanced features are locked in higher tier plan
  • Building a report requires multiple steps

Homebase Vs Gusto: Side-By-Side Comparison

Employee Scheduling And Time Tracking

Homebase includes advanced scheduling templates, labor forecasting, and auto-scheduling to optimize work hours. Managers can easily assign shifts, handle open shift coverage, and track employee availability through its intuitive mobile app. Time tracking is integrated with the scheduling module, which ensures accurate attendance records.

Gusto integrates easily with payroll and HR tools. It allows employers to log employee hours and sync time-tracking tools like QuickBooks. The software automatically updates PTO balances and aligns them with payroll and calendars. Employees can submit vacation or sick day requests, and once approved by managers, everything updates easily.

Winner: Homebase takes the edge here. It offers a dedicated scheduling system with tools designed for precision and flexibility.

Payroll Management

Homebase's payroll system is designed for small businesses with hourly employees. It supports unlimited payroll runs, W-2 and 1099 filings, direct deposits, and even earned wage access for employees. The platform ensures compliance with tax laws by automating tax filings and payments.

Gusto’s payroll features are highly comprehensive catering to businesses of all sizes. It offers full-service payroll for salaried and hourly workers, including features like automatic tax filing, benefits deductions, and contractor payments.

Its advanced integration with HR and benefits systems makes it ideal for companies looking to streamline all aspects of employee management.

Winner: Gusto emerges as the winner. Its advanced payroll capabilities, scalability, and tight integration with HR tools make it a more versatile solution.

Employee Communication

Homebase offers an advanced in-app communication system that supports team-wide messaging and one-on-one chats. Managers can send announcements, share updates, and even attach documents, which ensures that all employees stay informed about workplace changes.

Gusto's communication features are more HR-centric with a focus on delivering important updates related to payroll, benefits, and compliance. Employees can access documents, tax forms, and pay stubs directly via the platform. It integrates with Slack or other tools to bridge communication gaps

Winner: Homebase takes the lead here. Its dedicated communication tools enhance team collaboration and real-time updates.

Employee Onboarding

Homebase simplifies the onboarding process with tools for collecting essential employee information, such as tax forms, banking details, and signed agreements. It allows sending custom welcome packets, including onboarding documents and employee handbooks, for e-signing. New hires can complete forms like direct deposit, W-4, W-9, and I-9 online, which ensures that they're ready to start on day one.

Gusto excels in employee onboarding with customizable workflows, automated form submissions, and electronic document storage. It allows new hires to complete paperwork online and guides them through benefits enrollment. The platform’s integration with payroll ensures that new employees are set up for payments easily.

Winner: Gusto stands out. Its advanced and automated onboarding tools are more ideal for businesses scaling up or dealing with complex hiring processes.

Pricing

Homebase offers a free 14-day trial including all features. Apart from that, its pricing plans are: 

  • Basic – $0/location/month (up to 20 employees)
  • Essentials – $24.95/location/month (unlimited employees)
  • Plus – $59.95/location/month (unlimited employees)
  • All-In-One – $99.95/location/month (unlimited employees)

Gusto provides a tiered pricing model to accommodate businesses of all sizes and requirements:

  • Simple Plan – $40 /month + $6 /person/month
  • Plus Plan – $80 /month + $12 /person/month
  • Premium Plan – $180 /month + $22 /person/month

For businesses working exclusively with contractors, Gusto also offers a Contractor Only Plan at $35 per month + $6 per person/month.

The Final Verdict: Which HR Platform Is The Best?

gusto vs homebase conclusion

When evaluating Homebase and Gusto, it’s clear that both solutions offer exceptional value, but each shine in different aspects of workforce management, which makes them ideal for distinct business needs.

The powerful scheduling tools, time-tracking features, and labor law compliance of Homebase make it a game-changer for small to mid-sized businesses. On the other hand, Gusto stands tall as the ultimate solution for businesses looking for a more comprehensive HR suite that spans payroll, benefits administration, and employee management.

Both platforms deliver outstanding value depending on the size, structure, and needs of business. So, the best HR platform is not necessarily one over the other, but rather the one that aligns most closely with operational needs, growth plans, and employee structure.