Payroll regulations, tax laws, and accurate record-keeping are often complex and time-consuming. Failure to comply with these requirements can lead to costly penalties, audits, and damage to a company’s reputation. To simplify these tasks, many businesses turn to payroll automation, which research shows can reduce processing costs by up to 80%.
OnPay and Gusto are two leading payroll software providers that offer comprehensive solutions to automate payroll processing for businesses across various industries.
In this guide, we will compare both platforms based on key features like payroll processing, benefits administration, and pricing to help you determine which is the best fit for your business.
Onpay Vs gusto – At A Glance
Feature
OnPay
Gusto
Payroll Management
Unlimited pay runs, direct deposits, contractor payments, customizable payroll reports, and multi-state payroll capabilities
Automated payroll processing, flexible direct deposits, contractor payments in over 120 countries, and reports
Tax Filing and Payments
Withholds federal, state, and local taxes during payroll runs; generates W-2s and 1099s at year-end
Calculates, files, and pays federal, state, and local taxes automatically with each payroll run
Benefits Administration
Health insurance, workers' comp, integrated 401(k) options, HSA/FSA, and commuter benefits
Integrates with platforms like QuickBooks, Xero, Deputy, Middesk, Bench, and MainStreet
Extensive integrations with a wide range of platforms] including QuickBooks, Xero, TSheets, Clover, Asana, Trainual, and more
Pricing
Transparent pricing at $40/month + $6 per person
Starting at $40/month + $6 per person, with additional tiers for advanced features
What Is OnPay?
OnPay is a comprehensive payroll software designed for small and medium-sized businesses. It helps users automate HR processes, payroll processing, and benefits administration through an integrated platform. OnPay Payroll also provides tools for tax filing, employee self-service, and compliance management, ensuring businesses can efficiently handle their payroll needs.
The software is suitable for business across various industries, including healthcare, finance, agriculture, retail, and manufacturing. Its straightforward pricing model makes it an attractive choice for small companies seeking reliable payroll management solutions.
Unique Features Of OnPay
Direct Deposit: Offers a secure direct deposit service that enables businesses to pay their employees directly into their bank accounts
Built-In Reporting: Includes customizable payroll reports that can be filtered in real-time to help businesses analyze labor costs and generate insights for informed decision-making
HR Management: Comes with comprehensive HR management features such as employee onboarding, templated documents, and compliance tracking to simplify administrative tasks
OnPay Pros And Cons
Pros:
User-friendly payroll features simplify tax filing
Supports all types of pay for employees and contractors
Mobile app offers limited features compared to the desktop version
Time-off data may not sync consistently across all system sections
What Is Gusto?
Gusto is an all-in-one payroll and HR software designed for small and midsize businesses. The platform offers a comprehensive suite of tools to help businesses hire, pay, and manage employees through a centralized interface. It also provides automated tax calculations, compliance tracking, and a user-friendly self-service portal for employees to access their information easily.
Trusted by over 300,000 businesses, Gusto HR Software provides solutions across multiple industries, including retail, real estate, healthcare, hospitality, manufacturing, e-commerce, and construction.
Unique Features Of Gusto
Insights And Reporting: Offers tools such as anonymous team surveys and customizable payroll reports to help users gain insights into payroll expenses and employee benefits
Payroll Tax Management: Calculates, files, and pays federal, state, and local payroll taxes on behalf of businesses, helping them stay compliant with tax regulations
Employee Self-Service Portal: Provides employees access to paystubs, tax forms, benefits information, and PTO management tools in one convenient platform
Gusto Pros And Cons
Pros:
Submits tax payments and reports automatically for convenience
Comprehensive features for managing employee benefits
Efficient onboarding process reduces administrative workload
Cons:
Geofencing-based time tracking can sometimes be inaccurate
Some users report occasional delays in processing direct deposits
Onpay Vs gusto – Key Features Comparison
Payroll Management
OnPay offers an intuitive payroll management system designed to simplify the payroll process for small businesses. Users can easily enter hours, review, and approve pay runs in just a few clicks, even from their mobile devices. The
platform supports various payment methods, including direct deposit, debit card, and paper checks. It also provides unlimited monthly pay runs and multi-state payroll capabilities at no extra cost.
Gusto offers a comprehensive payroll management solution that allows businesses to run unlimited payroll runs each month and automatically calculates employee pay. It also provides flexible payment options, including two-day direct
deposits, paper checks, and even next-day direct deposits. Additionally, Gusto includes Payroll on AutoPilot, which allows organizations to automate payroll runs when no changes are needed.
Winner: Gusto stands out with its automated features like Payroll on AutoPilot and faster direct deposit options, which make it an ideal choice for businesses seeking efficiency and convenience in payroll
Tax Filing And Payments
OnPay offers an automated tax filing system that calculates, withholds, and submits federal, state, and local payroll taxes on behalf of businesses. It manages year-end tax reporting, including the preparation and distribution of forms
for W-2 and 1099 workers. The system ensures compliance with tax regulations and also files Form 943 for agricultural employers. These features are included at no additional cost.
Gusto handles payroll taxes in all 50 states, automatically calculating, withholding, and submitting both federal and state payroll taxes with each payroll run. It manages quarterly state and federal form filings and year-end filings,
including W-2s and 1099s. These payroll tax services are also included at no extra charge with all Gusto plans.
Winner: OnPay wins in this category due to its specialized support for agricultural employers, offering tax filing features like Form 943 that are not covered by Gusto.
Benefits Administration
OnPay provides a user-friendly benefits administration system that allows employers to offer various benefits, such as health insurance, retirement plans, health savings accounts (HSAs), flexible spending accounts (FSAs), and commuter
benefits. It features an in-app coverage selection tool that enables eligible employees to review available plans directly within the app. OnPay also partners with licensed brokers to help businesses find suitable health insurance plans.
Gusto offers a comprehensive benefits administration solution that supports affordable health insurance plans, retirement savings accounts, FSAs, commuter benefits, and HSAs. It simplifies benefits management with tools that automate
enrollment, compliance, and administration. Employees can also use a self-service portal to explore benefits options. Moreover, Gusto provides access to licensed advisors to assist users with plan selection and compliance.
Winner: This round ends in a draw as both platforms offer an extensive range of benefits administration features to meet business needs in this area.
Integrations
OnPay offers a variety of integrations with popular tools to help businesses manage payroll, accounting, and HR tasks more easily. It connects with platforms like QuickBooks,
Xero Accounting Solution, and Traliant to help businesses sync payroll data and avoid manual entry. The platform also integrates
with tools for time tracking, benefits management, and more.
Gusto also integrates with multiple third-party applications, including QuickBooks, Xero, Asana software, Clover, Trainual,
and Accelo. Its integrations extend to accounting, time tracking, tax preparation, financial benefits, and productivity apps, helping businesses automate workflows
and reduce administrative tasks. Overall, the software offers a comprehensive suite of integrations designed to support business needs at all levels.
Winner: Gusto is the clear winner here due to its broader range of integrations with both business management and productivity tools.
Pricing
OnPay offers a straightforward pricing structure starting at $40 per month, which includes unlimited payroll runs. The cost is $40 for the base fee plus an additional $6 per employee each month. This pricing model allows businesses
to pay only for the employees they have on payroll. OnPay also includes features like year-end tax forms and multi-state payroll at no additional cost.
Gusto's pricing also starts at $40 per month for the Simple plan, which covers basic payroll features, with an additional $6 per employee per month. The Plus plan starts at $80 per month, with an extra $12 per employee, while the Premium
plan begins at $180 per month, plus $22 per employee. Gusto's tiered pricing can quickly add up as the number of employees grows, potentially leading to higher costs for businesses.
Winner: OnPay takes the lead here due to its simpler, more affordable pricing structure that offers better value for businesses as they scale.
Onpay Vs gusto: Making The Right Choice
OnPay and Gusto are both reliable payroll services for small businesses, but each has its own strengths. OnPay is ideal for companies looking for straightforward pricing, excellent customer service, and an easy-to-use interface. Its pricing model is transparent, and it includes essential features like year-end tax forms and multi-state payroll without additional charges.
On the other hand, Gusto is a great option for small to medium-sized businesses and small businesses that need a comprehensive platform with a broad range of features, such as benefits administration and time tracking. It also offers strong customer support and compliance tools.
Ultimately, the right choice depends on your business’s size, requirements, and goals. Carefully assess what matters most to your organization to select the best HR tools for your needs.
