For businesses with unique payroll and HR requirements, finding software that balances comprehensive features with customization is important. Both Gusto and Paycor are well-regarded in the HR and payroll software space, but their strengths lie in different areas that make them better suited to specific types of organizations.
In this comparison, we’ll take a closer look at the key differences between Gusto and Paycor, focusing on their feature sets, customization options, and overall usability. This guide will provide the insights you need to make an informed decision; whether you prioritize affordability and simplicity or require a highly adaptable platform to handle a broader range of HR functions.
At A Glance
Feature
Paycor
Gusto
Payroll Processing
Automated payroll with tax filing and direct deposit support, built-in contractor payments, and multi-state compliance
Advanced payroll processing for complex requirements like labor distribution, and compliance tracking for smaller and mid-sized businesses
Employee Onboarding
Simple onboarding with e-signatures, W-4 and I-9 forms, and direct deposit setup
Comprehensive onboarding tools, including customizable workflows, document storage, and task assignment for HR teams
HR Tools
Basic HR features like PTO tracking, employee directories, and compliance alerts
HR solutions with performance reviews, workforce analytics, and employee engagement surveys
Benefits Administration
Health, dental, and vision insurance, along with 401(k) integration and workers’ compensation
Customization for health plans, ACA compliance, and employee self-service options
Time Tracking
Built-in time tracking with integration into payroll for accurate calculations
Advanced time and attendance tracking with overtime monitoring, labor cost reporting, and shift scheduling tools
What is Paycor?
Paycor is a comprehensive human capital management (HCM) platform designed to empower businesses with tools for payroll, HR, benefits, and workforce management. Paycor offers a powerful solution that supports small and large businesses looking for a scalable platform to handle complex HR tasks.
The software provides in-depth analytics, automation, and customization that helps companies reduce manual HR workloads and stay compliant with regulations. Its suite of tools integrates smoothly, enabling businesses to improve decision-making. Paycor equips businesses with the tools to manage their HR processes more effectively and strategically.
Unique Features Of Paycor
Pulse Surveys: It allows to gather and transform employee feedback into actionable insights, helping identify and address potential issues like turnover and low morale
Paycor Paths: This feature offers personalized and scalable leadership development designed to grow frontline managers and future leaders
Compliance Tools: Offers advanced compliance features such as ACA tracking and automated updates on changing labor laws
Who Are Paycor’s Main Users?
Paycor is ideal for mid-sized and large businesses with complex HR needs. Organizations in various industries often benefit from its advanced features. These industries include:
Healthcare
Manufacturing
Restaurants
Retail
Professional Services
Pros And Cons Of Paycor
Pros
Automates repetitive tasks, freeing up HR teams
Built-in compliance tools reduce the risk of costly errors related to labor laws
The designated setup team makes implementation much easier
Cons
Some users report slower response times from customer support
The mobile app lacks some functionality compared to the desktop platform
What Is Gusto?
Gusto is an advanced, cloud-based payroll and HR platform built for small to medium-sized businesses. The software is an ideal choice for businesses that require simple yet effective tools for managing payroll, benefits, and HR tasks. With an emphasis on user-friendliness, Gusto is designed to simplify payroll processing and employee management by automating repetitive tasks and providing an intuitive interface.
Gusto integrates smoothly with other business tools and offers automated payroll tax filing and benefits administration. It’s particularly appealing to small businesses without dedicated HR departments because of its affordability and easy-to-utilize features.
Unique Features Of Gusto
Contractor-Friendly Payroll: Provides tools for managing contractor payments with 1099 forms included
Workers’ Comp: Simplifies workers' compensation enrollment by ensuring the team is covered in case of injury or illness at work
Talent Management: Offers powerful tools for performance evaluations and career development
Who Are Gusto’s Main Users?
Gusto is designed primarily for small and medium-sized businesses across various industries, including
Healthcare
Professional services firms
Construction
Real Estate
Pros And Cons Of Gusto
Pros
Automatically updates payroll calculations based on changing tax law
Digital onboarding creates a smooth, professional first impression
Being cloud-based, it is easy for businesses with distributed teams
Cons
Larger companies may find its feature set lacking
Some advanced features come at an additional cost
Paycor Vs Gusto: Side-By-Side Comparison
1. Payroll Processing
Paycor offers an advanced payroll processing system for businesses with complex workforce structures. It excels at handling intricate requirements such as wage garnishments, labor distribution across multiple locations or departments, and compliance with federal, state, and local tax laws. One standout aspect of Paycor is its ability to calculate, file, and pay payroll taxes automatically while providing detailed reporting and audit trails.
Additionally, it features customizable payroll workflows, which makes it a great fit for businesses with specific processes or multi-state operations. Paycor’s payroll capabilities are further enhanced by its workforce analytics, which allow businesses to track and optimize labor costs effectively.
Gusto simplifies payroll processing with a focus on small and medium-sized businesses. It automates payroll runs, calculates taxes, and files them for all federal, state, and local jurisdictions. Gusto also stands out for its built-in support for contractor payments by offering easy 1099 form generation for businesses working with freelancers. What makes Gusto unique is its ability to adjust automatically for tax law changes, which ensures compliance without requiring manual updates.
The software also provides features like automatic off-cycle payrolls that allow businesses to process bonus payments or corrections without hassle. Gusto integrates smoothly with time-tracking tools, making it an efficient solution for companies with straightforward payroll requirements.
Winner: This round is a tie. Paycor takes the edge for businesses with more complex payroll needs, while Gusto shines for small businesses looking for simplicity and contractor payroll support.
2. Employee Onboarding
Paycor offers extensive onboarding experience for businesses looking to create a smooth transition for new hires. It allows HR teams to automate onboarding workflows by assigning tasks, sharing company documents, and storing signed forms digitally. One of Paycor’s standout features is its ability to create customizable onboarding modules that ensures every new hire receives a personalized experience aligned with company culture.
The platform also integrates background checks and e-verify services directly into the onboarding process, which saves time. By offering tracking for onboarding progress and integrating directly into its talent management suite, Paycor ensures every step of the process is accounted for, to make a positive first impression for new employees.
Gusto simplifies onboarding with its user-friendly and efficient approach that makes it an ideal option among small businesses. New hires can easily complete paperwork, such as W-4s and I-9s, through Gusto’s digital platform. The software also allows for the creation of automated welcome emails, customizable onboarding checklists, and direct deposit setup, which eliminates the need for manual paperwork.
Another advanced functionality offered by Gusto is its integration of employee self-service, where employees can upload their own documents and update personal information directly through the platform.
Winner: Paycor takes the edge here due to its advanced customization options, integrated background checks, and talent management.
3. Benefits Administration
Paycor provides benefits administration tools designed for businesses of all sizes. It simplifies benefits enrollment, management, and compliance through its centralized platform. Companies can offer a wide variety of benefits, including health, dental, vision, and retirement plans, while tracking employee eligibility and contribution levels.
One of Paycor’s unique strengths lies in its compliance features, such as ACA (Affordable Care Act) tracking and reporting, which help businesses stay on top of regulations. Paycor also provides an employee self-service portal, allowing workers to compare plans, enroll, and manage their benefits conveniently. These features make it an excellent choice for companies with diverse and evolving benefit needs.
Gusto stands out in benefits administration for its simplicity and hassle-free integration with payroll. It provides access to a variety of health insurance plans, 401(k) retirement options, commuter benefits, and more, catering primarily to small and medium-sized businesses. Gusto automatically syncs employee benefits with payroll, ensuring deductions and contributions are calculated accurately.
One of its unique features is that it offers health benefits in all 50 states, which is rare for a platform of its size. Gusto’s benefits administration is intuitive and highly accessible, with employees able to view and manage their plans through the platform’s self-service tools.
Winner: Paycor takes the win here for its compliance-centric approach and more comprehensive benefits customization.
4. Time Tracking
Paycor offers advanced time and attendance tools designed to optimize workforce management. It allows businesses to track employee hours, manage overtime, and monitor labor costs in real time. Features like scheduling and shift management are integrated into the platform, providing businesses with full visibility over their workforce. The software also offers mobile time tracking, geofencing, and automated reminders to ensure employees clock in and out correctly.
Gusto makes it easy for businesses to calculate hours worked and integrate this data into payroll. Employees can log hours directly through the platform, and Gusto automatically calculates overtime pay based on predefined rules. The software also offers geofencing, which allows employees to track their physical location.
Winner: Gusto wins this round for its intuitive time-tracking features like geofencing, and overtime pay calculation for small businesses.
5. Pricing Comparison
Paycor offers pricing plans according to the requirements of the business, number of employees, and the features required.
For organizations with less than 50 employees, pricing plans include:
Complete – Custom pricing
Core – Custom pricing
Essential – Custom Pricing
Basic – Custom pricing
For businesses with 50 to 1000+ employees, the software offers custom pricing, along with one month of free trial.
Gusto provides users with flexible pricing options for payroll and HR services, with no hidden fees. The pricing plans are:
Simple - $40/month, plus $6/month per person
Plus - $80/month per person, plus $12/month per person
Premium - $180/month per person, plus $ 22/month per person
In addition to that, Gusto also offers a special plan for businesses who have not hired W-2 employees:
Contractor Only - $35/month, plus $6/month per person
The Final Verdict: Finding The Right Fit For Your Business Needs
When it comes to choosing between Paycor and Gusto, the right choice depends on your business size, complexity, and specific needs. Both offer extensive payroll and HR management tools, designed to reduce manual processes, enhance efficiency, and ensure compliance.
Paycor excels in providing customizable workflows, advanced reporting, and compliance-focused features, which makes it an ideal choice for large businesses or organizations with more complex HR requirements. On the other hand, Gusto stands out for its simplicity, affordability, and intuitive interface, addressing small and medium-sized businesses looking for an all-in-one platform that can smoothly handle payroll, benefits, and onboarding.
