When running a business, it’s easy to get lost in back-office tasks — whether it’s running payroll, managing HR, or making sure you’re staying compliant. That’s probably why you’re here looking for a payroll provider.
Both Gusto and Paychex can help you save time in the back-office and reduce errors when it comes to payroll tax filings and other compliance issues. Here’s a comprehensive review of each provider to help you make the best decision.
Jump to compare Gusto and Paychex Flex by:
When you want to choose which payroll provider is right for you, start off by looking at the reviews — from both small business owners and industry experts. While they’re both very popular, neither Gusto nor Paychex consistently get top ratings from their clients or the experts.
Gusto
Ease of Setup
Ease of Admin
Quality of Support
Performance
Reliability
Customization
Reporting
Paychex Flex
Ease of Setup
Ease of Admin
Quality of Support
Performance
Reliability
Customization
Reporting
Here’s a more detailed breakdown of everything Gusto and Paychex Flex do for small businesses. Gusto’s basic plans cost a little less than Paychex Flex, but both have a number of pricey add-on features. Also, note that Paychex charges per pay run, while Gusto charges a single monthly fee (no matter how many times you run payroll).
| Gusto | Paychex Flex | |
|---|---|---|
| Pricing | ||
| Base price | Starting at $40 per month | No published price. Negotiate with sales. Price is per pay run, not monthly. |
| Per worker cost | Starting at $6 per person | No published price. Negotiate with sales. Price is per pay run, not monthly. |
| Full-service payroll | ||
| Automated federal, state, and local tax filings and payments | Included | Included |
| Unlimited pay runs | Included | Additional fees |
| Multi-state payroll | Additional fees | Additional fees |
| Accounting and time tracking integrations | Included | Time tracking integration: Included Accounting integration: Additional fees for some providers |
| New hire reporting | Included | Included |
| Year-end filings, W-2s, and 1099s | Included | Additional fees |
| HR and Team Management | ||
| Manage and track time off | Additional fees | Included |
| Employee directory | Additional fees | Additional fees |
| Org charts | Additional fees | Additional fees |
| Document storage and audits | Included | Additional fees |
| Onboarding and Employee Self-Service | ||
| Employee self-onboarding | Included | Additional fees |
| Employee self-service portal | Included | Included |
| Document e-sign for I-9s and W-4s | Included | Additional fees |
| Customize and send offer letters for e-signature | Additional fees | Additional fees |
| Employee lifetime account access | Included | Additional fees |
| Custom onboarding workflows | Additional fees | Additional fees |
| Benefits and Compliance | ||
| Medical, dental, and vision plans | Pay premiums only | Additional fees |
| Integrated workers’ comp plans | Pay premiums only | Additional fees |
| Integrated 401(k) plan | Additional fees | Additional fees |
| Reporting and Usability | ||
| Payroll and employee reports | Included | Included |
| Real-time reporting filters | Included | Not available |
| Custom report designer | Additional fees | Additional fees |
If you ever have questions you need answered — or help using the platform — your provider should be easy to reach and reliable. Here’s how Gusto’s support compares with Paychex Flex:
| Gusto | Paychex Flex | |
| Extended hours for live support | Additional fees | Included |
| Dedicated onboarding support representative | Additional fees | Included |
| Account setup and data migration | Additional fees | Additional fees |
| Accuracy guarantee | Not available | Not available |
When it comes down to it, your payroll provider should do more than just process paychecks. They should help you manage employees, simplify back-office tasks, and save you time. Since every business has unique needs, depending on its size, industry, and other factors, it’s worth zooming in on a few key product areas to decide the winner of Paychex vs. Gusto matchup.
Customer service: The best payroll providers should be there to help you along the way — whether that’s answering any questions you may have or getting you fully onboarded. If you’re switching payroll providers, you should be able to get help with setup and migration at no additional cost. Or if you’re running payroll for the first time, your provider should have flexible support options to ensure you don’t hit any speed bumps along the way.
Both Gusto and Paychex offer phone and chat support, but you may have to upgrade your plan to get a higher level of support. And when it comes to account setup and data migration support, both providers require an upgrade or additional fee if you want it handled by experts. Some other providers get higher marks for their level of customer service.
Accuracy Guarantee: First off, it’s important to make sure your payroll provider will automate federal, state, and local tax filings and payments. But on top of that, check to see who assumes the responsibility if a mistake is made. You should be offered an accuracy guarantee that puts the responsibility on the provider if they make a mistake.
Both Gusto and Paychex file and pay all federal, state, and local taxes, but neither offer an accuracy guarantee. So if they miss a filing or make a mistake, you would be financially responsible for fixing it. There are other providers that offer an accuracy guarantee as part of their full-service payroll offering (so you can rest knowing things are done right).
HR and employee benefits: The majority of payroll providers not only offer payroll services, but also offer HR features and benefits administration to keep employees happy and healthy. Check to see if integrated health, 401(k), and workers’ comp plans are included. And when it comes to HR, a few of the top features to look out for include PTO tracking and approval, employee self-service with custom onboarding flows, e-signable documents, and organization charts.
Providers like Gusto and Paychex both offer a wide range of integrated benefits and HR options. But there are a few things to keep in mind for each provider: Gusto includes some of these features in their base price, but an upgrade is required to access team management tools and custom workflows. And while Paychex does offer most of these features, they usually come at an additional cost. There is another provider that offers both integrated benefits plans and all the HR tools you need for a lower monthly price.
Integrations: In addition to integrated benefits and workers’ comp, you also want to ensure your payroll provider integrates with time-tracking and accounting systems as well. These integrations will help you save time entering hours, and allow you to get your information flowing straight into your accounting platform. You also want to be sure these integrations offer the flexibility and customization options you need to get your data organized the way you want it.
Accounting integrations are included in Gusto’s monthly price, but you may be paying extra for some of those accounting integrations with Paychex. Also, the flexibility of the integrations with both Gusto and Paychex Flex is limited, as they don’t offer some of the key customization options that others do.
Depending on the needs of your business, both Gusto and Paychex Flex are great options to take into account. But, there are other providers that offer similarly robust feature sets, get better reviews, and cost less. Take a look to see who else you should consider:
Or see a head-to-head comparison of how Paychex Flex and Gusto do versus providers:
We’ll even migrate all your employee info and prior wages for you.