Gusto vs Paycom: Which Payroll Platform Fits Your Business? (2025)

Quick Comparison Summary

Gusto works best for small to medium-sized businesses (20-200 employees) who want simple payroll processing with transparent pricing and quick implementation. Paycom fits companies prioritizing employee-controlled payroll with Beti's self-verification features and comprehensive human capital management on a single database.

Still deciding? Read our detailed comparison below, or discover a third option that takes a different approach entirely.

Table of Contents

Both Gusto and Paycom have earned strong reputations in payroll management, but they serve different business needs and approaches to workforce management. Gusto emphasizes simplicity and transparency for U.S.-based employers, while Paycom focuses on employee-driven payroll processes through their single database architecture.

Our analysis examines each platform's strengths in payroll processing, benefits administration, time tracking, and total cost of ownership to help you make an informed decision for your growing business.

Key Takeaways:

• Who each is for: Gusto fits small businesses wanting straightforward payroll with transparent pricing. Paycom works for companies needing employee self-service payroll with comprehensive HR management.
• Time-to-value: Gusto: 2-3 weeks average setup. Paycom: 4-8 weeks implementation with custom configuration.
• TCO: Gusto starts at $49/month + $6/employee for their Simple plan. Pricing goes up as you add multi-state payroll, advanced policies, or live customer support. Paycom requires custom quotes, typically $12-36/employee/month plus implementation fees.

Gusto Quick Summary:

• Strength: User-friendly payroll with automated tax filing across all 50 states
• Integration: 180+ integrations including QuickBooks, Xero, and time tracking tools
• Custom work: Limited customization but extensive third-party app connections
• Cost: $49-180/month base + $6-22/employee, transparent pricing with no hidden fees

Pricing Overview

Gusto offers three main pricing tiers with clear, upfront costs (pricing verified November 2025):

• Simple Plan: $49/month + $6/employee - includes basic payroll, benefits enrollment, employee self-service
• Plus Plan: $80/month + $12/employee - adds time tracking, HR tools, next-day direct deposit, multi-state payroll
• Premium Plan: $180/month + $22/employee - includes dedicated HR support, advanced reporting, performance management

All plans include unlimited payroll runs, automatic tax filing, W-2s and 1099s, direct deposit, and basic benefits administration. No per-payroll fees or surprise charges.

Feature Breakdown

Gusto's core capabilities center around automated payroll processing with smart tax calculations. The platform handles federal 941/940 filings, state unemployment insurance (SUI), multi-state tax compliance, and year-end W-2 and 1099-C reporting automatically. Time tracking integrates directly with payroll, allowing employees to clock in via mobile app with geofencing capabilities.

Benefits administration includes health insurance brokerage services at no extra cost, 401(k) plan management, and workers' compensation. The employee self-service portal lets team members access pay stubs, tax documents, and update personal information independently.

Our Take

Gusto handles essential payroll functions exceptionally well for small to medium businesses. Setup typically completes in 2-3 weeks with minimal IT involvement, and the AutoPilot feature can process recurring payrolls automatically. However, customization options remain limited compared to enterprise platforms, and advanced HR features require upgrading to the Premium tier. Gusto is best for companies prioritizing ease of use and transparent pricing over extensive customization capabilities.

Paycom Quick Summary:

• Strength: Employee-managed payroll with Beti verification and single database architecture
• Integration: Limited third-party integrations, focus on unified internal system
• Custom work: Extensive customization within platform, proprietary system approach
• Cost: Custom pricing only, typically $12-36/employee/month with 30-35% implementation fees based on annual license spend

Pricing Overview

Paycom doesn't publish transparent pricing, and instead requires prospects get custom quotes through sales demonstrations (pricing information gathered November 2025 through review platforms). Industry analysts report costs typically range from $12-36 per employee per month depending on modules selected, with implementation fees of 30-35% of annual subscription cost.

For example, a 50-employee company might pay $25/employee/month ($15,000 annually) plus $4,500-5,250 implementation fee. Setup fees can vary significantly, based on the complexity of features required and other system integration needs.

Feature Breakdown

Paycom's standout feature is Beti, which enables employees to review and approve their own payroll before submission, reportedly reducing errors by 90%. The system operates on a single database architecture, meaning all employee data, benefits, time tracking, and payroll information flow seamlessly without data exports or imports.

The platform includes comprehensive talent management tools: applicant tracking, onboarding workflows, performance reviews, compensation planning, and learning management. GL Concierge automates general ledger exports to accounting software, while Vault Visa Payroll Cards provide alternative payment methods for employees.

Our Take

Paycom excels at comprehensive human capital management for companies wanting everything on one platform. The single database eliminates sync issues common with integrated systems, and Beti's employee verification approach can significantly reduce payroll errors. However, the complex implementation process typically requires 4-8 weeks, and the learning curve can feel steep for users transitioning from simpler systems. Paycom is best for established businesses with dedicated HR resources who value unified data over simplicity.

At a Glance

Gusto built an integration-first approach connecting with 180+ business applications while maintaining simple core payroll functions. Paycom designed a proprietary single-database system with limited external connections but deeper internal functionality. Gusto supports transparent pricing across all 50 states, while Paycom focuses on custom-configured enterprise solutions. Both handle standard compliance requirements, though Gusto emphasizes automation while Paycom prioritizes employee control through self-verification.

1. Gusto vs Paycom: Payroll Processing and Tax Compliance

Gusto automates payroll calculations with smart tax withholdings for federal, state, and local jurisdictions. The system processes federal 941/940 forms, state unemployment insurance, multi-state nexus and reciprocity handling, and year-end W-2 and 1099-C reporting. Users can run unlimited payrolls monthly at no extra charge, with AutoPilot handling recurring payments automatically.

Paycom's payroll centers around Beti's employee verification system, where workers preview and approve their own paychecks before processing. The platform handles the same compliance requirements but emphasizes error reduction through employee ownership rather than automated calculations alone. Multi-state payroll works seamlessly within the single database, though setup requires more initial configuration.

Winner: Gusto - Superior automation and transparent unlimited payroll runs. Paycom wins for companies prioritizing employee verification and error reduction through self-service approval.

2. HR Management and Employee Records

Gusto provides essential HR tools including digital onboarding, employee directory, document storage, and basic performance management in Premium plans. The platform handles new hire reporting, I-9 verification through partners like Checkr, and employee self-service for personal information updates.

Paycom offers comprehensive HR management with advanced features like talent acquisition, learning management systems, compensation planning, and detailed performance reviews. The unified database means employee changes automatically update across all modules without manual intervention.

Winner: Paycom - More robust HR capabilities with unified data flow. Gusto works well for companies needing basic HR support alongside payroll.

3. Time Tracking and Scheduling

Gusto includes time tracking in Plus and Premium plans with mobile clock-in/out, geofencing, break compliance monitoring, and automatic overtime calculations. Time data flows directly to payroll processing without manual entry. Integration with external time tracking systems like Deputy and Homebase provides additional flexibility.

Paycom's time and attendance system includes advanced scheduling, attendance point tracking, and detailed reporting capabilities. The single database architecture ensures time data immediately affects payroll, benefits accruals, and compliance tracking across the entire platform.

Winner: Paycom - More sophisticated scheduling and attendance management. Gusto excels for straightforward time tracking with payroll integration.

4. Benefits Administration

Gusto provides health insurance brokerage services at no extra cost, helping businesses find and manage health plans. The platform includes 401(k) plan administration, workers' compensation coordination, and benefits enrollment workflows. Employees can compare plans and see how deductions affect take-home pay.

Paycom handles benefits enrollment and administration but doesn't directly provide insurance plans. The Benefits-to-Carrier tool connects employee selections directly with insurance carriers for real-time updates. The system excels at benefits compliance tracking and reporting within the unified database.

Winner: Gusto - Better benefits brokerage and plan selection support. Paycom leads in benefits data integration and compliance tracking.

5. Applicant Tracking and Performance Management

Gusto includes basic hiring tools in Premium plans: job posting, simple applicant tracking, digital offer letters, and onboarding checklists. Performance management covers basic review cycles but lacks advanced talent development features.

Paycom provides comprehensive talent acquisition with advanced applicant tracking, background checks through integrated systems, interview scheduling, and detailed candidate evaluation tools. Performance management includes goal setting, competency assessments, succession planning, and learning management integration.

Winner: Paycom - Superior talent management and performance tracking capabilities throughout the employee lifecycle.

6. Integration Capabilities

Gusto integrates with 180+ applications including accounting software (QuickBooks, Xero, FreshBooks), time tracking systems (Deputy, When I Work), point-of-sale systems (Square, Clover), and project management tools. The integration marketplace allows quick setup of common business connections.

Paycom operates primarily as a closed system with limited third-party integrations. The platform focuses on comprehensive internal functionality rather than external connections. GL Concierge provides general ledger exports to accounting software, but most data remains within the Paycom ecosystem.

Winner: Gusto - Extensive integration ecosystem for businesses using multiple software tools.

7. Reporting and Analytics

Gusto generates standard payroll reports, tax summaries, and basic workforce analytics. Custom reporting capabilities remain limited, though integration with accounting software provides additional reporting through connected systems. Reports cover payroll registers, tax liabilities, and employee summaries.

Paycom offers robust reporting capabilities across all HR functions with customizable dashboards and detailed analytics. The single database enables cross-functional reporting combining payroll, benefits, performance, and compliance data. Advanced users can create complex custom reports for specific business needs.

Winner: Paycom - More comprehensive reporting and analytics capabilities. If you need cross-functional analytics, Paycom's unified data provides better insights.

8. User Interface and Learning Curve

Gusto emphasizes simplicity with an intuitive dashboard highlighting upcoming tasks and important reminders. Most users complete payroll in under 10 minutes after setup. The mobile app provides essential self-service features for employees. Navigation follows standard web application patterns familiar to most users.

Paycom's interface requires more initial training due to comprehensive functionality within each module. The single database provides powerful capabilities but can feel complex for users transitioning from simpler systems. However, the unified approach eliminates switching between different applications for related tasks.

Winner: Gusto - More intuitive for users wanting straightforward payroll processing with minimal training requirements.

9. Gusto vs Paycom: Pricing and Total Cost of Ownership

Gusto provides transparent pricing starting at $49/month plus $6-22 per employee depending on plan features. No setup fees, per-payroll charges, or hidden costs. Implementation typically requires minimal professional services, keeping total first-year costs predictable.

Paycom requires custom quotes with implementation fees typically 30-35% of annual subscription costs. Ongoing pricing depends on modules selected, employee count, and customization requirements. Total cost of ownership can vary significantly based on specific business needs and feature usage.

Winner: Gusto - Transparent pricing with predictable costs. Paycom may provide better value for companies using comprehensive HR features despite higher initial investment.

Gusto

Overall Ratings:

• G2: 4.5/5 based on 4,150+ reviews (November 2025)
• Capterra: 4.5/5 based on 4,137 reviews
• TrustRadius: 8.5/10 based on 2,800+ reviews

Positive: "Simple setup, great for small teams" - Small Business Owner
Critical: "Limited reporting compared to enterprise tools" - Finance Manager

High ratings reflect consistent satisfaction with ease of use and customer support quality.

Paycom

Overall Ratings:

• G2: 4.3/5 based on 1,073+ reviews (November 2025)
• Capterra: 4.4/5 based on 1,088 reviews
• TrustRadius: 8.5/10 based on 1,700+ reviews

Positive: "Everything in one system reduces data errors" - HR Manager
Critical: "Implementation took longer than expected" - Operations Director

Ratings favor functionality breadth while noting complexity during initial setup.

Ratings and quotes from G2, Capterra, TrustRadius as of November 2025. Quotes shortened for clarity.

Gusto

Paycom

Both Gusto and Paycom serve their target markets well, but neither is built on the world's leading business process software, Salesforce. Here's how Sunrise HCM takes a different approach:

Built on Salesforce, No Salesforce Required

Sunrise HCM runs on Salesforce. You don't need an existing instance or separate license. The platform infrastructure is included in your subscription. You're not purchasing anything else from Salesforce.

Your data lives in one database that's already proven in banks, hospitals, and government agencies. Security updates happen automatically. Backups run continuously across multiple locations. The system grows with your company, all managed infrastructure you never touch.

Already using Salesforce? Your costs will be lower since you already have the platform infrastructure. Each Sunrise HCM user price includes a Salesforce platform license, but we'll discount your pricing based on how many users already have access.

Enterprise Security by Design

SOC 2 Type II compliance comes standard. Encryption in transit and at rest. Role-based access control. Multi-factor authentication. Continuous monitoring and backups. You get Fortune 500-level security, managed by one of the most trusted platforms on the planet, without handling infrastructure yourself.

Salesforce has been battle-tested for 20+ years. Banks use it. Hospitals use it. Government agencies use it. When we build on this foundation, you get all that protection automatically.

Real-Time Data Integration

Single entry of time flows to payroll and billing. HR changes update downstream instantly. Your payroll data, HR records, time tracking, expense information, and billing all live in the same place. Change an employee's role in HR and it updates across time tracking and billing automatically. No export files. No overnight syncs. No wondering which system holds the truth.

The platform connects to thousands of business systems through proven open API frameworks. Connect your accounting software, CRM tools, expense management platforms, or custom applications. Real-time data flow eliminates sync delays and manual exports. You're not locked into our ecosystem. The API architecture is industry-standard, so developers already know how to work with it.

True Scalability

Multi-tenant architecture means you're always on the latest version. Three releases per year with new features. Zero downtime. No compatibility issues. Everyone's on the same version.

Updates happen while you work. This quarter's feedback becomes next quarter's features. No upgrade fees. No version hell.

U.S.-Based Support Included

Every client gets a dedicated U.S.-based relationship manager and a designated backup. No extra fees for premium support tiers. No offshore call centers. No wondering who to contact when you need help.

Transparent Pricing

• $16 per employee per month
• $48 per functional manager per month (employees who review and approve time and expenses)
• $58 per HR Manager / Executive License per month
• $58 base fee per month

Everything included: payroll processing, tax filing, W-2s, HR management, time tracking, expense management, and billing. No per-payroll fees. No transaction fees. No surprise charges.

We also offer discounted pricing for nonprofits, government organizations, and educational institutions.

When Sunrise HCM makes sense:

• You need strong integration capabilities with other business systems
• You want enterprise security without enterprise complexity
• You value predictable, transparent pricing
• You want payroll and billing in one system

When to stick with Gusto or Paycom:

• You only need payroll and basic HR without billing
• You prefer Gusto's simplicity and quick setup
• You want Paycom's employee-verified payroll features

Implementation timeline: The system is generally set up within 2-4 weeks. We run payroll in parallel for 1-2 cycles to ensure everything matches your expectations before going live.

Contact us to see how payroll, HR, time, and billing work together in one system.

Q: Which platform offers better customer support?
A: Gusto provides phone and email support during business hours with highly rated responsiveness, but requires a premium tier subscription. Paycom assigns dedicated customer success specialists with regular check-ins and training sessions. Sunrise HCM provides every client with a U.S.-based relationship manager and designated backup at no extra cost. We don't charge for premium support tiers.

Q: Can either platform handle multi-state payroll automatically?
A: Both Gusto and Paycom handle multi-state payroll compliance automatically. Gusto includes multi-state tax filing, except in their Simple tier. Paycom manages multi-state requirements within its single database architecture. Sunrise HCM handles multi-state compliance as part of standard functionality with no add-on costs.

Q: Which platform is easier to implement?
A: Gusto typically implements in 2-3 weeks with minimal setup requirements and clear onboarding processes. Paycom requires 4-8 weeks for full implementation with custom configuration and training. Sunrise HCM implements in 2-4 weeks using our sprint methodology with parallel payroll runs to ensure accuracy.

Q: How do the mobile apps compare?
A: Both platforms offer mobile apps for employee self-service, time tracking, and basic payroll access. Gusto's app focuses on simplicity with geofencing for time tracking. Paycom's mobile app provides access to the full platform functionality including Beti payroll verification.

Q: Which platform offers better integrations with accounting software?
A: Gusto integrates directly with QuickBooks, Xero, FreshBooks, and other accounting platforms for seamless data flow. Paycom provides GL Concierge for general ledger exports but doesn't offer direct integrations. Sunrise HCM connects through standard Salesforce APIs to thousands of business applications including all major accounting systems.

Q: Are there discounts available for nonprofits or government organizations?
A: Gusto offers standard pricing without specific nonprofit discounts. Paycom provides custom pricing that may include nonprofit considerations. Sunrise HCM offers discounted pricing for nonprofits, government organizations, and educational institutions. Contact us to learn about pricing specific to your organization type.

Q: Which platform handles time tracking better?
A: Gusto includes time tracking in Plus and Premium plans with mobile clock-in, geofencing, and automatic payroll integration. Paycom offers more advanced scheduling and attendance management within its unified system. Both handle overtime calculations and compliance tracking effectively.

Q: How do implementation costs compare?
A: Gusto charges no setup fees with transparent monthly pricing. Paycom requires implementation fees typically 30-35% of annual subscription cost. Sunrise HCM charges implementation fees based on customization requirements, including 6 business process automations, 3 custom user interface pages, 3 dashboards, and 10 reports in standard implementation.

Q: Which platform is better for companies with remote employees?
A: Both platforms support remote payroll processing and employee self-service. Gusto offers simple mobile access and clear employee portals. Paycom's unified system provides comprehensive remote HR management capabilities. Sunrise HCM includes expense management and time tracking designed for distributed teams with project-based billing.

Q: Can employees approve their own payroll in both systems?
A: Paycom's Beti feature specifically enables employee payroll verification and approval before processing. Gusto provides employee access to preview pay information but doesn't include pre-approval workflows. Sunrise HCM allows employees to review time and expense entries that flow automatically to payroll processing.

Q: Which platform scales better for growing companies?
A: Gusto handles growth from small teams to mid-size companies effectively with simple plan upgrades. Paycom's unified database scales well but requires more configuration as complexity increases. Sunrise HCM is built on Salesforce's multi-tenant architecture designed for enterprise scalability while remaining accessible to growing businesses.

Q: How do the platforms handle tax compliance?
A: Both platforms automatically file federal, state, and local payroll taxes. Gusto emphasizes automation with clear compliance alerts and automatic updates for tax law changes. Paycom includes compliance tracking within its unified system with detailed audit trails. Sunrise HCM handles compliance through the proven Salesforce platform with automated updates and enterprise-grade security.

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