QuickBooks vs Gusto: Which Payroll Platform Fits Your Business?

Compare QuickBooks Payroll and Gusto for 2025, including pricing, accounting integration, time tracking, and HR features. Find the right payroll solution for your U.S.-based business.

QuickBooks Payroll works best for businesses already using QuickBooks accounting software who need seamless data flow between payroll and financial records. Gusto fits growing companies prioritizing comprehensive HR tools, employee self-service portal, and standalone payroll software without requiring accounting software. Curious what other options exist? Read our detailed comparison below, or discover a third option that takes a different approach entirely.

Choosing between QuickBooks Payroll and Gusto means deciding whether accounting integration or comprehensive HR tools matter most for your business. QuickBooks Payroll seamlessly connects with QuickBooks accounting software, creating a unified financial management system. Gusto operates as a standalone people platform, offering extensive HR features, benefits administration, and employee self-service tools.

Both platforms handle essential payroll services for U.S.-based employers: automated payroll processing, tax filing, direct deposit, employee self-service portal, and payroll tax compliance. However, their approaches differ significantly. QuickBooks emphasizes accounting software integration with QuickBooks Online workflows, while Gusto focuses on comprehensive HR tools and employee management features.

Key Takeaways:

• Who it's for: QuickBooks Payroll fits businesses using QuickBooks accounting. Gusto works for companies wanting comprehensive HR tools without accounting requirements.
• Time-to-value: QuickBooks Payroll: 1-2 weeks setup. Gusto: 2-3 weeks for full implementation.
• TCO: QuickBooks ranges $50-134 monthly base fees plus per-employee costs. Gusto costs $49-199 monthly plus $6-24 per employee.

QuickBooks Payroll Quick Summary:

• Strength: Native integration with QuickBooks accounting software
• Integration: Seamless data flow with QuickBooks Online and Desktop
• Custom work: Limited customization capability beyond accounting workflows
• Cost: $50-134 base fees plus $6.50-12 per employee monthly

Pricing Overview

Pricing verified December 2025, subject to change. Visit QuickBooks website for current rates.

Time tracking through QuickBooks Time is included with Premium and Elite plans at no additional cost. The Core plan requires separate QuickBooks Time subscriptions or third-party integrations for employee hour tracking.

Feature Breakdown

QuickBooks Payroll handles federal, state, and local payroll taxes across all 50 states. Direct deposit processing offers same-day or next-day options depending on your plan tier. The employee self-service portal through the QuickBooks Workforce app provides pay stub access, tax document management, and personal information updates.

The platform's integration with QuickBooks Time creates time tracking tools that connect employee hours, timesheet management, and automated payroll processing. Job costing features automatically allocate labor costs to specific projects, helping businesses track profitability by client or service line. Workers' compensation insurance connects through third-party partners, while health benefits administration requires external providers.

Our Take

QuickBooks Payroll excels when your business already operates within the QuickBooks ecosystem. Data flows seamlessly between accounting and payroll, eliminating manual journal entries and reducing reconciliation time. Setup typically requires 1-2 weeks with straightforward configuration for most small businesses.

However, HR functionality remains limited compared to dedicated people platforms. While the system handles basic employee management, it lacks comprehensive onboarding workflows, performance management, or extensive benefits administration. QuickBooks is best for established businesses needing accounting-integrated payroll rather than full HR solutions or extensive integration options.

Gusto Quick Summary:

• Strength: Comprehensive HR and people management platform
• Integration: Connects with 300+ business applications
• Custom work: Extensive HR workflows and employee experience tools
• Cost: $49-199 base fees plus $6-24 per employee monthly

Pricing Overview

Pricing verified December 2025, subject to change. Visit Gusto website for current rates.

All plans include unlimited payroll runs, automatic tax filing, and basic HR features. Time tracking is included with Plus and Premium plans, while the Simple plan offers it as an add-on for $6 per employee monthly.

Feature Breakdown

Gusto provides full-service payroll across all states with automatic federal, state, and local tax filing. The platform emphasizes employee experience with self-service onboarding, digital document management, and mobile access through iOS and Android apps.

HR tools extend beyond basic payroll software to include applicant tracking, performance reviews, employee surveys, and org charts for employee management. Benefits administration handles health insurance plans, 401(k) retirement plans, workers' compensation, and commuter benefits. Time tracking functionality integrates directly with automated payroll, supporting both hourly employees and project-based work with PTO tracking.

Our Take

Gusto functions as a complete people operations platform rather than just payroll software. Implementation takes 2-3 weeks but provides extensive HR capabilities that many small businesses find valuable. The employee self-service features reduce administrative burden while improving the worker experience.

Pricing can escalate quickly as you add employees and upgrade plans for advanced features. Customer service receives mixed reviews, with some users reporting slower response times during busy periods. Best for businesses prioritizing employee experience and comprehensive HR tools over deep accounting integration.

Both platforms built their payroll services differently from the ground up. QuickBooks Payroll integrates tightly with their own accounting software workflows but offers limited standalone HR support or third-party integrations.

Gusto provides comprehensive employee management with broader third-party integrations and health benefits administration. QuickBooks focuses on U.S. businesses using QuickBooks Online, while Gusto serves companies wanting dedicated HR platforms with employee onboarding tools.

Neither platform natively handles expense management tied to project billing, though both connect with third-party integrations for contractor payments and employee scheduling.

Payroll Processing and Tax Compliance

QuickBooks Payroll handles automated payroll with same-day or next-day direct deposit depending on your plan level. Federal, state, and local payroll tax filing happen automatically, with the platform managing quarterly forms like 941 and 940, state unemployment insurance, W-2 & 1099 Filing, and local payroll taxes. Elite plan customers receive tax penalty protection up to $25,000 for any employee taxes or payroll tax filing errors.

Gusto processes unlimited payroll runs at no additional cost, supporting weekly, biweekly, semi-monthly, or monthly pay cycles. Tax compliance covers all 50 states with automatic payroll tax filing and payment of federal, state, and local taxes during tax time. The platform provides tax penalty protection and employs certified tax professionals for complex payroll reporting situations, plus handles contractor payments seamlessly.

Winner: Tie - Both platforms provide comprehensive U.S. payroll processing with automatic tax compliance. QuickBooks edges ahead for businesses needing accounting integration, while Gusto offers more flexibility in payroll scheduling.

HR Management and Employee Records

QuickBooks Payroll provides basic employee data management through the QuickBooks ecosystem. Employee information syncs with accounting records, and workers can update personal details through the Workforce app. Document storage is available but limited compared to dedicated HR management platforms.

Gusto offers comprehensive employee lifecycle management from hiring through termination. Features include applicant tracking, digital offer letters, employee onboarding tools, employee handbooks, performance reviews, and document storage with lifetime access. The platform supports org charts, employee directories, and manager self-service tools for complete HR management.

Winner: Gusto - Significantly more comprehensive HR functionality compared to QuickBooks' basic employee record keeping. Gusto provides the tools necessary for complete people management.

Time Tracking and Scheduling

QuickBooks integrates with QuickBooks Time (included in Premium and Elite plans) for comprehensive employee time tracking. Features include GPS tracking, geofencing, project time allocation, and mobile clock-in capabilities. Job costing automatically allocates employee hours to specific projects for accurate client billing and reporting tools.

Gusto includes time tracking tools in Plus and Premium plans, with mobile apps, web access, and employee self-service portal options. GPS tracking helps verify employee locations, and managers can review and approve timesheets remotely. Integration with automated payroll is seamless, and PTO tracking helps manage employee time off. However, employee scheduling features are more basic than dedicated workforce management tools.

Winner: QuickBooks Payroll - QuickBooks Time offers more advanced project tracking and job costing capabilities. Gusto provides solid time tracking but lacks the depth of project management features.

Benefits Administration

QuickBooks Payroll connects with third-party providers for health insurance plans, 401(k) retirement plans, and workers' compensation. Health benefits are managed through partner platforms rather than directly in QuickBooks. The integration capabilities require additional setup and ongoing coordination with multiple vendors for employee benefits administration.

Gusto serves as a benefits broker with integrated health insurance plans, 401(k) plans, workers' compensation, commuter benefits, and other employee perks. The platform acts as a single point of contact for health benefits enrollment, claims, and ongoing administration. Health insurance administration comes at no extra cost when Gusto serves as your broker for employee benefits.

Winner: Gusto - Integrated benefits administration with Gusto serving as broker creates a much smoother experience than QuickBooks' third-party approach.

Applicant Tracking and Performance Management

QuickBooks Payroll lacks built-in applicant tracking or performance management capabilities. These functions require separate HR software or manual processes outside the platform.

Gusto includes applicant tracking with job posting, application management, interview scheduling, and offer letter generation. Performance management features encompass goal setting, review cycles, employee surveys, and feedback tools. These capabilities help small businesses implement structured HR processes.

Winner: Gusto - QuickBooks doesn't compete in this category. Gusto provides essential HR tools that many small businesses need but don't have resources to implement separately.

Integration Capabilities

QuickBooks Payroll integrates natively with QuickBooks Online and QuickBooks accounting products, plus connects with QuickBooks Time for comprehensive business management. Third-party integrations are available but limited compared to standalone payroll software platforms. The strength lies in deep accounting software integration rather than breadth of integration capabilities with time tracking tools.

Gusto connects with over 300 business applications including accounting software (QuickBooks Online, Xero, FreshBooks), project management tools, CRM systems, and industry-specific platforms. API access allows custom third-party integrations for businesses with specific needs and broader integration capabilities.

Winner: Gusto - Broader integration ecosystem provides more flexibility for businesses using diverse software tools. QuickBooks wins for depth of accounting integration.

Reporting and Analytics

QuickBooks Payroll provides payroll reporting that integrates directly with QuickBooks Online accounting for comprehensive financial analysis. Reporting tools cover payroll taxes, deductions, job costing, and employee time tracking data. The integration creates a unified view of labor costs within overall business financials and connects with chart of accounts.

Gusto offers payroll reporting and HR reports covering compensation, employee time tracking, health benefits costs, and compliance metrics. Reporting tools are comprehensive for people analytics but don't integrate with external accounting software as seamlessly as QuickBooks' native connection for payroll reporting.

Winner: QuickBooks Payroll - Superior reporting when viewed within the context of overall business financials. Gusto provides good people analytics but lacks accounting integration depth.

User Interface and Learning Curve

QuickBooks Payroll follows familiar QuickBooks design patterns, making it intuitive for existing users. The learning curve is minimal for businesses already using QuickBooks accounting. However, new users may find the interface less modern compared to cloud-first platforms.

Gusto features a modern, intuitive interface designed for ease of use. Employee self-service capabilities reduce training requirements, and the mobile experience is particularly strong. The platform feels more contemporary and user-friendly than traditional accounting software.

Winner: Gusto - More modern interface design and better user experience, especially for employees. QuickBooks wins for businesses already familiar with their ecosystem.

QuickBooks Payroll vs Gusto: Pricing and Total Cost of Ownership

When evaluating total cost of ownership, consider not just base fees and per-employee costs, but also implementation expenses, feature limitations, and add-on requirements. QuickBooks Payroll pricing scales with plan tiers, while Gusto's costs increase significantly when upgrading for advanced HR features.

For a 25-employee company, QuickBooks Core costs approximately $212.50 monthly ($50 base + $162.50 for employees) versus Gusto Simple at $199 monthly ($49 base + $150 for employees). However, the feature gap is substantial. To get comparable HR functionality, you'd need Gusto Plus at $414 monthly ($89 base + $325 for employees) compared to QuickBooks Premium at $338 monthly ($88 base + $250 for employees).

Hidden costs can impact your total investment. QuickBooks charges separately for time tracking on Core plans, while Gusto includes it in Plus and Premium tiers. Health benefits administration requires third-party relationships with QuickBooks but comes integrated with Gusto. Implementation assistance is free with QuickBooks Premium/Elite and all Gusto plans.

Winner: Depends on needs - QuickBooks costs less for basic payroll with accounting integration. Gusto provides better value when comprehensive HR features justify the higher cost of advanced plans.

QuickBooks Payroll:

Overall Ratings:

• G2: 4.0/5 based on 1,500+ reviews (December 2025)
• Capterra: 4.2/5 based on 800+ reviews
• TrustRadius: 8.0/10 based on 300+ reviews

Positive: "Seamless integration with QuickBooks accounting saves hours monthly" - Small Business Owner

Critical: "Limited HR features require additional software for growing teams" - Operations Manager

QuickBooks integration simplifies accounting workflows but HR capabilities lag behind dedicated platforms.

Gusto:

Overall Ratings:

• G2: 4.5/5 based on 4,000+ reviews ranking #1 for payroll software (December 2025)
• Capterra: 4.4/5 based on 3,200+ reviews
• TrustRadius: 8.5/10 based on 1,200+ reviews

Positive: "Complete HR solution that grows with our team" - HR Manager

Critical: "Customer service response times slower during busy periods" - Finance Director

High user satisfaction reflects comprehensive feature set, though support quality varies during peak times.

QuickBooks Payroll:

Gusto:

Both QuickBooks Payroll and Gusto solve important business challenges, but neither is built natively on Salesforce. Here's how Sunrise HCM differs and why being built on Salesforce matters:

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 per month (HR administrators and power users)
• $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 QuickBooks Payroll or Gusto:

• You only need payroll and basic HR without billing
• You prefer QuickBooks' deep accounting integration
• You want Gusto's standalone HR platform

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: Does QuickBooks Payroll work without QuickBooks accounting software?

A: No, QuickBooks Payroll requires an active QuickBooks Online or Desktop subscription. The payroll features are designed to integrate with existing accounting workflows and cannot function independently.

Q: Can Gusto handle multi-state payroll for growing businesses?

A: Yes, Gusto's Plus and Premium plans include multi-state payroll processing with automatic tax filing across all 50 states. The Simple plan only supports single-state operations.

Q: Which platform offers better time tracking capabilities?
A: QuickBooks Payroll with QuickBooks Time provides more advanced project tracking and job costing features. Gusto offers solid time tracking but focuses more on basic hour recording than detailed project management.

Q: How do implementation timelines compare between platforms?

A: QuickBooks Payroll typically requires 1-2 weeks setup for existing QuickBooks users. Gusto implementation takes 2-3 weeks regardless of your current software. Both platforms offer free setup assistance with premium plans.

Q: Which platform provides better customer support and HR support?

A: QuickBooks Payroll offers phone support during business hours with Elite plans including priority access from their support team. Gusto provides email and chat support plus HR support through certified experts, but receives mixed reviews for response times during busy periods. Neither platform charges extra fees for premium support tiers like Sunrise HCM.

Q: Can either platform handle contractor payments and 1099 processing?

A: Yes, both platforms process contractor payments and generate 1099 forms. QuickBooks charges $15 monthly fee for up to 20 contractors with additional fees for paper checks, while Gusto includes contractor management in all employee plans or offers a dedicated contractor-only plan for businesses working exclusively with contractors.

Q: Which offers better health benefits administration?

A: Gusto serves as an integrated benefits broker, handling health insurance plans, 401(k) retirement plans, and workers' compensation administration directly. QuickBooks Online connects with third-party providers but requires separate vendor relationships for health benefits and employee benefits management.

Q: Do either platforms support global payroll for international employees?

A: Neither platform offers true global payroll services. Both focus on U.S.-based employees and contractors. Businesses needing international payroll capabilities would need separate solutions for global workforce management.

Q: How do mobile apps compare for employee self-service and employee portal access? A: Both platforms offer mobile apps for employee time tracking and pay stub access through their employee portal features. Gusto's app receives higher user ratings for interface design and ease of use, while QuickBooks Workforce integrates well with existing QuickBooks workflows for employee data management.

Q: Do these platforms assist with data migration during implementation?

A: Yes, both platforms provide data migration assistance during setup. QuickBooks Payroll includes migration support with Premium and Elite plans, while Gusto offers data migration support across all plans to help transfer employee data and payroll history from previous systems.

Q: Are there discounts available for nonprofits or government organizations?

A: QuickBooks occasionally offers promotional pricing for new customers and seasonal sales. Gusto pricing is standard across all organization types without specific nonprofit rates. Sunrise HCM offers discounted pricing for nonprofits, government organizations, and educational institutions.

Q: Which platform scales better as businesses grow and manage remote teams?

A: Gusto's comprehensive HR tools and employee scheduling features support growing teams and remote teams better through built-in employee performance management and applicant tracking system capabilities. QuickBooks scales well for businesses expanding within the accounting-focused ecosystem. Both platforms handle increasing employee counts effectively with their payroll services.

Q: Can these platforms integrate with existing accounting software for journal entry processing?

A: QuickBooks Payroll integrates natively with QuickBooks products only and automatically creates journal entry records in your chart of accounts. Gusto connects with QuickBooks Online, Xero, FreshBooks, and other accounting software through APIs, though journal entry automation varies by platform. QuickBooks Payments can also be integrated for comprehensive financial management and bank register reconciliation.

Q: What happens if payroll taxes are filed incorrectly or there are employee tax issues? A: Both platforms offer tax penalty protection for incorrect filings. QuickBooks Elite provides up to $25,000 coverage for tax penalties and regulatory compliance issues. Gusto includes tax penalty protection across all plans with certified tax professional support for complex regulatory bodies compliance situations and employee tax management.

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