Are you a small business owner tired of spreadsheets, tax confusion, and HR headaches? 😩
If you’re stuck choosing between Gusto and Justworks, you’re not alone.
These two tools promise to simplify payroll, benefits, and compliance but they work very differently. 👀
In this post, I’ll walk you through both options with no jargon, just the stuff that matters to you as a business owner or startup founder. ⚙️
Get started by understanding what fits your business needs, team size, and budget because the right decision can save you time, money, and stress. 🚀
Gusto vs Justworks Overview (2025)
Running a business means dealing with payroll, benefits, and employee management and it can get overwhelming fast. That’s where tools like Gusto and Justworks come in. They help you stay organized, compliant, and stress-free when managing your team.
Gusto is simple and software-based. It lets you run payroll, handle taxes, manage benefits, and onboard employees all in one place. Think of it as a smart assistant for small to mid-sized businesses who want to keep things in-house but efficient.
Justworks is a full-service platform that acts like your HR partner. It’s a PEO, which means they co-manage HR with you. From payroll to legal compliance to benefits, Justworks handles the heavy lifting especially useful for businesses growing across states or dealing with complex HR needs.
Who Is Gusto or Justworks Best For?
- Choose Gusto if you’re running a small team, want a clean, easy-to-use platform, and prefer keeping control of your HR tasks.
- Choose Justworks if you’re managing multiple teams, expanding fast, and want someone else to take over the legal and compliance responsibilities.
Gusto vs Justworks Features Comparison
1. Payroll Processing
Gusto offers full-service payroll with automatic tax calculations, direct deposit, and contractor payments. It supports single and multi-state payroll, making it easy to pay employees on time without much manual work.
Justworks also provides automated payroll but within a PEO setup. This means they act as the employer of record and handle federal, state, and local tax filings on your behalf ideal for businesses wanting to offload responsibility.
2. Employee Benefits
Gusto offers health, dental, and vision plans in 39 states, plus 401(k), HSA/FSA, and even financial tools for employees. Benefits are optional add-ons and managed from the platform.
Justworks unlocks access to large-group health insurance in all 50 states, often at better rates. They also offer commuter benefits, mental health resources, and wellness perks, which are great for growing or distributed teams.
3. HR & Compliance
Gusto gives you self-serve HR tools like onboarding checklists, e-sign docs, org charts, and PTO tracking. You remain in control but have the tools to stay organized and compliant.
Justworks goes deeper by providing 24/7 access to certified HR experts. Since they’re a PEO, they help you stay compliant with labor laws, handle employment issues, and even provide harassment prevention training.
4. User Experience
Gusto is known for its clean and beginner-friendly design. Most users can run payroll or onboard someone new in under 30 minutes. It’s built for small business owners with no HR background.
Justworks is more robust but slightly more complex. Once you’re set up, it automates a lot of tasks. The platform is especially helpful if you want everything centralized under one partner.
5. Support & Help
Gusto offers support via chat, phone, and email but mostly during business hours. While helpful, support can be slower during peak times.
Justworks provides 24/7 support with trained reps via multiple channels. If you need weekend or late-night help especially with compliance or legal questions this is a big plus.
6. Time Tracking
Gusto includes basic time tracking in its Plus and Premium plans, allowing employees to clock in and out, and track time for payroll purposes.
Justworks also offers built-in time tracking, but it’s more streamlined for managing hourly workers across multiple job sites and syncing with payroll seamlessly.
7. Data Security & Privacy
Both Gusto and Justworks take data protection seriously. They’re SOC 2 compliant, use encryption, and follow strict internal controls to keep your payroll and employee info safe.
If you’re handling sensitive HR data, rest assured both platforms offer enterprise-level security to protect your business.
8. Scalability
Gusto works great for startups and small teams. While it can scale, it’s best when your HR needs are still manageable without heavy legal involvement.
Justworks is made for scaling whether you’re adding remote teams across states or hiring internationally. With their Employer of Record (EOR) service, you can even hire global talent compliantly.
Gusto vs Justworks Pricing Comparison (2025)
Compare the monthly costs, plan features, and pricing structure of Gusto and Justworks to find out which fits your budget and business needs.
Gusto Pricing (Monthly)
| Plan | Base Price | Per Employee | Includes |
|---|---|---|---|
| Simple | $49 | $6 | Payroll, tax filing, employee portal |
| Plus | $80 | $12 | Time tracking, multi-state payroll, hiring tools |
| Premium | $180 | $22 | Dedicated support, analytics, HR experts |
Good to know: Gusto charges a flat fee + per-employee cost, and pricing scales up as you add features.
Justworks Pricing (Monthly)
| Plan | Cost | Type | Includes |
|---|---|---|---|
| Payroll | $8/employee + $50 base | Non-PEO | Basic payroll & HR tools |
| PEO Basic | $79/employee | PEO | Compliance, HR, benefits |
| PEO Plus | $109/employee | PEO | Health plans, mental health, fertility |
| EOR | $599/employee | Global hiring | International compliance & payroll |
Good to know: Justworks pricing is per employee and tied to how deep their involvement is (from basic to full co-employment).
What Payroll Features Come With Gusto and Justworks?
| Feature | Gusto ✅ | Justworks ✅ |
|---|---|---|
| Unlimited payrolls | Yes | Yes |
| Auto tax filings | Yes | Yes |
| Contractor payments | Yes (1099s) | Yes (W-9s) |
| Multi-state support | Yes (Plus & up) | Yes (All plans) |
| Global hiring | No | Yes (EOR plan) |
If you just want to pay people in your own state, Gusto Simple works great.
But if you’re hiring across state lines or globally Justworks is built for that.
HR Tools and Legal Compliance Compared
- Gusto offers essential HR features like digital onboarding, offer letters, and employee self-service portals. It also includes tools for managing PTO, storing documents, and keeping your team organized but you’re still responsible for staying compliant.
- Justworks acts more like your HR partner, offering 24/7 access to certified HR consultants who guide you through sensitive issues and legal requirements. Because it’s a PEO, Justworks shares legal responsibility for compliance, making it ideal for businesses worried about labor laws and risks.
If HR feels like a headache and legal risk, Justworks gives more peace of mind.
App Integrations: Gusto vs Justworks Compatibility
Gusto integrates smoothly with popular business tools like QuickBooks, Xero, Asana, Slack, FreshBooks, and more. These integrations make it easy to sync payroll, accounting, and project management without switching between systems.
Justworks keeps integrations lean but purposeful. It connects well with essential platforms like QuickBooks, Xero, Greenhouse, and leverages built-in tools for time tracking and HR management perfect for teams that want compliance-first simplicity.
Employee Benefits Comparison
Gusto provides access to health, dental, and vision insurance in 39 states, along with 401(k) retirement plans, HSAs, FSAs, and even financial wellness tools for employees. These benefits are optional and can be customized based on your team’s needs.
Justworks goes a step further by offering large-group health insurance coverage in all 50 states. You also get access to commuter benefits, mental health support, fertility assistance, and wellness perks making it ideal for companies that want to offer rich, competitive benefit packages.
🔍 Which HR Platform Should You Choose?
Gusto is best for you if:
- You’re a small or mid-sized business with under 100 employees.
- You want an affordable, easy-to-use payroll tool without needing legal HR support.
- You prefer managing your own HR but need modern software to streamline it.
Justworks is best for you if:
- You’re scaling fast and hiring across multiple states or countries.
- You want to avoid legal HR headaches and need compliance handled for you.
- You want better employee benefits, stronger HR support, and someone to share the responsibility.
It’s not about which is better it’s about what fits your business stage and team complexity.
Ease of Use and Real User Reviews
Gusto is widely praised for its clean, intuitive design. From onboarding a new employee to running payroll, most tasks can be done in just a few clicks. It’s built for people who aren’t HR pros, making it ideal for small business owners or startup founders who want to get things done quickly.
Justworks has a more robust feature set and takes a little more time to learn, especially because of its PEO structure. However, once you’re set up, many processes become hands-off and automated. The learning curve is slightly higher, but the long-term convenience is worth it for growing teams.
According to G2 and other review platforms, both tools are rated 4.6/5, but Gusto scores slightly higher for ease of use.
Pros and Cons Breakdown
Gusto – Pros
- Easy to use, even for non-HR professionals
- Budget-friendly pricing for small teams
- Smooth payroll with automatic tax filings and direct deposits
- Supports contractors and W-2 employees
- Integrates well with accounting and productivity tools
- Quick employee onboarding with e-signatures
Gusto – Cons
- Customer support is not available 24/7
- Health insurance is limited to 39 states
- You’re fully responsible for compliance and legal issues
- May not be ideal for large or fast-scaling teams
Justworks – Pros
- 24/7 customer support by chat, phone, and email
- Handles HR compliance and reduces your legal burden
- Access to premium health benefits in all 50 states
- Offers wellness, mental health, and commuter perks
- Built-in HR experts available to advise your team
- Employer of Record (EOR) service supports global hiring
Justworks – Cons
- Higher per-employee cost
- More complex setup, especially for first-time users
- Fewer third-party app integrations
- Less control over some HR decisions due to co-employment structure
Conclusion & Final Verdict: Gusto Comes Out on Top
After exploring pricing, features, ease of use, support, and scalability it’s clear that both Gusto and Justworks are great platforms, but they’re built for different types of businesses.
Justworks is ideal if you’re managing a large, distributed team and want a hands-off approach to compliance and HR through a PEO model. It offers premium benefits, 24/7 support, and handles legal risk but all of this comes with a higher cost and less control.
Gusto, on the other hand, is the clear winner for most small and growing businesses.
- ✅ It’s much easier to use no HR background needed
- ✅ It offers strong payroll, basic HR tools, and benefits without the PEO complexity
- ✅ It’s more budget-friendly and scalable for lean teams
- ✅ You stay in control while automating the time-consuming stuff
If you’re looking for an all-in-one payroll and HR solution that’s smart, affordable, and easy to manage Gusto is the way to go.
🏆 For startups, solo founders, and growing teams under 100 Gusto simply makes more sense.
❓ Frequently Asked Questions (2025)
1. Is Gusto or Justworks better for remote teams?
Justworks is better suited for remote teams, especially across states or countries, because it handles legal compliance and offers nationwide benefits.
2. Can I switch from Gusto to Justworks later?
Yes, you can switch anytime. Just make sure to export your payroll data and notify employees during the transition.
3. Does Gusto support international payroll?
No, Gusto only supports U.S.-based payroll. It does not offer international or global hiring features.
4. Is there a mobile app for Gusto or Justworks?
Both platforms offer mobile access through responsive web apps, but only Gusto has a dedicated mobile app for employees.
5. Which one offers better employee self-service?
Gusto offers a simple and clean self-service portal for employees to view pay stubs, benefits, and request time off. Justworks also has this, but it’s more HR-controlled.