Gusto vs ADP: which should you choose?
Quick answer: Gusto is built for us startups under 50, while ADP suits enterprises. For most users Gusto is the stronger default, but ADP can be the better fit depending on your budget and use case. Gusto has the lower entry price.
Both Gusto and ADP get recommended a lot, but they solve the job differently. Below we compare them on pricing, strengths and the use cases each one fits, then give a clear verdict.
Side-by-side
| Gusto | ADP | |
|---|---|---|
| Category | Payroll & HR | Payroll & HR |
| What it's known for | Friendly full-service US payroll with benefits, onboarding and contractor payments; favorite of small startups. | Enterprise-grade payroll and HR with deep compliance, benefits administration and scale from SMB (RUN) to large enterprise. |
| Pricing | From ~$49/mo base + ~$6/employee (Simple) up to Plus/Premium tiers. | Custom quotes; RUN for small business typically ~$79+/mo base + per-employee. |
| Best audience | US startups and small businesses (typically under 50 employees) wanting easy full-service payroll. | Businesses wanting compliance at scale, and accountants referring clients. |
| Best for | US startups under 50, Full-service payroll, Contractor pay | Enterprises, Compliance at scale, Accountant referrals |
| Entry price | ~$35/mo + $6/contractor | ~$79/mo + ~$4/employee |
| Biggest strength | Friendly, easy-to-use interface popular with small startups. | Enterprise-grade compliance and scale. |
| Main caveat | Single-state payroll only on the entry Simple plan. | Pricing is quote-based and not transparent. |
Features compared
The feature sets only partly overlap. Here is what each one actually gives you:
Gusto key features
- Full-service payroll with unlimited payroll runs
- Automatic federal, state and local tax filing
- Benefits administration (health, financial benefits)
- Hiring/onboarding tools and contractor payments
ADP key features
- Full-service payroll with automatic federal, state and local tax filing
- Tiered RUN plans (Essential, Enhanced, Complete, HR Pro) for small business
- Employee mobile app for pay history and HR self-service
- Add-ons: HR help desk, timekeeping, retirement, workers' comp
Pricing tiers side by side
Gusto plans
| Plan | Price | What's included |
|---|---|---|
| Contractor Only | ~$35/mo + $6/contractor | 1099-only businesses |
| Simple | ~$49/mo + $6/employee | Single-state full-service payroll |
| Plus | ~$80/mo + $12/employee | Multi-state payroll, next-day deposit, HR tools |
| Premium | ~$180/mo + $22/employee | Dedicated CSM, HR experts, priority support |
ADP plans
| Plan | Price | What's included |
|---|---|---|
| RUN Essential | ~$79/mo + ~$4/employee | Quote-based; basic payroll and tax filing |
| RUN Enhanced | quote | Adds SUI management, background checks, hiring |
| RUN Complete | quote | HR help desk and HR tracking |
| RUN HR Pro | quote | Dedicated HR specialist, legal hotline |
Tiers compiled from the vendors' published plans and independent reviews; prices are approximate and change often, so confirm current figures (and your region's taxes) on each vendor's site.
Strengths compared
Where Gusto wins
The favorite full-service payroll for small US startups, with unlimited runs and a clean UX.
- Friendly, easy-to-use interface popular with small startups.
- Unlimited payroll runs with no off-cycle fees.
That makes it the stronger pick for uS startups and small businesses (typically under 50 employees) wanting easy full-service payroll.
Where ADP wins
Enterprise-grade payroll and compliance that scales from small business (RUN) to large enterprise.
- Enterprise-grade compliance and scale.
- Ranked #1 in G2's Winter 2026 Small-Business payroll grid.
That makes it the stronger pick for businesses wanting compliance at scale, and accountants referring clients.
Verdict: choose by fit
Pick by fit rather than by an overall score.
- Choose Gusto if you fit its core audience — uS startups and small businesses (typically under 50 employees) wanting easy full-service payroll.
- Choose ADP if you fit its core audience — businesses wanting compliance at scale, and accountants referring clients.
FAQ
Is Gusto better than ADP?
Gusto is the stronger default for most users, but ADP can be the better fit depending on your budget and use case.
What is the main difference between Gusto and ADP?
Gusto is the favorite full-service payroll for small US startups, with unlimited runs and a clean UX. ADP is enterprise-grade payroll and compliance that scales from small business (RUN) to large enterprise.
Which is cheaper, Gusto or ADP?
Entry pricing differs: Gusto starts at ~$35/mo + $6/contractor, while ADP starts at ~$79/mo + ~$4/employee. Compare the tiers above against your usage.
Sources
Facts above are drawn from these independent reviews and the vendors' own pages for Gusto and ADP: