Gusto Vs. Paychex (2022 Comparison) – Forbes Advisor

Each company offers a suite of tiered pricing packages that vary in price per month and per employee based on the plan selected. There are also options for adding extra features to both payroll services if your business needs them.

Gusto offers three plans: the Core, Complete and Concierge, as well as a contractor-only option that is $6 per person with no additional monthly fee. The Gusto package cost breakdown is:

  • Gusto Core: $39 per month, plus $6 per employee per month
  • Gusto Complete: $39 per month, plus $12 per employee per month
  • Gusto Concierge: $149 per month, plus $12 per employee per month

Unlike Gusto, Paychex Flex’s pricing is not so transparent. Paychex Flex offers its Essentials plan for $39 per month plus $5 per employee, but this plan is truly the base level and does not include a significant number of features common in its competitors’ most affordable plans. Paychex Flex’s higher-level plans, such as the Select and Pro, require quotes to determine the custom pricing based on your company’s needs.

Bottom Line

Overall, we feel Gusto is a better choice for most small businesses. Even its most affordable plan includes a longer list of useful payroll and HR features. These key features and a solid benefits administration make Gusto an excellent choice for small business owners looking for an easy-to-use, affordable payroll service software.

If you want to seriously improve your health insurance options or fully outsource your entire HR system, Paychex may be the better choice. With Paychex’s higher-cost plans, HR professionals are assigned to your business to help manage payroll processing, employee benefits, workers’ compensation, employee relations issues and more. The Paychex PEO means your business can improve its buying power when it comes to getting the best retirement plans, health insurance, and dental and vision coverage.

Ultimately, your needs as a business will determine which software service is best for you.

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