ADP Run vs Gusto

You should expect your payroll provider to make it easy to pay employees, while handling all the payroll taxes and employee deductions for you. Since payroll and taxes are at the heart of what a provider does, there also shouldn’t be any additional fees for things like W-2 or 1099 forms.

Gusto includes full-service payroll functionality at its lowest price point — including all quarterly and annual tax filings. ADP charges extra for W-2 and 1099 filings. Also, ADP Run’s pricing is based on the number of pay runs each month. Gusto charges a flat monthly fee that’s often a better value than ADP — but your cost can double if you have workers in multiple states. Gusto requires an upgrade if you need to process multistate payroll.

From employee onboarding and new hire reporting to staying compliant with Workers’ Comp requirements, there can be a lot for employers to juggle. Also, seemingly small tasks like creating an employee roster or keeping track of PTO time can suck up a lot of time. Both these providers help shoulder some of the load.

ADP and Gusto both call “designing for people” a priority, so it shouldn’t be surprising that they offer HR functionality that compliments their payroll services. However, many of their HR features require expensive upgrades ⁠— and may be available for no added cost through other providers.

For many businesses, employment costs can be one of their biggest burdens. Having the ability to analyze costs, reconcile payroll expenditures, and get the numbers right for your taxes can help you get ahead. Take a closer look to understand what reports are available, and how much flexibility you’ll have to customize them on the fly.

Payroll reporting is available through ADP and Gusto. Both offer a series of canned reports, with some limited ability to customize. With Gusto, custom reports are available with an upgrade and must be exported before report data can be seen. You may want to consider a provider that gives you the ability to design, update, and review in-app reports in real time.

It can be tricky to migrate your employees’ prior wage data when you switch providers, so it’s nice to have a little help at the beginning. And payroll is complex, so you should be able to quickly connect with someone who knows their stuff if you ever have questions down the road.

If you want help with setup, ADP Run and Gusto charge an additional fee or require an upgrade. Both offer a number of ways to get payroll support when you need it, but neither provider is best in class when viewed through the lens of customer reviews.