Gusto vs Justworks
A detailed comparison of Gusto and Justworks. See how they stack up on features, pricing, and user ratings.
At a Glance
| Gusto | Justworks | |
|---|---|---|
| Rating | 4.5/5 | 4.6/5 |
| Starting Price | $40/mo | $59/mo |
| Free Trial | No | No |
| Free Plan | No | No |
| Features | 9 | 9 |
| Best For | SMB | SMB |
This is the classic small business payroll comparison — but the products work very differently under the hood. Gusto is a payroll software platform. Justworks is a PEO (Professional Employer Organisation). That distinction matters.
Gusto (founded 2011, rated 4.5/5) is a payroll and HR software platform starting at $40/month + $6/person. You remain the employer of record — Gusto processes payroll, handles tax filings, and offers benefits administration. You choose your own health insurance plans, retirement providers, and manage compliance yourself (with Gusto's guidance). The software is polished, self-service, and designed for businesses that want to manage HR themselves.
Justworks (founded 2012, rated 4.6/5) is a PEO starting at $59/employee/month. Your employees are co-employed by Justworks, which means Justworks handles compliance, provides access to large-group health insurance rates, manages workers' comp, and takes on significant employer liability. You get enterprise-level benefits that a 10-person company couldn't normally access. The trade-off is less flexibility and higher cost.
The PEO model genuinely benefits small companies (under 50 employees) that want big-company benefits without building an HR department. The software model suits companies that want direct control, already have HR processes, or prioritise lower cost.
Editor's Note
Want the cheapest payroll solution? Gusto — significantly less expensive per employee. Want access to enterprise-level health insurance and benefits without an HR department? Justworks — the PEO model provides benefits that small companies can't access independently. Key question: do you need someone to handle compliance for you (Justworks) or just a tool that makes it easier (Gusto)?
Gusto
Cloud-based payroll and HR platform for small businesses handling payroll processing, benefits administration, time tracking, hiring, and compliance in one system.
Justworks
PEO and payroll platform for small businesses offering HR, benefits, compliance, and payroll through a professional employer organisation model.
Feature Comparison
| Feature | Gusto | Justworks |
|---|---|---|
| Workflow Automation | ||
| Reporting Dashboard | ||
| EEO/OFCCP Compliance | ||
| GDPR Compliance | ||
| API Access | ||
| HRIS Integration | ||
| Slack Integration | ||
| Zapier Integration | ||
| Mobile App |
Pricing Comparison
Gusto
Justworks
Integrations
Both tools integrate with
Only Gusto
Only Justworks
Pros & Cons
Gusto
Pros
- +Best-in-class payroll for small businesses
- +Very easy to set up and use
- +Transparent, affordable pricing
- +Excellent employee self-service portal
Cons
- -Limited to US-based companies (mostly)
- -HR features less deep than dedicated HRIS tools
- -Reporting not as robust as enterprise solutions
- -Not ideal for companies over 200 employees
Justworks
Pros
- +Access to enterprise-grade benefits (medical, dental, vision) at group rates
- +Simple, transparent pricing with no hidden fees
- +Handles compliance, tax filings, and workers comp automatically
- +24/7 customer support with dedicated HR consultants
Cons
- -Per-employee pricing gets expensive for larger teams
- -Only available for US-based employees
- -PEO model means Justworks is the co-employer (some companies dislike this)
- -Less customisable than DIY HR software
Which Should You Choose?
Choose Gusto if:
- • Your company is SMB size
- • Budget is a priority (starts from $40/mo vs $59/mo)
- • Best-in-class payroll for small businesses
Choose Justworks if:
- • Your company is SMB size
- • Higher user ratings matter to you (4.6 vs 4.5)
- • Access to enterprise-grade benefits (medical, dental, vision) at group rates
Frequently Asked Questions
What's the real cost difference between Gusto and Justworks?
For a 20-person company, Gusto costs roughly $160/month ($40 base + $6x20). Justworks costs $1,180/month ($59x20). That's a significant gap. However, Justworks includes benefits administration, compliance management, and access to large-group health insurance rates — services you'd otherwise pay separately for. The true comparison depends on what you'd spend on benefits and compliance outside of each platform.
Can I switch from Justworks to Gusto later?
Yes, but switching from a PEO requires careful planning. Your employees will need to be transitioned off Justworks' benefits plans, and you'll need to set up your own workers' comp, health insurance, and state registrations. Many companies that outgrow PEO pricing move to standalone payroll platforms like Gusto, but it's not as simple as switching software.
Which is better for a company with 5 employees?
This is where Justworks actually shines. At 5 employees, you likely can't negotiate competitive health insurance rates independently. Justworks gives you access to large-group benefits pricing and handles compliance — both high-value for very small teams. Gusto is better if you want to keep costs minimal and handle benefits sourcing yourself.
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How we evaluate tools
Our ratings combine verified user reviews from G2 and Capterra with hands-on feature analysis. Pricing is checked against official sources. We may earn a commission through affiliate links, but this never influences our rankings or recommendations. Read our full methodology.