Written by: Natalie Fell
Natalie is a writer with experience in operations, HR, and training & development within the software, healthcare, and financial services sectors.
Reviewed by: Daniel Eisner
Daniel Eisner is a payroll specialist with over a decade of practical experience in senior accounting positions.
Updated on July 21, 2024
The payroll process is a crucial element of running a business, and because it’s often complex and tedious many entrepreneurs rely on a payroll service to do the job.
Two of the leading online services are Gusto and Justworks. To help you determine which is better, and which might be best for you and your business, we have thoroughly reviewed their services by putting ourselves in the shoes of an entrepreneur.
Read on to make the choice that will put your business on the path to success.
It’s hard to compare Gusto and Justworks, because they offer different spectrum of services. Justworks offers PEO services and takes on more responsibilities. Because of this, a slight advantage goes to Justworks.
Visit JustworksGusto offers three different service levels, with the “top-tier” plan exclusively priced. Gusto’s “base” plan offers single-service payroll, hiring and onboarding tools, and health insurance administration.
Gusto is a well-priced option compared to competitors and offers a wide range of services.
Justworks offers two service levels, both of which offer full-service payroll processing. Justworks is a bit pricey, and healthcare coverage is only included in their top-tier plan. But they have excellent customer service and a good BBB rating.
The Gusto “base” service level, at $40 per month plus $6 per month per employee, offers full-service single-state payroll, including W-2s and 1099s, basic hiring and onboarding tools, Gusto-brokered health insurance administration, and an employee financial benefits service.
The Gusto “middle” service level, at $80 per month and $12 per month per employee, adds multi-state payroll services, next-day direct deposit, and advanced hiring and onboarding tools. It also offers paid time off (PTO) management and policies, time and project tracking, workforce “costing”, and custom reports.
The Gusto “top-tier” plan offers quite a robust suite of services, along with all of the above. It’s hard to judge the value, since it’s uniquely priced for each customer, but it’s a strong full-service plan that includes:
The Justworks “base” plan includes a full payroll service for hourly and salaried employees, employer tax filings, and W-2 and 1099 filings. It also includes vendor and contractor payments, online employee onboarding, PTO management, and HR consulting.
The higher-level Justworks plan offers everything in the “base” plan plus continued health coverage (COBRA) administration, health advocacy services, and, if your company elects to sign up for health insurance with Gusto, healthcare appointments through One Medical, a primary care provider.
Justworks will also administer your dental and vision plans, health savings accounts (HSAs), and flexible spending accounts (FSAs) for employees.
Gusto is clearly the better value, with a much lower price and a robust suite of services. Their Simple plan includes health insurance administration, while Justworks’ Basic does not.
| Gusto | Justworks | |
|---|---|---|
| Price | $40 per month plus $6 per employee per month | $59 per employee per month |
| Payroll service including all tax filings | Single-state only | Full |
| Hiring and onboarding tools | Basic | Online employee onboarding |
| Heath insurance administration | Included | Not included |
| Employee financial benefits | Included | 401K only |
| Payroll and time off reports | Included | Included |
| PTO management | Not included | Included |
| Accounting integrations | Included | Included |
| Direct deposit | Included | Included |
| Customer Support | Basic - limited hours | 24/7 |
| Unemployment insurance filings | Not included | Included |
| HR consulting | Not included | Included |
| Harassment prevention and inclusion training | Not included | Included |
| Commuter benefits | Not included | Included |
| Access to life and disability insurance | Not included | Included |
While Justworks’ Plus offers a few extras that Gusto’s does not, the Gusto price is significantly lower, making it a better value.
| Gusto | Justworks | |
|---|---|---|
| Price | $80 per month plus $12 per employee per month | $99 per employee per month |
| Payroll service including all tax filings | Full | Full |
| Hiring and onboarding tools | Advanced | Online employee onboarding |
| Heath insurance administration | Included | Access to health, dental, and vision |
| Employee financial benefits | Included | Included |
| Payroll and time off reports | Included | Included |
| PTO management | Included | Included |
| Accounting integrations | Included | Included |
| Direct deposit | Included | Included |
| Customer Support | Full with limited hours | 24/7 |
| Unemployment insurance filings | Not included | Included |
| HR consulting | Not included | Included |
| Harassment prevention and inclusion training | Not included | Included |
| Commuter benefits | Not included | Included |
| Access to life and disability insurance | Not included | Included |
| Time tracking | Included | Not included |
| Team management tools | Included | Not included |
| COBRA administration | Not included | Included |
| Health advocacy services | Not included | Included |
Justworks only has two service levels, Gusto offers a price-tailored Premium plan that includes:
The site is quite easy to use. You can easily find the plans with features and pricing. You can even get more information on each service within the plans that is very detailed. It’s laid out well and easy to understand.
The site also has a very robust help center where you can get detailed information on numerous topics.
When you view all the packages, you have the option to select one to set up an account. Once you make your selection, you’re asked a series of questions about your company including number of employees, industry, and business entity type.
Then you’re advised to set up your account and asked for:
Next, you’re offered a few extra add-ons before you’re taken to a screen to select your plan.
You don’t have to pay for the service until your actual first payroll run.
The whole process was quite simple and streamlined.
Gusto has a mobile app for employees of companies that use Gusto for their payroll. You can track your hours, manage your direct deposit information, and access up to $500 of your paycheck before payday through a payday-type loan, though no fees or interest are charged.
The site is quite user-friendly overall, and information is easy to find. If you have all your information handy, you can complete the signup process in less than 30 minutes.
The site is not very “salesy” and simply seems to guide you toward the right plan for your company. It offers an excellent customer experience.
We tested all three forms of Gusto customer support. Here’s what we found.
We used the chat feature to ask a question and received an immediate response.
Support Rating:
Response time:
Immediate
The answer was quick and clear.
We called customer support to ask if there is a required minimum number of employees to sign up for the service. Our call was answered immediately, and the answer was no. The service representative was polite and asked if we needed further assistance.
Support Rating:
Response time:
Immediate
We filled out an information request form on the site. The question we asked was “is there a minimum number of employees you need to have to sign up for the Simple plan?” We asked the question on a Friday and had not received a response by midday Monday.
Support Rating:
Response time:
Reasonable
It’s very easy to find product and pricing information on the Justworks website. There is a handy menu at the top, so you can easily get where you want to go.
The site also includes a help center that has useful articles for employers and employees.
If you’re ready to sign up, it’s easy to get started.
You’re asked to enter your name, email address, phone number, company name, and number of employees. Then you’re taken to a screen where you can start enrolling.
Next, you’ll set up your account with a username and password, and come to your dashboard, where you’ll be able to manage your account.
Then the enrollment process begins. You’re first offered a health insurance quote, which you can skip if you choose. Next you’ll enter your company information including your EIN and company address.
Then you’ll go through several steps to add your employees and your bank information. After we signed up for an account, we received a welcome email.
Note that you are not offered a plan until you complete the enrollment process.
Justworks only has a mobile app for employees where they can view their pay stubs and benefits accounts.
The site is quite user friendly, and information is easy to find. The plan information is laid out very well. The signup process is easy, and the customer service was good. The enrollment process can be completed in less than 30 minutes.
We tested all three forms of Justworks customer support.
We tested chat support by asking if both direct deposit and paper checks are available with the service. We received an automated response with a link to an article on the topic. The answer was that only direct deposit is available.
Note that chat support is only available after you sign up for an account.
Support Rating:
Response time:
Reasonable
We called customer support to ask the same question. Our call was answered almost immediately, and we received the same response. The customer service representative was helpful and did not try to push us to sign up.
Support Rating:
Response time:
Immediate
We sent an email to customer support asking the same question and received an automated response in a few minutes that said someone would contact us soon. Just a few minutes later we received a response from a support representative. This was on a Sunday. Impressive!
Support Rating:
Response time:
Very quick
As a leading human resources advisory site, we take our responsibilities seriously. We understand that countless entrepreneurs, and potential entrepreneurs, rely on our judgments and insights, particularly when it comes to managing their business.
As a result, our writers do their utmost to gain a comprehensive understanding of the services offered and the actual customer experience. In this case, we:
Thanks to this full immersion in the actual customer experience, our reviewer and team are able to provide the most complete and insightful comparison of Gusto and Justworks payroll services.
Payroll is an absolutely crucial business process, and because it’s often complex and tedious many entrepreneurs rely on a professional payrollser ...
Payroll is an absolutely crucial business process, and because it’s often complex and tedious many entrepreneurs rely on a professional payrollser ...
Payroll is an absolutely crucial business process, and because it’s often complex and tedious many entrepreneurs rely on a professional payrollser ...