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 14, 2023
Payroll is an absolutely crucial business process, and because it’s often complex and tedious many entrepreneurs rely on a professional payroll service to do the job.
Two of the leading online services to consider are Gusto and Paychex Flex. 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.
Overall, we believe Gusto offers a better value for the payroll needs of small businesses, because of its key features and affordability .
Explore Gusto PayrollGusto offers three different service levels, with the top-tier plan custom 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.
Paychex Flex also offers three different service levels, with the top two tiers priced solely by quote. The base Essentials plan is best suited for businesses that have between one and nine employees and includes the ability to process an unlimited number of payrolls. The higher-tier Select and Pro plans include enhanced features and more dedicated customer service.
Paychex Flex offers a robust suite of payroll, benefits, and HR services to make a business owner’s life easier.
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.
Gusto’s mid-tier service, 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 Paychex Flex Essentials plan is $39 per month plus $5 per employee. The plan includes payroll tax administration, analytics and reporting, an HR library and business forms repository, and access to a mobile app.
The middle-tier Paychex Flex Select Plan is priced according to quote and is dependent on your unique business needs. It includes everything from the Essentials plan, plus several other features, like additional employee pay options and access to a learning management system (LMS).
The Paychex Flex Pro Plan is the top-tier plan and priced via quote from the Paychex sales team. It includes everything from both the Essentials and Select plans, plus guided setup, payroll, accounting software integration, and state unemployment tax services.
The Gusto Simple Plan and the Paychex Flex Essentials Plan are comparable in price. Both include basic payroll services and a dedicated payroll specialist. However, the Essentials Plan from Paychex includes both a mobile app and access to an employee assistance program.
| Gusto | Paychex Flex | |
|---|---|---|
| Price | $40 per month plus $6 per employee per month | $39/Mo. + $5 per Employee |
| Payroll services | Included | Included |
| Direct deposit | Included | Included |
| Health care insurance | Can be added/additional cost | Can be added/additional cost |
| Dedicated Payroll Support | Included | Included |
| HSA accounts | Can be added/additional cost | Can be added/additional cost |
| Hiring and onboarding tools | Included | Included |
| Mobile app for employers | Not Included | Included |
| Employee Assistance Program (EAP) | Not Included | Included |
| Customer Support | Included | Included |
The Gusto Plus Plan and the Paychex Flex Select Plan are also very similar. Gusto provides their pricing up front for their middle-tier offering, while you’ll need to contact Paychex to get a quote. One of the main differences between these two plans is the addition of a learning management system in the Paychex Flex Select Plan, which Gusto does not offer.
| Gusto | Paychex Flex | |
|---|---|---|
| Price | $80 per month plus $12 per employee per month | Obtained by quote only; customized based on unique business needs |
| Payroll services | Included | Included |
| Direct deposit | Included | Included |
| Health care insurance | Can be added/additional cost | Can be added/additional cost |
| Dedicated Payroll Support | Included | Included |
| HSA accounts | Can be added/additional cost | Can be added/additional cost |
| Hiring and onboarding tools | Included | Included |
| Mobile app for employers | Not Included | Included |
| Employee Assistance Program (EAP) | Not Included | Included |
| Customer Support | Included | Included |
| Time Tracking | Included | Can be added/additional cost |
| Learning Management System (LMS) | Not Included | Included |
Gusto’s Premium Plan and the Paychex Pro Plan are fairly similar, and both are priced by quote. Both plans provide full-service account setup. The Gusto Premium Plan includes time tracking capabilities, while with Paychex Pro that costs extra. The Paychex Flex Pro Plan includes state unemployment services, which Gusto does not.
| Gusto | Paychex Flex | |
|---|---|---|
| Price | Exclusive pricing; obtained by quote only | Obtained by quote only; customized based on unique business needs |
| Payroll services | Included | Included |
| Direct deposit | Included | Included |
| Health care insurance | Can be added/additional cost | Can be added/additional cost |
| Dedicated Payroll Support | Included | Included |
| HSA accounts | Can be added/additional cost | Can be added/additional cost |
| Hiring and onboarding tools | Included | Included |
| Mobile app for employers | Not Included | Included |
| Employee Assistance Plan (EAP) | Not Included | Included |
| Customer Support | Included | Included |
| Time Tracking | Included | Can be added/additional cost |
| Learning Management System (LMS) | Not Included | Included |
| State Unemployment Services | Not Included | Included |
| Full Service Guided Setup | Included | Included |
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 direct deposit information, and access up to $500 of your paycheck in advance through a payday-type loan with no fees or interest.
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.
The answer was quick and clear.
Support Rating:
Response time:
Immediate
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 after nearly a week.
Support Rating:
Response time:
Immediate
The site is user-friendly. The plans are easy to find, with good detail on included features. You can even get more information on each individual service. It’s laid out well and easy to understand.
Pricing is a bit trickier to navigate, as you must request a quote to know the cost of the Select and Pro plans. The site has a robust help center where you can get information on a variety of topics.
While you’re unable to sign up for the Select and Pro plans without contacting a representative and obtaining a quote, you can go ahead and register for the base Essentials plan.
To start the signup process for the Flex Essentials plan, click Sign Up Online. The next screen will prompt you to enter your contact information.
There’s also an informative video about the plan on the right side of the page, along with a summary of the plan’s benefits. Next, enter your company information and EIN and confirm your plan selection.
You’ll be reminded that you won’t pay anything until your first payroll run. You will also get to see a cost breakdown before finalizing your choice. The last step asks if you’d like to sign up for free services from third-party providers. Make your selections and then click Complete Sign Up at the bottom of the screen.
The Paychex Flex platform is extremely mobile-friendly, with several apps available for both employers and employees. When you sign up for a Paychex Flex account, you get access to the Paychex Flex App.
This app connects employers to vital payroll and benefits features with the security of Touch-ID and Face ID authentication. The Paychex Flex App also allows employers to enter, review, and submit payroll and access employee data and reports, while employees can access and update their own information.
Other available apps are tied to different Paychex solutions, such as timekeeping and employee benefits.
Overall, the Paychex website is extremely user-friendly, with easy to follow navigation and a seamless sign-up process for the Essentials plan. Information about each plan is easy to find and explained in great detail.
There are also information videos throughout the website to further explain plans and benefits. The only downside is that pricing for both the Select and Pro plans is custom, and thus not presented on the site. However, there are several opportunities to request a quote.
We tested all three forms of Paychex Flex customer support, as detailed below.
Our initial experience with the Paychex Flex chatbot redirected us back to the Paychex website.
We probed a bit further and were able to start chatting with a live agent. We asked about the cancellation policy and they said we could get that information from the sales team.
We asked if there was a chat feature available to speak with the sales team, and the agent said “not that I know of” and asked for our first and last name to have someone reach out to us. We closed the chat session without receiving an answer to our question.
Support Rating:
Response time:
Reasonable
We hoped to email Paychex to ask about the cancellation policy, since we weren’t able to get very far with the chat feature. Because we had been directed to the sales team, we figured we would try emailing them directly.
But when you click the “Email us” button under sales support, you’re prompted to request a quote, which is not what we wanted to do.
We also tried another support email button, but it was for existing customers and we were prompted to enter a client ID number to proceed. Overall, the process to contact a representative for general questions was difficult, to say the least.
Support Rating:
Response time:
Reasonable
We called Paychex Flex customer service to ask if we could get an estimate on pricing for the Select and Pro plans. We had to go through a series of prompts before being placed on hold for several minutes.
After connecting, the representative was polite and told us we would have to request a quote with the sales team, as pricing depends on the size of our company. They offered to transfer us to a sales representative, but we thanked them and declined.
Support Rating:
Response time:
Reasonable
Overall, the Paychex website is extremely user-friendly, with easy to follow navigation and a seamless sign-up process for the Essentials plan. Information about each plan is easy to find and explained in great detail. There are also information videos throughout the website to further explain plans and benefits. The only downside was that pricing for both the Select and Pro plans is custom, and thus not transparent. However, there are several opportunities to request a quote to find out more.
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 Paychex Flex payroll services.
A payroll service handles the payroll process for you, making it nearly seamless and automated, while offering additional services that can make life easier for a business owner. The service takes care of all the red tape so you can focus on building a successful business.
The Simple service level offers full-service single-state payroll including W-2s and 1099s, as well as basic hiring and onboarding tools, Gusto-brokered health insurance administration, and an employee financial benefits service.
Gusto’s payroll service offers a complete suite of services to take many tasks off your plate, such as federal, state, and local tax filings, including employee W-4 and I-9 forms and W-2s and 1099s.
The Paychex Flex Essentials plan includes online payroll and tax filing, access to a mobile app, and payroll tax administration. It also includes an HR library and business forms repository.
Payroll services from Paychex Flex include comprehensive payroll processing, payroll reporting capabilities, and tax filing. You can also have your W2s and 1099s filed and processed at an additional cost.
Each of the Paychex Flex payroll plans comes with a robust offering of employee resources. The Essentials plan includes a self-service human resources library and business forms repository. The Select plan includes access to the Paycheck e-learning platform. The Pro plan includes access to the Paychex Flex Onboarding Essentials, Paychex Employee Screening Essentials for efficient background check processing, and the Employee Handbook Builder.
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 ...