Updated July 2026

Gusto vs Factorial HR

Which HR and payroll software is right for your business? We compared pricing, features, ratings, and real-world use cases.

Based on 5,000 verified reviews · Last updated July 2026
Quick verdict: Factorial HR is more affordable for small teams starting out, while Gusto offers more advanced features for growing businesses. If you hire internationally, Factorial HR is the clear winner.

At a Glance

Gusto
Full-service payroll and HR for small businesses
G2 ★★★★☆ 4.5/5
Capterra ★★★★☆ 4.6/5
$40/mo + $6/employee Free trial
Factorial HR
Simple HR software for small and medium businesses
G2 ★★★★☆ 4.4/5
Capterra ★★★★☆ 4.5/5
$5/mo + $5/employee Free trial

Feature Comparison

Feature Gusto Factorial HR
Payroll processing ✓ ✓
Automated tax filing ✓ ✓
Direct deposit ✓ ✗
Benefits administration ✓ ✓
Time tracking ✓ ✓
Employee onboarding ✓ ✓
PTO management ✓ ✓
Contractor payments ✓ ✗
International payroll ✗ ✗
Mobile app ✓ ✓
API access ✓ ✓
Starting price $40/mo + $6/employee $5/mo + $5/employee
Countries supported US ES, UK, DE, FR, IT, MX, 10+ countries
Best for Small Business, Startups, 1-100 Employees Small Business, Startups, 1-200 Employees

Pros & Cons

Gusto

  • Easy setup
  • Great customer support
  • All-in-one payroll + HR
  • Automated tax filing
  • US-only
  • Pricier for large teams
  • Limited reporting

Factorial HR

  • Very affordable
  • Easy to use
  • Good time tracking
  • Fast setup
  • Limited enterprise features
  • No global payroll
  • Small integration library
  • Newer platform

Who Should Use Each?

Factorial HR You're a small team on a tight budget and want the most affordable option with solid core features.
Gusto User satisfaction matters most — Gusto holds a higher G2 rating (4.5 vs 4.4).
Gusto You work with freelancers or contractors and need to pay them through the platform.

Related Comparisons

Gusto vs Rippling Factorial HR vs Gusto Gusto vs Deel Factorial HR vs BambooHR ← All HR Tool Comparisons Gusto alternatives → Factorial HR alternatives →

Ready to decide?

Try both and pick what works best for your team.

Try Gusto Free → Try Factorial HR Free →

* Affiliate disclosure: We may earn a commission if you sign up through our links, at no extra cost to you.

Frequently Asked Questions

Is Gusto better than Factorial HR?

It depends on your needs. Gusto is generally better for small business, startups, while Factorial HR shines for small business, startups. Both have strong ratings on G2 and Capterra.

How much does Gusto cost compared to Factorial HR?

$40/mo + $6/employee vs $5/mo + $5/employee. Always check each vendor's official pricing page as rates may have changed.

Can I switch from Gusto to Factorial HR?

Yes, both platforms support data export. Most businesses complete a migration in 2–4 weeks. It's best to run both in parallel for one payroll cycle before fully switching.

Does Gusto or Factorial HR offer a free trial?

Yes, Gusto offers a free trial. Yes, Factorial HR offers a free trial.

Which is better for international payroll — Gusto or Factorial HR?

Neither currently offers international payroll — consider Deel or Remote for global hiring.