Updated July 2026

Gusto vs Freshteam

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

Based on 4,900 verified reviews · Last updated July 2026
Quick verdict: Freshteam is more affordable for small teams starting out, while Gusto offers more advanced features for growing businesses. If you hire internationally, Freshteam 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
Freshteam
Smart HR software by Freshworks for growing teams
G2 ★★★★☆ 4.4/5
Capterra ★★★★☆ 4.4/5
Free plan available Free trial

Feature Comparison

Feature Gusto Freshteam
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 Free plan available
Countries supported US US, UK, AU, IN, 50+ countries
Best for Small Business, Startups, 1-100 Employees Small Business, Startups, 1-500 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

Freshteam

  • Very affordable free plan
  • Great ATS features
  • Easy to use
  • Part of Freshworks ecosystem
  • No payroll
  • Limited for larger companies
  • Basic benefits management

Who Should Use Each?

Freshteam 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 Freshteam vs Gusto Gusto vs Deel Freshteam vs BambooHR ← All HR Tool Comparisons Gusto alternatives → Freshteam alternatives →

Ready to decide?

Try both and pick what works best for your team.

Try Gusto Free → Try Freshteam 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 Freshteam?

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

How much does Gusto cost compared to Freshteam?

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

Can I switch from Gusto to Freshteam?

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 Freshteam offer a free trial?

Yes, Gusto offers a free trial. Yes, Freshteam offers a free trial.

Which is better for international payroll — Gusto or Freshteam?

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