Updated July 2026

Gusto vs Paylocity

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

Based on 6,600 verified reviews · Last updated July 2026
Quick verdict: Gusto has transparent pricing starting at $40/month, while Paylocity requires a custom quote — better for larger organizations.

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
Paylocity
Modern HR and payroll platform for growing businesses
G2 ★★★★☆ 4.4/5
Capterra ★★★★☆ 4.3/5
Contact for pricing

Feature Comparison

Feature Gusto Paylocity
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 Contact for pricing
Countries supported US US
Best for Small Business, Startups, 1-100 Employees Medium Business, 50-1000 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

Paylocity

  • Strong employee engagement tools
  • Great mobile app
  • Modern UI
  • Robust analytics
  • US-only
  • Quote-based pricing
  • Implementation can be complex
  • Customer support inconsistent

Who Should Use Each?

Gusto User satisfaction matters most — Gusto holds a higher G2 rating (4.5 vs 4.4).
Gusto You want to try before you buy — only one of them offers a free trial.
Gusto You work with freelancers or contractors and need to pay them through the platform.

Related Comparisons

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

Ready to decide?

Try both and pick what works best for your team.

Try Gusto Free → Try Paylocity →

* 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 Paylocity?

It depends on your needs. Gusto is generally better for small business, startups, while Paylocity shines for medium business, 50-1000 employees. Both have strong ratings on G2 and Capterra.

How much does Gusto cost compared to Paylocity?

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

Can I switch from Gusto to Paylocity?

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 Paylocity offer a free trial?

Yes, Gusto offers a free trial. Paylocity does not currently offer a free trial.

Which is better for international payroll — Gusto or Paylocity?

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