Updated July 2026

Gusto vs Square Payroll

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: Square Payroll is more affordable for small teams starting out, while Gusto offers more advanced features for growing businesses.

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
Square Payroll
Easy payroll for small businesses using Square
G2 ★★★★☆ 4.4/5
Capterra ★★★★☆ 4.6/5
$35/mo + $6/employee Free trial

Feature Comparison

Feature Gusto Square Payroll
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 $35/mo + $6/employee
Countries supported US US, AU
Best for Small Business, Startups, 1-100 Employees Small Business, Retail, Restaurants, Square Users, 1-50 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

Square Payroll

  • Very affordable
  • Seamless Square POS integration
  • Easy contractor payments
  • Instant payments via Cash App
  • Very basic HR features
  • No benefits admin
  • Best only for Square users
  • Limited scalability

Who Should Use Each?

Square Payroll 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).

Related Comparisons

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

Ready to decide?

Try both and pick what works best for your team.

Try Gusto Free → Try Square Payroll 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 Square Payroll?

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

How much does Gusto cost compared to Square Payroll?

$40/mo + $6/employee vs $35/mo + $6/employee. Always check each vendor's official pricing page as rates may have changed.

Can I switch from Gusto to Square Payroll?

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 Square Payroll offer a free trial?

Yes, Gusto offers a free trial. Yes, Square Payroll offers a free trial.

Which is better for international payroll — Gusto or Square Payroll?

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