Updated July 2026

Gusto vs Wave Payroll

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

Based on 4,600 verified reviews · Last updated July 2026
Quick verdict: Wave 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
Wave Payroll
Free accounting with affordable payroll add-on
G2 ★★★★☆ 4.1/5
Capterra ★★★★☆ 4.1/5
$20/mo + $6/employee

Feature Comparison

Feature Gusto Wave 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 $20/mo + $6/employee
Countries supported US US, CA
Best for Small Business, Startups, 1-100 Employees Freelancers, Micro Business, 1-10 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

Wave Payroll

  • Very affordable for tiny teams
  • Integrates with free Wave accounting
  • Simple interface
  • Good contractor payments
  • Very limited HR features
  • No benefits admin
  • No time tracking
  • Only US and Canada

Who Should Use Each?

Wave 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 4.1).
Gusto You want to try before you buy — only one of them offers a free trial.

Related Comparisons

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

Ready to decide?

Try both and pick what works best for your team.

Try Gusto Free → Try Wave Payroll →

* 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 Wave Payroll?

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

How much does Gusto cost compared to Wave Payroll?

$40/mo + $6/employee vs $20/mo + $6/employee. Always check each vendor's official pricing page as rates may have changed.

Can I switch from Gusto to Wave 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 Wave Payroll offer a free trial?

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

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

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