Updated July 2026

Gusto vs Zenefits

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

Based on 5,600 verified reviews · Last updated July 2026
Quick verdict: Zenefits 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
Zenefits
HR, benefits, and payroll for small businesses
G2 ★★★★☆ 4.0/5
Capterra ★★★★☆ 4.1/5
$10/mo + $10/employee Free trial

Feature Comparison

Feature Gusto Zenefits
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 $10/mo + $10/employee
Countries supported US US
Best for Small Business, Startups, 1-100 Employees Small Business, Startups, 1-100 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

Zenefits

  • All-in-one benefits + HR
  • Affordable entry price
  • Good onboarding workflow
  • Clean UI
  • US-only
  • Lower ratings than competitors
  • Limited enterprise features
  • Past compliance issues

Who Should Use Each?

Zenefits 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 4.0).
Gusto You work with freelancers or contractors and need to pay them through the platform.

Related Comparisons

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

Ready to decide?

Try both and pick what works best for your team.

Try Gusto Free → Try Zenefits 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 Zenefits?

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

How much does Gusto cost compared to Zenefits?

$40/mo + $6/employee vs $10/mo + $10/employee. Always check each vendor's official pricing page as rates may have changed.

Can I switch from Gusto to Zenefits?

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 Zenefits offer a free trial?

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

Which is better for international payroll — Gusto or Zenefits?

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