Gusto vs Paylocity: Which is Better in 2026?
Choosing between Gusto and Paylocity comes down to understanding what each tool does best. This comparison breaks down the key differences so you can make an informed decision based on your specific needs, not marketing claims.
Bottom line: Gusto wins this matchup. Our overall Payroll pick is Rippling. Our free Payroll pick is efile4Biz. Pick Paylocity if you need hris.
Short on time? Here's the quick answer
We've tested both tools. Here's who should pick what:
Gusto
Modern HR, benefits, and payroll
Best for you if:
- • You want easy payroll
- • You want great onboarding
Paylocity
Unify HR, Finance, & IT for simplified operations and empowered teams.
Best for you if:
- • You want good payroll platform
- • You want hR features
| At a Glance | Gusto | Paylocity |
|---|---|---|
Starts at | $49/moSimple | $5/moBase HR |
Best For | HR & Recruiting | HRIS |
Rating | 3.5/5 | 4.4/5 |
Free plan | No | No |
Choose Gusto or Paylocity?
Choose Gusto if
Modern HR, benefits, and payroll
- You want easy payroll
- You want great onboarding
- Your work is HR & recruiting-shaped, not hris-shaped
Choose Paylocity if
Unify HR, Finance, & IT for simplified operations and empowered teams.
- You want good payroll platform
- You want hR features
- Budget matters ($5/mo vs $49/mo)
- Your work is hris-shaped, not HR & recruiting-shaped
| Feature | Gusto | Paylocity |
|---|---|---|
| Pricing Model | Paid | Paid |
| User Rating | ★3.5/5 15,084 reviews | ★4.4/5 8,205 reviews |
| Categories | HR & RecruitingPayroll | HRISPayroll |
In-Depth Analysis
Gusto
Modern HR, benefits, and payroll
Gusto's pricing is generally fair, especially for small to medium-sized businesses.
Watch out
Potential for additional HR add-ons
Strengths
- +Easy payroll
- +Great onboarding
- +Affordable
Weaknesses
- -US only
- -Limited enterprise features
Key features
Paylocity
Unify HR, Finance, & IT for simplified operations and empowered teams.
Paylocity's pricing, particularly for the "Full Suite" at $22-32/user/month plus significant implementation fees, appears expensive compared to many market alternatives.
Watch out
Implementation fees (10-20% of annual)
Strengths
- +Good payroll platform
- +HR features
- +Good UI
- +Fair pricing
- +Good support
Weaknesses
- -Per-employee pricing
- -Learning curve
- -Implementation time
- -Feature gaps
- -Contract commitment
Key features
Pricing: Gusto vs Paylocity
| Plan | Gusto | Paylocity |
|---|---|---|
| Tier 1 | $49 Simple | $5 Base HR |
| Tier 2 | $89 Plus | 22-32 Full Suite |
| Tier 3 | $199 Premium | N/A |
Pricing verified from each vendor's public pricing page. Compare in detail on Gusto pricing and Paylocity pricing.
Who Should Use What?
On a budget?
Both are paid. Compare plans on their websites.
Go with: Gusto
Want the highest-rated option?
Gusto: 3.5/5 (15,084 reviews). Paylocity: 4.4/5 (8,205 reviews).
Go with: Paylocity
Value user reviews?
Gusto: 15,084 reviews (3.5/5). Paylocity: 8,205 reviews (4.4/5).
Go with: Gusto
3 Questions to Help You Decide
What's your budget?
Both are paid. Pricing won't help you decide here.
What's your use case?
Gusto is a HR & recruiting tool. Paylocity is in hris. Pick the category that matches your needs.
How important are ratings?
Paylocity is rated higher: 4.4/5 vs 3.5/5.
Key Takeaways
Gusto
- Larger review base (15,084 reviews)
- Our pick for this comparison
Paylocity
- Higher user rating: 4.4/5 vs 3.5/5
- Better fit for hris
The Bottom Line
Gusto wins this matchup. Our overall Payroll pick is Rippling. Our free Payroll pick is efile4Biz.
Frequently Asked Questions
Is Gusto or Paylocity better?
Gusto is rated in our evaluation. Both are paid.
What are Gusto and Paylocity used for?
Gusto: Modern HR, benefits, and payroll. Paylocity: Unify HR, Finance, & IT for simplified operations and empowered teams..
What does Gusto cost vs Paylocity?
Gusto is a paid tool. Paylocity is a paid tool. Visit their websites for detailed pricing.