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.
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 need HR & recruiting features specifically
- • Gusto is an all-in-one payroll and HR platform for small businesses
- • It handles payroll, benefits, onboarding, and compliance with easy-to-use tools
Paylocity
Unify HR, Finance, & IT for simplified operations and empowered teams.
Best for you if:
- • You need hris features specifically
- • Unifies HR, Finance, and IT functions on a single platform.
- • Automates tasks, provides real-time data, and improves decision-making.
| At a Glance |  Gusto |  Paylocity |
|---|---|---|
Starts at | $49/moSimple | $5/moBase HR |
Best For | HR & Recruiting | HRIS |
Rating | 4.6/5 | 4.5/5 |
Free plan | No | No |
Choose Gusto or Paylocity?
Choose Gusto if
Modern HR, benefits, and payroll
- Easy payroll
- Great onboarding
- Affordable
- Your work is HR & recruiting-shaped, not hris-shaped
Choose Paylocity if
Unify HR, Finance, & IT for simplified operations and empowered teams.
- Good payroll platform
- HR features
- Good UI
- 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 | ★4.6/5 12,365 reviews | ★4.5/5 5,172 reviews |
| Categories | HR & RecruitingPayroll | HRISPayroll |
In-Depth Analysis
Gusto
Modern HR, benefits, and payroll
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.
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: 4.6/5 (12,365 reviews). Paylocity: 4.5/5 (5,172 reviews).
Go with: Gusto
Value user reviews?
Gusto: 12,365 reviews (4.6/5). Paylocity: 5,172 reviews (4.5/5).
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?
Gusto is rated higher: 4.6/5 vs 4.5/5.
Key Takeaways
Gusto
- Higher user rating: 4.6/5 vs 4.5/5
- Larger review base (12,365 reviews)
- Our pick for this comparison
Paylocity
- Better fit for hris
The Bottom Line
Gusto is our pick.
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.