Choosing the right payroll system is one of the most critical decisions small business owners face. As payroll processing grows increasingly complex with changing tax laws and compliance requirements, having reliable software becomes not just a convenience but a necessity. ADP and Gusto have emerged as dominant players in the payroll software market, each offering distinct approaches to solving your payroll challenges. This comprehensive analysis examines these two powerhouses through the lens of features, usability, pricing, customer support, and more—giving you the insights needed to make an informed decision.

With over 75 years of experience, ADP (Automatic Data Processing) brings decades of payroll expertise to the table. Their RUN platform specifically targets small businesses while offering the reliability of a well-established provider. Meanwhile, Gusto, founded in 2011, has rapidly gained popularity with its modern, user-friendly approach to payroll and HR management. Both systems promise to simplify your payroll processes, but they differ significantly in their execution, pricing models, and additional offerings.

The right choice depends on your specific business needs—whether you prioritize extensive HR capabilities, state-of-the-art technology, budget-friendly options, or scalability as your business grows. By understanding the strengths and limitations of each platform, you can select the solution that will not only meet your current requirements but also support your business as it evolves in the years ahead. Let's dive into what makes each system unique and how they compare across various essential functions.

Core Payroll Features: The Fundamental Differences

Both ADP Run and Gusto offer comprehensive payroll processing capabilities, but significant differences exist in their approach and execution. ADP Run provides multi-state payroll processing across all its plans, making it ideal for businesses with employees in different jurisdictions. The platform features a two-day processing cycle without direct deposit limits and can register with tax agencies in all 50 states without requiring third-party partners. ADP also offers same-day ACH transfers, giving businesses more flexibility with payment timing.

Gusto, on the other hand, excels in automation and user experience. It offers unlimited payroll runs across all plans and handles both employee and contractor payments with ease. While its Simple plan limits users to single-state payroll, the Plus and Premium plans support multi-state operations. Gusto automatically calculates and files payroll taxes at no extra charge, including W-2 and 1099 forms. Their AutoPilot feature allows businesses to set up recurring payroll runs that process automatically—a significant time-saver for businesses with stable payroll needs.

Where ADP demonstrates an advantage is in its capacity to handle complex payroll scenarios, such as employees who work in multiple states or local jurisdictions within a single pay period. Its systems can readily accommodate varied pay rates, specialized deductions, and industry-specific requirements developed over decades of service. Gusto, while more limited in handling intricate situations, offers a more streamlined experience that many small business owners find sufficient and considerably more intuitive, especially for those without dedicated payroll personnel.

Pricing and Value: Breaking Down the Costs

Pricing represents perhaps the most significant contrast between ADP Run and Gusto. Gusto embraces transparency with clearly defined pricing tiers: Simple ($40/month plus $6 per employee), Plus ($80/month plus $12 per employee), and Premium (custom pricing). They also offer a Contractor-only plan at $35/month plus $6 per contractor. These straightforward options make budgeting predictable, with no setup fees or hidden costs. All plans include unlimited payroll runs, and you only pay when you actually run payroll.

ADP, conversely, employs a quote-based pricing model that varies based on business size, features required, and payroll frequency. This custom approach means you'll need to contact their sales team for specific pricing. Unlike Gusto, ADP charges per payroll run rather than offering unlimited runs. They may also include setup fees, though these are sometimes waived during promotional periods. W-2 and 1099 filings typically incur additional fees with ADP, while Gusto includes these as standard features.

When calculating total value, consider what each plan includes beyond basic payroll processing. ADP's higher price point comes with decades of experience in compliance management and a more robust suite of HR tools as you move up their service tiers. Gusto's more affordable entry point provides solid payroll functionality with modern HR features like employee onboarding and benefits administration included even in lower tiers. For many small businesses, particularly those with straightforward payroll needs, Gusto often represents better value for the investment, while ADP can be justified for more complex operations requiring specialized support.

User Experience and Interface: Ease of Use Comparison

The user experience has become a critical differentiator in today's software landscape, and this is where the contrast between ADP Run and Gusto becomes particularly pronounced. Gusto has earned a reputation for its exceptionally intuitive interface, designed with modern small business owners in mind. The clean, straightforward dashboard guides users through the payroll process with simple prompts and visually appealing layouts. New users frequently report being able to set up and run their first payroll with minimal training or assistance.

ADP Run, while continuously improving its interface, still reflects its enterprise heritage. The system offers tremendous capability but may require more time to master. Users often report a steeper learning curve when first navigating ADP's more comprehensive set of screens and options. However, once familiar with the system, many appreciate the depth of functionality available. ADP also offers a mobile app that provides full payroll capabilities, whereas Gusto's mobile experience is primarily focused on employee self-service rather than administrator functions.

Both platforms provide employee self-service portals, allowing team members to access their pay stubs, tax forms, and personal information. Gusto's employee portal receives particularly high marks for usability and includes lifetime access—even after an employee leaves the company. This feature proves especially valuable during tax season when former employees may need historical documents. ADP's employee self-service functionality is equally comprehensive but follows a more traditional corporate design approach. Your choice may ultimately depend on your team's technical comfort level and preference for either streamlined simplicity or comprehensive functionality.

HR Capabilities: Beyond Basic Payroll

Both platforms extend well beyond basic payroll processing to offer valuable HR functionalities, though with different approaches and strengths. ADP Run provides an impressive array of HR tools, especially in its higher-tier plans. These include an employee handbook wizard pre-populated for your state, job description templates, and access to ZipRecruiter for posting open positions. Their Complete and HR Pro plans offer HR tracking tools, document storage, and compliance alerts to keep your business updated on changing regulations.

Gusto takes a more integrated approach to HR, building essential functions directly into its core platform. Even at its base tier, Gusto includes employee onboarding, document storage, and basic time-off management. The Plus plan adds more robust time tracking, PTO approval workflows, and the ability to create and send custom offer letters for electronic signature. The Premium plan provides access to certified HR professionals, custom employee handbooks, and specialized HR resource centers focused on compliance and best practices.

Where ADP distinguishes itself is through additional employee benefits like discount programs for brand-name products and daily essentials, as well as access to free and discounted legal services through third-party providers. ADP also offers enhanced background checking capabilities and more extensive training resources. Gusto counters with its intuitive employee directory and unique team survey tools that help gauge employee satisfaction and engagement. For business owners seeking to create a modern, culture-focused workplace, Gusto's HR approach often resonates more strongly, while those requiring comprehensive compliance support and traditional HR infrastructure might prefer ADP's extensive resources.

Benefits Administration: Managing Employee Perks

Benefits administration represents another area where these platforms take different approaches. ADP offers extensive benefits management capabilities through affiliated services like Automatic Data Processing Insurance Agency (ADPIA). This integration allows businesses to explore, secure, and manage workers' compensation, business insurance, and group health insurance based on their specific needs. ADP also provides a range of retirement plan options that integrate with their payroll system, simplifying administration and compliance requirements.

Gusto offers a more streamlined benefits administration approach with direct access to health benefits in 38 states and Washington, D.C. Their platform connects businesses with licensed benefits advisors who help create customized health insurance packages. Unlike ADP, Gusto charges only the insurance premiums with no additional administration fees to enroll in workers' compensation or health benefits. Their benefits offerings include health, dental, vision, 401(k) retirement plans, HSAs, FSAs, commuter benefits, and life and disability insurance options.

A unique Gusto advantage is the Gusto Wallet app, which helps employees track earnings and build savings goals. This financial wellness tool extends beyond traditional benefits administration to support employee financial health. ADP, meanwhile, offers more extensive global benefits management capabilities for businesses with international operations. Your choice between these platforms may depend on your geographic location, the diversity of benefits you wish to offer, and whether you already have established relationships with benefits providers. Businesses with existing brokers should note that Gusto allows integration with outside brokers, though this may incur additional fees in lower-tier plans.

Customer Support and Resources: Help When You Need It

The level and quality of customer support can make or break your experience with any software platform, especially one handling something as critical as payroll. ADP provides 24/7 live support across all its plans, ensuring that help is available whenever issues arise. Their support team includes certified, experienced payroll professionals accessible via phone or email. Higher-tier plans include dedicated support representatives who become familiar with your specific business needs and circumstances.

Gusto offers more limited support hours, available Monday through Friday from 6 a.m. to 5 p.m. Pacific Time. Support is accessible via phone, email, and chat, with priority support offered to Premium users and available as an add-on for Plus customers. While Gusto's support isn't available around the clock like ADP's, many users report high satisfaction with the quality of assistance they receive during business hours, citing friendly and knowledgeable representatives who can resolve issues efficiently.

Both companies provide extensive online resources to help users troubleshoot problems independently. ADP offers an extensive knowledge base, webinars, and training materials developed from decades of payroll expertise. Gusto counters with an intuitive help center, step-by-step guides, and educational content designed for small business owners who might not have payroll expertise. ADP's resources tend to be more technical and comprehensive, while Gusto's are more accessible for beginners. Your preference may depend on your comfort level with payroll management and whether your business operations require support outside standard business hours.

Integrations and Ecosystem: Working with Your Existing Tools

The ability to connect your payroll system with other business software is increasingly important for streamlining operations and reducing duplicate data entry. ADP Run offers extensive integration capabilities, connecting with over 300 business applications including ERPs, accounting solutions, time-tracking tools, point of sale systems, and productivity platforms. Their marketplace includes integrations with popular software like Xero, QuickBooks, Oracle, and Slack, making it easy to create a cohesive business technology ecosystem.

Gusto also prioritizes integration capabilities with connections to dozens of popular business applications. Their integrations span accounting software (QuickBooks, Xero, FreshBooks), time tracking platforms (Homebase, TSheets), point of sale systems, business operations tools, and expense management solutions like Expensify. While Gusto offers fewer total integrations than ADP, they cover most essential small business applications and typically feature deeper, more seamless connections with the tools they do support.

A significant ADP advantage is their single invoice billing that combines payroll and complementary partner services, simplifying expense management. They also offer over 30 partner app connectors specifically for point of sale solutions, making them particularly valuable for retail and restaurant businesses. Gusto, while more limited in specialized integrations, focuses on creating exceptionally smooth workflows with the most common small business tools. Your choice may ultimately depend on your existing technology stack and whether you require specialized integrations beyond the standard accounting and time-tracking connections that both platforms support well.

Compliance and Security: Protecting Your Business

Compliance and security represent critical considerations when selecting a payroll provider, as mistakes can lead to costly penalties and data breaches can expose sensitive employee information. ADP brings 75+ years of payroll experience to compliance management, offering advanced state unemployment insurance management tools, claim responses, benefit payments review, and best practices consulting. Their systems automatically adapt to changing regulations across jurisdictions, and they register with tax agencies in all 50 states without requiring third-party involvement.

Gusto maintains strong compliance capabilities despite being a newer entrant in the market. They automatically calculate, file, and pay federal, state, and local taxes with every payroll run. Their system handles wage garnishments and state new-hire reporting at no additional charge. Gusto's Premium plan includes compliance alerts and access to HR experts who can provide guidance on complex regulatory questions, though this advanced support isn't available in their lower-tier plans.

Both providers maintain robust security measures to protect sensitive payroll data. They employ industry-standard encryption, regular security audits, and strict access controls. ADP, with its longer history serving enterprise clients, has developed particularly sophisticated security protocols and disaster recovery capabilities. Both platforms offer secure employee self-service portals that protect personal information while allowing convenient access to pay stubs and tax documents. For businesses in highly regulated industries or those operating across multiple jurisdictions, ADP's more comprehensive compliance toolset may offer additional peace of mind, while Gusto provides sufficient protection for most small businesses with straightforward compliance needs.

Making the Right Choice for Your Business

After thoroughly examining ADP Run and Gusto across multiple dimensions, it's clear that both platforms offer compelling solutions for small business payroll needs, but with distinct advantages that will appeal to different types of organizations. Your ultimate decision should align with your business's specific requirements, growth trajectory, and operational priorities.

ADP Run stands out as the preferred choice for businesses with complex payroll needs, multiple state operations, or plans for significant growth. Its robust compliance tools, 24/7 support, extensive HR capabilities, and decades of industry experience make it well-suited for businesses that prioritize comprehensive features and expert guidance. While its pricing is less transparent and typically higher than Gusto's, many businesses find the additional capabilities and peace of mind worth the investment. ADP particularly shines for businesses with regulatory complexities, specialized industry requirements, or those needing around-the-clock support.

Gusto emerges as the ideal solution for small to medium-sized businesses seeking an intuitive, modern approach to payroll and HR at a transparent price point. Its user-friendly interface, unlimited payroll runs, included tax filings, and integrated HR tools make it especially attractive for startups and growing businesses without dedicated payroll personnel. Gusto's strengths in automation, employee experience, and straightforward pricing make it particularly valuable for businesses that value simplicity and modern design. The platform continues to expand its capabilities while maintaining its commitment to user experience.

Consider your business's size, complexity, budget, and growth plans when making your selection. For many small businesses, Gusto's combination of simplicity, value, and modern features makes it the preferred choice, while organizations with more complex needs often find ADP's comprehensive capabilities worth the higher investment. Whichever platform you choose, both represent significant improvements over manual payroll processing and will help streamline one of your business's most essential functions.