In today's fast-paced business environment, choosing the right payroll provider is crucial for operational efficiency and compliance. Small to medium-sized businesses in particular need reliable, cost-effective solutions that can grow with them while minimizing administrative burdens. OnPay and Gusto have emerged as leading contenders in the payroll software space, each offering comprehensive solutions designed to streamline payroll processing, tax management, and HR functions.

Both platforms provide full-service payroll capabilities with automated tax filing, but they differ in significant ways that could impact your business operations. This comparison will explore how these two providers stack up across pricing structures, feature sets, customer support, user experience, and more. We'll examine their strengths and limitations to help you determine which solution might be the better fit for your specific business needs.

According to G2.com customer review data, both platforms receive strong ratings across multiple categories including ease of setup, administrative simplicity, customer support quality, and system reliability. However, nuances in their offerings might make one more suitable than the other depending on your business size, industry, and growth trajectory. Understanding these differences is essential for making an informed decision that will support your payroll operations for years to come.

Let's dive into a detailed comparison of OnPay versus Gusto to discover which payroll provider delivers the best value and functionality for your business in 2024.

Pricing Structures: Breaking Down the Cost Comparison

When comparing OnPay and Gusto from a pricing perspective, both providers start with similar base rates but diverge significantly in their pricing models. OnPay offers a straightforward approach with a monthly base fee of $40 plus $6 per person. This single-tier pricing includes all features, making it simple to calculate costs as your team grows. There are no hidden fees, and the structure remains consistent regardless of which features you utilize.

Gusto, on the other hand, employs a tiered pricing strategy starting at $49 per month plus $6 per person for their Simple plan. For businesses seeking additional HR capabilities, Gusto offers Plus ($80/month plus $12/person) and Premium (custom pricing) plans. They also provide a contractor-only option for businesses that don't have W-2 employees, charging just $6 per contractor monthly.

Cost considerations extend beyond the base pricing. While Gusto's entry-level price point is higher than OnPay's, additional fees may apply for certain features. For instance, multi-state payroll requires an upgrade to a more expensive plan with Gusto, whereas OnPay includes this capability in their standard offering. Similarly, organizational charts and access to HR specialists come at premium prices with Gusto but are included in OnPay's base package.

For growing businesses, OnPay's inclusive pricing model may offer better long-term value, particularly if you need access to more advanced features. However, Gusto's contractor-only plan provides flexibility for businesses primarily working with 1099 contractors. When calculating total cost, consider not just the monthly fee but also which specific features your business requires and how they're priced within each platform.

Core Payroll Features: What Both Platforms Offer

Both OnPay and Gusto deliver robust core payroll functionalities designed to simplify the payroll process for small and medium-sized businesses. Each platform provides unlimited payroll runs, allowing companies to process payroll as frequently as needed without incurring additional costs. This flexibility accommodates businesses with various pay schedules, including weekly, bi-weekly, semi-monthly, and monthly cycles.

Automated tax calculations and filings are standard features on both platforms. They calculate, withhold, and submit federal, state, and local payroll taxes automatically, reducing compliance risks and administrative burdens. Both services also generate and distribute year-end tax forms (W-2s and 1099s) to employees and contractors. Additionally, both platforms support direct deposit, paper checks, and pay cards as payment methods, giving employers flexibility in how they compensate their staff.

Employee self-service portals are another shared feature, enabling team members to access their pay stubs, tax documents, and personal information independently. Both services facilitate new hire reporting to relevant state agencies and offer document storage capabilities for maintaining important employment records. Integration with popular accounting software like QuickBooks and Xero comes standard with both providers, streamlining financial record-keeping.

Where they begin to diverge is in implementation specifics. OnPay emphasizes its automation accuracy with a guarantee that covers any penalties resulting from filing errors. Gusto, meanwhile, offers different direct deposit timelines depending on plan level, with next-day direct deposit available in higher tiers. Both platforms handle garnishments and deductions, but Gusto excludes South Carolina for certain garnishment types. These subtle differences in core functionalities might influence your decision based on your specific business requirements.

HR and Team Management: Beyond Basic Payroll

Both OnPay and Gusto extend their offerings beyond basic payroll processing to include valuable HR and team management tools, though with notable differences in scope and availability. OnPay includes a comprehensive suite of HR features in its single pricing tier, allowing businesses to manage the entire employee lifecycle without additional costs. These tools include customizable onboarding workflows, employee self-service capabilities, document management, and compliance support.

Gusto similarly offers HR functionality but gates certain advanced features behind higher-priced tiers. While both platforms provide time-off tracking and management, Gusto requires an upgrade to its Plus plan for more comprehensive PTO features. Similarly, organizational charts and employee directory tools come standard with OnPay but require a premium plan with Gusto. Both platforms offer document storage and audit capabilities, allowing businesses to maintain important records securely.

OnPay distinguishes itself with included HR advisory services through a partnership with Mineral (formerly ThinkHR), offering businesses access to HR professionals for compliance guidance and best practices. While Gusto offers similar advisory services, these are typically available only at higher pricing tiers. Both platforms provide customizable onboarding experiences, though Gusto offers more advanced onboarding customization in its premium plans.

For businesses seeking robust HR capabilities without tiered pricing, OnPay's inclusive approach may offer better value. However, Gusto's platform provides more sophisticated team management tools in its higher tiers, including performance reviews and employee surveys—features not currently available through OnPay. The ideal choice depends on which specific HR functions are most critical to your business operations and whether you prefer paying for only what you need or having all features accessible in a single package.

Benefits Administration: Health Insurance, Retirement Plans, and More

Benefits administration represents a significant area where OnPay and Gusto diverge in their offerings, though both provide substantial capabilities to help businesses manage employee benefits. OnPay functions as a licensed broker in all 50 states, enabling businesses nationwide to offer medical, dental, and vision insurance plans through the platform. This comprehensive geographic coverage exceeds Gusto's health insurance offerings, which are currently available in 37 states plus DC.

Both platforms support integration with 401(k) retirement plans through various providers, though their approaches differ. OnPay allows businesses to pay just the premiums for retirement plans, while Gusto charges additional fees for 401(k) administration in some cases. Both services facilitate workers' compensation insurance enrollment and management, with premium collections synchronized with regular payroll processing.

Gusto offers a broader range of specialty benefits, including Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs), and commuter benefits. While OnPay provides similar options, Gusto has developed a more comprehensive suite of financial wellness tools, including their Gusto Wallet app that helps employees manage their finances. OnPay counters with broker of record integration included in their standard pricing, while Gusto typically charges extra for this service.

For businesses with employees across multiple states, OnPay's nationwide health insurance capabilities may be particularly valuable. However, companies seeking to offer a wider variety of supplemental benefits might prefer Gusto's expanded offerings. Both platforms streamline benefits administration by automating deductions, facilitating enrollment, and providing employees with self-service access to their benefits information. When choosing between the two, consider your geographic footprint and the specific types of benefits you wish to offer your employees.

Integrations and Expandability: Connecting with Other Business Software

The ability to integrate seamlessly with other business software is crucial for maximizing operational efficiency. In this domain, Gusto delivers substantially more connectivity options than OnPay, offering integrations with approximately 130+ third-party applications spanning accounting, time tracking, expense management, point-of-sale systems, and more. This extensive ecosystem allows businesses to create a unified workflow across various platforms, reducing manual data entry and potential errors.

OnPay, while more limited in its integration catalog, provides robust connections with essential business tools. It integrates well with popular accounting software like QuickBooks and Xero, allowing for automated syncing of payroll data. OnPay also connects with time-tracking applications including When I Work, Deputy, and QuickBooks Time, along with retirement plan providers and HR compliance tools. Though fewer in number, OnPay's integrations are thoughtfully selected to cover core business functions.

Both platforms offer API access, though with different approaches. Gusto provides more extensive API documentation and developer resources, making it potentially more adaptable for businesses with custom software needs or internal development teams. OnPay's API capabilities are more focused, prioritizing stability in its existing integrations rather than extensive customization options.

For businesses heavily invested in multiple software platforms or those requiring specialized integrations, Gusto's expansive ecosystem may prove advantageous. However, if your integration needs center primarily around accounting and time-tracking functions, OnPay's more curated selection may be sufficient. When evaluating this aspect, consider your current software stack and future technology plans to determine which provider's integration capabilities better align with your business's operational requirements.

Customer Support and Onboarding: The Human Element

The quality of customer support and onboarding assistance can significantly impact satisfaction with a payroll provider. Both OnPay and Gusto offer extended hours for live support through multiple channels, including phone, email, and chat. OnPay's support team is available Monday through Friday from 9 AM to 8 PM Eastern time, while Gusto maintains similar hours with support specialists accessible to answer questions about their platform.

OnPay distinguishes itself by providing a dedicated onboarding support representative to all customers regardless of company size or plan level. This personalized approach helps businesses navigate the often complex process of transitioning payroll systems. OnPay also handles account setup and data migration as part of their standard service offering, reducing the burden on businesses during implementation. In contrast, Gusto offers dedicated onboarding support only with their Premium plan, requiring an upgrade for clients seeking this level of assistance.

User reviews consistently highlight OnPay's exceptional customer service quality, with the company maintaining a 97% approval rating for its support team. Gusto, while still well-regarded, receives an 84% approval rating in this category. Both companies invest in comprehensive knowledge bases and self-help resources, though OnPay places greater emphasis on personalized support throughout the customer relationship.

Another distinguishing factor is OnPay's accuracy guarantee, which provides financial protection if their system makes payroll tax errors. This commitment to accuracy offers additional peace of mind that Gusto doesn't explicitly match. For businesses that value high-touch support and assistance during the transition process, OnPay's approach to customer service may provide a meaningful advantage, particularly for companies without dedicated HR staff or payroll expertise.

Industry-Specific Features: Specialized Solutions for Different Businesses

While both platforms serve businesses across various sectors, OnPay has developed specialized payroll capabilities for specific industries that face unique payroll challenges. Particularly notable is OnPay's support for agricultural businesses, including the ability to process payroll for workers on H-2A visas and file Form 943 (the agricultural equivalent of Form 941). This specialized support extends to proper handling of tax exemptions and allowances specific to farm workers.

OnPay also offers tailored solutions for nonprofits, restaurants, and religious organizations. For nonprofits, the platform manages unique tax situations including 941 filings and multiple tax rates. Restaurant businesses benefit from tip management features, including tip credits and automatic FICA tip credit calculations. Religious organizations can utilize specialized tools for handling parsonage allowances and minister dual tax status situations, exempting ministers from certain taxes while withholding others.

Gusto, while offering solid foundational payroll capabilities, doesn't provide the same level of industry-specific customization. Their restaurant-specific features are more limited, and they don't explicitly support agricultural payroll's unique requirements. Religious organizations and nonprofits using Gusto may need to implement manual workarounds for their specialized tax situations.

For businesses in standard industries with typical payroll needs, this difference may not be significant. However, for organizations in these specialized sectors, OnPay's industry-specific features could substantially simplify compliance and reduce administrative burdens. When evaluating providers, businesses in agriculture, food service, religious, or nonprofit sectors should carefully consider whether these specialized capabilities would meaningfully improve their payroll processes and compliance efforts.

User Experience and Interface: Ease of Use Matters

The user experience and interface design significantly impact daily interactions with payroll software, affecting efficiency and user satisfaction. Both OnPay and Gusto have invested heavily in creating intuitive, modern interfaces, though with different approaches to organization and workflow.

OnPay features a clean, straightforward dashboard that prioritizes essential functions with a logical workflow sequence. The system guides users through payroll processes step-by-step, making it accessible even for those without extensive payroll experience. OnPay's design emphasizes efficiency, with most payroll runs completable in just three clicks. The platform offers substantial customization options for reports and dashboards, allowing businesses to prioritize the information most relevant to their operations. Users particularly appreciate the real-time reporting filters that enable quick data analysis without requiring complex report building.

Gusto adopts a more visually rich interface with a conversational tone throughout the platform. Their design philosophy emphasizes user engagement and accessibility, using plain language instead of technical terminology wherever possible. Gusto's dashboard presents a holistic view of the organization with prominent visualization of team structure and upcoming payroll deadlines. The platform incorporates helpful tooltips and contextual guidance throughout the user journey, making it exceptionally beginner-friendly.

Both systems offer employee self-service portals with lifetime access, allowing team members to retrieve pay stubs and tax documents even after leaving the company. Mobile responsiveness is also comparable between the platforms, though Gusto offers a more robust native mobile app experience with their Gusto Wallet feature. For businesses prioritizing ease of use for administrators with limited payroll experience, Gusto's approachable design may hold an edge, while those valuing efficiency and customization might prefer OnPay's more streamlined interface.

Making the Decision: Which Provider Is Right for Your Business?

When deciding between OnPay and Gusto, your business's specific needs, growth trajectory, and priorities should guide your selection. OnPay delivers excellent value through its transparent, all-inclusive pricing model that provides access to all features without requiring expensive upgrades. This approach makes it particularly attractive for businesses seeking comprehensive payroll and HR capabilities at a predictable cost. Companies operating in specialized industries such as agriculture, restaurants, nonprofits, or religious organizations will find OnPay's industry-specific features especially beneficial for handling unique compliance requirements.

Gusto excels in providing a polished user experience with expanded HR capabilities in its higher tiers. For growing businesses planning to develop more sophisticated HR functions over time, Gusto's tiered approach allows for scaling features as needs evolve. Companies heavily invested in multiple software platforms will benefit from Gusto's extensive integration ecosystem. Additionally, businesses primarily employing contractors may find Gusto's contractor-only plan financially advantageous.

For multi-state employers, OnPay's inclusion of multi-state payroll in its standard package may offer significant savings compared to Gusto, which requires a plan upgrade for this capability. Similarly, businesses that value dedicated support during onboarding and implementation might prefer OnPay's approach of providing personalized assistance to all customers regardless of size.

Ultimately, both platforms deliver strong core payroll functionality with high reliability and compliance standards. The right choice depends on how you weigh factors like pricing structure, specialized features, integration requirements, and support needs. For many small to medium-sized businesses, OnPay's inclusive approach offers superior value, while companies with evolving HR requirements or specific integration needs might find Gusto's flexibility advantageous despite the potentially higher cost as you scale. Consider trialing both platforms if possible to experience firsthand how each aligns with your operational processes and team preferences.