Choosing the right payroll software is crucial for operational efficiency and regulatory compliance in your small business. Gusto and Patriot Software have emerged as popular options for businesses seeking reliable payroll solutions, each offering distinctive features, pricing structures, and user experiences. The decision between these two services ultimately depends on your specific requirements, including team size, budget constraints, geographical considerations, and desired HR capabilities.

How Do Gusto and Patriot Software Compare?

Gusto positions itself as a comprehensive HR and payroll platform with a focus on user experience and integrated benefits management. The platform offers a wide range of features designed to streamline payroll processing, tax filing, and employee management. Gusto's intuitive interface makes it accessible for business owners without extensive payroll experience, while its robust functionality supports growing organizations with increasingly complex needs.

Patriot Software emphasizes affordability and simplicity, making it particularly attractive for budget-conscious small businesses. The platform delivers essential payroll functions at a significantly lower price point than many competitors. Patriot's straightforward approach focuses on core payroll capabilities without the extensive HR and benefits features found in more comprehensive solutions.

Both platforms offer cloud-based accessibility, allowing business owners to manage payroll from anywhere with internet access. This flexibility proves especially valuable for organizations with remote work arrangements or multiple locations. The mobile-responsive design of both systems enables on-the-go payroll management, though the depth of mobile functionality varies between the two platforms.

Key Differences Between the Platforms

The most significant distinctions between Gusto and Patriot Software appear in their pricing structures, feature sets, and scalability options. These differences directly impact which businesses will find each platform most suitable for their specific needs and growth trajectories.

Gusto excels in automation and integration capabilities, offering seamless connections with hundreds of business applications. The platform's comprehensive benefits administration and HR tools provide value beyond basic payroll processing. Gusto's tiered pricing model adds features as businesses grow, supporting organizations through various stages of development.

Patriot Software stands out for its exceptional affordability and straightforward approach to payroll management. The platform's simplified interface and focused feature set make it accessible for business owners without extensive payroll experience. Patriot's add-on structure allows businesses to customize their subscription based on actual needs rather than paying for bundled features they might not use.

User reviews consistently highlight Patriot's superior customer service, with many praising the company's responsive support team and personalized assistance. This advantage becomes particularly relevant when businesses encounter complex payroll issues requiring timely resolution. Gusto's customer service reputation has declined in recent years, with some users reporting difficulties reaching support representatives during critical tax periods.

Pricing Structures That Impact Your Bottom Line

Gusto and Patriot Software present markedly different pricing approaches that significantly impact overall value. Understanding these cost structures helps businesses determine which platform aligns with their budgetary constraints and feature requirements.

Gusto starts with a base fee of $49 per month, plus $6 per employee per month for its Simple plan. While this pricing is straightforward, it represents a substantial investment compared to alternatives. The platform's higher-tier plans (Plus at $80/month + $12/employee and Premium at $180/month + $22/employee) add advanced features but at considerably higher costs. Notably, Gusto doesn't offer any free trials, requiring immediate financial commitment from new users.

Patriot Software positions itself as the budget-friendly alternative with its Basic Payroll plan starting at just $17 per month plus $4 per employee. However, this entry-level option requires businesses to handle their own tax filings-a critical consideration for time-constrained owners. Their Full Service Payroll, which includes tax filings, costs $37 per month plus $4 per employee, still significantly undercutting Gusto's baseline offering.

Additional costs may apply depending on your business needs and geographical distribution. Patriot charges an additional $12 monthly fee for multi-state tax filings, while Gusto includes this feature in their Plus and Premium plans. For businesses operating in multiple states, this additional cost could diminish Patriot's price advantage. Patriot further enhances its value proposition with add-on services like Time & Attendance ($6/month + $2/employee) and HR Software ($6/month + $2/employee), allowing businesses to customize their subscription based on actual needs.

Hidden Costs to Consider

When evaluating payroll software, consider these potential additional expenses beyond the advertised monthly fees:

• Setup and implementation costs: While both platforms advertise free setup, complex payroll configurations may require additional assistance or time investment.
• Training requirements: Consider the learning curve for your team and any potential productivity losses during transition periods.
• Add-on features: Evaluate which additional modules you'll need beyond the core offering and how they impact total cost.
• Integration expenses: If you need connections with existing software, factor in any additional costs for integration capabilities.

The true cost of payroll software extends beyond monthly subscription fees to include implementation time, potential productivity impacts during transition, and ongoing administrative requirements. Businesses should consider both immediate pricing and long-term value when comparing these platforms. Patriot's lower entry point makes it initially appealing, but Gusto's comprehensive feature set might deliver greater efficiency and time savings for growing organizations.

Essential Payroll Processing Capabilities

Both Gusto and Patriot Software deliver robust payroll processing capabilities, though with notable differences in automation and flexibility. These core functions form the foundation of each platform's value proposition and directly impact day-to-day payroll operations.

Gusto excels in automated functionality, allowing businesses to complete payroll in just minutes-users report an average processing time of 11 minutes. The platform offers the convenience of AutoPilot, which can automatically process payroll for salaried employees without manual intervention. This hands-off approach represents a significant time-saving advantage for businesses with consistent payroll needs. Gusto also provides unlimited payroll runs monthly, multiple pay rates and schedules, next-day direct deposit, and comprehensive tax filing services at no additional cost.

Patriot Software similarly offers cloud-based payroll accessible from anywhere with unlimited payroll runs. However, it lacks the automated payroll option available with Gusto, requiring manual processing for each pay period regardless of employee type. For qualifying customers, Patriot provides four-day and two-day direct deposit options, though they fall short of Gusto's next-day standard service. A significant limitation of Patriot's Basic Payroll plan is the absence of automatic tax filing services-businesses must handle this complex, time-consuming task themselves or upgrade to the Full Service plan.

The platforms differ substantially in their handling of specialized payroll scenarios and compliance requirements. Gusto includes support for wage garnishment, insurance payments, and child support management in its standard offering. Patriot lacks these capabilities, potentially creating administrative challenges for businesses with more complex payroll requirements. These functionality gaps may necessitate workarounds or manual processes, potentially offsetting some of the cost savings Patriot offers over Gusto's more comprehensive but expensive solution.

Tax Filing and Compliance Features

Tax compliance represents one of the most critical aspects of payroll management:

• Gusto: Includes comprehensive tax filing services in all plans, automatically calculating and filing payroll taxes with every run at no extra cost.
• Patriot: Offers tax filing capabilities only with its Full Service plan; Basic plan calculates but does not file taxes.
• Multi-state operations: Gusto includes multi-state filings in Plus and Premium plans; Patriot charges an additional $12 per month per state beyond the first.
• Year-end processing: Both platforms handle W-2 and 1099 preparation, but Gusto's process is more automated.

The decision between these approaches ultimately depends on how much value a business places on administrative simplification versus cost savings. Organizations with limited tax complexity and financial constraints might find Patriot's Basic plan sufficient, while those seeking comprehensive compliance management would likely benefit from Gusto's all-inclusive approach, despite the higher cost.

Employee Benefits Administration Capabilities

The ability to offer competitive benefits packages represents a crucial element in employee recruitment and retention, and here Gusto demonstrates a clear advantage. Comprehensive benefits administration streamlines operations and enhances the employee experience through simplified enrollment and management.

Gusto provides comprehensive benefits administration capabilities across all its plans, including medical, dental, and vision benefits from over 3,500 plans offered by major carriers like Humana, BlueCross BlueShield, and United Healthcare. Licensed advisors help employers select affordable insurance options tailored to their team's needs. Beyond traditional benefits, Gusto supports workers' compensation, Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), commuter plans, and the Gusto Wallet mobile app for employees to manage finances and access emergency funds.

Patriot Software, by comparison, offers minimal benefits administration capabilities. The platform lacks built-in benefits offerings or dedicated administration tools and doesn't integrate with benefits providers. While 401(k) deductions can be manually added to paychecks, Patriot doesn't facilitate sending money to external retirement programs. Their only benefits-related feature is pay-as-you-go workers' compensation through NEXT insurance. This significant gap in functionality means businesses using Patriot must manage benefits programs entirely outside the payroll system, potentially creating administrative inefficiencies.

For organizations where competitive benefits packages are essential to their employment strategy, Gusto's comprehensive benefits administration capabilities may justify its higher cost structure. The platform eliminates the need for separate systems and reduces administrative complexity around benefits management. Businesses with minimal benefits offerings or those comfortable managing benefits outside their payroll system might find Patriot's focused approach sufficient despite its limitations in this area.

Employee Self-Service Portal Features

Effective employee self-service portals reduce administrative burden and improve employee satisfaction:

• Gusto: Offers comprehensive self-service including benefits enrollment, document access, and personal information management.
• Patriot: Provides basic self-service for time off requests, payslip access, and tax information updates.
• Historical access: Gusto offers lifetime employee access to documents even after employment ends; Patriot limits access to current employees.
• Mobile experience: Both platforms offer mobile-responsive portals, but Gusto's provides more functionality and a more intuitive interface.

The distinction in self-service capabilities becomes particularly relevant for businesses seeking to minimize administrative workload and enhance employee experience. Gusto's more robust portal reduces HR inquiries and empowers employees with greater control over their information and benefits, while Patriot's simpler approach covers essential functions but requires more administrative intervention.

HR Tools Beyond Basic Payroll Functions

Both platforms offer employee self-service portals, but Gusto provides significantly more robust HR capabilities that extend beyond basic payroll functions. These additional tools help businesses streamline employee management and ensure compliance with various regulations.

Gusto includes a comprehensive suite of HR tools with all plans, including paid time-off (PTO) policy creation and tracking, automatic state new hire reporting, employee self-service benefits enrollment, online offer letters, onboarding checklists, and employee benefits administration. The platform also offers lifetime employee access, ensuring former employees can always access their W-2s and benefits information without needing to contact the company. More advanced features like custom onboarding processes, organization charts, employee surveys, and administrator permissions are available in higher-tier plans.

Patriot Software offers more limited HR functionality. Their basic HR tools, including document storage and report generation, require an additional $6 per month plus $2 per employee per month beyond their payroll plans. While employees can self-manage time off, payslips, and tax information through Patriot's portal, the system lacks many of the advanced HR features included with Gusto's standard offering. This distinction is particularly relevant for growing businesses that need to formalize their HR processes as they scale.

Organizations with minimal HR requirements might find Patriot's add-on sufficient, while those seeking a more comprehensive approach to employee management would likely benefit from Gusto's integrated HR capabilities. The decision ultimately depends on how centralized a business wants its HR and payroll functions to be, and whether the convenience of a unified system justifies Gusto's higher price point.

Time Tracking and Integration Options

Effective time tracking and seamless integration with other business software enhance operational efficiency:

• Gusto: Includes time tracking in Plus and Premium plans with automatic payroll synchronization and customizable reporting.
• Patriot: Offers time tracking as an add-on ($6/month + $2/employee) with basic clock-in/out functions and elementary reporting.
• Integration ecosystem: Gusto connects with hundreds of business tools including FreshBooks, QuickBooks, and Expensify.
• API access: Gusto provides developer access for custom integrations; Patriot offers limited integration options primarily with their own accounting software.

This restricted integration landscape may create workflow inefficiencies for businesses using various software tools to manage different aspects of their operations. Organizations with complex software ecosystems and significant time tracking requirements will likely find Gusto's comprehensive integration capabilities more valuable, despite the higher cost.

Customer Support Quality and Availability

Reliable customer support is crucial when dealing with something as important as payroll, and the two platforms demonstrate different approaches to service delivery. Support quality directly impacts user satisfaction and problem resolution, particularly during critical payroll periods.

Both Gusto and Patriot offer support via phone, email, and chat Monday through Friday, with no weekend availability. However, the quality of support experiences diverges significantly according to user reviews. Patriot has built a stellar reputation for customer service, earning a 4.8 out of 5 rating on Trustpilot, with most users describing their experience as "excellent." Patriot also offers free payroll setup assistance, where a customer service representative handles all data entry to get new customers up and running quickly.

Gusto's customer service reputation has suffered in recent years, with its Trustpilot score dropping to 3.5 out of 5. Many reviews highlight lack of responsiveness, particularly when users encounter tax and benefits issues requiring timely resolution. This decline is especially notable because Gusto previously had one of the industry's best customer service reputations. The platform's FAQ and Help Center remain available 24/7, but this self-service approach may be insufficient for complex payroll problems requiring immediate attention.

For businesses prioritizing reliable, responsive support-especially those new to payroll software or with complex requirements-Patriot's superior customer service reputation represents a significant advantage that might outweigh some of its feature limitations. Companies comfortable with more self-guided problem-solving might find Gusto's comprehensive documentation adequate despite the concerning trend in support quality.

Scalability for Growing Businesses

The ability of a payroll platform to scale with your business represents a crucial long-term consideration:

• Gusto: Offers tiered plans adding features as businesses grow, supporting increasingly complex organizational needs.
• Patriot: Provides limited scalability with plans differing primarily in tax filing capabilities rather than progressive feature paths.
• Growth support: Gusto's Premium plan includes HR compliance assistance and expert help; Patriot lacks equivalent advanced capabilities.
• Administrative efficiency: Gusto's automation increases in higher tiers, reducing manual work as organizations grow; Patriot maintains similar processes regardless of business size.

Organizations anticipating rapid growth or planning to formalize their HR functions will likely find Gusto's scalable platform more aligned with their long-term needs, despite the higher initial and ongoing costs. Businesses expecting more modest growth or those primarily concerned with basic payroll functionality might find Patriot's simplified approach sufficient, particularly given its considerable cost advantage.

Make the Right Payroll Software Choice Today

After analyzing both platforms across key factors like pricing, features, support, and scalability, clear use cases emerge for each service based on specific business priorities. Your optimal choice depends on your unique requirements, budget constraints, and growth projections.

Patriot Software represents the superior choice for budget-conscious small businesses with straightforward payroll needs. Its remarkably affordable pricing (starting at just $17/month plus $4/employee for Basic Payroll or $37/month plus $4/employee for Full Service) delivers exceptional value for essential payroll functions. Businesses with minimal HR requirements, limited benefits offerings, and straightforward time-tracking needs will find Patriot's focused approach and excellent customer support compelling, especially if cost minimization is a primary concern.

Gusto emerges as the preferred option for growing businesses seeking comprehensive HR and payroll integration. Despite its higher cost structure (starting at $49/month plus $6/employee), Gusto offers significantly broader functionality, including extensive benefits administration, robust HR tools, next-day direct deposit, and comprehensive time tracking. Organizations prioritizing employee experience, requiring robust benefits management, operating across multiple states, or anticipating substantial growth will likely find Gusto's all-in-one platform more aligned with their needs.

Both platforms offer free trials or demonstrations, providing an opportunity to evaluate their interfaces and features firsthand before making a final decision. By carefully assessing your priorities across pricing, functionality, support quality, and scalability needs, you can select the payroll solution that best positions your business for operational efficiency and future success. The investment in the right payroll platform pays dividends through time savings, reduced compliance risks, and improved employee satisfaction.