Home > Payroll Software > Paylocity > Paylocity vs Gusto

Paylocity vs Gusto

Last Updated:

Our analysts compared Paylocity vs Gusto based on data from our 400+ point analysis of Payroll Software, user reviews and our own crowdsourced data from our free software selection platform.

Overview Pricing Benefits & Features Analyst Ratings Comparison Charts User Ratings Analyst Summary Screenshots
Paylocity Software Tool
SelectHub Award Winner
Gusto Software Tool
SelectHub Award Winner
Get Free Demo Demo    Request Pricing Pricing
Get Free Demo Demo    Request Pricing Pricing

Product Basics

Analyst Rating

81 Detailed Analysis

User Sentiment

Great User Sentiment (5068 Reviews)

Analyst Rating

80 Detailed Analysis

User Sentiment

Excellent User Sentiment (2802 Reviews)
Paylocity is an all-in-one cloud payroll solution that enables organizations of every size to execute administrative tasks such as talent acquisition, time and labor management, and other core processes. Its functionality includes multiple configuration options that allow companies to customize according to their needs.

It contains robust security measures such as encryption, real-time backups and secure data centers. It also has a user-friendly mobile app that is compatible with both iOS and Android devices.
read more...
Gusto is a web-based payroll system for medium-sized organizations. It handles benefits, compliance, direct deposit, employee self-service, employee management, payment processing and taxes. Using automation, calculators and other administrative and HR modules, users can streamline the entire process of paying employees. It integrates with other technologies to offer expanded services such as accounting, bookkeeping, POS, time tracking and other business operations. In addition to filing taxes, it scans the laws of over 50 states to ensure accurate state and federal payments, helping organizations avoid penalties.
read more...
$19/Employee, Monthly
Free Trial is unavailable →
Get a free price quote
Tailored to your specific needs
$40 Monthly
Free Trial is available →
Get a free price quote
Tailored to your specific needs
Small 
i
Medium 
i
Large 
i
Small 
i
Medium 
i
Large 
i
Windows
Mac
Linux
Android
Chromebook
Windows
Mac
Linux
Android
Chromebook
Cloud
On-Premise
Mobile
Cloud
On-Premise
Mobile

Product Assistance

Documentation
In Person
Live Online
Videos
Webinars
Documentation
In Person
Live Online
Videos
Webinars
Email
Phone
Chat
FAQ
Forum
Knowledge Base
24/7 Live Support
Email
Phone
Chat
FAQ
Forum
Knowledge Base
24/7 Live Support

Product Insights

  • Streamlined Talent Acquisition: The software is equipped with capabilities that make the recruiting process more manageable. Users can automate tasks, create custom workflows for hiring, post jobs internally, configure applications and post jobs. 
  • Simplified Onboarding: The portal centralizes information to create a simplified process for new hires. It can be configured to gather necessary employee details such as contact info, withholding forms and an employee handbook with e-signature functionality. 
  • Competent Employees: The platform facilitates easy-to-understand training that equips employees with critical skills, regardless of the initial skill set or position. The built-in LMS suite offers multiple methods and formats that fit the user’s preferred learning style. 
  • Compliance Peace of Mind: The software can train users on compliance topics and assess them on a regular basis. It also aggregates news and industry trends into a feed to keep users updated on compliance laws. 
  • Automatic Notifications: Users can easily stay informed with push notifications that automatically send updates about new hires, changes, time off approvals and terminations. 
  • Employee Engagement: The platform offers engagement tools that promote community interactions, gather feedback and support peer recognition. This boosts engagement within teams and across departments, as well as improves productivity. 
  • Administrative Add-Ons: Services like FSAs, HSAs, TMAs and COBRA supplement standard plans with complementary programs, giving employees a wide choice of benefits to meet their specific needs. 
read more...
  • Flexible and Easier to Use: Guides admins through set-up and features a user-friendly interface. Let employees account for unexpected expenses, up to 40% of their paycheck, by automatically taking the amount out of their next check.
  • More Cost-Effective: Take advantage of a one-month free trial before full implementation. Subscribe on a monthly basis or based on a price quote, depending on the business’s needs.
  • Better Compliance: Check for updated tax law ensures that the proper documents are filed on time and follow the most recent legislation. Help users keep in compliance with ACA, ERISA and HIPAA standards. Record tests to comply with nondiscrimination policies from the IRS or benefits programs such as FSAs.
  • Timer Saver: Cut down on busy work and manual data entry to save valuable employee hours in payroll processing and tax filing. Manage and complete administrative work by accessing premade job templates, HR guides, live harassment prevention webinars, fitness tests, handbooks, best practices, manuals and more.
read more...
  • Payroll: Companies can simplify multiple financial tasks related to payroll with this feature. It automates payroll processes and takes care of tax compliance, expense reimbursements into paychecks, garnishment services and custom reports that derive whatever data that’s needed. It provides employees with the flexibility to access a portion of their earned wages when needed. 
  • Workforce Management: This feature helps eliminate the need for manual tracking of tasks, reduces administrative work and maintains accurate records of individual employees. The review forms can be customized to promote employees to set goals via an insight chart. 
  • Employee Self-Service: The software provides users with admin analytics, 24/7 secure access, enrollment and insurance access, and internal plans. This feature helps employees and employers to access, update, enroll and administer data respectively. 
  • Time and Labor Management: Workers can clock in and out via the mobile app, and managers can set geofencing rules that ensure accurate clock-punching. It also syncs with payroll automatically and allows managers to create and adjust schedules as needed, without manually correcting payroll data. 
  • Data Insights: The platform allows users to access demographic information, utilization, headcount, labor costs, position insights, turnover and retention. It also features real-time employee data, analytics for employment trends, strategic hiring and budgeting decisions, and programs to build a diverse workforce. 
  • Reports: The system comes with over 100 standard reports along with an ad hoc reporting tool. Users can schedule reports to automatically generate and track key reports with a favorites feature. 
  • Compensation Management: With this feature, administrators can configure settings such as the approval process and eligibility requirements. It also supports the customization of compensation plans to match organizational pay cycles. Company leaders gain a view into budgets and allocations, while managers can provide increases and view employee data like performance and pay history.  
  • Marketplace Integrations: Organizations can extend Paylocity’s capabilities to streamline the payroll regularity and HR data management across all policies. The solution connects with partner solutions in 20 categories, including single sign-on (SSO), ERP and a variety of HR-related functions. More than 300 integrations are available in the vendor marketplace. Data can flow into or out of Paylocity, or in both directions, depending on the integration. 
read more...
  • Payroll Processing: Automatically calculate employee checks and file taxes while using online faxing, filing and signing technologies.
    • Payroll Reports: Send money out weekly, bi-weekly, twice a month or monthly. Calculate an employee’s gross pay before taxes by simply entering the amount they should receive. Figure out overtime pay for hourly workers whether they have one or multiple pay rates. Leverage other payroll capabilities such as calculating unlimited and off-cycle payrolls, employee reimbursements, bonuses and more.
    • Automated Taxes: Calculate, file and pay all payroll taxes per local and federal legislation through direct deposit. Generate and send 940, 941, 1099, 8974 and W-2 forms for full-time employees and independent contractors. Manage deductions, garnishments and send child support in all states except for South Carolina. Make adjustments, get support and enter claims for the Federal R&D Tax Credit, FLSA minimum wage requirements and the FICA Tip Credit tax.
    • E-Signatures: Sign and file important documents and forms such as W-2’s, 1099s, 940s, 941s and 8974s. Make it easier to get everyone’s ducks in a row, even when separated by thousands of miles.
    • Leave Tracking: Set up and monitor vacation time, time off and sick time. Choose federal holidays or create other holidays for organizations that accommodate different faiths, locations or cultures.
  • Benefits: Make the necessary deductions automatically for medical insurance, 401(K) contributions and more. Give employees dental, medical and vision insurance and help them find the appropriate plan. Provide other benefits such as 529 (college) savings, commuter perks, disability insurance, FSAs, HSAs, life insurance and workers’ compensation.
  • Wallet: Manage banking accounts, emergency funds, paychecks and savings. Create as many as five saving goals, which deduct funds automatically from the correlating spending accounts — transfer funds from savings to spending easily. Put paychecks in different accounts and let workers see checks and the specifics of deductions, hours and taxes. Give access to paystubs, the Wallet app and W-2s.
  • Worker Management: Give workers digital paystubs accessible by the payday email, account or Wallet app. Let employees send money to charities, organize workers into departments and set policies for PTO and sick leave. Customize and assign various permissions to ensure users can access the appropriate content but not sensitive data.
  • Self-Service: Let employees complete tasks like adding dependents, picking out plans and scheduling changes to plans based on personal details. Let them retain access to specific account information after termination to cut down on unnecessary content. Organize reports based on teams or departments and let workers sign essential documents like I-9s and W-4s.
  • New Employees: Report new hires to the government automatically. Send out onboarding papers before new staff members start so they can fill out bank details, contact information and W-4s. Use an onboarding to-do list for tasks like adding employees to the payroll, background checks, filling out an employee’s I-9, setting up benefits and signing forms.
  • Directory: Create an address book of employees with profile pictures and contact information. Give new workers org charts to see where they fit in the organization. Organize fun facts, t-shirt or merch orders, birthdays and communal coffee dates.
  • Calendar Sync: Track deadlines, birthdays and employee anniversaries and sync with other calendars in iCalendar, Google, and Outlook.
  • Integrations: Uses closed APIs. Integrate with platforms like Accelo, Asana, Box, Clover, Dropbox, Expensify, FreshBooks, Github, G Suite, Homebase, Microsoft 365, QuickBooks Online, Receipt Bank, Slack, SpotOn, TSheets, Veryfi, When I Work, Xero, Ximble, Zoom and more. Contact the vendor for custom connections.
  • Reporting and Analytics: Generate and download reports for benefits, payment history, bank transactions, PTO, contract work, tax payments and more
read more...

Product Ranking

#3

among all
Payroll Software

#7

among all
Payroll Software

Find out who the leaders are

Analyst Rating Summary

81
80
80
95
60
40
80
90
Show More Show More
Time and Attendance Management
Payroll and Tax Management
Benefits Management
Expense Management
Payroll and Tax Management
Platform Capabilities

Analyst Ratings for Functional Requirements Customize This Data Customize This Data

Paylocity
Gusto
+ Add Product + Add Product
Benefits Management Dashboard And Reporting Expense Management Mobile Capabilities Payroll And Tax Management Platform Capabilities Security And Compliance Time And Attendance Management 80 60 80 63 87 77 77 100 95 40 90 54 89 87 80 63 0 25 50 75 100
75%
0%
25%
92%
0%
8%
60%
0%
40%
40%
0%
60%
80%
0%
20%
80%
0%
20%
60%
0%
40%
60%
0%
40%
87%
0%
13%
89%
0%
11%
78%
0%
22%
89%
0%
11%
80%
0%
20%
80%
0%
20%
100%
0%
0%
50%
0%
50%

Analyst Ratings for Technical Requirements Customize This Data Customize This Data

86%
0%
14%
71%
0%
29%

User Sentiment Summary

Great User Sentiment 5068 reviews
Excellent User Sentiment 2802 reviews
84%
of users recommend this product

Paylocity has a 'great' User Satisfaction Rating of 84% when considering 5068 user reviews from 5 recognized software review sites.

93%
of users recommend this product

Gusto has a 'excellent' User Satisfaction Rating of 93% when considering 2802 user reviews from 3 recognized software review sites.

4.6 (21)
4.2 (23)
4.5 (2500)
4.3 (305)
4.5 (825)
n/a
n/a
4.7 (2474)
4.4 (245)
n/a
3.5 (1477)
n/a

Awards

SelectHub research analysts have evaluated Paylocity and concluded it earns best-in-class honors for Time and Attendance Management.

Time and Attendance Management Award

Gusto stands above the rest by achieving an ‘Excellent’ rating as a User Favorite.

User Favorite Award

Synopsis of User Ratings and Reviews

User-Friendly Interface: 60% of users suggested that the interface is user-friendly, with automated payroll and simplified workflows that make it easy to operate and monitor teams.
Unified Dashboard: Paylocity enables HRIS, payroll, timekeeping and admin-related tasks to be handled from a single location, according to 60% of users.
Performance Benefits: It eases task management for essential activities such as checking time off balances and paychecks, conducting goal assessments and achievements, performing year-end reviews, and more.
Easy PTO: It’s easy to use and implement in a day-to-day work routine, with 30% of users mentioning they can check staff availability before approving leaves.
Streamlined Onboarding: The onboarding process checks in candidates and sends paperwork before they start, making it 10%-20% easier for admin setup and paperwork completion according to users.
Show more
Easy to Use: Just under 70% of all reviewers found this product easy to use with 10% specifically praising the design.
Great Conflict Resolution: The customer service was noted for being helpful, knowledgeable and excellent at resolving errors.
Helpful Features: Around 40% of reviewers said they appreciated the functionality, particularly praising the tax system, deductions, payroll processing and multiple payment options.
Appropriate Pricing: Over 30% of users felt that the price was well worth the system.
Good for Small Business: This was called a good choice for small businesses in over 10% of reviews.
Show more
Support Team: Paylocity's support process is lengthy according to 30% of users, requiring a lot of back and forth to get an issue resolved, which usually takes days.
Cumbersome Payroll: The payroll module requires set up by different people and doesn’t function accurately according to 10% of users.
Timesheets: Tracking time is difficult, as Paylocity doesn’t update and capture time entries until a shift is completed.
System Logouts: Despite automation, additional verification is required when logging in, causing 10% of users to completely exit and then log in again.
Tracking: Tracking functionality doesn’t work well for all the features in the experience of 10%-20% of users.
Show more
Issues with Certain Functionality: While around 40% felt the solution worked well, another 40% reported issues, especially with the time tracking and integration features.
Slow/Pushy Customer Support: Around 10% of users reported negative experiences with customer service. Of them around 50% felt the staff was pushy and trying to upsell them and 50% felt they had to wait too long for answers or couldn't get in touch with them online.
Show more

Paylocity is a user-friendly HCM solution that works well for SMBs and delivers an array of features such as payroll management, hiring and talent management in a unified suite. Self-service capabilities help employees access their information. Some users found issues with its payroll, tracking and timesheet capabilities, reducing accuracy and limiting what can be done. However, it offers an intuitive interface, with tools like onboarding and PTO that make tasks easier while speeding up processes. Businesses looking for an end-to-end system to manage HR functions should consider this as a good contender.

Show more

Gusto is a well-reviewed payroll solution which many users enjoy for its good design and easy-to-use features. It’s UI and payroll processing abilities in particular make it a popular choice for automating payroll. Many also feel it handles benefits and PTO well. Some say it's an affordable choice given what it does while others note that it’s on the pricey side. The time tracking features aren’t universally loved. Users are split on the integration abilities with around 10% satisfied and around 10% dissatisfied. All in all, it appears to be a good solution for small and medium-sized businesses looking to streamline their payroll. Keep an eye on the price and, as always, demo extensively before buying.

Show more

Screenshots

Top Alternatives in Payroll Software

ADP Workforce Now
APS Payroll
Gusto
Namely
OnPay
Patriot Payroll
Paychex
Paycom
Paycor
Payroll4Free
QuickBooks Payroll
Rippling
TriNet
Workday HCM

Related Categories

Applicant Tracking Systems
Assessment Software
Attendance Tracking Software
Automated Scheduling Software
Background Check Software
Behavioral Assessment Tools
Benefits Administration Software
Bookkeeper Software
Call Center Workforce Management Software
Candidate Relationship Management Software
Caregiver Payroll Software
Certification Tracking Software
Certified Payroll Software
College Recruiting Software
Computer Based Training Software
Construction Payroll Software
Construction Time Tracking Software
Corporate LMS
Course Creation Software
Crew Scheduling Software
Deep Learning Software
Direct Deposit Payroll Software
E-Learning Software
Educational Software
Elearning Authoring Tools
Employee Engagement Software
Employee Feedback Software
Employee Goal Setting Software
Employee Pulse Survey Tools
Employee Retention Software
Employee Scheduling Software
Enterprise LMS
Farm Payroll Software
Healthcare LMS
Healthcare Scheduling Software
Hospitality LMS
HR Case Management Software
HR Management Software
HR Software For Nonprofits
HRIS Systems
Human Services Software
Interview Scheduling Software
Invoicing and Payroll Software
Job Board Software
Leave Management Software
LMS For Manufacturing
LMS For Nonprofits
LMS For Retail
LMS For Schools
LMS Software
Manufacturing Payroll Software
Mobile Workforce Scheduling Software
Nurse Scheduling Software
Onboarding Software
Online Course Platforms
Online HR Software
Online Learning Platforms
Online Training Software
Payroll Check Printing Software
Payroll Compliance Software
Payroll Software For Accountants
Payroll Software For Mac
Payroll Software For Schools
Payroll Tax Software
Pre-Employment Assessment Tools
Recruiting CRM Software
Recruitment Software
Resorts and Hotel Scheduling Software
Restaurant Payroll Software
Restaurant Scheduling Software
Retail Scheduling Software
Security Guard Payroll Software
Small Business Payroll Software
Social Learning Platforms
Succession Planning Software
Talent Acquisition Software
Talent Intelligence Software
Talent Management Systems
Time and Attendance Software
Time Clock Software
Time Tracking Software
Timesheet Software
Training Management System Software
Trucking Payroll Software
Tutoring Software
Vacation PTO Tracking Software
Video Interview Software
Virtual Classroom Software
Workforce Management Software
Show more
Bookkeeper Software
Caregiver Payroll Software
Certified Payroll Software
College Recruiting Software
Construction Payroll Software
Construction Time Tracking Software
Direct Deposit Payroll Software
Employee Goal Setting Software
Employee Retention Software
Farm Payroll Software
HR Management Software
HRIS Systems
Invoicing and Payroll Software
Manufacturing Payroll Software
Onboarding Software
Payroll Check Printing Software
Payroll Compliance Software
Payroll Software For Accountants
Payroll Software For Mac
Payroll Software For Schools
Payroll Tax Software
Recruitment Software
Restaurant Payroll Software
Security Guard Payroll Software
Small Business Payroll Software
Talent Management Systems
Time and Attendance Software
Trucking Payroll Software
Show more

Head-to-Head Comparison

Paylocity VS ADP Workforce Now
Paylocity VS APS Payroll
Paylocity VS Ascentis
Paylocity VS ClearCompany
Paylocity VS Cornerstone OnDemand
Paylocity VS Dayforce
Paylocity VS Gusto
Paylocity VS Namely
Paylocity VS OnPay
Paylocity VS Oracle HCM Cloud

WE DISTILL IT INTO REAL REQUIREMENTS, COMPARISON REPORTS, PRICE GUIDES and more...

SelectHub Products Reporting and Analytics
Build Your Requirements
SelectHub Products Cost and Pricing Guide
Get Your Free Comparison Report
Compare products
Comparison Report
Just drag this link to the bookmark bar.
?
    Table settings