Competitor Comparison
Paychex vs Gusto 2026: Which Payroll Service Gives You More for the Money?
The fundamental difference: Paychex charges per payroll run and has deeper HR tools. Gusto is transparent pricing with unlimited runs and a cleaner small-business experience. Here's how they compare at every team size.
Paychex Essentials
$39 + $5/ee
Per-run fees on some plans
- 401k and workers comp integrated
- HR advisor hotline (Select+)
- Dedicated payroll specialist (Pro)
- Serves 730,000+ businesses
Gusto Simple
$40 + $6/ee
Unlimited payroll runs included
- Transparent, published pricing
- Unlimited payroll runs (no per-run fee)
- Excellent contractor management
- Higher customer satisfaction scores
Live Cost Comparison by Employee Count
| Employees | Paychex Essentials | Gusto Simple | Gusto Plus |
|---|---|---|---|
| 1 | $44/mo | $46/mo | $92/mo |
| 5 | $64/mo | $70/mo | $140/mo |
| 10 | $89/mo | $100/mo | $200/mo |
| 25 | $164/mo | $190/mo | $380/mo |
| 50 | $289/mo | $340/mo | $680/mo |
The per-run fee factor: At 10 employees on bi-weekly payroll, Paychex Essentials base cost is $89/month. Gusto Simple is $100/month. But if Paychex charges per-run fees on your configuration (common on Select/Pro), add $25-$50/month. On weekly payroll, add $50-$80/month. Gusto's $100 includes unlimited runs - no add-ons.
All Plans Comparison
| Feature | Paychex Essentials | Gusto Simple | Gusto Plus |
|---|---|---|---|
| Base/Month | $39 | $40 | $80 |
| Per Employee | $5 | $6 | $12 |
| Pricing | Public | Public | Public |
| Unlimited Payroll Runs | No (per-run fees) | Yes | Yes |
| Tax Filing | Yes | Yes | Yes |
| Direct Deposit | Yes | Next-day | Next-day |
| Contractor Management | Limited | Excellent | Excellent |
| 401(k) Integration | Own 401k plan | Via Guideline partner | Via Guideline partner |
| Workers Comp (PAYG) | Integrated | Via NEXT partner | Via NEXT partner |
| HR Tools | Basic | Basic | HR + Time tracking |
| Contract | No lock-in | Cancel anytime | Cancel anytime |
Choose Paychex if...
- You want 401k and workers comp from one provider
- You run payroll monthly (avoids per-run fees)
- You have 25+ employees and need HR depth
- You want a dedicated payroll specialist
Choose Gusto if...
- You want transparent pricing - no surprises
- You run bi-weekly or weekly payroll
- You pay contractors as well as employees
- You're a tech-forward small business under 25 people
Frequently Asked Questions
Is Gusto cheaper than Paychex?
At small team sizes (1-8 employees), Paychex Essentials ($39 + $5/employee) and Gusto Simple ($40 + $6/employee) are nearly identical in base cost. However, Gusto includes unlimited payroll runs while Paychex charges per run on most plans. For a business running bi-weekly or weekly payroll, Gusto becomes significantly cheaper when per-run fees are factored in. At 10 employees on weekly payroll, Gusto can be $50-$80/month cheaper.
Does Paychex or Gusto have better HR features?
Paychex has deeper HR features for mid-size businesses - 401k integration, workers comp, PEO option, and learning management on Pro plans. Gusto has better contractor management and a simpler, more intuitive interface preferred by small teams. For businesses focused on payroll transparency and ease of use under 25 employees, Gusto wins. For businesses needing full HR infrastructure including 401k and workers comp from one provider, Paychex wins.
Which is better for contractors: Paychex or Gusto?
Gusto is significantly better for contractor management. Gusto has a contractor-only plan at $6/contractor/month with no base fee, handles 1099-NEC filing seamlessly, and makes it easy to switch workers between W-2 and contractor status. Paychex can process contractor payments but its platform is primarily designed for W-2 employees. If you have a mix of contractors and employees, Gusto is the easier and often cheaper option.