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QuickBooks Payroll is one of the most popular payroll software in the business world. Gusto is a new cloud-based alternative that offers its users more flexibility and control over their finances, while also providing them with numerous benefits like budgeting tools and an excellent mobile application. Which app should you choose?
The “gusto vs quickbooks payroll reddit” is a question that has been posed to many people. The answer is not so cut and dry, but there are some things to consider when deciding which one you want to use.
For small company owners, Gusto and QuickBooks Payroll are both reasonable software solutions. Both companies provide full-service payroll, which includes limitless pay runs and direct payments as well as payroll tax processing and filing. Gusto, on the other hand, is less expensive, has better benefit alternatives, and more HR assistance and payment options. The direct deposit processing time in QuickBooks Payroll is quicker, and you can purchase health insurance in all 50 states instead of needing to check availability in specific areas.
We’ll go through the key features of Gusto and QuickBooks Payroll in depth below, but here are some suggestions to help you choose a payroll solution that meets your needs:
When Should You Use QuickBooks Payroll Instead of Gusto?
- QuickBooks accounting software is what you utilize.
- You want to provide health insurance to your workers that they may utilize in any state in the United States.
- You need next-day direct deposit processing at the very least.
When Should You Use Gusto Rather Than QuickBooks Payroll?
- You own a modest company with less than 100 workers.
- Third-party software integrations and specialist support are required.
- You want to be able to choose from a variety of employee perks.
- You want a low-cost solution for paying contractors as well as a full-service payroll.
Overview of Gusto vs. Intuit QuickBooks Payroll
Gusto vs. Intuit QuickBooks Payroll: What We Found
We utilized a 5-point scale to evaluate payroll solutions and services for small companies to compare the two vendors. We investigated whether HR tools and employee perks are included in their offers, in addition to employee pay and payroll tax processing. Ease of use, cost, and customer service are other important considerations, as is whether or not customers have access to HR and payroll experts.
Gusto had a better overall grade of 4.59 out of 5 based on our assessment criteria. QuickBooks Payroll has a 4.39 out of 5 star rating. To view our complete assessment criteria, click through the categories in the box below.
25% of the overall score
Payroll companies who provide a plan for one employee for less than $50 are scored higher (because to their affordability). We also looked at whether each supplier had clear pricing, a variety of plan choices, and limitless pay runs. Those that do not charge setup costs were also awarded extra points. In this area, both Gusto and QuickBooks Payroll received a flawless grade, however Gusto is somewhat less expensive.
25% of the overall score
We consider automatic payroll runs, payroll tax filing, 1099 form creation, manual check capabilities, and two-day direct payments to be vital payroll services. Providers get bonus points if they provide payroll services for both employees and contractors, as well as a penalty-free guarantee. Because of its extra payment methods and capabilities to automate local taxes, Gusto received a better grade in this category.
25% of the overall score
Payroll software that connects with standard third-party systems (like QuickBooks, Homebase, and When I Work) is given bonus points in addition to having a user-friendly, intuitive, and adaptable platform. We also looked for companies that give how-to tutorials, live phone help, and speedy customer response. Because of its online community and customisable design, QuickBooks Payroll fared well in this category.
10% of the overall score
One of the most important requirements is having access to a professional who can give expert assistance on compliance concerns, as well as new hire state reporting, online onboarding, and a self-service portal. The capacity to give employee benefits, like as health insurance and workers’ compensation, follows closely after these.
10% of the overall score
We started by looking at user evaluations on famous third-party sites such as G2, Capterra, and Software Advice. Then we added all the scores; any score of 4 stars or above with 1,000+ reviews is great. Gusto beat out QuickBooks Payroll in this category because it has more positive online reviews.
5% of the overall score
Extra points are awarded to providers that enable users to modify and build reports inside their payroll system. Those with a large number of premade reports (more than 60) are also given preference. In this region, Gusto and QuickBooks Payroll are tied.
*Percentages based on total score
Gusto and QuickBooks Payroll Shared Features
- In 50 states throughout the United States, full-service payroll is available.
- There are no limits to how much money you can make.
- Taxes and paperwork that are automatically generated
- Manage garnishments and deductions.
- Tools for reporting
- Expert assistance with the product
Gusto is the finest payroll solution for you if you require an inexpensive full-service payroll with strong HR assistance, employee benefit choices, and third-party software integration partners. It also provides a low-cost contractor payroll solution (priced at $6 per contractor monthly).
However, if you’re using QuickBooks accounting software and want access to health insurance coverage throughout the United States, QuickBooks Payroll is a good option. Unlike Gusto, the supplier boasts short direct deposit turnaround times, with next-day processing being the longest and same-day processing being the fastest.
By answering four simple questions about Gusto vs QuickBooks Payroll, you can determine which payroll solution is best for your company. Then read on to discover more about the two programs in this post.
We’ll offer you a tailored product match once you answer a few questions about your company.
Gusto Wins on Pricing
Gusto and QuickBooks Payroll both received 5 out of 5 points for pricing in our evaluation. The two providers offer three affordably priced product plans that come with There are no limits to how much money you can make.. However, if we compare the cost of their starter tiers, Gusto is more budget-friendly than QuickBooks Payroll.
With Gusto’s basic package, Core, you receive full-service payroll for $39 + $6 per employee every month. QuickBooks Payroll’s starting tier, also known as Core, is significantly more expensive, at $45 + $4 per employee every month.
Furthermore, if your team is mostly made up of contractors, Gusto’s contractor payroll plan is a more cost-effective option. Because QuickBooks Payroll does not have a separate price structure for contractors, you must pay the same rates as the other three plans.
- Gusto offers three different price plans: Core ($39 plus $6 per employee per month), Complete ($39 plus $12 per employee per month), and Concierge ($149 plus $12 per employee per month); Contractor ($6 per contractor per month).
- Core ($45 plus $4 per employee per month), Premium ($75 plus $8 per employee per month), and Elite ($125 plus $10 per employee per month) are the three QuickBooks Payroll price options.
Gusto Wins in the Payroll
Gusto and QuickBooks Payroll offer comparable feature sets when it comes to payroll processing. Both provide online delivery of Form W-2s and 1099s, as well as automated payroll and tax processing, year-end tax report creation, and online delivery of Form W-2s and 1099s. Gusto, on the other hand, obtained a better grade (4.75 out of 5) than QuickBooks Payroll based on our assessment criteria (4.25 out of 5).
Gusto received bonus marks for its ability to file and handle federal, state, and local taxes. Payroll tax payments and filings are available via QuickBooks Payroll, but only for state and federal taxes. You must print and submit the paperwork with or upload them to the appropriate local website for local taxes. Furthermore, Gusto’s payroll automation can process pay for both salaried and hourly employees, but QuickBooks Payroll’s automation is limited to salaried staff.
Gusto’s dashboard when it was being put up (Source: Gusto)
Setup of W-2 employee information (Source: Gusto)
When the Payroll Features in QuickBooks Payroll Aren’t Enough
If you need immediate direct payments, QuickBooks Payroll is a good option. Its entry-level plan offers next-day direct deposits, while the Premium and Elite levels provide same-day processing. Gusto, on the other hand, offers two-day direct deposits with its Core package and next-day processing with its Complete and Concierge plans.
Gusto Wins in HR Features and Employee Benefits
You receive a self-service portal with Gusto and QuickBooks Payroll that workers may utilize to access their pay stubs and employee benefits online. Both companies also give access to experts who can assist you with HR, payroll, and compliance issues.
Despite the fact that both provide HR functionality, Gusto received superior grades in this category. In our rating system, the supplier scored a 4.13 out of 5 star rating, while QuickBooks Payroll received a 3.75 out of 5 star rating.
New hire state reporting and a large choice of employee perk options are just a few of Gusto’s key HR capabilities (such as health insurance, commuter benefits, and flexible spending accounts). It even includes workers’ compensation management, which Gusto includes in all of its product plans. You also receive online offer letters, personalized onboarding tools, employee questionnaires, and a database of employees.
In contrast, QuickBooks Payroll can only prepare new hire state reports, and you must submit the reports yourself. It also only offers health insurance plans as a perk, and although it does provide workers’ compensation administration, it is only offered to Premium and Elite customers.
When the HR Features and Employee Benefits in QuickBooks Payroll Aren’t Enough
Although QuickBooks Payroll only provides health insurance as an employee benefit, it has the advantage of allowing your workers to utilize their benefit plans in any state in the United States. Gusto, on the other hand, limits the scope of its employee perks to select states.
Gusto provides an on-demand People Advisory Certification for free to gain experience in payroll, benefits, and HR. When you become People Adviser Certified, you may earn 5.0 CPE credits.
Gusto Wins in Ease of Use, Customer Support, and Integrations
Both providers provide a user-friendly and straightforward platform when it comes to simplicity of use. Gusto and QuickBooks Payroll both provide phone help, as well as HR advisors and how-to instructions. Gusto, on the other hand, offers a larger assortment of third-party software connectors.
QuickBooks Payroll, on the other hand, focuses on integrating with Intuit products. You’ll have to manually enter data from your accounting program into QuickBooks Payroll if you utilize your current accounting software. Gusto integrates with accounting, point-of-sale, company operations, and time-tracking software.
- FreshBooks, Xero, QuickBooks Online, ZipBooks, Sunrise, Homebase, QuickBooks Time, When I Work, Ximble, 7shifts, Clover, Upserve, Veryfi, Vagaro, and Hubstaff are just a few of the Gusto integrations.
- All Intuit products are integrated with QuickBooks Payroll.
User Experiences with Gusto and QuickBooks Payroll
- Gusto: It received 4.3 and 4.7 stars from G2 and Capterra users, respectively. Gusto’s top qualities, according to reviewers, include simplicity of use, a simple and intuitive UI, and strong customer assistance. It also assists small firms in complying with pay rules. Meanwhile, customers are complaining about software issues and a demand for more HR tools, reporting capabilities, and software integration choices.
- QuickBooks Payroll: On G2 and Capterra, users scored QuickBooks Payroll 3.8 and 4.5 ratings, respectively. “Easy to implement” and “user-friendly” were among the most common compliments. Customer service has gotten mixed reviews; some customers said that the help crew was unknowledgeable, while others felt they received excellent assistance. It also needs to have more comprehensive reporting options, according to others.
Conclusion
Start by evaluating how many workers you have (and want to have in the future), as well as your need for HR assistance and software integrations, to help you pick the ideal payroll solution for your company, whether it’s Gusto or QuickBooks Payroll. You should also decide whether or not you want to provide perks, and if so, which ones are negotiable.
QuickBooks Payroll may be a better alternative if you currently use QuickBooks accounting software. The learning curve will be significantly less than with other small company software, and you’ll be able to give health insurance benefits to your workers in any state.
Consider Gusto if you need more than simply health insurance benefits to attract top talent or if your company and workers are located in an eligible state. You’ll get access to greater onboarding and HR assistance, as well as more economical plan alternatives.
Gusto is a great place to visit.
You may also be interested in…
Best Payroll Services: How to Switch Payroll Providers Outsourcing Payroll
Gusto is a cloud-based payroll service that offers its services for free. QuickBooks Payroll, on the other hand, is an accounting software that charges monthly fees. The two are both highly popular and have their own pros and cons. Reference: gusto vs adp.
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