Gusto vs. Justworks: Choose the Best Payroll and HR Platform for Your Business

Ever had an employee tell you they didn’t get paid properly? Suddenly, you’re triple-checking pay runs, staying up late, and hoping it never happens again.

Payroll mistakes don’t just cost time—they can cost trust with your team. That’s why choosing the right payroll and HR platform matters.

If you’re deciding between Gusto vs. Justworks, we break down their features, pricing, pros, and cons to help you choose the one that’ll help you sleep better and maintain your team’s trust.

Key takeaways

• Gusto is ideal for small to mid-sized businesses looking for an affordable, easy-to-use payroll and HR solution with transparent pricing
• Justworks is better for companies that want more hands-on compliance and benefits support with a PEO (professional employer organization) model—where you outsource HR and payroll management to the other company
• Homebase is the best choice for small businesses, especially if you manage hourly teams and want an affordable all-in-one tool for HR, payroll, scheduling, and team messaging

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Why compare Gusto vs. Justworks?

Both Gusto and Justworks are reliable payroll and HR tools. Think of their differences like picking between a DIY platform (Gusto) and a managed service (Justworks). Both can get the job done—it just depends on how much help you want.

If you're interested in how Gusto squares up with another payroll and HR software solution, check out what we have to say about Gusto vs. TriNet.

What is Gusto?

Gusto is a cloud-based payroll and HR platform made for small businesses. It simplifies payroll, taxes, and benefits so you can spend less time on admin work and more time growing your team.

If you’re looking for affordable, user-friendly software with transparent pricing, automation, and no outsourcing, Gusto is a strong choice.

What is Justworks?

Justworks is a PEO (professional employer organization) that acts as a co-employer for small businesses. This allows you to access better benefits and offload payroll and HR.

 So, while your team is happy with their compensation and HR, you have more time to focus on other parts of your business.

If you want outsourced HR help with compliance and benefits at scale, Justworks might be the solution for you.

Feature comparison: Gusto vs. Justworks

Key differences in features

Here’s the TL;DR for the feature differences between Gusto vs. Justworks:

• Gusto is designed for small businesses looking for a streamlined, self-service payroll and HR system.
• Justworks provides a PEO model, meaning it acts as a co-employer to help businesses manage payroll, compliance, and benefits under a shared legal framework.
• Pricing structures vary: Gusto has a transparent fee structure, whereas Justworks operates on a per-employee pricing model with PEO services.

If you’re thinking Justworks’ PEO model isn’t right for you, check out how Gusto and Homebase compare—maybe one of these will be the perfect tool for you.

Or, if you want to skip the reading and jump right into testing: Homebase has everything you need to manage hourly teams, from payroll and scheduling to HR and hiring. Join for free today. 

Employee benefits

Gusto offers essential benefits like health insurance, 401(k) retirement plans, and workers’ compensation. It’ll help you build a competitive package for a small team without breaking the bank.

Justworks brings you into the world of enterprise-level benefits—including health, dental, vision, and wellness—at rates usually reserved for bigger companies. That’s especially valuable when employees at small businesses typically face higher health insurance premiums and deductibles than those at large businesses.

Time tracking

Gusto includes basic time tracking and time clock tools. Employees can clock in and out, and managers can approve hours, all in the same system.

Justworks goes a step further with time tracking, plus paid time off (PTO) management and reporting, so you can handle more of your team management in one place.

HR features

Gusto covers the essentials with employee self-service, hiring tools, and compliance resources. Keep the HR side of your business organized without needing to be an expert (or hiring one).

Justworks acts more like a full HR department. You’ll get outsourced HR support, compliance assistance, and risk management guidance. This is especially valuable if you don’t have in-house expertise and don’t have the time to manage HR yourself.

Compliance support

Gusto helps you stay compliant with payroll taxes and basic labor laws, automatically updating to stay current with regulations. Taxes will be a breeze (or at least much less stressful) with automated compliance.

Justworks offers more advanced compliance support, covering multi-state employment laws and federal regulations. If you’re hiring across state lines or planning to scale nationally, Justworks has you covered.

Payroll processing

Gusto fully automates payroll, including tax filings at the federal, state, and local levels. You can even set it to run automatically so you’re not rushing every week.

Justworks handles payroll, too, but with the added benefits of a professional employer organization (PEO) model. This means your business enters a co-employment relationship with Justworks, who takes over your HR, payroll, benefits, and compliance.

A PEO model gives you HR support without losing control of your company. But it isn’t for everyone. 

If you don’t want to give up complete control of your payroll and HR and only want some support (think automated payroll and taxes and hiring resources), Homebase can help.

Your timesheets and payroll will be in one place. It’ll be easier than ever to run payroll without doing math or opening multiple tools. See for yourself by signing up for free today.

Pricing transparency

Gusto makes pricing easy to understand with structured plans based on your company’s size and needs. You can check prices directly on their website and know what to expect.

Justworks uses a flat-rate pricing model, but costs increase as you add more employees. You’ll need to request a quote to get an exact number, and the price may fluctuate as your team grows.

Customer support

Gusto offers support through chat, email, and phone, so there’s always a way to ask for help when you need it, but wait times will vary depending on whether it’s a busy period.

Justworks provides 24/7 customer support and access to HR specialists. If you want round-the-clock guidance or personalized help with HR issues, Justworks delivers.

Scalability

Gusto is ideal for startups and growing small businesses that need simple, reliable tools to manage payroll and HR without complexity. If you’re getting a payroll tool for the first time, Gusto might be the right starter tool for you.

Justworks is built for businesses planning to scale fast. Whether you’re expanding across states or adding dozens of employees, its PEO structure and compliance tools are designed to grow with you.

Gusto: Pros and cons

Advantages of Gusto

• User-centric design: Built for business owners with limited HR experience.
• Straightforward pricing: Easy-to-understand costs with no hidden fees.
• Comprehensive HR tools: Payroll, hiring tools, and tax filing all in one place.
• Integrations: Syncs with QuickBooks, Xero, and other accounting software.
• Self-service employee portal: Employees can access pay details and tax documents.

Bottom line: Gusto makes payroll and HR simple and accessible for small businesses that want an all-in-one solution without a steep learning curve or an in-house expert.

Drawbacks of Gusto

• Basic compliance features: Lacks extensive risk management tools found in PEOs.
• Not ideal for enterprise growth: More suited for small teams rather than rapidly scaling businesses.
• Customer service wait times: Can experience delays during high-traffic periods.

In short: While Gusto covers the basics well, it may fall short for businesses that need deeper compliance support or plan to scale quickly.

Justworks: Pros and cons

Advantages of Justworks

• Full-service HR: Covers payroll, compliance, and benefits in a single platform.
• Co-employment model: Helps you handle risk management and legal compliance.
• Enterprise-level benefits: Access to medical, dental, vision, and retirement plans at competitive rates.
• 24/7 customer support: Round-the-clock assistance from HR specialists.
• Multi-state compliance: Helps you navigate labor laws in different locations.

Bottom line: Justworks’s co-employment model gives you peace of mind with their sophisticated compliance and benefits management. So, it’s ideal for businesses with complex HR needs across multiple states.

Drawbacks of Justworks

• More expensive for smaller teams: Pricing is higher due to PEO services.
• Less flexibility in HR management: You’re giving up some control over your HR function.
• Requires co-employment agreement: You may not want to engage in a PEO relationship.
• Not ideal for companies wanting direct control: If you prefer in-house HR, you may find the outsourcing model to be restrictive.

In short: The trade-off with Justworks is higher costs and less control in exchange for greater HR and compliance support—something not every small business wants or needs.

Gusto vs. Justworks: Pricing breakdown

Choosing between Gusto vs. Justworks also depends on pricing and what benefits you’ll get for your money. Here’s a quick look at how they compare.

Gusto Pricing

Gusto offers tiered pricing, so you can pick the plan based on the level of HR features you need: 

• Basic plan: Payroll and benefits administration for small teams.
• Growth plan: Expanded HR tools, including onboarding and compliance resources.
• Premium plan: Full HR suite with dedicated support and workforce management.

Each plan builds on the last, so you’ll pay more as you add features, but it stays transparent and scalable for growing businesses.

Justworks Pricing

Justworks uses a flat monthly pricing model based on the number of employees:

• Flat monthly pricing: Includes all core PEO services like payroll, compliance, and benefits.
• Higher costs for small businesses: Pricing favors businesses with more employees to offset the expense—if you have a small team, this might make Justworks too pricey for you.
• Additional costs for custom features: Some compliance or HR services may come with extra fees.

Justworks’ pricing structure makes the most sense for businesses that need enterprise-level support or are planning to grow across states.

Plus, when the majority of HR professionals are overworked and 56% don’t have enough teammates to distribute the work, then the cost of a PEO might actually make a huge difference for you and your team.

Cost Considerations

The highlights of Gusto vs. Justworks cost considerations are:

• Gusto is a better option for businesses that want a predictable and affordable payroll solution.
• Justworks is ideal for companies that prioritize full-service HR support and employee benefits.
• PEO pricing structures mean Justworks may be costlier for small teams, but more valuable for larger organizations.

Not quite sold on either? You might also want to explore other payroll and HR alternatives that cater to your team’s needs better.

Why Homebase is a better alternative to Gusto and Justworks

Homebase is a strong alternative to Gusto and Justworks because we’re an all-in-one team management tool designed specifically for small businesses with hourly teams.

What is Homebase?

Homebase is your one-stop shop for all things payroll and HR. 

The app was made by people who know first-hand the struggle of managing hourly teams with tons of paperwork and manual calculations. This makes Homebase perfect for small businesses in industries like retail, restaurants, and hospitality.

What our app includes:

• Payroll processing: Automated payroll, tax filing, and direct deposits—your team is always paid accurately and on time, and you don’t have to write in a single spreadsheet.
• Employee scheduling: Simplified scheduling with an easy drag-and-drop interface—say bye-bye to confusing and tedious handwritten schedules.
• Time tracking: Track employee hours, manage PTO, and ensure labor law compliance.
• Team communication: Easily share shift notes and updates with your team in the same place where they check their schedule and clock in and out.
• Hiring and onboarding: Helps businesses recruit, onboard, and manage employee documentation.

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Benefits of choosing Homebase over Gusto and Justworks

When comparing Gusto and Justworks, many small businesses find that neither solution fully addresses the unique challenges of hourly teams. That’s where Homebase stands out. 

With tools built specifically for small, service-based businesses, Homebase offers an all-in-one platform that simplifies payroll, scheduling, and HR without complexity or high costs.

What that means for you:

• All-in-one team management: Payroll, scheduling, and HR in one place, so you can access it from anywhere, whether you’re in your office or at home on the weekend.
• Budget-friendly for small businesses: More affordable than Justworks, with a pricing structure suited for small teams.
• User-friendly: Designed for people who aren’t HR experts.
• No co-employment requirement: Unlike Justworks, Homebase does not require a PEO agreement.
• Better scheduling and time tracking: Gusto and Justworks require third-party integrations for advanced scheduling features.

Why businesses prefer Homebase

For thousands of small businesses, Homebase isn’t just another HR tool—it’s their secret weapon for keeping their teams organized, paid on time, and feeling supported.

Small businesses prefer Homebase because:

• We’re more affordable than Justworks and simpler than Gusto.
• We’re built for service-based industries like restaurants, retail, and hospitality.
• We eliminate the need for multiple tools by combining payroll, HR, and scheduling.

“As a small business I want to leverage tools that will help me with systems AND make things easier for my team. Our Fuzzy Goat team is the most important part of our success; using Homebase even allowed me to be able to add Paid Time Off to their benefits - this is a huge win for our small shop.” — Cadence Kidwell, Owner, Fuzzy Goat

With Homebase, you get more than just software—you get a partner that understands the day-to-day needs of small business owners. 

And you don’t have to agree to a PEO relationship (like Justworks) or use a tool that might not cover everything you need (like Gusto) to reap those benefits.

To recap:

• Homebase is the best tool if you want an affordable, easy-to-use platform that combines payroll, HR, scheduling, and time tracking—without needing a separate PEO agreement or extra integrations.
• Gusto is a great option if you’re a small business owner who wants straightforward payroll and HR tools that you can manage yourself.
• Justworks may be a better fit if you’re looking for outsourced HR help, stronger benefits packages, and full compliance support under a co-employment model.

Are you ready to break free from timesheet tyranny and see how easy it is to calculate hours and run payroll without touching a single calculator or spreadsheet? Try Homebase today for free.

Frequently Asked Questions (FAQ)

Can I switch from Gusto to Justworks or another payroll provider?

Yes, businesses can migrate payroll and HR data between platforms, but switching to Justworks involves entering a PEO agreement, which may require additional paperwork.

Is Justworks better than Gusto for compliance?

Yes, Justworks is better than Gusto for compliance because they offer a more robust compliance structure, particularly for businesses operating in multiple states or those that need extensive HR support.

How does Homebase compare to Gusto and Justworks?

Compared to Gusto and Justworks, Homebase is a better choice for small businesses that need payroll, scheduling, and time tracking in one system. Unlike Gusto and Justworks, Homebase is specifically designed for hourly workforces in industries like retail and hospitality.

Which payroll and HR platform is more cost-effective?

Homebase is the most cost-effective payroll and HR platform for small businesses. You get everything you need to manage your team, payroll, and HR in one app. Gusto is also an affordable option for small businesses that only need the basics. And Justworks is costlier due to its PEO services, but provides enterprise-level benefits.