Gusto vs. QuickBooks: A Comprehensive Comparison

Still stuck doing payroll with spreadsheets? You're not alone. When you're busy running a business, the last thing you need is hours lost to crunching numbers and doing taxes.

With the right tool, you not only get your time back, your team will thank you when they get error-free pay stubs right on time.

If you're deciding between Gusto vs. QuickBooks Payroll, you’re already one step ahead. We compared both options side-by-side so you can choose the best fit for you and your team.

Key takeaways

• Gusto is best for small businesses that want simple payroll, HR tools, and automation all in one place, but it can get pricey for smaller teams.
• QuickBooks Payroll works well if you’re already using QuickBooks for accounting, but it comes with a learning curve.
• Homebase is the best alternative if you need payroll plus built-in scheduling, time tracking, and team management without juggling multiple apps and integrations.

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Why compare Gusto vs. QuickBooks?

We’re comparing Gusto vs. QuickBooks because they’re two of the most popular payroll options for small businesses, but they serve slightly different priorities.

• Gusto is designed for businesses that want an all-in-one payroll and HR solution
• QuickBooks Payroll is best for businesses already using QuickBooks for accounting and want payroll to fit right in

If you’re a small business owner trying to decide between a complete HR platform and an accounting-focused payroll tool, this breakdown can help you figure out which one’s right for you.

Looking for more payroll software comparisons? Check out our breakdown of Gusto vs. Homebase or explore other top payroll solutions.

The biggest differences between Gusto vs. QuickBooks

• Gusto wins if you want easy HR and payroll management in one place.
• QuickBooks Payroll wins if you’re already deep into the QuickBooks ecosystem and want your payroll to seamlessly sync with your accounting.

For example:

• Hiring new employees? Gusto helps you onboard and offer benefits without much hassle.
• Need payroll numbers to flow straight into your QuickBooks reports? QuickBooks Payroll is your go-to.

The biggest drawbacks of Gusto vs. QuickBooks

Here are the top drawbacks to keep in mind when debating between Gusto vs. QuickBooks: 

• Gusto can get pricey for small teams, and it's time tracking and scheduling features are basic. You might need other tools to fill the gaps.
• QuickBooks Payroll can feel clunky if you’re not already comfortable with QuickBooks. And some users report unexpected price hikes and slow customer support.

Both platforms work best if your business fits their strengths. But if you need a tool that’s flexible, simple, and made for hourly teams, you might want to look elsewhere.

Speaking of an affordable tool that covers more than the basics and doesn’t need you to be an accounting expert… 

Ditch the piles of paperwork and hire, manage, and pay your team with one simple app: Homebase. But don’t just take our word for it. Join today for free and poke around to see if it feels right.

Overview: Gusto at a glance

What is Gusto?

Gusto is a cloud-based HR and payroll app designed for small to mid-sized businesses. It’s especially popular among startups and growing businesses. 

Gusto is great if you're scaling steadily and need reliable payroll, HR, and compliance tools. But if you’re at a larger business, you may eventually outgrow it (if you haven’t already).

Gusto’s key features

• Easy to use: Gusto’s clean dashboard lets you run payroll in minutes—no manual calculations.
• Payroll automation: Set up auto-run payroll, automatic tax filing, and direct deposits.
• HR and benefits: Manage PTO, health insurance, 401(k) plans, onboarding, and employee documents.
• Customer support: Well-rated for friendliness and helpfulness, but some users report longer wait times during busy seasons.
• Pricing: Starts at $49/month + $6 per employee, with tiered options for growing businesses.

Gusto pros and cons

Pros:

• Smooth onboarding and simple setup, even if you’ve never run payroll before
• Seamless tax filing and compliance support, saving you the stress of understanding taxes by yourself
• Integrated HR and benefits management, so you don’t have to juggle extra tools
• High user ratings for intuitive design and ease of use

Cons:

• Gets expensive for teams with just a few employees
• Some users mention delays in getting help from support
• Minor issues with state-specific tax filings reported

Overview: QuickBooks Payroll at a glance

What is QuickBooks Payroll?

QuickBooks Payroll is payroll software built into the Intuit QuickBooks accounting system.

QuickBooks Payroll makes the most sense if you want all your accounting and payroll data under one roof. For example, if you’re already using QuickBooks Payments or QuickBooks Time, QuickBooks Payroll will be useful and smoother to transition to.

QuickBooks Payroll’s key features

• Tight accounting + payroll integration: Connects seamlessly to your QuickBooks books.
• Payroll processing: Direct deposits, automated tax filing, easy year-end tax prep.
• Employee self-service: Staff can view pay stubs, W-2s, and benefits info without asking you for it.
• Flexible scalability: Three different payroll plans for different team sizes.
• Pricing: Starts at $45/month + $5 per employee, with separate QuickBooks accounting costs.

QuickBooks Payroll pros and cons

Pros:

• Easiest if you’re already using QuickBooks for accounting
• Reliable tax filing and year-end reporting
• Flexible payroll scheduling options to fit your business cycles

Cons:

• Price increases have frustrated many longtime users
• Customer support is hit or miss
• It can be overwhelming if you’re new to QuickBooks tools

Gusto vs. QuickBooks: Features comparison

Payroll processing and automation

Gusto:

• Fully automated payroll runs
• Automatic tax deductions, filing, and payments
• End-to-end automation once you’re set up

QuickBooks Payroll:

• Reliable payroll processing, but more manual adjustments needed for bonuses, commissions, or irregular pay periods
• Solid automation for tax filing, but settings must be reviewed carefully during setup

Need more than just payroll? Homebase helps you end the team management chaos with an easy-to-use app that includes a time clock, HR, onboarding, and team messaging. Join for free today.

Tax compliance and filing

Gusto:

• Handles federal, state, and local taxes automatically
• Prepares and sends W-2s and 1099s without extra fees
• Basic compliance reminders are built into the app

QuickBooks Payroll:

• Automatic tax calculation and filing
• Solid support for regular payroll taxes
• Some users report confusion around compliance for multi-state employees

HR and benefits management

Gusto:

• Full suite: onboarding, benefits enrollment, PTO tracking, and compliance alerts
• Great if you need simple, plug-and-play HR support without buying another system

QuickBooks Payroll:

• Basic employee self-service for pay stubs and W-2s
• Limited built-in HR—requires third-party tools for full HR support

Ease of use

Gusto:

• Built for non-technical users
• Intuitive setup with guidance at every step

QuickBooks Payroll:

• Seamless if you know QuickBooks
• Tougher learning curve for new users unfamiliar with accounting tools

Customer support

• Gusto: Friendly and helpful, but peak times can slow responses.
• QuickBooks Payroll: Mixed experiences—some users get great help, others have complained about long wait times.

Gusto vs. QuickBooks: Best use cases for each payroll provider

When to choose Gusto

• You need payroll, HR, and benefits all in one place
• You want easy automation and "set-it-and-forget-it" payroll runs
• You’re looking for comprehensive tax compliance

Gusto is especially helpful for teams with part-time, seasonal, or remote employees who need simple digital onboarding and clear benefits options without extra paperwork.

When to choose QuickBooks Payroll

• You already use QuickBooks for accounting
• You want a simple payroll without additional HR tools
• You’re okay with a more basic tool to save money

QuickBooks Payroll is a good choice if you have straightforward pay structures, like salaried employees, and want to avoid extra HR costs by keeping things simple.

Gusto vs. QuickBooks Payroll: Integrations and use cases

Why payroll integrations matter

Payroll isn’t just about cutting checks. You need data to flow smoothly from your time clocks, HR systems, and accounting books without spending your weekends fixing errors.

And the cost of payroll errors can really add up. According to an Ernst and Young report about the risk of payroll errors, each time someone forgets to input a sick day, it can cost $705, and W-4 setup errors can cost $539 each. 

Having strong payroll integrations prevents pricey mistakes like those, on top of saving you time and. Plus, when you spend less time fixing mistakes, you have more time to grow your business.

Gusto integrations and use cases

Key integration categories

• Accounting: QuickBooks Online, Xero, FreshBooks
• Time tracking and team management: Homebase, TSheets, Deputy
• HR and benefits: Clover, Trainual, ThinkHR
• Business productivity: Slack, Asana, Google Workspace

Common use cases

• Sync Homebase or TSheets time tracking with Gusto to pay hourly workers without manual calculations
• Save time with automatic journal entries by connecting Gusto to QuickBooks or Xero
• Automate onboarding and compliance with Trainual and ThinkHR
• Stay updated from anywhere with Slack for payroll notifications and PTO requests

QuickBooks Payroll integrations and use cases

Key integration categories

• Accounting in QuickBooks ecosystem: QuickBooks Online, QuickBooks Time, QuickBooks Payments
• Time tracking and scheduling: QuickBooks Time (TSheets), Expensify
• HR and compliance: Mineral HR
• E-commerce and payments: Shopify, PayPal
• Business productivity: Microsoft 365, Google Workspace

Use cases:

• Automate your payroll or track  labor costs with QuickBooks Online
• Sync your team’s billable hours and other time tracking with QuickBooks Time
• Easily see your sales and payroll data from Shopify and PayPal
• Manage your  labor law and get compliance help with Mineral HR

Gusto vs. QuickBooks Payroll: Integration comparison

Here’s the gist of what to expect from Gusto vs. QuickBooks integrations.

Gusto is best if you want a flexible toolkit for HR, time tracking, and payroll. Its integrations include:

• Accounting: QuickBooks, Xero, FreshBooks
• Time tracking: TSheets, Homebase, Deputy
• HR and compliance: Trainual, ThinkHR, Clover
• E-commerce: Limited integrations
• Productivity tools: Slack, Asana, Google Workspace

QuickBooks Payroll is best if you’re already inside the QuickBooks accounting world. Its integrations include:

• Accounting: QuickBooks
• Time tracking: QuickBooks Time, Expensify
• HR and compliance: Mineral HR (limited options)
• E-commerce: Shopify, PayPal
• Productivity tools: Microsoft 365, Google Workspace

Why Homebase is the perfect choice for hourly teams

When comparing Gusto vs. QuickBooks, neither was designed specifically for businesses that rely on hourly workers like Homebase was.

We know that when you’re managing hourly teams, you need more than just payroll. You also need scheduling, time tracking, team communication, and HR. 

Homebase offers all that in one easy-to-use app, saving you the trouble of needing multiple tools and integrating them. That means fewer logins to remember and fewer bills to pay. Everything your team needs will be under one roof.

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1. Homebase has built-in employee scheduling and time tracking (unlike Gusto and QuickBooks)

The problem with Gusto and QuickBooks

Both Gusto and QuickBooks Payroll require third-party apps for scheduling and time tracking. That means extra subscriptions, extra setups, and extra stress.

Plus, when 82% of hourly workers say “their work schedule … affects their ability to be present with their families,” flexible, reliable scheduling isn't just about saving time—it’s about keeping your team happy and committed.

How Homebase solves this issue:

• Drag-and-drop schedules you can build in minutes
• Automatic shift reminders so you don’t have to worry about no-shows
• Easy for your team to clock in and out from any device, including POS systems

2. Seamless time tracking and payroll integration

Why this matters

Manual timesheet entry leads to more errors, slower processing times, and frustrated employees. And if you’re using Gusto, you may not have everything you need for the best time-tracking.

Homebase’s advantage

• Track hours automatically and send accurate hours straight to payroll
• Prevents early clock-ins and unapproved overtime, saving money on  labor costs
• Sync payroll across multiple devices without the mess (mobile, tablet, POS, computer)

3. Homebase helps you build and manage a stronger team

What’s missing from Gusto and QuickBooks:

Neither Gusto nor QuickBooks offers strong hiring or onboarding tools built into their payroll systems. This will leave you needing other tools or looking for manual workarounds, ultimately costing you a lot of time.

How Homebase gives you a hiring edge

• You can post jobs for free on top job boards within Homebase
• Track your applicants in one place from a dashboard
• Use our in-app onboarding tools so new-hires are ready from day one

4. Homebase makes team communication easy

What’s missing from Gusto and QuickBooks?

Both Gusto and QuickBooks rely on outside messaging apps, like email, SMS, and Slack, to coordinate with employees. The disconnect between your scheduling tool and team communications can cause confusion and no-shows.

Homebase’s built-in communication tools

• Message anyone on your team—individuals, specific teams, or the entire staff
• Easily send shift notes, team announcements, and urgent updates
• Use read receipts so you know who saw what

5. Homebase is designed specifically for hourly teams

Why This Matters

Gusto and QuickBooks are designed for general payroll management. But you don’t need overly simple or corporate-level complexity—you need a tool made for small businesses with hourly teams.

How Homebase is tailored for hourly teams

• Built for small businesses like yours—restaurants, retail, hospitality, and service industries
• Custom scheduling and compliance tools for managing hourly teams
• Multi-location support for businesses with multiple store locations

Both Gusto and QuickBooks Payroll have their strengths, but they’re not built with hourly teams in mind. If you’re juggling shift changes, tracking time, and keeping payroll compliant, you might find yourself cobbling together extra tools to cover everything.

That’s where Homebase comes in.

“I have used several different scheduling products and Homebase is by far the best! The scheduling, the ability to mass upload, the time clock, the time sheets, the reporting, the messaging! All of it is above and beyond anything I have ever used before!” — Brittany Wildman, Director of Campus Center & Events, Transylvania University

With Homebase, you get payroll, time tracking, scheduling, hiring, and team communication all in one app—so you’re not bouncing between systems or paying for integrations.

Ready to upgrade how your team gets paid—and everything else you manage day to day? Try Homebase for free today and see how easy it is to run payroll from anywhere (no math or paperwork required).

Frequently Asked Questions (FAQ)

What are the key differences between Gusto and QuickBooks?

The key differences between Gusto vs. QuickBooks are that Gusto has more of the tools you’ll need to manage a team, while QuickBooks Payroll is more for payroll and taxes.

Gusto is an all-in-one payroll and HR tool with built-in benefits management, onboarding, and compliance help. QuickBooks Payroll focuses mainly on payroll and tax management, making it a good fit for businesses already using QuickBooks accounting.

Why is Gusto better than QuickBooks?

Gusto is better than QuickBooks if you want a full HR and payroll toolkit without juggling multiple apps. It offers stronger employee benefits, onboarding, and compliance tools compared to QuickBooks.

QuickBooks Payroll is mainly an accounting tool, so it’s less useful to teams who need a full toolkit for managing their small business teams.

Why are people leaving QuickBooks?

People are leaving QuickBooks because of its limited toolkit and integrations, rising costs, and frustrations with customer support. Some businesses outgrow QuickBooks and need more integrated HR and team management tools.

Does Gusto do bookkeeping?

No, Gusto doesn’t handle bookkeeping or accounting. However, it integrates with popular accounting apps like QuickBooks Online, FreshBooks, and Xero to sync payroll expenses.

How does Gusto compare to QuickBooks payroll for small businesses?

Gusto is a better fit for small businesses that want simple, automated payroll plus HR tools like onboarding, benefits, and compliance tracking. QuickBooks Payroll works well if you already use QuickBooks for accounting and only need basic payroll services.