How to Choose Between Gusto, ADP, and Justworks

Compare payroll platforms by cost per employee, features, and compliance needs to pick the right fit for your business size.

1. Calculate your monthly cost per employee. Gusto runs $40 base + $6 per employee monthly. ADP starts around $59 base + $4 per employee. Justworks charges $59-99 per employee with no base fee. At 10 employees, Gusto costs $100, ADP costs $99, Justworks costs $590-990.
2. Map your compliance requirements. If you need workers' comp, health insurance administration, or multi-state compliance, Justworks handles this through their PEO model. Gusto and ADP require you to source these separately. PEO models cost more but shift liability.
3. Check your integration needs. ADP integrates with 400+ accounting and HR systems. Gusto connects to QuickBooks, Xero, and 100+ apps. Justworks has fewer integrations but deeper ones for benefits administration. Match this to your existing software stack.
4. Test the user experience. Gusto wins on interface simplicity. ADP offers the most customization but requires setup time. Justworks sits between them. Run a demo with actual employee data to see processing speed and error rates.
5. Factor in your growth trajectory. Under 15 employees, Gusto typically costs least. 15-50 employees, ADP often wins. Above 50 employees, enterprise ADP pricing kicks in. Justworks makes sense if you want to outsource HR entirely, regardless of size.