Your renewal notice from Gusto just arrived, or a payroll mistake took a week of support tickets to fix, or you have hired your first employee in a second state and the plan you are on no longer fits. You start searching for a Gusto alternative and find dozens of “best payroll software” lists that all rank the same names in a different order. What you actually need to know is which kind of provider fits a business like yours.
The useful answer is: before comparing brands, decide which type of payroll and benefits setup you need. Straightforward payroll software such as OnPay costs about the same as Gusto. A PEO such as Justworks costs several times more per employee but bundles benefits access and HR compliance. All-in-one HR and IT platforms and traditional full-service providers usually quote per customer. Most switching regret comes from moving to a different brand of the same thing without fixing the underlying problem.
First, name the problem you are solving
- Price. Compare like for like at your headcount, including add-ons you actually use.
- Support quality. Ask for trial access to support, not only the demo team.
- Benefits. If you cannot get decent health insurance options as a small employer, a PEO may be the real answer.
- Multi-state or remote hires. Check state registration support and whether it costs extra.
- HR and compliance. Handbooks, onboarding, performance and HR advice sit on higher tiers or different products.
- Integrations. Accounting, time tracking and expense tools matter more as you grow.
What Gusto and two common alternatives charge
These are published list prices as of September 2026. Always check current pricing and promotions.
- Gusto: Simple $49 a month plus $6 per person; Plus $80 plus $12 per person, adding multi-state payroll, next-day pay and time tracking; Premium $180 plus $22 per person, adding a dedicated service advisor and HR expert access. A contractor-only plan is also available.
- OnPay: $49 a month plus $6 per employee for payroll, with W-2s, 1099s, tax filings and unlimited pay runs included; HR and time tracking are optional add-ons.
- Justworks: Payroll at $50 a month plus $8 per employee; PEO Basic at $79 per employee per month; PEO Plus at $124 per employee per month.
Rippling, ADP and Paychex price mainly by quote, so compare them with a written proposal at your actual headcount.
A worked comparison for a 12-person company
Take a hypothetical 12-employee business in one state, using the list prices above and excluding benefits premiums and add-ons.
| Option | Monthly cost | What you get |
|---|---|---|
| Gusto Simple | $49 + 12 × $6 = $121 | Single-state payroll and tax filings |
| OnPay | $49 + 12 × $6 = $121 | Payroll, filings, year-end forms |
| Justworks Payroll | $50 + 12 × $8 = $146 | Payroll without PEO services |
| Gusto Plus | $80 + 12 × $12 = $224 | Adds multi-state, next-day pay, time tracking |
| Justworks PEO Basic | 12 × $79 = $948 | PEO services including access to benefits and HR compliance support |
Two things stand out. Payroll-only software is close to a commodity at this size, so support quality and features you use should decide it. And the PEO costs far more on paper, which only makes sense if it gets you benefits or HR support you would otherwise pay for separately, or could not get at all.
Payroll software vs PEO: the real difference
With payroll software, you remain the employer for every purpose. The software calculates pay, files taxes and produces forms, and you choose your own benefits broker and HR support.
A professional employer organisation takes on a co-employment role for HR administration and often lets small businesses join its benefits plans, which can mean options that are hard for a 12-person company to get alone. The trade-off is higher cost, less flexibility on plan choice and a more involved exit if you leave, because benefits move with the PEO.
The IRS runs a certification programme for professional employer organisations (CPEOs). If a PEO matters to you, ask whether it is IRS-certified and what that means for tax responsibilities under your agreement.
Whatever you choose, some responsibility stays with you
The IRS is blunt about this: the employer is ultimately responsible for depositing and paying federal employment taxes, even when a payroll provider handles it. It recommends enrolling in EFTPS yourself so you can check deposits are being made, and not changing your IRS address of record to the provider’s address. We explored what that means in practice in your payroll provider’s support got worse, but the liability did not move.
How to switch without a messy quarter
- Switch at the start of a quarter, ideally the start of a year. Mid-year changes are possible but add work reconciling year-to-date figures and year-end forms.
- Export everything first: pay history, tax filings, year-to-date totals, deductions, PTO balances and employee documents.
- Run a parallel payroll on the new system and compare net pay to the cent before going live.
- Check state tax account registrations are transferred or updated.
- Tell employees about the new login, pay stubs and any change in pay dates.
- Confirm benefits deductions match carrier invoices in the first month.
Questions to ask any provider
- What will we pay monthly at our headcount, including every feature we need?
- Who handles tax notices, and is there a fee?
- How quickly do support tickets get resolved, and can we speak to a person?
- What does it cost to add an employee in a new state?
- If we leave, what data do we get and in what format?
Getting payroll right, whichever platform you choose
The platform is only part of reliable payroll; the other part is someone checking the inputs, reconciling the outputs and chasing notices. AB7 Solutions provides finance and accounting support that includes payroll processing assistance, reconciliations and bookkeeping, working inside the payroll platform you use, whether that is Gusto, OnPay, Justworks or another provider. We can also help you plan and run a switch. We do not sell payroll software, so we can compare options without a commission riding on the answer.
Tell us your headcount, states and what is going wrong with your current setup, and we will help you decide whether to switch and to what.
Email: ab@ab7solutions.com | director@ab7solutions.com
Phone: +91 9878067778 | +1 321 341 7733
Website: www.ab7solutions.com
Sources: Gusto pricing; OnPay pricing; Justworks pricing; IRS, Outsourcing payroll duties; IRS, Certified professional employer organizations. Prices as published in September 2026.