Payroll Comparison 2026
Gusto vs. Paylocity
Paylocity is a full human-capital-management platform aimed at mid-sized employers, with strong reporting, engagement, and workforce tools. It's more than most small businesses need, and pricing requires a sales quote. Gusto covers the payroll, benefits, and HR essentials small teams actually use, with pricing you can see up front.
| Feature | Gusto | Paylocity |
|---|---|---|
| Base price | $40/mo | Custom quote |
| Per employee | $6/employee/mo | Quote-based |
| Contractor payroll | $35/mo + $6/contractor | Custom quote |
| Payroll tax filing | Automatic, all 50 states — included | Included |
| Benefits administration | Health, dental, vision, 401(k), HRA | Full HCM benefits suite |
| Time tracking | Built in (Plus & Premium) | Included module |
| Intro offer | First month free + $300 offer | Demo-based |
| Support | Phone, email, chat | Assigned account team |
| Best for | Small businesses that want payroll + HR + benefits in one place | Mid-market companies wanting a full HCM suite |
Pricing as of 2026 from each provider's public pricing pages. Confirm current rates before purchasing.
Where Gusto wins
- Right-sized and priced for small businesses
- No sales quote to get started
- Faster, self-serve setup
Where Paylocity wins
- Enterprise-grade HCM, reporting, and engagement tools
- Better for 100+ employee organizations
The bottom line
Paylocity is a full HCM suite built for mid-market employers who need advanced reporting, engagement, and workforce tools — and who'll go through a sales quote to get them. For a small business, that's more platform than needed. Gusto covers the payroll, benefits, and HR essentials at a price you can see up front.
New customers can earn a $300 Visa card (up to $600 for teams of 10+) for running their first payroll with Gusto. Choose Paylocity if mid-market companies wanting a full hcm suite.
Gusto vs. Paylocity — FAQs
Is Gusto cheaper than Paylocity?
For small businesses, almost always. Paylocity is quote-only and priced for mid-market HCM; Gusto publishes $40/mo + $6/employee. Paylocity's value shows at larger headcounts that use its full suite.
Is Gusto or Paylocity better for a small business?
Gusto. It's right-sized and self-serve for small teams, while Paylocity's enterprise-grade HCM features and reporting are aimed at 100+ employee organizations.
Can I switch from Paylocity to Gusto?
Yes. Gusto imports employee and payroll data and guides tax setup, so a small business can move off Paylocity without a heavy migration.