Gusto vs ADP: Payroll Pricing and Features (2026)

Quick answer: Gusto is generally the simpler, more transparent choice for small teams: as of October 2026 it lists plans from $49 a month plus $6 per person, with automatic tax filing on every plan. ADP RUN is quote-based and suits businesses that want a long-established provider, dedicated service teams and a path to larger HR and PEO options as they grow.

Choosing between Gusto vs ADP usually comes down to price transparency, how much HR you need and how big you expect to get. Both run full-service payroll: they calculate wages and withholding, pay employees by direct deposit, file payroll tax returns and produce W-2s and 1099s. This comparison covers pricing as of October 2026, features, a cost example and the mistakes to avoid when switching.

What are Gusto and ADP?

Gusto is a cloud payroll and HR platform founded in 2011, built for small businesses. It is known for its clean interface, published pricing and automatic payroll tax filing in all 50 states.

ADP (Automatic Data Processing) is one of the largest payroll and HR providers in the world, founded in 1949. Its small business product is RUN Powered by ADP, typically for companies with about 1 to 49 employees. Larger employers use ADP Workforce Now, and ADP TotalSource is its professional employer organization (PEO).

How much do Gusto and ADP cost? (as of October 2026)

Gusto pricing

Gusto publishes its prices. As of October 2026, its plans are listed as follows (verify on Gusto's pricing page, since prices and promotions change):

Gusto plan	Monthly base	Per person per month	Highlights
Contractor Only	$35 (base fee sometimes waived by promotion)	$6 per contractor	Contractor payments, 1099 preparation
Simple	$49	$6	Full-service single-state payroll, tax filing, employee self-service
Plus	$80	$12	Multi-state payroll, time tracking, onboarding and HR tools
Premium	$180	$22	Advanced HR, HR expert access, dedicated support

Gusto also lists paid add-ons, such as priority support and state compliance services. Gusto's base price rose earlier in 2026, so older reviews quoting lower figures are out of date.

ADP RUN pricing

ADP does not publish prices for RUN. You get a quote from a sales representative based on your headcount, pay frequency, states and the package you choose. RUN comes in four packages:

ADP RUN package	What it adds
Essential Payroll	Payroll processing, direct deposit, tax filing, new hire reporting
Enhanced Payroll	Adds items such as state unemployment insurance management, background checks and labor law posters
Complete Payroll and HR Plus	Adds HR tools, an employee handbook wizard and HR support
HR Pro	Adds deeper HR support, training and legal resources

Third-party estimates for ADP RUN conflict and cannot be confirmed against an official ADP price list, so treat any figure you see online as rough and ask for a written quote. ADP frequently offers promotions such as free months for new clients. Time tracking, benefits administration, workers' compensation and retirement plans are typically separate add-ons. Details are on ADP's RUN page.

Gusto vs ADP: feature comparison

Feature	Gusto	ADP RUN
Pricing	Published online	Quote only
Automatic federal, state and local tax filing	Yes, all plans with employees	Yes
Unlimited pay runs	Yes	Depends on package and quote
Contractor payments and 1099s	Yes, including a contractor-only plan	Yes
Multi-state payroll	Plus and Premium (or add-on)	Yes
Time tracking	Included from Plus	Add-on
Benefits administration	Health, 401(k) and others through Gusto's brokerage and partners	Through ADP and partners, often an add-on
Workers' comp pay-as-you-go	Through partners	Through ADP's insurance agency
HR support	HR resources; expert access on Premium or add-on	HR support on higher packages
Growth path	Plans scale to mid-size companies	Workforce Now for larger firms, TotalSource PEO
Accounting integrations	QuickBooks, Xero and others	QuickBooks, Xero and others

Worked example: what will payroll cost for 10 people?

A landscaping company has 8 W-2 employees and 2 contractors paid each month, all in one state. Gusto counts each active employee and contractor paid in the month toward the per-person fee.

Gusto plan	Calculation	Monthly cost	Annual cost
Simple	$49 + (10 x $6)	$109	$1,308
Plus	$80 + (10 x $12)	$200	$2,400
Premium	$180 + (10 x $22)	$400	$4,800

To compare fairly, ask ADP for a written quote for the same 10 people, the same pay frequency and the features you actually need (for example, time tracking). Then compare annual totals including add-ons, setup fees and the price after any first-year promotion ends. Payroll software fees are separate from the employer payroll taxes you owe, such as the employer half of FICA, FUTA on the first $7,000 of each employee's wages and state unemployment.

What does payroll cost beyond the software fee?

Whichever provider you choose, the subscription is the smallest part of payroll. Employer taxes are the same on Gusto and ADP, because they are set by law, not by the vendor. For one employee earning $50,000 a year in 2026, the federal employer costs look like this:

Employer cost	Rate	Annual amount on $50,000
Social Security (employer share)	6.2% up to the $184,500 wage base	$3,100
Medicare (employer share)	1.45%, no cap	$725
FUTA	Effectively 0.6% on the first $7,000 with full state credit	$42
State unemployment (SUTA)	Varies by state and experience rating	Check your state notice
Workers' compensation	Varies by state, job class and insurer	Quote from insurer

Gusto and ADP calculate, deposit and file these for you, but they do not reduce them. What the software does reduce is the risk of late deposit penalties and the time you spend on filings. See our guide to workers' compensation insurance for how pay-as-you-go policies through payroll providers work.

What payroll tasks do both providers handle?

For businesses with W-2 employees, both Gusto and ADP RUN cover the core full-service payroll jobs:

• Calculating gross pay, overtime, federal and state income tax withholding and FICA.
• Paying employees by direct deposit, with paper checks or pay cards as options.
• Depositing federal and state payroll taxes on the required schedule.
• Filing quarterly Form 941 and state withholding returns, annual Form 940, and state unemployment reports.
• Producing W-2s for employees and 1099-NEC forms for contractors paid through the system.
• Reporting new hires to the state, as required for child support enforcement.
• Handling deductions for health insurance, retirement plans and wage garnishments.

The differences are mostly about price, how much HR is bundled, the interface and support style, rather than whether taxes get filed.

How does setup and switching work?

Setting up either provider takes the same raw information: your EIN, legal business name and address, state withholding and unemployment account numbers and rates, bank account for debits, employee details (W-4, I-9 completed and kept on file, direct deposit, pay rate) and, if you have paid anyone this year, year-to-date payroll totals. Gusto handles most of this through an online checklist and employee self-onboarding; ADP usually assigns a specialist to collect it.

Switching providers is easiest on January 1 or the first day of a quarter. If you switch mid-quarter, the new provider files the full quarter's Form 941 using your prior payroll data, so accurate year-to-date figures for every employee are essential. Ask the old provider for a final payroll register, tax filing confirmations and any credit balances on tax accounts before you cancel.

Which is easier to use?

Gusto is widely regarded as easier for first-time employers. Setup walks you through company details, state tax registrations, bank verification and employee onboarding, and employees enter their own W-4 and direct deposit details. Running payroll is typically a few clicks once hours are entered.

ADP RUN has a more traditional interface, but many owners like having an ADP representative help with setup and changes. ADP also offers a mobile app for running payroll and for employees to view pay stubs. If you have never run payroll, read hiring your first employee first so you know which registrations you need before either platform can file taxes for you.

How to choose between Gusto and ADP

1. Count your people. Include employees and contractors paid each month, and where they live and work.
2. List must-have features. Time tracking, multi-state payroll, benefits, workers' comp, HR handbook, PTO tracking.
3. Price Gusto online using the published plan rates for your headcount.
4. Request an ADP quote in writing with the same assumptions, and ask what the price will be after promotions end.
5. Check integrations with your accounting, time tracking and point-of-sale software.
6. Ask about support hours on payroll deadline days and how errors are fixed.
7. Review the contract for minimum terms, cancellation fees and year-end form charges.
8. Plan the switch date for the start of a quarter if you are moving from another provider.

When Gusto is the better fit

• You have fewer than about 50 employees and want predictable published pricing.
• You pay a mix of employees and US contractors and want one system.
• You want employee self-service onboarding with minimal paperwork.
• You prefer to set things up yourself online rather than through a sales rep.

When ADP is the better fit

• You expect to grow past 50 employees and want to stay with one vendor as you move to Workforce Now.
• You want a PEO option (TotalSource) for benefits and co-employment.
• You value a dedicated service relationship and are comfortable negotiating price.
• You operate in many states or have complex compliance needs and want ADP's scale.

Common mistakes when choosing payroll software

• Comparing only the base price. Per-person fees, add-ons and post-promotion rates often matter more.
• Forgetting contractors. Contractors paid through the platform count toward per-person pricing. If you pay contractors by invoice instead, see how to pay contractors and collect a W-9 first. Contractors can send you bills from any tool, including our free invoice generator.
• Misclassifying workers. Payroll software will not fix a W-2 vs 1099 classification error. The 1099-NEC reporting threshold is $2,000 for payments made in 2026.
• Switching mid-quarter without year-to-date data. This causes wrong W-2s and mismatched quarterly filings.
• Ignoring state registrations. Neither provider can file until you have state withholding and unemployment accounts.
• Not testing direct deposit timing. Know your provider's processing deadlines so employees are paid on time. See setting up direct deposit.

What about doing payroll yourself?

A business with one or two employees can run payroll manually using IRS Publication 15 withholding tables, quarterly Form 941 filings, annual Form 940 and year-end Form W-2. It saves subscription fees but takes time and carries penalty risk if a deposit is late. Our guide to doing payroll yourself explains the steps, and the IRS employment taxes page lists the forms.

Gusto vs ADP: final verdict

In the Gusto vs ADP decision, Gusto wins on transparent pricing and ease of use for small teams, while ADP wins on scale, service relationships and a clear path to enterprise HR and PEO services. Get both totals in writing for your real headcount before deciding. Payroll pays your team; invoices bring the money in, and steady collections are what keep payroll funded. For billing clients on time, use our free invoice generator, or start from one of the invoice templates: no account needed, and it builds a downloadable PDF in your browser.