Gusto VS Justworks

Gusto vs Justworks: Which HR & Payroll / PEO Platform Is Right for You?

If you are an HR manager or a business that is looking for HR software, then you must have heard of Gusto and Justworks. These two are the most famous names for US businesses.

Gusto is a well-known platform for all-in-one small-business payroll and HR. whereas Justworks is a certified PEO (Professional Employer Organization) with co-employment that comes with payroll and compliance.

Let’s compare both of these HR platforms on different criteria so that you can decide which tool is best for your business.

Gusto vs Justworks: Comparison Table

Payroll and Tax Filings

• Gusto: Automates payroll, direct deposits, W-2/1099 filings, and integrates with accounting tools like QuickBooks.
• Justworks: Offers payroll with built-in compliance, handles tax filings, and ensures IRS regulations are met as part of the PEO package.

Benefits and Insurance

• Justworks: Since Justworks is more of a PEO and therefore it usually provides better group-insurance rates / benefit plans which are otherwise typically provided only to larger companies. For instance it supports HSA, life insurance, retirement plans, disability insurance and even fitness memberships.
• Gusto: Gusto offers health, dental, vision, transportation, housing, retirement (401k) benefits, worker’s comp, etc. These are still competitive but it can not match the leverage that a PEO offers.

Compliance, Risk, and Regulatory Support

If you’re operating in multiple states (employment law, tax, labor laws, etc.), Justworks tends to deliver more help with handling risk, regulatory updates, compliance pieces. Gusto on the other hand can help you with automated tax filings (federal, state) etc., but if complexity/scale grows, you’ll have more responsibility on your shoulders.

Time and Attendance Tracking

Gusto’s Plus/Premium include native time tracking with PTO sync and break-rule automation to help with state compliance. Justworks provides PTO tools in-app and offers Justworks Time Tracking (geo-fencing, mobile clock-in/out) as a paid add-on that syncs to Justworks Timecards.

Onboarding and HR Workflows

Gusto simplifies the employment process by posting job positions, writing employment offers, checklists, and automated document collection. Justworks has fast onboarding in PEO or Payroll and provides ATS integration (such as Lever, Greenhouse) to load candidate information into the system to minimise manual entry.

Ease of Use

Gusto is well-known with its clean, modern, and user-friendly interface. Users can easily navigate the payroll, benefits, and employee onboarding easily. The step by step instructions and automated system ensures that a user can easily get started. Justworks has an intuitive user interface as well, but because the PEO model centralizes many HR procedures, it could not be as flexible for companies that need more customization.

Integration

Gusto has a clear upper hand due to its ability to integrate with over 100 popular business tools, including QuickBooks, FreshBooks, Slack, Asana, and Google Workspace. This makes it a strong choice for companies that already rely on SaaS platforms and want seamless connectivity. In contrast, Justworks offers fewer integrations, as most HR functions are designed to be handled directly within its own ecosystem.

When to Choose Gusto or Justworks?

Final Verdict: Gusto or Justworks?

Pick Gusto if you’re a U.S. small business that wants easy payroll plus core HR in one app, strong accounting integrations, and built-in time tracking—without the complexity of co-employment.

Choose Justworks if you want PEO co-employment to streamline compliance, tap into large-group benefits, and get 24/7 human support—with the option to add Time Tracking and EOR as you scale.

If you still have doubts, reach out to our software experts or the Techjockey Team for a free consultation and demo of the best HR & payroll setup for your business.