Best Payroll Software for Small Business: Gusto vs. OnPay

Gusto Key Features

• Full-Service Payroll: Automated payroll runs, tax calculations, and filings, including federal, state, and local taxes.
• Employee Benefits: Health insurance, 401(k) plans, and workers’ compensation integration.
• HR Tools: Employee onboarding, time tracking, PTO management, and document storage.
• Compliance Support: Automatic updates for labor law changes and tax regulations.
• Employee Self-Service: Employees can access pay stubs, tax documents, and benefits information online.
• Integrations: Connects with popular accounting software like QuickBooks, Xero, and FreshBooks.

OnPay Key Features

• Comprehensive Payroll: Unlimited payroll runs, tax filings, and payments with guaranteed accuracy.
• Benefits Management: Supports health insurance, 401(k), and workers’ compensation plans.
• HR Tools: Onboarding checklists, employee self-service portal, and document storage.
• Time Tracking: Integrates with various third-party time tracking software.
• Customization: Allows easy customization of payroll reports and paycheck fields.
• Integrations: Works with accounting platforms such as QuickBooks, Xero, and others.

Pros & Cons

Gusto Pros

• User-Friendly Interface: Clean design and straightforward navigation reduce the learning curve.
• Robust HR Features: Beyond payroll, Gusto offers extensive HR management tools.
• Strong Customer Support: Access to phone, email, and chat support with helpful resources.
• Flexible Benefit Options: Wide range of employee benefits to choose from.

Gusto Cons

• Pricing Complexity: Additional fees for some features can increase total cost.
• Limited International Support: Primarily designed for U.S.-based businesses.
• Occasional Processing Delays: Some users report delays during peak payroll periods.

OnPay Pros

• Affordable Pricing: Transparent pricing with fewer add-ons than competitors.
• Unlimited Payroll Runs: Allows multiple runs per month without extra charges.
• Excellent Tax Filing: Accurate and timely filings with a satisfaction guarantee.
• Customization Flexibility: Tailors payroll reports and paychecks to business needs.

OnPay Cons

• Less Extensive HR Tools: HR features are functional but not as comprehensive as Gusto’s.
• Fewer Integrations: Limited third-party app connections compared to competitors.
• User Interface: Slightly less modern and intuitive than Gusto’s platform.

Pricing Comparison

Gusto Pricing:

• Core Plan: $40/month base fee + $6 per employee/month
• Complete Plan: $80/month base fee + $12 per employee/month (adds HR tools)
• Concierge Plan: $120/month base fee + $12 per employee/month (includes dedicated support and compliance)
• Note: Additional fees may apply for certain benefits and add-ons.

OnPay Pricing:

• $36/month base fee + $4 per employee/month
• All features included in every plan, no tiered pricing
• Includes full-service payroll, tax filings, and basic HR tools
• No hidden fees or add-ons necessary for standard features

Final Verdict

Both Gusto and OnPay offer strong payroll solutions for small businesses, but they cater to slightly different needs and priorities.

Gusto is ideal for small businesses seeking a comprehensive payroll and HR platform with extensive benefits management and a highly intuitive user experience. Its advanced HR tools and broad integrations make it well suited for businesses anticipating growth and increasingly complex HR needs. However, its pricing model can become costly as you add features and employees.

OnPay shines as a cost-effective, reliable payroll solution that includes essential HR tools and a straightforward pricing structure. It is particularly attractive for small businesses looking for unlimited payroll runs and strong tax filing capabilities without the complexity of multiple add-ons. While its HR features and integrations are somewhat limited, OnPay covers the fundamental needs efficiently and affordably.

Recommendation: For small businesses prioritizing a full HR suite and a polished user interface, Gusto is the better choice. For businesses focused primarily on payroll accuracy, affordability, and simplicity, OnPay delivers excellent value.

Evaluate your business’s specific payroll and HR requirements alongside budget considerations to determine which platform aligns best with your operational goals.