Gusto vs ADP: Pricing and Feature Comparison
Gusto Simple is $49/mo + $6/person. ADP RUN Essential is approximately $79/mo + $4/person. The lower per-person rate at ADP means the two platforms reach cost parity at around 20 employees. Below that, Gusto wins on price and simplicity.
Monthly Cost Comparison (Base Plans)
| Employees | Gusto Simple | ADP RUN Essential | Winner |
|---|---|---|---|
| 10 employees | $109/mo | ~$119/mo | Gusto |
| 20 employees | $169/mo | ~$159/mo | ADP |
| 25 employees | $199/mo | ~$179/mo | ADP |
| 50 employees | $349/mo | ~$279/mo | ADP |
| 100 employees | $649/mo | ~$479/mo | ADP |
ADP pricing is estimated based on published market rates. ADP does not publish official pricing. Does not include ADP per-payroll-run charges.
The 20-Employee Crossover Explained
With Gusto at $6/person and ADP at roughly $4/person, each additional employee costs $2 more per month at Gusto. The $30 base fee advantage Gusto holds ($49 vs $79) gets consumed at 15 additional employees. Combined with ADP's per-payroll-run charges, the practical crossover sits around 18 to 22 employees depending on ADP's negotiated rate and payroll frequency.
Feature Comparison
| Feature | Gusto | ADP |
|---|---|---|
| Published pricing | Yes | No (custom quote) |
| Base fee (entry plan) | $49/mo | ~$79/mo |
| Per employee fee | $6/person | ~$4/person |
| Per payroll run fee | None | $0.90-$2.50/run |
| Unlimited payroll runs | Yes | Plan-dependent |
| Multi-state payroll | Plus plan required | All plans (extra fee) |
| Next-day direct deposit | Plus plan included | Most plans |
| Tax filing included | Yes | Yes |
| Employee self-service | Yes | Yes |
| Benefits broker built-in | Yes | No (separate broker) |
| Phone support | Premium only | All plans |
| International payroll | EOR $699/person/mo | Yes (global) |
| Contract required | No | Sometimes |
| Implementation fee | None | $25-$150 typical |
- You have fewer than 20 employees
- You want transparent, predictable pricing
- You value a modern, easy-to-use interface
- You want a built-in benefits broker
- You run payroll frequently (no per-run fees)
- You do not need international payroll
- You have 25+ employees (better per-person rate)
- You need phone support on every plan
- You require international payroll capabilities
- You want enterprise-grade compliance tools
- You need advanced analytics and reporting
Frequently Asked Questions
Is Gusto cheaper than ADP?
Gusto is cheaper than ADP for teams under about 20 employees. Gusto Simple costs $49/month base plus $6/person, while ADP RUN Essential is approximately $79/month base plus $4/person. The lower per-person fee at ADP means it becomes cost-competitive around 19 to 20 employees and cheaper beyond that. ADP also lacks transparent public pricing, making direct comparison difficult.
What is the main difference between Gusto and ADP?
The main differences are pricing transparency, target market, and support model. Gusto has fully published pricing and targets small businesses (1-100 employees) with a modern, self-service interface. ADP targets mid-to-enterprise companies, requires custom quotes, offers phone support on all plans, and has deeper enterprise features like international payroll and workers comp management.
Does ADP charge per payroll run?
ADP's RUN platform typically charges between $0.90 and $2.50 per payroll run on most plans. For a company running biweekly payroll (26 runs per year), that adds $23 to $65 per year at the low end. Gusto includes unlimited payroll runs in all plans at no per-run charge.
Can I switch from ADP to Gusto?
Yes. Gusto has a dedicated onboarding team that helps migrate from ADP including historical payroll data transfer, benefits setup, and employee onboarding. The process typically takes one to four weeks depending on company size and data complexity. Gusto does not charge a migration fee, and you can run both platforms in parallel during transition if needed.
Which is better for small business: Gusto or ADP?
For small businesses under 20 employees, Gusto is generally the better choice: it is cheaper, easier to set up, has fully transparent pricing, and includes a built-in benefits broker. ADP becomes more competitive at larger headcounts (20+ employees) where its lower per-person fee and more extensive feature set justify the higher base cost and complexity.