Choosing Payroll Software:

Square Payroll vs Gusto Payroll vs ADP

Payroll is a pain. According to survey data, payroll takes small business owners an excess of 5 hours per pay period. Fortunately, if you choose the right payroll solution, you can cut this down significantly.

This is why we are going to be looking at Square Payroll vs Gusto vs ADP—some of the biggest players in the payroll solutions game.

Gusto Payroll

Gusto payroll is very similar to Square Payroll in that it is cloud-based and offers a full feature core payroll process to its users. As with Square Payroll, Gusto streamlines and automates your payroll process, handles the tax side of things (both state and federal), and allows you to administer employee benefits.

Best For: Small Businesses

I use Gusto for all my small business clients. Gusto’s capabilities, pricing, and HR tools and functions make it an ideal solution for small (1-50 employees) or medium-sized (50-100 employees) businesses.

Square Payroll

Square is mainly a solid core payroll service that will allow you to set up—and even automate—all of your employee’s salaries, as well as administer employee benefits, cater to hourly and salaried employees, and track sick leave and time off.

One of the handiest features of Square Payroll is its integration with other Square products. For example, if your employees already clock in and out with your Square POS system, this data will automatically sync with Square Payroll.

Best For: Businesses Already Using Square Payments

Unlike Square and Gusto, it has a wider variety of more complex payroll options. These are available with certain plans for larger and international companies in the ADP Vantage HCM software.


Best For: Larger businesses with more complex payroll

If you have a larger business (100 employees or more), you may prefer ADP’s additional functions. ADP offers enhanced analytics that cover payroll, taxes, employee benefits, and garnishment payments.


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