Gusto vs ADP for small business
By the FirstHire Team · Last updated Nov 2026
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Gusto and ADP are two of the best-known names in small business payroll, but they sell in very different ways. Gusto lists its prices on its website and bills month to month. ADP's RUN platform sells through packages and quotes, so you have to talk to sales to learn what you will pay. This guide compares the two for an owner with 1 to 10 employees, using only what each company publishes, so you can decide which one deserves a closer look.
How we wrote this: we read each vendor's public pricing and product pages (linked at the bottom) and compared them for a business with 1 to 10 people. We have not run a long-term hands-on test of these products, and we will say so on this page when we have.
The short answer
- Pick Gusto if you want to see the full price before you sign up, prefer month-to-month billing, and want to set everything up yourself online in an afternoon.
- Pick ADP RUN if you want 24/7 phone support from a very large provider, expect to add HR services like hiring tools or garnishment handling, and are comfortable getting a custom quote.
- Skip both if your budget is very tight and you only have one or two employees. A lower-cost full-service option such as Patriot Software lists prices from $37 a month plus $5 per worker. See our best payroll for 1 employee guide.
Price: published vs quoted
This is the biggest practical difference. As of Nov 2026, Gusto's pricing page lists three plans:
| Gusto plan | Base price | Per person | Highlights |
|---|---|---|---|
| Simple | $49/mo | $6/mo | Payroll in one state, tax filings and payments, unlimited payroll runs, basic PTO |
| Plus | $80/mo | $12/mo | Time tracking and scheduling, next-day pay, multi-state payroll |
| Premium | $180/mo | $22/mo | Premium account support, HR guidance, compliance tools |
So a business with one employee on Gusto Simple pays about $55 a month ($49 + $6), and a business with five employees pays about $79 a month. Gusto says there is no long-term contract and you can cancel any time. It also says it only bills for U.S. contractors in months when you pay them.
ADP does not publish prices for RUN. Its product page lists four packages: Essential Payroll, Enhanced Payroll, Complete Payroll & HR+, and HR Pro Payroll & HR. To see a price you fill in a form or call ADP's sales line. As of Nov 2026 the page also advertises "up to 6 months free" for new small business payroll clients, with terms that apply. Because the price is quoted, ask for the full monthly cost in writing, including any setup fees, year-end W-2 fees, and what happens to the price after the promotional months end.
What each one includes
Gusto
- Unlimited payroll runs on every plan, with no extra charge for off-cycle payrolls.
- Federal, state and local payroll tax filings, including Forms W-2, 1099, 940 and 941, according to Gusto's pricing FAQ.
- Add-ons you pay for only if you need them, such as next-day pay on Simple ($15/mo + $3/person), remote I-9 verification ($20 per submission), and priority support ($30/mo + $3/person).
- Integrations with accounting tools such as QuickBooks, Xero and FreshBooks.
- Benefits administration, with Gusto acting as your health insurance broker at no extra admin fee (you pay the premiums).
ADP RUN
- Payroll with federal, state and local tax deductions and filings, and W-2 and 1099 forms created and e-filed for you, according to ADP's RUN page.
- Enhanced Payroll adds ZipRecruiter, a State Unemployment Insurance service, and garnishment payment service. Complete adds basic HR support, and HR Pro adds more HR support and employee perks.
- 24/7 support from payroll specialists, plus a mobile app for running payroll.
- An AI assistant (ADP Assist) that ADP says flags common errors before you submit payroll.
- Add-ons for time tracking, retirement plans, workers' comp and health benefits, and a Clover point-of-sale integration.
Side-by-side
| Gusto | ADP RUN | |
|---|---|---|
| Published pricing | Yes, $49/mo + $6/person and up | No, quote only |
| Contract | Month to month | Ask during the quote |
| Payroll runs | Unlimited | Ask during the quote |
| Tax filing | Included | Included |
| Support | Business-hours phone and chat; priority support add-on | 24/7 payroll support advertised |
| Hiring tools | Onboarding and offer letters | ZipRecruiter in Enhanced and above |
| Best fit | Owners who want to set up online and see the price first | Owners who want a big provider and plan to add HR services |
Setup for a first hire in Utah
Whichever you choose, the software won't open your state accounts for you by default. Before your first payroll in Utah you need a federal EIN, a Utah withholding account with the Utah State Tax Commission, and an unemployment insurance account with the Utah Department of Workforce Services. You also have to report each new hire to the state within 20 days. Our how to run payroll in Utah guide walks through each step, and the free 5-day Utah First Hire guide breaks it into one task a day.
Gusto sells a state tax registration add-on (price varies by state) if you'd rather it handle new state paperwork. With ADP, ask whether state registration help is included in your package.
Questions to ask before you sign
- What is my total monthly cost with my exact number of employees and contractors?
- Are W-2s, 1099s and year-end filings included, or billed separately?
- Is there a contract or cancellation fee?
- What happens to the price after any promotional period?
- Who fixes a tax notice if the provider made the mistake, and is there a guarantee?
- Can I import payroll history if I switch mid-year?
Our take
For most first-time employers with 1 to 5 people, Gusto is the easier place to start, mainly because you can see the price, sign up without a sales call, and leave any month. ADP RUN makes more sense if you value round-the-clock phone support or expect to lean on HR services soon, but get the quote in writing and compare the total against Gusto's published plans. If the main goal is the lowest possible bill for one employee, compare both against the cheaper options in our 1-employee guide.
FAQ
Is Gusto cheaper than ADP?
We can't say for certain, because ADP doesn't publish RUN prices. Gusto Simple is $49/mo + $6/person as of Nov 2026. Get an ADP quote for your exact headcount and compare the total.
Does ADP have a contract?
ADP's RUN page doesn't state contract terms. Ask during your quote. Gusto says it is month to month with no long-term contract.
Do both file my payroll taxes?
Yes. Both say they calculate, file and pay federal, state and local payroll taxes, and produce W-2s and 1099s.
Can I switch later?
Yes. Switching at the start of a quarter (or the start of the year) is simplest, because you have fewer year-to-date records to move.
Sources: Gusto pricing, RUN Powered by ADP, Patriot Software pricing, IRS: hiring employees, Utah DWS new hire reporting. Prices and features as of Nov 2026. Check the vendor site before you buy, because prices and promotions change. Not tax or legal advice.