Square Payroll vs Gusto: A Comprehensive Comparison for Small Businesses

Did you know over 60% of small businesses in the U.S. use payroll services? It’s key to pick the right one for your business’s success and to follow the law. We’ll look at Square Payroll VS Gusto, two top payroll solutions, focusing on their features, prices, and benefits.

Key Takeaways

• Square Payroll offers a more affordable starting price of $35 per month plus $6 per person, while Gusto’s starts at $40 per month plus $6 per person.
• Gusto provides more robust HR features, including advanced time tracking, scheduling, and onboarding tools, compared to Square Payroll.
• Both platforms offer unlimited payroll runs, automatic tax filings, and direct deposit options, but Gusto has a more extensive range of benefit add-ons.
• Square Payroll is well-suited for businesses with simpler payroll and HR needs, especially those already using Square’s Point of Sale system.
• Gusto is ideal for businesses needing advanced HR tools, scalability, and a wide range of employee benefits.

Introduction to Square Payroll and Gusto

For small businesses, managing payroll and HR is key to success. Square Payroll and Gusto are top choices for these needs. They offer solutions made just for small businesses. Knowing what they can do helps you pick the best one for your business.

Overview of Payroll and HR Solutions for Small Businesses

Payroll and HR solutions are crucial for small businesses. They help with compliance, managing employees, and making operations smoother. Features include automatic tax calculations, direct deposit, time tracking, and more. These tools let small business owners focus on their main work while handling payroll and HR well.

Importance of Choosing the Right Payroll Software

Choosing the right payroll software is key for small businesses. The right software makes payroll tasks easier, keeps you in line with the law, and makes employees happier. You should look at price, features, ease of use, and how it fits your business. The right software can greatly improve your company’s work, follow the law, and efficiency.

Understanding payroll and HR solutions for small businesses and the importance of choosing the right software helps you make a smart choice. This choice should match your business’s needs and what you prefer.

Pricing Structure: Square Payroll vs Gusto

When looking at payroll services for small businesses, the cost is key. Let’s dive into the pricing of Square Payroll and Gusto.

Square Payroll’s Pricing Plans and Costs

Square Payroll has two main pricing options:

• The full-service payroll plan starts at $35 per month plus $6 per person paid per month.
• The contractor-only payroll plan costs $6 per person with no monthly fee.

The full-service plan offers automatic tax payments and filings. The contractor-only plan is cheaper but has fewer features.

Gusto’s Pricing Plans and Costs

Gusto has three pricing plans:

1. The Simple plan at $40 per month plus $6 per person paid per month.
2. The Plus plan at $80 per month plus $12 per person paid per month.
3. The Premium plan with custom pricing.

Each plan has different HR features and benefits administration options. The higher plans offer more advanced features.

Both Square Payroll and Gusto offer good pricing for small businesses. The best choice depends on your business’s needs and budget.

Core Payroll Features Comparison

Both Square Payroll and Gusto offer great payroll features for small businesses. They let you run unlimited payroll runs, so you can pay your team as needed. They also handle automatic tax filing, making tax work easier for you.

Unlimited Payroll Runs and Automatic Tax Filing

With Square Payroll and Gusto, you can process payroll whenever it fits your business. This is great for businesses with changing payrolls. Plus, they take care of automatic tax filing for you. They make sure your taxes are filed and paid correctly and on time.

Direct Deposit and Payment Options

Getting your employees paid on time is key. Square Payroll and Gusto make this easy with direct deposit. They also offer different ways to pay, like checks and pay cards, to fit what your employees like.

Both Square Payroll and Gusto give small businesses the tools they need for payroll. They offer unlimited payroll cycles and automate tax filing. Plus, they have flexible payment options. This makes them good choices for businesses looking for a full payroll solution.

square payroll vs gusto

Choosing the right payroll solution for your small business is crucial. Square Payroll and Gusto are two top options. They both have unique features that might influence your choice. Let’s explore how they compare.

Pricing Structure

Square Payroll has a simple pricing plan. It costs $35 a month plus $6 for each employee. They also have a plan for contractors at $6 a month. Gusto’s pricing is a bit more complex. The Gusto Plus plan is $80 a month plus $12 for each employee.

Payroll and HR Features

Both Square Payroll and Gusto provide full payroll and HR services. They offer unlimited payroll runs, automatic tax filing, direct deposit, and various payment options. Gusto is great for small businesses new to payroll because it’s easy to use and helps those new to payroll.

Benefit Administration

Gusto leads in benefits. It offers many health insurance and retirement plans, plus commuter benefits and wellness programs. Square Payroll has fewer benefits options but offers HR add-ons like those from Mineral.

Integrations and Add-Ons

Square Payroll works well with Square’s POS system and other apps, making it good for businesses already using Square. Gusto connects with a wide range of software, including QuickBooks.

The choice between square payroll vs gusto depends on your business’s needs. If you use Square’s other products, Square Payroll might be best. But if you need a full HR solution, Gusto’s benefits and integrations are strong options.

Benefits Administration: Square vs Gusto

Small businesses have a few choices for benefits administration. Square Payroll lets you add health insurance and 401(k) retirement benefits. But Gusto gives you more, covering employee benefits administration.

Gusto doesn’t just stop at health and retirement plans. It also covers life and disability insurance, HSAs, FSAs, and workers’ compensation. These extras help small businesses draw and keep top talent. But, some options might not be available everywhere.

Health Insurance and Retirement Plan Options

Both Square Payroll and Gusto offer health insurance and retirement plan options for small businesses. But Gusto has more variety, with a broader selection of plans and providers.

Additional Benefits Offered by Gusto

Gusto also gives employees more than health and retirement perks. These include:

• Life and disability insurance
• Health Savings Accounts (HSAs)
• Flexible Spending Accounts (FSAs)
• Workers’ compensation
• Commuter benefits

These additional benefits help small businesses stand out. They offer a richer benefits package to their employees.

In summary, Square Payroll has basic benefits options. But Gusto offers a lot more, like health insurance, retirement plans, and more. Some benefits might not be available everywhere. So, small businesses should think about what they really need and what’s offered in their area.

Time Tracking and Scheduling Capabilities

For small businesses, payroll software with time tracking and scheduling is key. Square Payroll and Gusto both have great tools for managing work hours and attendance.

Square Payroll lets employees clock in and out, track hours, and see timecards. It also helps you monitor breaks and overtime. You can plan your team’s schedule up to 10 days ahead. But, its time tracking and scheduling are a bit basic compared to others.

Gusto has more to offer. It includes basic time tracking and timecard tools, plus PTO tracking and custom holidays. You can also set up employee schedules. This makes Gusto a top pick for small businesses needing detailed workforce management.

Gusto seems to have an edge in time tracking and scheduling over Square Payroll. If your business needs advanced tools, Gusto is a better fit. But, Square Payroll might be enough for smaller businesses with simpler needs.

HR Tools and Employee Management

When it comes to HR tools and employee management, both Square Payroll and Gusto have unique features. Square Payroll makes onboarding easy for new hires. Gusto offers a wide range of tools for hiring and onboarding, like custom offer letters and secure document storage.

Gusto’s advanced plans also help with job postings and tracking applicants. It makes hiring smoother. Beyond hiring, Gusto helps with PTO and performance reviews. This helps keep employees engaged and happy.

Onboarding and Hiring Features

While Square Payroll focuses on self-onboarding, Gusto has more to offer. With Gusto, companies can use customizable offer letters and streamline background checks. They can also set up employee email accounts. Advanced plans even help with job postings and tracking applicants.

PTO Tracking and Performance Reviews

Gusto also offers tools for managing PTO and doing performance reviews. These tools help businesses keep employees happy and productive. They are great for small businesses wanting to manage employees better and create a positive work environment.

“Streamlining HR tasks can be a game-changer for small businesses, freeing up time to focus on growth and innovation.”

Integrations and Add-Ons

Payroll software that works well with other business tools can really help streamline your work. Square Payroll and Gusto both offer integration options. But, they differ in how much they can do together.

Square’s Product Integrations: Enhancing the Square Ecosystem

Square Payroll is great at working with other Square tools like Square Point of Sale and Square Appointments. This means you can share data easily and manage your business better. If you use a lot of Square products, these integrations make everything work together smoothly.

Gusto’s Third-Party Software Integrations: Unlocking Flexibility

Gusto is more flexible than Square Payroll when it comes to working with other software. It connects with many popular tools, including accounting apps like QuickBooks and Xero, time tracking apps, and HR platforms. This is great for small businesses that use many different software tools.

Choosing between Square Payroll and Gusto depends on what your small business needs. Square Payroll is great if you use a lot of Square products. But, if you use many different apps, Gusto might be better for you.

Customer Support and User Experience

Customer support and user experience are key for Square Payroll and Gusto. They are known for easy-to-use interfaces and quick customer help. This makes them great for small business owners.

Square Payroll helps during business hours, from Monday to Friday, 6 AM to 6 PM PST. Gusto, however, offers 24/7 customer support. This means businesses can get help any time they need it.

The ease of use and user experience are important when picking payroll software for your business. Both Square Payroll and Gusto make their platforms easy to use. They have features that simplify payroll and save business owners time and effort.

• Square Payroll’s easy interface and self-help tools let users manage payroll with ease.
• Gusto is known for its simple design and helps users with payroll and HR tasks. It’s a good choice for businesses wanting a smooth experience.

Choosing between Square Payroll and Gusto depends on what your small business needs. Both offer great customer support and user experience. Looking at your specific needs can help you pick the best one for your business.

Conclusion

When looking at Square Payroll and Gusto, both are great for small businesses. They offer strong payroll and HR tools. The choice depends on what you need, like price, features, and HR support.

Square Payroll is known for clear pricing and an affordable plan for contractors. It also offers instant payments through Cash App. Gusto is easy to use and has lots of HR tools.

Choosing the right payroll software for your business is about what you need and like. Whether you pick Square Payroll, Gusto, or another option like Paycom or OnPay, a good payroll system helps your business run smoothly. It makes employees happy and keeps you in line with the law.

FAQ

How do the pricing plans of Square Payroll and Gusto compare?

Square Payroll has two plans. The full-service plan starts at $35 a month, plus $6 per person paid each month. The contractor-only plan costs $6 per person with no monthly fee. Gusto offers three plans: Simple at $40 a month plus $6 per person paid each month, Plus at $80 a month plus $12 per person paid each month, and Premium with custom pricing.

What core payroll features do Square Payroll and Gusto offer?

Both Square Payroll and Gusto provide unlimited payroll runs and automatic tax filing. These are key for small businesses. They also offer direct deposit and various payment methods for your workers.

How do the benefits administration capabilities of Square Payroll and Gusto differ?

Square Payroll lets you add health insurance and 401(k) retirement benefits. Gusto gives a wider range of employee benefits like health insurance, life and disability insurance, HSAs, FSAs, and workers’ compensation. Gusto’s benefits are more extensive but some may not be available in all states.

What are the differences in time tracking and scheduling features between Square Payroll and Gusto?

Square Payroll has basic time tracking and scheduling tools. Managers can import time cards from Square Point of Sale or Square Team app and plan up to 10 days ahead. Gusto offers more advanced time tracking and scheduling, including PTO management and custom paid holidays.

How do the HR tools and employee management capabilities of Square Payroll and Gusto compare?

Square Payroll focuses on employee self-onboarding. Gusto has a broader range of hiring and onboarding tools, like custom offer letters, background checks, email provisioning, and document storage. Gusto’s advanced plans also include job posting and applicant tracking. It offers more HR tools for PTO management and performance reviews.

What are the integration capabilities of Square Payroll and Gusto?

Square Payroll works well with other Square products like Square Point of Sale and Square Appointments for easy data sharing. It offers a cohesive business management experience. Gusto has more integrations with third-party apps, including accounting, time tracking, and HR tools.

How do the customer support and user experience of Square Payroll and Gusto compare?

Both Square Payroll and Gusto are easy to use and have good customer support. Square Payroll supports businesses during regular business hours. Gusto offers support all day, every day. The ease of use and support are key when choosing payroll software for your business.

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