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September 11, 2024

Top 5 Gusto Alternatives for Small and Medium Businesses

Top 5 Gusto Alternatives for Small and Medium Businesses

Akhil Reddy

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For many businesses payroll is a recurring headache that steals precious time and energy. Businesses that dread payroll the most are the ones with remote employees, contractors, etc. along with full-time team members.

Gusto has been a popular choice, simplifying payroll for countless startups and small businesses. But it's not always the best fit for everyone. Whether you're a small startup or a growing agency, it's worth checking out what else is on the market.

Let's take a look at 6 Gusto alternatives for your payroll and HR needs.

What is Gusto?

Gusto is a modern, cloud-based platform that helps small businesses and startups manage their payroll, HR, and benefits. It aims to simplify these often complex processes, making them more accessible and less time-consuming for business owners.

At its core, Gusto offers an easy-to-use payroll system. You can set up employee salaries or hourly rates and run payroll as often as they need to. The system can even be automated, saving time and reducing the chance of errors. One of Gusto's key features is its ability to handle payroll taxes automatically. It calculates, files, and pays federal, state, and local taxes on behalf of the business, helping to ensure compliance with tax laws.

Beyond payroll, Gusto provides a range of HR tools. These include features for hiring and onboarding new employees, managing time off, and tracking employee performance. The platform also offers benefits administration, allowing employers to provide and manage health insurance and other perks for their staff. These include savings plans, commuter benefits, and wellness programs.

Why do You Need Alternatives to Gusto?

Gusto isn't without its limitations. While it works well for smaller companies, it may struggle to meet the needs of rapidly growing businesses or those with more complex requirements.

The initial setup can be time-consuming, especially for businesses with many employees. Some users might find the reporting features and customization options limited compared to more advanced systems. Gusto's mobile app functionality varies depending on the pricing plan, which could be frustrating for some users.

Another potential drawback is Gusto's limited integration with other tools that your business might be using. This means you might have to do double work to transfer data from one tool to another or change your tools. Lastly, Gusto doesn't offer features for invoicing or accounts receivable, which some businesses might need to manage their finances.

While Gusto offers a user-friendly solution for small businesses looking to streamline their payroll and HR processes, it may not be the best fit for all businesses. Let's explore some of the alternatives to Gusto.

Quick Overview of Top 5 Gusto Alternatives

Top 5 EOR Services in 2024

Thera

Thera is a YC-backed, all-in-one payments platform designed for fast-growing global teams, providing solutions for payroll, accounts payable (AP), and accounts receivable (AR). It aims to simplify the complexities of managing a global workforce, particularly in terms of compliance and payment processing.

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Here's how it compares to popular tools in the market —

Key features

  • Multi-currency support: Thera supports payments in various currencies, making it easier for businesses to operate internationally. This feature is essential for companies with a diverse workforce spread across different countries, as it simplifies transactions and reduces conversion fees.
  • Automated AP/AR Processes: Thera automates accounts payable and receivable processes, streamlining financial operations. This integration allows companies to manage their entire finance stack from one platform, reducing the need for multiple tools and minimizing errors that often happen with manual processes.
  • Top-notch customer support: At Thera, we provide instant support through Slack. No need to wait in a queue to talk to someone or wait 24 hours for an email reply. Just message us on Slack and get help right away. You can even include your team members in the conversation, making problem-solving quick and easy.
  • Instant payouts: Your contractors can get paid the same day, where as Gusto typically takes 3-5 days.

Pricing

Pricing structure is designed to be competitive and startup-friendly with Payroll services starting from $10/month/user and EOR prices starting from $199/month. Schedule a demo today so we can understand your requirements, show you how Thera can help you, and share a custom quote with you.

Rating on G2

Thera scores an impressive 4.9 out of 5 from 24 happy users. People love how Thera makes it easy to hire workers from around the world and pay them without hassle. Our helpful support team gets lots of praise too. Fast-growing companies find Thera perfect for building their worldwide team.

Deel

Deel is a payroll and compliance platform to help with hiring and payments for companies employing international employees and contractors. It can help you manage global payroll, ensure compliance with local labor laws, and streamline the onboarding process for remote teams.

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While Gusto excels in domestic HR and payroll services, Deel's focus on global payroll and compliance makes it a suitable choice for companies seeking to navigate the complexities of international employment.

Key features

  • Global Payroll: Deel allows companies to run payroll for their entire global workforce in 150 countries using a single self-serve platform.
  • Competitive Benefits Packages: Deel enables companies to provide attractive benefits to their global employees, including health insurance, retirement plans, life insurance, disability coverage, paid time off, parental leave, and additional perks like gym memberships.
  • HR Operations Consolidation: Deel HR brings all employee data from around the world into a single global HRIS, localizing everything from onboarding to holiday days based on location and local labor laws.
  • Performance Management Tools: It provides AI-powered products to manage goals, performance, learning development, and team satisfaction.
  • Immigration Support: Deel offers immigration expertise to help companies relocate and retain top talent with ease, handling visa processes.

Pricing

The pricing structure is straightforward, with plans starting at $49 per month for contractor management and $599 per month for the Employer of Record (EOR) service. Deel's global payroll solution starts at $29 per employee per month. This includes payslip generation, salary payments, and local tax filings. Deel's pricing is designed to be flexible, catering to startups as well as large enterprises, with the option for tailored quotes based on specific requirements.

Rating on G2

Deel has a rating of 4.7 out of 5 on G2, based on 532 user reviews. Users praise the platform's ease of use, global coverage, and customer support. Some users mention that the pricing could be more affordable for smaller teams.

Papaya Global

Papaya Global offers a comprehensive EOR solution for enterprises looking to expand globally, with dedicated local expertise, compliance, and a centralized platform for managing their entire workforce. It allows companies to hire employees in over 160 countries.

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Key features

  • Comprehensive Solutions: They provide global payroll services in over 160 countries, EOR (Employer of Record) to hire and pay employees without a local entity, and contractor management for hiring, tracking invoices, and managing payments to contractors
  • Global payments: Papaya Global's platform includes a global wallet with bank-level security that enables paying employees anywhere in the world in any currency. Payments are secure, efficient, and always come through on time
  • Equity Incentive Planning: The platform offers support for setting up and administering equity incentive plans for your global workforce. Their team can help design and implement stock options, RSUs, and other equity compensation

In countries where Papaya Global does not have a local entity, they rely on third-party EOR services and experts to provide information relevant to your team members. This can create multiple touch points for you before you can resolve any query or get any help.

Pricing

Papaya Global's payroll service starts at $15 per employee per month and goes up to $25 per employee per month. This flat fee pricing model provides transparency compared to percentage-based models that can get expensive for higher salaries. Their EOR pricing at $599 per employee per month is however expensive compared to alternatives like Thera.

Rating on G2

Papaya Global has received a mixed rating on G2, with an average score of around 4.5 out of 5. Many users reported issues with invoicing, noting that the invoices lack sufficient detail, making it difficult to link specific items to individual employees. This can led to confusion in financial management.

Rippling

Rippling is a comprehensive workforce management platform that combines various HR, IT, and finance functions into a single system. This integration can potentially save time and reduce errors for businesses, especially as they scale and manage a growing workforce.

Key features

  • Unified HR, IT and Finance: Rippling consolidates employee data so every team has one source of truth. This allows speedy automation to take on manual data entry and eliminate duplicate systems
  • Fastest Global Payroll: Rippling auto-calculates payroll inputs like hours worked, expense reimbursements, and time off to speed up pay runs. It takes just 5 days to payday in popular markets and 12 days in less common markets.
  • Compliance automation: Rippling continuously monitors for compliance risks in the background, automatically flagging potential issues. This protects employers from legal and reputational risks and fines.

Pricing

Rippling starts at $8 a month, per user but the price can range up to $500 per employee per month for services like EOR. You can customize your plans by adding or removing features based on your requirements, which allows for tailored solutions that fit specific operational needs.

Rating on G2

Rippling has a 4.8 out of 5 rating on G2.

Some users feel Rippling is way too expensive for the limited functionality it provides. Many users report incredibly difficult experiences trying to get support from Rippling, with cycling account managers and no clear way to contact support.

ADP Global Payroll

ADP Global Payroll is a comprehensive international payroll solution that is particularly well-suited for large multinational corporations that need to manage payroll across many countries.

Key features

  • Flexible payment options: ADP's payroll services provide flexible payment options, allowing businesses to choose the best method for their needs, such as direct deposit, paper checks, or pay cards.
  • Integration with tools systems: ADP GlobalView Payroll integrates with other tools like QuickBooks Online, Xero, BambooHR, Workday, Slack, etc. reducing manual work and improving accuracy.
  • Self-service portal: Employees have easy access to their payroll information and pay stubs, enabling them to view and manage their data independently.
  • Mobile app accessibility: Users worldwide can access their payroll data through a mobile app that is customized to comply with each country's labor regulations, providing convenience and flexibilit

Pricing

The pricing for ADP's global payroll solutions likely depends on factors such as the number of countries and employees, the complexity of payroll requirements in each country, level of service (e.g., payroll processing vs. full HR outsourcing), etc. To get a more accurate pricing estimate, businesses would need to contact ADP directly and provide details about their specific global payroll needs.

Rating on G2

ADP Global Payroll is rated at 4.0 out of 5 on G2. Customers have reported issues with the responsiveness of ADP's support team. There are multiple customer service numbers so it can be challenging to get connected to the right person. Some have mentioned that reporting can be more comprehensive to get better insights.

Choose the Best Gusto Alternative

You've seen a bunch of alternatives to Gusto, and you still might be thinking about which one to go ahead with. The best option for you depends on your specific goals and needs. But if you're a startup or an agency that's just found that perfect candidate overseas, we think Thera deserves your attention.

What sets Thera apart is that we use it to manage our own global employees, payroll, and contractors. This means we're not just developers and designers — we're users too. We understand the challenges firsthand, which drives us to create features based on real-world experience.

Our support model is another key differentiator. Instead of a generic help center, we offer our clients access to a dedicated Slack channel. This direct line to our team can be invaluable for businesses navigating the complexities of global hiring. One feature that our clients particularly love is our instant payout system. Unlike other services where contractors might wait 3-5 days to get paid, with Thera, your team can receive their earnings the same day. This leads to happier contractors and smoother work relationships.

We're proud of our 4.9 out of 5 rating on G2, backed by glowing reviews from our users. But we're not resting on our laurels. We're constantly listening to feedback and enhancing our platform.

As a Y Combinator-backed company, we have the support and drive to keep pushing the boundaries of what's possible. We're committed to making global hiring and payment as simple and efficient as possible.

Schedule a demo with us, and let's discuss how we can help you build your global team without the payroll or compliance headaches.

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Elizabeth Wellington

Liz writes about business, creativity and making meaningful work. Say hello on Twitter or through her website.

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