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Paychex Flex vs Gusto

Last Updated: November 18th, 2024

Our analysts compared Paychex Flex vs Gusto based on data from our 400+ point analysis of Payroll Software, user reviews and our own crowdsourced data from our free software selection platform.

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Product Basics

Paychex Flex is a cloud-based compensation and HR solution with the capability to serve thousands of employees. While there is an essential core version that mainly handles financials, it runs a wide range of departments and tasks. Some of its functions include payment management, benefits, talent management, time clocks, attendance, workforce management and more.

It’s a scalable option with unique versions for small, medium and large businesses with different versions for groups of varying sizes, including one to nine, 10 to 49, and 50 to thousands. It also has distinct user roles for workers, managers or administrators. A winner of multiple industry awards, its automation cuts down on time doing manual operations like processing payments, auto calculating taxes and staying up to date with current rates and compliance.

Gusto is a web-based payroll system for medium-sized organizations. It handles benefits, compliance, direct deposit, employee self-service, employee management, payment processing and taxes. Using automation, calculators and other administrative and HR modules, users can streamline the entire process of paying employees. It integrates with other technologies to offer expanded services such as accounting, bookkeeping, POS, time tracking and other business operations. In addition to filing taxes, it scans the laws of over 50 states to ensure accurate state and federal payments, helping organizations avoid penalties.

$39 Monthly

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Tailored to your specific needs

$40 Monthly

Free Trial is available →

Get a free price quote

Tailored to your specific needs

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24/7 Live Support

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Product Insights

Better Organization: Centralize important files and payroll data in one centralized location, making it easier to access. Assign user roles through administration; organizations control the dissemination of sensitive data.
Greater Accuracy: Run auto calculations for taxes and direct deposit and sync the general ledger making it easy to plug the information into an integrated accounting program. Creates a streamlined, easy way to manage all of the relevant data.
Increased Efficiency: Save time and work by decreasing the amount of manually input data. Record attendance within the application, making payment more straightforward. Auto-calculate local, state and federal taxes saving tons of manpower and time.
Better Scalability: Grow the platform as the company experiences exponential growth. Go from workplaces with as few as two employees to workforces that number in the thousands. Each level comes with more functionality and increased administrative and HR control over the processes.
More Open Communication: Use notifications, mass emails and electronic bulletin boards to promote an easy flow of information. Communicate enrollment reminders, announcements or company news seamlessly. Ensure employees, managers, executives, contractors, remote workers and other employees are all on the same page.

Flexible and Easier to Use: Guides admins through set-up and features a user-friendly interface. Let employees account for unexpected expenses, up to 40% of their paycheck, by automatically taking the amount out of their next check.
More Cost-Effective: Take advantage of a one-month free trial before full implementation. Subscribe on a monthly basis or based on a price quote, depending on the business’s needs.
Better Compliance: Check for updated tax law ensures that the proper documents are filed on time and follow the most recent legislation. Help users keep in compliance with ACA, ERISA and HIPAA standards. Record tests to comply with nondiscrimination policies from the IRS or benefits programs such as FSAs.
Timer Saver: Cut down on busy work and manual data entry to save valuable employee hours in payroll processing and tax filing. Manage and complete administrative work by accessing premade job templates, HR guides, live harassment prevention webinars, fitness tests, handbooks, best practices, manuals and more.

Online Payroll: Handle payroll management. Automatically calculate taxes, payments and files. View critical data, including the cash required for upcoming paydays. Use safeguards such as notifications to prevent errors. Employees can access direct deposit and pay stub information directly. Last, administrators can access documentation and records like cash requirements, the payroll journal and tax deposit notices.
Tax Administration: Calculate taxes, add hours to each pay period, file returns and set up direct deposit.
Mobile: Access information on W-2s, direct deposit and other important information. For organizations that want to use the solution’s attendance functionality, workers can easily punch in and out on the app. Run it on smartphones and tablets with iOS or Android. It requires iOS 12.0 or higher and an Android OS of 7.0 or higher to run.
Reporting: Comes with over 160 dashboards and reports. Access reporting for payroll journals, department summaries, notices of tax deposits and cash requirements. For businesses looking for more robust options, look into the workforce management options.
Multiple Versions: Choose from a variety of purchase options to select the option that best meets business needs. The packages include:

Small Business Payroll: Use for businesses with under 50 workers. Use payment processing and access to the mobile app. Calculate state, federal and local taxes. Finish onboarding, complete forms, edit personal info and see compensation data. Provide direct deposit, pay cards and paper check for payment options. For businesses with multiple worker types, offer payment hourly, by salary or by contract. Provide help with labor compliance, garnishment payments, new hire reporting and over 160 reports for analytics.
Mid-Sized Business Payroll: Use for businesses with 10 to 49 employees. Handle applicant tracking, attendance, recruiting, onboarding, hiring, health benefits, retirement, health insurance and other similar administrative tasks. Expand the platform HR capabilities by including HR record management, an events calendar and reporting and analytics for the department.
Enterprise Payroll Management: Use for 50 to over 1,000 workers. Provide more robust HR abilities in addition to compensation management. Works for hiring, recruiting, training, compliance, handling offboarding, applicant tracking, time and attendance, health benefits, HR record management, an events calendar, retirement and expanded HR analytics.

Benefits: Complete the benefits management process. Run enrollment and analyze data. Manage group health insurance, retirement, section 125 plans, FSAs, POPs, retirement and more. Update information in real time and change benefit data easily. Give employers more control over invoices, benefit costs and bill reconciliations. Work with financial advisers and educate staff about the retirement plan offerings.
Compliance: Keep up with new tax laws and determine the status of essential laws like the Affordable Care Act.
Workplace Analytics: Analyze data and create a staff and workforce strategy. Create reports for analytics, HR, payroll and benefits. Generate customized reports for more detail. Provide accountants, financial advisors or bookkeepers with the access they need. Access the quick answers function, giving info on total earnings, net pay, tax liability and hours without pulling a full report. View live reporting to see information as it happens. Export information in various file types, including CSV, fixed-width, PDF and XLS. Send data to third-party software where users can add fields, adjust formatting or even build graphs.
Time and Attendance: Provide several options for tracking time and clocking in and out. It integrates with other solutions to track labor costs.

Time Kiosk: Allow employers to turn a tablet into a time clock where employees can punch in and out, do job transfer and register lunches and breaks.
TrueShift: Offer a time clock that has automated tracking and reporting, making it easy to import to payroll. Use biometric technology to prevent buddy punching. Track up to 500 workers per clock and connect to up to 32 other clocks. Punch in via web or mobile and use a backup camera to verify punches and keep compliant. It can track overtime pay and other wage requirements. Print and email timecard reports and clock in or out with a fingerprint, proximity badge, web punch or PIN entry.
InVision Iris Recognition Time Clock: Use iris recognition to ensure employees are working. Integrate with the rest of the HR and time and attendance. Prevent rework and cut down on errors. It works with contacts, goggles, glasses and face masks up to 15 inches away. Track up to 50,000 workers. Unlike a retinal scanner, it doesn’t store images. Instead, encrypt templates to guarantee privacy.

Online Learning: Use the built-in learning system. Provide eight free courses to users and customize/build current training, classes, quizzes and videos. Promote skill acquisition, up-skilling and career development. Run classes for on and offsite students. Use the calendar to schedule an in-person training, track transcripts and create content. Access the additional content libraries for purchase and provide surveys so employers can get feedback. Subjects include business, HR compliance, leadership, management, sales, software and workplace safety.
Payment Options: Gives options for paying employees, including same-day ACH capability, direct deposit, paper checks and pay cards.
Accounting: Manage payment and HR data with the accounting-specific dashboard. Access a library of resources, including tax forms and CPE courses. Import files through the general ledger service and post payroll data through the enterprise solution. Integrate with Sage Intacct, QuickBooks and Xero. Upload or download many files for one or multiple companies from one location.
Workers Compensation: Handle workers’ compensation covering medical expenses and lost wages while still ensuring stable cash flow. Provide insurance plans from A-rated national carriers.
Onboarding: Give new employees paperwork to fill out online. Customize the experience with personalized messages, welcome videos or other information about the company culture.
Payroll Protection: Let managers extend funds from a bank account for up to seven days without services being interrupted or charges for insufficient funds. Process two same-day ACH requests for a last-minute payroll, correcting pay or adding an employee. Help build business credit, deal with fraud, gain small business loans and more.

Payroll Processing: Automatically calculate employee checks and file taxes while using online faxing, filing and signing technologies.

Payroll Reports: Send money out weekly, bi-weekly, twice a month or monthly. Calculate an employee’s gross pay before taxes by simply entering the amount they should receive. Figure out overtime pay for hourly workers whether they have one or multiple pay rates. Leverage other payroll capabilities such as calculating unlimited and off-cycle payrolls, employee reimbursements, bonuses and more.
Automated Taxes: Calculate, file and pay all payroll taxes per local and federal legislation through direct deposit. Generate and send 940, 941, 1099, 8974 and W-2 forms for full-time employees and independent contractors. Manage deductions, garnishments and send child support in all states except for South Carolina. Make adjustments, get support and enter claims for the Federal R&D Tax Credit, FLSA minimum wage requirements and the FICA Tip Credit tax.
E-Signatures: Sign and file important documents and forms such as W-2’s, 1099s, 940s, 941s and 8974s. Make it easier to get everyone’s ducks in a row, even when separated by thousands of miles.
Leave Tracking: Set up and monitor vacation time, time off and sick time. Choose federal holidays or create other holidays for organizations that accommodate different faiths, locations or cultures.

Benefits: Make the necessary deductions automatically for medical insurance, 401(K) contributions and more. Give employees dental, medical and vision insurance and help them find the appropriate plan. Provide other benefits such as 529 (college) savings, commuter perks, disability insurance, FSAs, HSAs, life insurance and workers’ compensation.
Wallet: Manage banking accounts, emergency funds, paychecks and savings. Create as many as five saving goals, which deduct funds automatically from the correlating spending accounts — transfer funds from savings to spending easily. Put paychecks in different accounts and let workers see checks and the specifics of deductions, hours and taxes. Give access to paystubs, the Wallet app and W-2s.
Worker Management: Give workers digital paystubs accessible by the payday email, account or Wallet app. Let employees send money to charities, organize workers into departments and set policies for PTO and sick leave. Customize and assign various permissions to ensure users can access the appropriate content but not sensitive data.
Self-Service: Let employees complete tasks like adding dependents, picking out plans and scheduling changes to plans based on personal details. Let them retain access to specific account information after termination to cut down on unnecessary content. Organize reports based on teams or departments and let workers sign essential documents like I-9s and W-4s.
New Employees: Report new hires to the government automatically. Send out onboarding papers before new staff members start so they can fill out bank details, contact information and W-4s. Use an onboarding to-do list for tasks like adding employees to the payroll, background checks, filling out an employee’s I-9, setting up benefits and signing forms.
Directory: Create an address book of employees with profile pictures and contact information. Give new workers org charts to see where they fit in the organization. Organize fun facts, t-shirt or merch orders, birthdays and communal coffee dates.
Calendar Sync: Track deadlines, birthdays and employee anniversaries and sync with other calendars in iCalendar, Google, and Outlook.
Integrations: Uses closed APIs. Integrate with platforms like Accelo, Asana, Box, Clover, Dropbox, Expensify, FreshBooks, Github, G Suite, Homebase, Microsoft 365, QuickBooks Online, Receipt Bank, Slack, SpotOn, TSheets, Veryfi, When I Work, Xero, Ximble, Zoom and more. Contact the vendor for custom connections.
Reporting and Analytics: Generate and download reports for benefits, payment history, bank transactions, PTO, contract work, tax payments and more

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#7

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Analyst Rating Summary

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User Sentiment Summary

83%

of users recommend this product

Paychex Flex has a 'great' User Satisfaction Rating of 83% when considering 2205 user reviews from 4 recognized software review sites.

93%

of users recommend this product

Gusto has a 'excellent' User Satisfaction Rating of 93% when considering 2802 user reviews from 3 recognized software review sites.

4.5 (24)

4.2 (23)

4.2 (1114)

4.3 (305)

4.1 (976)

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4.7 (2474)

3.8 (91)

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Awards

Synopsis of User Ratings and Reviews

User-Friendly: Just under 50% of reviews said the user experience was good and the interface worked well.

Good Support: Around 40% had good interactions with customer service and were happy with their level of care.

Proper Functionality: One-third of reviewers felt that the system was fully equipped with the tools they needed and especially liked the efficient payroll processing, benefits management, the transparency employees had on their payments and the PTO features.

Value for Price: Around 20% of reviews felt happy with the price and said it was well worth it.

Easy to Use: Just under 70% of all reviewers found this product easy to use with 10% specifically praising the design.

Great Conflict Resolution: The customer service was noted for being helpful, knowledgeable and excellent at resolving errors.

Helpful Features: Around 40% of reviewers said they appreciated the functionality, particularly praising the tax system, deductions, payroll processing and multiple payment options.

Appropriate Pricing: Over 30% of users felt that the price was well worth the system.

Good for Small Business: This was called a good choice for small businesses in over 10% of reviews.

Issues with Features: Just under 40% of reviewers felt the features were lacking. The biggest concerns were that the UI was difficult to learn initially and the reporting wasn’t sophisticated enough.

Time and Attendance Systems: Over 20% of users had problems with the punching system or the biometric clocks.

Poor Customer Service: While users felt that the customer service was helpful overall, they noted a high rate of turnover with their reps which often led to gaps in service.

Issues with Certain Functionality: While around 40% felt the solution worked well, another 40% reported issues, especially with the time tracking and integration features.

Slow/Pushy Customer Support: Around 10% of users reported negative experiences with customer service. Of them around 50% felt the staff was pushy and trying to upsell them and 50% felt they had to wait too long for answers or couldn't get in touch with them online.

Paychex Flex is a solid payroll processing system best liked for its ease of use, positive customer service interactions, fair price and useful functionality. However, it comes with several drawbacks as well. While it’s easy to use, the onboarding takes time and can be initially frustrating. The customer service is good but the high turnover with representatives can be trying. A small but significant percentage had problems with the time and attendance features, either having issues with their punches not being registered or issues with the physical biometric clocks. Overall, it seems best for small and medium businesses looking to automate their payroll. Any organization with multiple types of workers, complex pay rules or many different kinds of income to report should be sure to demo the system carefully and may want to find a more complex option.

Gusto is a well-reviewed payroll solution which many users enjoy for its good design and easy-to-use features. It’s UI and payroll processing abilities in particular make it a popular choice for automating payroll. Many also feel it handles benefits and PTO well. Some say it's an affordable choice given what it does while others note that it’s on the pricey side. The time tracking features aren’t universally loved. Users are split on the integration abilities with around 10% satisfied and around 10% dissatisfied. All in all, it appears to be a good solution for small and medium-sized businesses looking to streamline their payroll. Keep an eye on the price and, as always, demo extensively before buying.

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