Gusto vs. OnPay: Which payroll software should you choose?
Gusto is usually the better fit for small businesses that want benefits, HR basics, and a polished employee experience baked into payroll. OnPay is usually the better fit for price-sensitive employers — especially those running payroll across multiple states — who want straightforward full-service payroll at a flat, predictable price.
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- Benefits administration and HR basics matter to you
- You want a polished, modern employee app
- You're a one-person S-corp (Gusto Solo)
- You value the broader integrations marketplace
- You're price-sensitive and want predictable flat pricing
- You run payroll in multiple states and don't want surprise fees
- You need niche payroll (clergy, agriculture, restaurants) handled well
- You'd rather not pay for HR features you won't use
OnPay's flat $49 base plus $6 per person with multi-state included is the most defensible answer for price-conscious multi-state employers. Gusto wins when benefits, HR, and employee experience are part of why you're buying payroll in the first place. For one-person S-corps, Gusto Solo remains PayrollSignal's Green Light pick.
- At a glance
- Quick winners
- Pricing: Is Gusto or OnPay cheaper?
- Payroll features
- Ease of use
- Tax filing and compliance
- HR, benefits, and employee management
- Integrations
- Scalability and long-term fit
- Customer support
- Gusto pros and cons
- OnPay pros and cons
- Who should choose Gusto
- Who should choose OnPay
- By business type
- Final verdict
- FAQ
Gusto vs. OnPay at a glance
A scannable summary. Always confirm current pricing and features directly with each provider before buying.
GustoModern SMBs that want benefits + HR + payroll
OnPayPrice-sensitive, especially multi-state
GustoTiered plans (Simple/Plus/Premium/Solo)
OnPayFlat $49 base + $6/person, single plan
GustoIncluded; works for most SMBs
OnPayIncluded by default — a core selling point
GustoHealth, 401(k), workers' comp built in
OnPayHealth, 401(k) integrations available
GustoStrong basics; advanced on Premium
OnPayLighter, payroll-focused
GustoStandard support
OnPayStrong reputation for handling edge cases
GustoPolished mobile experience
OnPayFunctional, less polished
GustoBroad and modern
OnPaySolid but smaller
GustoYes — Gusto Solo (Green Light pick)
OnPayNo dedicated solo plan
GustoBenefits-aware SMBs
OnPayPrice-conscious multi-state SMBs
Gusto vs. OnPay: Quick winners
Different businesses weigh trade-offs differently. Here's where each platform tends to come out ahead.
Pricing: Is Gusto or OnPay cheaper?
Both publish pricing. OnPay's flat $49 base + $6 per person is one of the most predictable pricing models in payroll — what you see is what you pay, and multi-state is included.
Gusto's Simple plan starts close in headline price but is single-state on the cheapest tier; multi-state effectively requires Plus, which is materially more expensive. For employers in two or more states, OnPay typically wins on pure cost.
OnPay is the cheaper, more predictable option, especially for multi-state employers.
Payroll features
Both handle full-service payroll, automatic tax filings, direct deposit, contractor payments, and year-end forms. OnPay has a stronger reputation for handling edge-case payroll — clergy, agriculture, restaurants with tip credits — without bolt-ons. Gusto handles those cases but is built primarily for mainstream SMB payroll.
OnPay is the better answer when payroll has industry-specific wrinkles.
Ease of use
Gusto's interface is the more polished of the two for owners and especially for employees. The employee app, paystub access, and onboarding flow are best-in-class for small business.
OnPay's interface is clean and functional but less polished. For owners running payroll quickly each cycle, both work; for businesses where the employee experience matters as a recruiting or retention signal, Gusto wins.
Gusto's owner and employee experience is materially more polished.
If you've narrowed your choice, check current pricing and details directly with each provider.
Tax filing and compliance
Both file federal, state, and local payroll taxes automatically. OnPay handles multi-state payroll without per-state surcharges, which simplifies compliance in ways that genuinely matter for distributed teams.
Both file taxes reliably; OnPay's no-surcharge multi-state simplifies compliance budgeting.
HR, benefits, and employee management
Gusto is a stronger benefits and HR platform out of the box. Health insurance, 401(k), workers' comp, onboarding, and document storage are baked in, and the experience is built for non-HR-specialist owners.
OnPay supports benefits but is lighter on HR features. That's a feature for buyers who want pure payroll and a drawback for buyers who'd rather not run a separate HR system.
Gusto is a benefits/HR platform; OnPay is a payroll platform with benefits available.
Integrations
Gusto has the broader marketplace — QBO, Xero, FreshBooks, time-tracking, POS, expense, HR. OnPay covers the core accounting integrations (QBO, Xero) cleanly but offers a smaller surrounding ecosystem.
Gusto's integrations marketplace is broader and more SaaS-modern.
If you've narrowed your choice, check current pricing and details directly with each provider.
Scalability and long-term fit
Both scale comfortably across typical SMB headcounts. Gusto has a clearer runway as HR and benefits depth become more important; OnPay's natural fit is steady-state SMBs that want payroll to stay simple and predictable.
Gusto has more headroom as HR needs grow.
Customer support
OnPay has a strong reputation for support quality — small, accessible team, responsive to setup and migration questions. Gusto's support is solid and varies by plan tier.
OnPay's support consistency is a real strength for price-sensitive buyers.
Gusto pros and cons
- Stronger benefits and HR platform
- Best-in-class employee app
- Gusto Solo for one-person S-corps
- Broader integrations marketplace
- Lifetime employee account
- Multi-state effectively requires Plus tier
- More expensive overall for payroll-only buyers
- Less depth for industry-specific payroll edge cases
OnPay pros and cons
- Flat $49 + $6/person pricing, including multi-state
- Strong reputation for niche payroll (clergy, ag, restaurants)
- Consistent, accessible support
- No tier upgrades to unlock core features
- Lighter on benefits and HR
- Less polished employee app than Gusto
- Smaller integrations marketplace
- No dedicated S-corp owner-only plan
Which businesses should choose Gusto?
- SMBs that want payroll + benefits + HR in one platform
- Owners who care about the employee experience
- One-person S-corp owners (Gusto Solo)
- Businesses that want a deep integrations marketplace
Which businesses should choose OnPay?
- Price-sensitive small businesses
- Employers running payroll in multiple states
- Niche-industry employers (clergy, agriculture, restaurants)
- Owners who want a single flat-price plan with no upgrade decisions
Gusto vs. OnPay by business type
Final verdict: Gusto vs. OnPay
OnPay is the most defensible answer when price and multi-state simplicity are the priority — and that's a real and common need.
Gusto wins when benefits, HR, and the employee experience are part of why you're buying payroll. For one-person S-corps, Gusto Solo is still PayrollSignal's Green Light pick regardless of headline price.
Gusto for benefits-aware SMBs; OnPay for price-sensitive multi-state employers
Pick your provider and check current pricing
Visit each provider directly to confirm current pricing, packages, and features for your business.
Frequently asked questions
Is OnPay cheaper than Gusto?+
Yes for most multi-state employers, because OnPay includes multi-state at its flat $49 base + $6 per person while Gusto effectively requires its Plus tier for multi-state.
Is Gusto better than OnPay?+
Gusto is the stronger benefits, HR, and employee-experience platform. OnPay is the stronger pure-payroll value, especially for multi-state and niche-industry employers.
Which is better for multi-state payroll?+
OnPay, on cost. Gusto handles multi-state well but it costs more at Gusto's Plus tier than OnPay's single plan.
Which is better for benefits?+
Gusto. Health insurance, 401(k), and workers' comp are baked in and integrate cleanly with payroll.
Which is better for restaurants?+
OnPay tends to handle tip credits and minimum-wage offsets more cleanly. Gusto works for restaurants but is less specialized.
Which is better for S-corp owners?+
Gusto, because of the Solo plan purpose-built for one-person S-corps.
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