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Which software is better for you?

Hourly and Gusto are two well-known payroll solutions for small and medium-sized businesses. Hourly offers comprehensive payroll with related features, and Gusto offers the same functionality but with additional HR features.

Given the similarities between these two payroll software, it can be difficult to choose between them. We compare Hourly vs. Gusto in detail so you can decide which software solution is best for your payroll needs.

Hourly vs. Gusto: Comparison Chart

per hour Gusteau
starting price $80 per month + $12 per employee per month $40 per month + $6 per person per month
Unlimited payroll runs Yes Yes
automatic payroll No Yes
Payroll runs via mobile app Yes No
same day deposit Yes No
workers compensation Yes Yes
Other benefits management No Yes
time tracking Yes Yes
integrated Quick manual only Yes
Visited once an hour Visit Gasteau

Hourly Billing vs. Gusto: Pricing

Hourly pricing

There are three pricing plans available by the hour:

  • gold: $80 per month, plus $12 per employee per month. It comes with unlimited payroll runs, automatic taxes and filing, four-day deposits, and white-glove onboarding.
  • platinum: $120 per month, plus $16 per employee per month. It includes everything gold plus next day deposits and a dedicated customer success team.
  • Platinum+: Customized pricing. This plan offers everything at Platinum level, plus same-day deposits and a full suite of HR tools.

For more information, see our full hourly reviews.

Enthusiastic pricing

Gusto also offers three pricing plans to support growing businesses of all sizes, with HR features increasing with each tier, and it has a contractor-only plan:

  • simple: $40 per month, plus $6 per person per month. It has full-service single-state payroll including W-2s and 1099s as well as basic recruiting and onboarding tools.
  • add: $80 per month, plus $12 per person per month. It covers a full range of services for multi-state payroll, including W-2s and 1099s as well as next-day direct deposit, time tracking, performance reviews, and more.
  • High quality: Customized pricing. It includes everything in Plus plus a dedicated Customer Success Manager, HR Resource Center, and Compliance Alerts.
  • Contractor payroll only: $6 per person (no monthly fee).

A variety of additional services are available, including health insurance, workers’ compensation, life and disability insurance, HSA and FSA accounts, and commuter benefits.

For more information, see our full Gusto review.

Hourly vs. Gusto: Feature Comparison

Payroll

Both Hourly and Gusto offer unlimited payroll runs on all pricing tiers. Some alternative solutions charge for each individual payroll run, which can add up quickly, especially if you need to run payroll frequently.

However, Gusto offers the option to set payroll to run automatically, but not hourly. Hourly, on the other hand, offers a mobile app that lets you run payroll from your smartphone even when you’re not in the office — Gusto does offer a mobile app called Gusto Wallet, but it’s only for employees, management Employees cannot use it to run payroll.

Gusto payroll interface.
Figure A Easily manage payroll in Gusto. Image: Gusteau.

direct deposit

Hourly and Gusto both offer direct deposit as a feature of their payroll software. On an hourly basis, the Gold plan offers four-day direct deposit, the Platinum plan offers next-day direct deposit, and Platinum+ offers same-day deposit.

Gusto, on the other hand, offers different schedules for its direct deposit options. There are next-day direct deposit, two-day direct deposit, and four-day direct deposit. The next day direct deposit option is only available to customers with Plus and Premium subscriptions.

Hourly salary calculation interface.
Picture B Set up hourly direct deposit based on your paid plan. Image: hourly.

workers compensation

In addition to payroll software, Hourly is also known for its pay-as-you-go workers’ compensation insurance, which allows business owners to make payments based on the exact amount of each paycheck. The feature is currently available in Alabama, Arizona, California, Colorado, Florida, Georgia, Oklahoma, North Carolina, South Carolina, and Texas.

Gusto also offers pay-as-you-go workers’ compensation add-on services through a partnership with AP Intego, now owned by NEXT Insurance. Gusto’s workers’ compensation is available in more states, so it may be a better fit if you own a business in multiple states.

Gusto workers compensation.
Figure C With Gusto, you can get workers’ compensation insurance in multiple states. Image: Gusteau.

Time tracking and attendance

Hourly time tracking is a built-in feature and requires no third-party integration. Hourly, you can add and view each employee’s PTO, set a minimum lunch break, and require manager approval after 8 hours of work. You can also see where your team is on a live map and set geographic locations for clocking in and out.

With Gusto, employees can log time via a web browser, the Gusto Wallet app, or a Time Kiosk tablet. Gusto also offers project tracking capabilities so employees can log their time working on specific tasks or clients. Gusto also provides PTO management and scheduling tools so you can manage everything in one system.

Track geolocation hourly.
Figure D On an hourly basis, you can see which employees are actively working at a set location. Image: hourly.

Employee management

Hourly offers a variety of employee management options, such as vacation and sick leave policies, allowing businesses to set vacation rules and track employees’ vacation and sick days. The software also provides employees with payroll cards that allow them to access their wages instantly through a reloadable debit card.

Gusto offers a wider range of employee management packages. The software provides recruiting and onboarding capabilities, including employee self-service onboarding, onboarding checklists, and employee background checks.

Integrate with other applications

Both software solutions offer integration capabilities that allow enterprises to connect with other business applications. Hourly only integrates with QuickBooks, limiting what you can use with Hourly.

Gusto’s integrations go well beyond QuickBooks and include other accounting solutions like FreshBooks and Xero, as well as software for business operations, learning management, point of sale, and more.

Advantages and Disadvantages of Hourly

Advantages per hour

  • Offers a payroll mobile app.
  • User friendly interface.
  • Native time tracking.
  • White glove onboarding service.

Disadvantages per hour

  • More expensive than Gusteau.
  • Fewer HR features than Gusto.
  • There is no administration of benefits outside of workers’ compensation.

Advantages and Disadvantages of Gusto

Advantages of Gusto

  • Automatic payroll available.
  • Powerful HR functionality.
  • Local time and project tracking.
  • Provides international payroll.

Gusteau’s Disadvantages

  • Payroll does not offer same-day deposits.
  • There is no mobile payroll app for employers.
  • Health insurance is only available in 38 states and Washington, DC.

Should your organization use Gusto or Hourly?

Choose Gusto if the following conditions are met. . .

  • You need to be able to schedule automated payroll runs.
  • You don’t mind just running payroll on your computer.
  • You don’t need to make a same-day deposit.
  • You’re looking for more powerful HR tools.
  • You want to administer benefits outside of workers’ comp.

If then select hourly. . .

  • You have more budget to spend.
  • You want to be able to run payroll through a mobile app.
  • You need to deposit on the same day.
  • You already have another benefits management solution.
  • You don’t need automated payroll.

Still can’t decide? Check out our page to learn how to choose the right payroll tool for your business.

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To compare Hourly and Gusto, we reviewed the product documentation and user reviews. We considered features like payroll, tax and compliance, benefits, time tracking and scheduling, HR resource library, and more. We also weighed factors like pricing, user experience, customer service, and transparency.

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