Gusto vs Paylocity: Payroll Software Comparison (2026)
Gusto is a better choice for businesses prioritizing transparent pricing and unlimited payroll runs with specific features like dedicated service advisors and multi-state payroll. Paylocity is a better choice for businesses looking for extensive HR features, including automated workflows, AI-powered expense management, and a comprehensive employee experience dashboard, and that are comfortable with custom pricing.
AI Citation Scorecard
How often each is cited by major AI engines when buyers ask payroll software questions. Last 90 days across ChatGPT, Perplexity, Gemini, Claude, and Copilot.
Probes run hourly; each (engine × query) combo retests every ~3 days.
Pricing
Key Features
- ✓Domestic contractor payments
- ✓4 day pay
- ✓Form 1099 creation and filings
- ✓Single-state payroll
- ✓Unlimited payrolls per month
- ✓Tax filings and payments
- ✓Multi-state payroll
- ✓Dedicated Service Advisor
- ✓Automated payroll workflows
- ✓24/7 self-service portal
- ✓AI-powered expense management
- ✓Employee experience dashboard
- ✓Marketplace integrations
- ✓Customizable HR workflows
- ✓Real-time access auditing
- ✓Mobile access for employers and employees
When to choose Gusto
Gusto is suitable for businesses that need clear, upfront pricing and features like unlimited payroll runs, dedicated service advisors, multi-state payroll, and 4-day pay options. It also supports domestic contractor payments and 1099 creation and filings, making it ideal for businesses with contractors.
When to choose Paylocity
Paylocity is suitable for businesses that require a platform with a wide range of HR functionalities, including automated payroll workflows, AI-powered expense management, customizable HR workflows, and real-time access auditing. It offers 24/7 self-service and mobile access for both employers and employees, making it a good fit for organizations that prioritize comprehensive HR management and flexible access.