Gusto vs Justworks
Gusto and Justworks both serve small and mid-size US businesses with payroll, benefits, and HR tools. Gusto is a full-service payroll and HR software with a strong developer API ecosystem. Justworks is a Professional Employer Organization (PEO) that co-employs your workforce, giving small businesses access to large-company health insurance rates and shared HR liability.
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Effortlessly manage your team vs HR, benefits, and payroll for growing companies.
| Feature | Gusto | Justworks |
|---|---|---|
| Pricing from | $40–$80/mo base + $6–$12/person | $59–$109/person/mo |
| Pricing | Simple $40+$6/person; Plus $80+$12/person | Basic $59/person/mo; Plus $109/person/mo |
| Best for | Startups wanting affordable software-first HR | Small companies wanting PEO benefits access |
| Model | Software (you remain employer) | PEO (co-employment) |
| Health insurance | Broker access; you pay market rates | Access to Justworks group rates (cost savings) |
| HR liability | You own HR compliance | Shared compliance under PEO model |
| Payroll | Excellent US payroll | Payroll included in PEO plan |
The third option most teams miss
Picking between Gusto and Justworks isn't the only choice.
Appaca gives Gusto and Justworks customers an AI-powered HR copilot that answers employee questions about benefits and policies, automates onboarding checklist tracking, and flags compliance deadlines before they become problems.
- No code, no deployment, no devops
- Built-in database, dashboards, team access
- Refine with chat as your needs change
- Free to start, no per-seat pricing surprises
Common questions
A PEO (Professional Employer Organization) co-employs your workers, allowing small businesses to access large-group health insurance rates and share certain HR liabilities. It is most beneficial for companies under 50 employees that want enterprise-level benefits.
Justworks is generally more expensive per employee than Gusto's software fees alone. However, the cost of Justworks' PEO often includes better benefits rates that can offset or exceed the price difference for companies with significant health insurance costs.
Yes, Gusto Plus has PEO-like features and Gusto operates a formal PEO service called Gusto Employer of Record for certain workforce management needs. However, Justworks' PEO is more established and provides more comprehensive shared liability.