Gusto vs OnPay: Which Payroll Software Is Better in 2026?

At a glance

	Gusto	OnPay
Best for	Most small businesses	Multi-state teams on one simple plan
Starting price	$49 / month + $6 / person (Simple)	$49 / month + $6 / worker (Payroll Essentials)
Free plan or trial	No	First month free
Plan structure	Tiered: Simple, Plus, Premium	One payroll plan with paid add-ons
Multi-state payroll	Plus ($80 / month + $12 / person) and Premium	Included at no extra charge
Time tracking	Included with Plus	Paid add-on
Setup and migration	Help moving from another provider	Free setup and data migration
Accounting integrations	QuickBooks Online, Xero and others	QuickBooks Online, QuickBooks Desktop, Xero
Contract terms	Month to month	No cancellation fees

Gusto is the better fit for small businesses with employees in one state that want payroll, benefits and onboarding in a polished package, while OnPay suits employers with workers in several states who want one flat plan that covers them all. Both run full-service payroll, file federal, state and local taxes, pay W-2 employees and 1099 contractors, and start at the same published price, so the real differences are in plan structure, multi-state coverage and add-ons.

We rate Gusto 4.7 out of 5 and OnPay 4.6, the top two picks on our ranked list of the best payroll software. Here is how they compare head to head.

Pricing and plan structure

Both start at $49 a month plus $6 per worker. What you get at that price is where they split.

Gusto sells tiers. Simple costs $49 a month plus $6 per person and covers payroll in a single state. Plus costs $80 a month plus $12 per person and adds multi-state payroll and time and attendance tracking. Premium sits above that for businesses that want dedicated support and more HR help. Gusto bills month to month, and upgrades take effect immediately.

OnPay sells one plan, Payroll Essentials, at $49 a month plus $6 per worker. It includes unlimited pay runs, federal, state and local tax filings, W-2 and 1099 workers, and multi-state payroll with no per-state fee. HR tools, time tracking and live HR support are paid add-ons. New customers get the first month free, and OnPay says it charges no cancellation fees.

Winner: OnPay for pricing clarity and for any team that needs more than one state. Gusto Simple matches it only if every employee works in one state.

Multi-state payroll

This is the deciding factor for many employers. Once you hire a remote employee in a second state, you need payroll that withholds and files in both. On Gusto, that means moving to Plus, which raises the per-person fee from $6 to $12 and the base from $49 to $80. A 15-person team pays about $139 a month on Gusto Simple, but about $260 on Plus.

On OnPay, the same 15-person team pays about $139 a month whether its staff live in one state or five. That gap adds up to well over $1,000 a year.

Winner: OnPay, clearly. If your team is spread across states, this alone may settle the choice.

Payroll features and ease of use

Both tools handle the core work well. Each runs unlimited payrolls, calculates and deposits taxes, files quarterly and annual returns, produces W-2s and 1099s, and offers an employee self-service portal where staff see pay stubs and tax forms.

Gusto is especially good for first-time employers. Its setup walks you through state registrations, bank verification and employee onboarding with clear explanations, and the interface stays simple once you are running. OnPay is also straightforward, and its staff enter historical wages during setup, which removes one of the more tedious parts of switching providers. OnPay also lets you mix direct deposit, paper checks and prepaid debit cards in the same pay run, which helps employers with workers who do not have bank accounts.

Winner: Gusto, by a small margin, for a new employer setting up payroll for the first time. OnPay wins for an employer switching from another provider, thanks to free migration.

HR, benefits and time tracking

Gusto builds more into its tiers. Benefits administration and onboarding tools come with the product, and Plus adds time and attendance tracking that feeds hours straight into payroll. Premium adds more HR support for growing companies.

OnPay keeps the base plan focused on payroll and sells HR tools, time tracking and live HR support as add-ons. It handles benefits through in-house licensed insurance brokers and connects to Vestwell for 401(k) plans. It also offers pay-as-you-go workers’ compensation, where premiums adjust with actual payroll.

Winner: Gusto. If you want HR and time tracking included as you grow, Gusto’s tiers cover more without stacking add-ons.

Tax filing and compliance

Payroll software earns its fee on compliance, and both providers cover the filings small employers need. Each deposits federal withholding and payroll taxes, files quarterly Form 941 and annual Form 940, handles state income tax and unemployment filings, and sends W-2s and 1099s at year end. Both also process wage garnishments.

The practical differences are about scope. On Gusto Simple, compliance covers one state, so the day you hire outside that state you must upgrade before the first paycheck. OnPay files in all 50 states plus Washington, D.C., on the same plan, which removes that trigger point entirely.

Before you sign with either, ask how the provider handles new state registrations, what it does if a tax agency sends a notice, and whether it guarantees its filings against penalties caused by its own errors. Those answers matter more than any feature list.

Winner: OnPay for multi-state employers. For a single-state business, the two are even.

The employee experience

Both give workers a self-service portal and mobile access to pay stubs, tax forms and personal details, which cuts down on payday questions. Gusto’s employee experience is especially polished, and staff can manage benefits in the same account where they see their pay. OnPay’s portal and app let employees download pay stubs and W-2s and complete onboarding paperwork online.

Winner: Gusto, slightly, for a more polished employee experience.

Integrations

Both connect to the accounting systems most small businesses use. OnPay integrates with QuickBooks Online, QuickBooks Desktop and Xero, plus time tools such as QuickBooks Time and Deputy. Gusto connects with QuickBooks Online and Xero, and Xero uses Gusto as its US payroll partner, which makes Gusto the natural choice for Xero users.

Winner: tie. Choose Gusto if you run Xero and want the tightest fit. Choose OnPay if you still use QuickBooks Desktop.

Industries and special cases

OnPay names restaurants, farms and agriculture, nonprofits, and churches among the industries it serves, and it supports features those employers need, such as multiple pay schedules, custom pay rates and garnishments. Gusto serves a broad range of small businesses and also offers a contractor-only option for companies that pay only 1099 workers.

Winner: OnPay for agricultural employers, religious organizations and other employers with unusual payroll rules. Gusto suits typical office, retail and service businesses well.

Support

OnPay offers in-app chat and tickets on weekdays from 9 a.m. to 8 p.m. Eastern. Gusto includes basic support on Simple and moves to priority support and a dedicated contact on Premium.

Winner: tie for most small businesses. Teams that want a dedicated contact and can afford it will prefer Gusto Premium.

Which should you choose?

Pick Gusto if all of your employees work in one state, you are setting up payroll for the first time, you use Xero, or you want benefits, onboarding and time tracking from the same vendor as you grow. Watch the jump in per-person cost when you move to Plus.

Pick OnPay if you have workers in more than one state, you are switching from another provider and want free data migration, you run a farm, nonprofit, church or restaurant, or you simply want one predictable price.

Before you sign, price both at your current headcount and the headcount you expect in a year, with the add-ons you will use. Then ask each vendor who files in every state where you have workers today.

Pros and cons

Gusto

OnPay

Which should you choose?

Frequently asked questions