Gusto vs Square Payroll: Which Is Better?
The all-in-one standalone payroll and HR platform versus the POS-integrated payroll tool built for hourly, tipped, and contractor-heavy businesses. Six rounds. Real numbers. One honest scorecard.
The verdict
Gusto takes it, 5–1 on rounds.
There's no universal winner — this comparison is really a POS question: check what you're already running before you check the price sheet.
Choose Gusto if…
- • You're not already running Square for point-of-sale
- • You want native, in-house HR, benefits, and 401(k) tools
Choose Square Payroll if…
- • You're already running Square POS for hours, tips, and commissions
- • You're a contractor-only shop wanting a true $0-base-fee plan
Round by round
- Round 1Pricing & TransparencySquare Payroll winsGusto6/10
$49/mo + $6/employee
Simple tier; time tracking requires Plus
- Fully published pricing, no sales call
- Higher base fee than Square's Full-Service plan
Source: Gusto pricing data
Square Payroll9/10$35/mo + $6/worker
Full-Service; contractor-only plan has zero base fee
- Lower base fee than Gusto's entry tier
- True $0-base-fee option for contractor-only businesses
- Inactivity periods pause the base fee for seasonal businesses
- Must keep the account paid through January to receive W-2/1099 forms
Source: Square Payroll pricing data
Square undercuts Gusto's base fee outright, and its contractor-only plan has no rival on price.
- Round 2Core Payroll & Tax FilingGusto winsGusto8/10
Automated filing, praised for accuracy
- Automatic federal/state/local filing praised for accuracy
- Simple tier restricted to single-state filing
Square Payroll5/10Automated multistate filing, some error reports
- Automated multistate filing at no extra cost
- Reviewers report recurring tax-filing errors
Both automate filing well, but Square has a more visible complaint pattern around actual filing accuracy.
- Round 3HR Features & BenefitsGusto winsGusto8/10
Native HR stack
401(k), HR pros, compensation tools on Premium
- 401(k) built in natively via Guideline
- Certified HR pros and compensation tools on Premium
Source: Gusto product data
Square Payroll5/10Partner-based benefits
Health, 401(k), workers' comp via third-party partners
- PTO/sick leave tracking and self-onboarding included
- No PEO option
- Thinner standalone HR feature set than dedicated platforms
Source: Square Payroll product data
Gusto's HR stack is deeper and mostly native; Square's is thinner and leans on outside partners.
- Round 4Ease of Use & SetupGusto winsGusto9/10
Rated easiest to learn
- No sales call required at any tier
- Fully standalone, no dependency on other Gusto products
- Advanced tools locked behind pricier Premium tier
Square Payroll7/10Simple setup, tied to Square account
- Fast, simple setup via Square Dashboard
- Requires an active Square account to run payroll at all
- Support can be slower to resolve issues than payroll-only rivals
Both are genuinely simple to set up; Gusto's support and standalone design give it the edge outside the Square ecosystem.
- Round 5IntegrationsGusto winsGusto7/10
~10 integrations
QuickBooks, Xero, Shopify, Clover, Homebase, Slack
- Works regardless of which POS a business runs
- Native Shopify and Clover POS connections
Source: Gusto integrations list
Square Payroll6/10Native Square POS sync
Tips, hours, commissions auto-import from Square POS
- Automatic tip and hours import from Square POS eliminates manual entry
- QuickBooks connection is manual export, not deeply native
- Value weakens sharply if not already on Square POS
Source: Square Payroll integrations data
Square's POS integration is unmatched for Square shops; Gusto's list is far broader for everyone else.
- Round 6Customer Support & TrustGusto winsGusto7/10
4.6 / 4.6 / ~2.3
G2 / Capterra / Trustpilot
- 4.6/5 on both G2 and Capterra from thousands of reviews
- Trustpilot ~2.3/5, driven by support-response complaints
Source: Gusto sentiment data
Square Payroll6/104.7 Capterra, thinner G2 sample
- 4.7/5 on Capterra from 611 reviews
- G2 sample is much smaller — just 30 reviews
- Reviewers note bugs and slow support response
Gusto's review base is larger and its support reputation more consistent across a bigger sample.
Which one is for you?
Restaurant or retail business already running Square POS
→ Square Payroll · Automatic tip and hours import eliminates manual data entry
Solo shop paying only 1099 contractors
→ Square Payroll · True $0-base-fee contractor-only plan, pay just $6/contractor paid
Business wanting native, in-house HR and 401(k) tools
→ Gusto · Gusto builds benefits, 401(k), and HR pros natively rather than via partners
Business not using Square for point-of-sale
→ Gusto · Standalone platform works regardless of POS system, broader integrations
Side by side
- Fully published pricing, no sales call
- Automatic federal/state/local filing praised for accuracy
- 401(k) built in natively via Guideline
- Certified HR pros and compensation tools bundled into Premium
- Contractor-only plan has zero monthly base fee
- Seasonal inactivity periods waive fees in slow months
- Automatic filing included by default, no upgrade tier
- Automated multistate filing included
- Multi-state payroll requires upgrading to a pricier tier
- Multi-state filing requires a pricier tier
- Advanced tools locked behind pricier Premium tier
- Trustpilot ~2.3/5, driven by support-response complaints
- Full-Service base fee is double Patriot's Basic tier
- No built-in onboarding workflow or org chart tool
- QuickBooks support is export-based, not deeply native
- Reported tax filing errors from at least one reviewer