Selecting the right Human Resources (HR) platform is a critical decision that directly impacts the operational efficiency of your team. The challenge lies in the fact that no two businesses share identical needs, which means finding software that perfectly aligns with your requirements can be tricky. This mismatch often leads to inefficiencies, but you can avoid this by thoroughly evaluating the software's features and your business priorities.  

OnPay and Gusto are two highly regarded platforms that promise to simplify HR management. But which one is the better fit for your organization? OnPay works well for businesses that prioritize affordability and simplicity, while Gusto is ideal for organizations seeking advanced automation and global support.   

This guide provides an in-depth analysis of OnPay and Gusto, highlighting their key features, strengths, limitations, payroll and benefits management capabilities, hiring and onboarding tools, integrations, and pricing.  

OnPay Vs Gusto – At A Glance

Features 

OnPay 

Gusto 

Payroll Managment 

Unlimited payroll runs, AutoPilot™ automation, tax filings, W-2s and 1099s processing, international contractor payments 

Supports unlimited payrolls, tax compliance, specialized industry features (e. g. , automated tip reporting), FUTA exemptions, Form 943 

Benefits Administration 

Access to 9,000+ plans, Gusto Wallet for budgeting and savings, commuter benefits, workers' compensation, Benefits Store 

Comprehensive benefits suite, pay-as-you-go workers' comp, life and disability insurance, employee self-service app, HSAs/FSAs 

Hiring And Onboarding 

ATS integrations, personalized offer letters, customizable checklists, benefits enrollment, software provisioning 

Paperless onboarding, custom forms with e-signatures, state new hire reporting, task tracking, secure personnel file storage 

Integrations 

Extensive integrations with HR, accounting, and productivity tools like QuickBooks, Xero, and Slack 

Integrates with core tools like QuickBooks and Xero, focusing on streamlined payroll data management 

Pricing 

Starts at $40/month + $6/employee 

Flat $40/month + $6/employee 

What Is OnPay?

OnPay is a comprehensive cloud-based payroll and HR software designed to simplify workforce management for small and medium-sized businesses. It simplifies administrative tasks by offering features such as automated payroll processing, tax filing, employee onboarding, PTO tracking, and benefit administration.  

The software stands out for its clean interface, customizable reporting options, and an extensive ‘HR Resource Library’ that provides expert compliance and best practice tips.

Unique Features Of OnPay

  • Instant In-App Reporting: The software enables users to view and customize reports directly within the app, using real-time updates and downloadable options for seamless report generation.  
  • Automated Org Charts: The platform automatically generates organizational charts and employee rosters as new members are added, making it easier for teams to navigate and connect.  
  • Direct Messaging: This feature makes it easy to communicate securely by allowing employers to send reminders, performance reviews, and disciplinary notes while keeping all messages archived for future reference.  
  • Customizable Tasks And Checklists: The software allows businesses to create and assign customized tasks and checklists for activities including orientation training, equipment setup, and onboarding workflows, which improves productivity.  

Pros And Cons Of OnPay 

Pros 

  • Provides timely reminders to process payroll early during holidays 
  • Sends invitations for employees and contractors to onboard themselves securely and efficiently 
  • It offers self-print W-2s and 1099s for free, saving time and money at year-end 

Cons  

  • Limited mobile functionality, as certain features are exclusively available on the desktop version 
  • It has limited third-party integration  

What Is Gusto?

Gusto HR is an all-in-one platform that simplifies payroll, HR, and benefits for small and medium-sized businesses. It offers a wide range of features, including automated wage processing, tax filing across all 50 states, timely compliance alerts, and customizable reporting tools.  

The platform supports custom onboarding checklists and seamless time tracking, while also enabling businesses to administer health, dental, vision, and financial benefits with ease. It connects businesses with certified HR experts, but its real strength lies in addressing the unique challenges of industries such as construction, restaurant, trucking, and cannabis-related businesses.  

Unique Features Of Gusto 

  • Employer Of Record (EOR) Service: The platform enables businesses to hire full-time international employees while avoiding the challenges of managing global labor laws and tax compliance.  
  • Gusto Wallet: This app helps employees take control of their finances, enabling them to track earnings, set savings goals (up to 2. 00% APY), split paychecks, access early direct deposits, and use 37,000+ fee-free ATMs.  
  • Talent Managment: This feature includes performance reviews, goal tracking, and anonymous feedback surveys, and it also integrates with learning and development apps to provide employees with continuous opportunities to grow.  
  • Time Tracking And Timesheet: The software offers a time tracking tool that allows employees to clock in/out via the Gusto Wallet app or Time Kiosk. It also supports geofenced work site tracking and automated time-off policies, syncing everything directly to payroll for seamless operation.  

Pros And Cons Of Gusto 

Pros  

  • Provides a debit account with a saving feature that rounds up your change automatically and transfers it to a separate account   
  • It integrates with a wide range of software to meet various requirements  
  • Support flexible mapping of payroll data to fit your existing system 

Cons 

  • Its performance review capabilities are limited when it comes to customizing forms 
  • No option to split gross pay in a single paycheck for multi-location employees  

OnPay Vs Gusto – Key Features Comparison

Payroll Managment

Gusto excels in payroll management with its AutoPilot™ feature, which automates federal, state, and local tax filings, and manages W-2s and 1099s. The self-service portals allows lifetime access to all paystubs and personal data so employees can access information long after they leave the company.

Additionally, the software supports global contractor payments in over 120 countries, making it ideal for international teams. It allows businesses to process unlimited payrolls without extra charges and handle both regular and off-cycle pay runs efficiently.

OnPay also delivers strong payroll functionality with unlimited payroll runs and tax compliance support. However, it has a particular focus on specialized industries such as restaurants (automated tip reporting and overtime calculations), farms (Form 943 filings), and nonprofits (FUTA exemptions).

Winner: Although OnPay caters well to niche industries, Gusto stands out with its advanced automation, efficiency-focused features, and international reach, offering a more comprehensive payroll solution.

Benefits Administration

Gusto provides access to over 9,000 health, dental, and vision plans, paired with licensed advisors to deliver compliant, customized benefit solutions. It enhances employee financial wellness through the Gusto Wallet app, offering budgeting insights and savings tools that are not commonly available on other platforms.

One thing that stands out is how the platform bridges the gap in benefits by providing workers' compensation, commuter plans, and a Benefits Store, offering a safety net for those without employer coverage.

OnPay, while similar in offering a comprehensive suite of benefits integrated with payroll, prioritizes easy setup and management with low-cost 401(k) providers such as Vestwell and Guideline.

The platform offers advanced customization, enabling employees to manage benefits seamlessly within the app by electing coverage, adding dependents, and viewing detailed pay-period costs. Its pay-as-you-go workers' compensation plans are ideal for businesses committed to compliance, as they integrate seamlessly with payroll and require no upfront fees.

Winner: Gusto clearly takes the lead for businesses prioritizing financial wellness. While OnPay offers flexibility, Gusto’s innovative Wallet app and broader access to health plans make it the stronger choice.

Hiring And Onboarding

Gusto allows employers to manage job posting directly on the platform, sends personalized offer letters, and streamlines onboarding through customizable checklists that ensure efficient completion of W-4s, I-9s, and benefits enrollment.

The platform integrates seamlessly with leading applicant tracking systems (ATS), enabling synchronized workflows and easy import of new hires into payroll. It also supports software provisioning and calendar syncing for onboarding milestones, making the recruitment process smooth and welcoming for new employees.

On the other hand, OnPay excels in offering a flexible and paperless onboarding solution. It enables businesses to send electronic offer letters and onboarding documents, including custom forms such as handbooks or NDAs, which employees can e-sign and submit at their convenience.

The software stands out for its employee self-service accounts, where workers can manage tax forms, pay stubs, and banking details independently, and for automating state new hire reporting and compliance filings. It also offers customizable workflows, task tracking, and secure cloud storage for personnel files.

Winner: It’s a Tie. Both Gusto and OnPay offer exceptional hiring and onboarding tools. Gusto is particularly effective for businesses that require detailed, integrated onboarding processes, while OnPay is better suited for those that prefer customizable and self-service approaches.

Integrations

Gusto provides businesses with seamless connectivity across accounting platforms like QuickBooks and Xero, communication tools like Slack and Zoom, and HR management systems such as Breezy HR and Deputy, etc.

The platform offers more integration options than its competitors, including automation with Google Workspace and Microsoft 365, which simplifies account set up and removal during key HR processes.

OnPay also integrates with tools like QuickBooks, Xero, When I Work, and Deputy, but it is better in handling core payroll tasks by importing wages, hours, and time-off balances directly into the system.

While it lacks app provisioning or the broader flexibility Gusto offers, it is a strong contender for smaller businesses or those that prioritize straightforward, no-frills solutions.

Winner: Gusto takes the win in this round with its wider range of integration, provisioning capabilities, and focus on flexibility across various business needs.

Pricing

Gusto’s pricing starts at $40 per month plus $6 per employee, with discounts available for higher-tier plans in the first three months. The plans are structured as follows:

  • Simple – $40/month base fee + $6/month per person
  • Plus – $80/month + $12/month per person
  • Premium – $180/month + $22/month per person
  • Contractor-Only – $35/month base fee + $6/month per person

Each plan offers specific features, such as single-state payroll and Gusto wallet access in the Simple Plan, while the Plus Plan adds multi-state payrolls and workforce management tools. However, the Contractor-Only Plan focuses solely on contractor payments and excludes certain tax-related features.

Meanwhile, OnPay’s pricing model is straightforward, charging a flat $40/month base fee + $6/month per employee, which includes unlimited pay runs, federal and state tax filings W-2 and 1099 processing, and year-end forms.

The software offers free multi-state payroll and cancellation flexibility. However, Gusto provides unmatched global contractor payment capabilities, supporting 120+ countries without charging a monthly fee per contractor.

Winner: Both Gusto and OnPay fulfill distinct business priorities, making this section a tie. Gusto is ideal for businesses with global operations, offering unmatched international capabilities, while OnPay stands out by charging no extra fees for multi-state payroll and cancellations.

The Verdict – Which HR Software Is Better?

OnPay and Gusto each bring unique strengths to the table; the final choice largely depends on your business needs.  

OnPay is the ideal choice for businesses prioritizing straightforward payroll processing, ensuring compliance, and maintaining affordability. On the other hand, Gusto’s broader capabilities and innovative features make it the preferred choice for businesses seeking a holistic approach to HR and payroll solutions.  

Ultimately, the decision depends on what your business values the most. Both platforms perform well in their areas, so understanding your organization's requirements will help you choose the right option. If neither version aligns with your vision, it is worth considering other strong contenders, such as Rippling HR and BambooHR , which might offer the features your company wants.