Payroll software is a cost-effective, automated, often out-of-the-box management solution for everything from employee payments to human resources, benefits, and taxes. Scalable platforms like Gusto and QuickBooks are ideal for small and medium-sized businesses that don’t necessarily have the fiscal resources to onboard an entire HR department, but need flexibility when it comes to handling everything HR related. has to do with. Nothing against carbon-based AI (humans) either, but these frameworks are great for avoiding a major pain point: human error.
TO SEE: Best payroll software for your small business in 2022 (TechRepublic)
Two from the top software as a service payroll options enthusiasm and that of Intuit Quick books — both flexible, scalable and based on a subscription model with different price levels. Gusto is ideal for small businesses looking for ease of use and versatility, and QuickBooks Online is good for businesses to medium-sized businesses that are likely to have their own books and records.
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What is Gusto?
enthusiasm‘s payroll management software is great for businesses with 10-20 employees. It automates a range of payroll functions, from simple to complex, for both employees and contractors. The framework also performs a plethora of HR tasks, including budget-based disability insurance and employee dental insurance.
Gusto also has the ability to expedite tax filing and reporting requirements, time tracking, expense tracking, shift scheduling, and employee onboarding. Importantly, no domain experts are required. Because of its ease of use and configuration, it is ideal for companies without or new payroll administrators.
What is QuickBooks?
Quick books from Intuit is a scalable product for inventory, payroll, benefits, tax and time tracking, and more. It has several pricing tiers for its QuickBooks Online SaaS packers, including the most popular Simple Start, Plus, and Advanced versions, but also (still) sells locally hosted desktop versions (Desktop Plus and Pro). The core product, QuickBooks Online Plus, includes:
- File access for two accountants
- Advanced billing, payroll, cash flow management, tax category features, and more
- Access to customer accounts
It is definitely a good option for companies with a dedicated bookkeeping and bookkeeping.
Gusto vs. QuickBooks: Feature Comparison
| Functions | enthusiasm | Quick books |
|---|---|---|
| Built-in expense tracking | no | Yes |
| Time registration | Yes | Yes |
| Best with accounting skills | no | Yes |
| Mobile friendly | Yes | Yes |
| Installation friendly | Yes | Fewer |
| File state, federal, and local taxes | Yes | Yes |
| Offers free trial | no | Yes |
Cloud-based vs. desktop software
Locally hosted desktop versions of various payroll software packages are available, but the trend is clearly towards cloud-based SaaS, which follows and complements the shift to remote and hybrid work. The big advantage: you can access cloud-based platforms anytime, anywhere as long as you have internet access, and they’re more cost-effective, scalable, easier to get started, and ideal for smaller business requirements.
Terrestrial products can only be accessed from the computer on which they are installed. Gusto does not have a locally hosted product, and while QuickBooks Desktop SKUs are still available for an annual subscription price (about $800 per year for Desktop Premier Plus), the QuickBooks Desktop company is discontinuing in 2023.
Pricing tiers and add-ons
The entry price is relatively low for both Gusto and QuickBooks, but add-ons add up. Gusto starts at $39 per month and an additional $6 for each employee enrolled in the software. But the addition of features like multi-state payroll, custom onboarding templates, time registrationnext day direct deposit and PTO management raises it to $80 per month and $12 per user.
QuickBooks’ entry level is Simple Start, for $30 per month, for one user only. Add two more users plus invoice management and time tracking, and the price goes up to $55. Five users, plus project tracking and inventory tracking is $85 per month.
International or only local?
While a growing number of U.S. companies have employees and contractors abroad, some payroll and accounting products are home-only, without the ability to facilitate payments from other countries, which requires a separate payroll framework.
QuickBooks handles foreign transactions. In comparison, Gusto supports international contractor payments in its “contractor-only” plan via Remote team but only after adding a domestic contractor, the company said.
TO SEE: Quick Glossary: Cloud Platform Services (Tech Republic Premium)
Integration with other software
Not all automated payroll software products do it all. For example, some don’t do accounting and billing, making integration with other products essential. While Gusto doesn’t speed up accounting or billing, it does integrate with many applications, including QuickBooks, Xero, FreshBooks, Jirav, Sage, and many more, to do things like training, tracking, and performance reviews.
QuickBooks integrates easily with other apps and Intuit’s own products like Mailchimp, which allows users to sync marketing and financial data with a specific Mailchimp audience for targeted marketing.
TO SEE: What is Software-as-a-Service? (TechRepublic)
Choose between Gusto and QuickBooks
It’s not just about the cost, although budget is part of the process. Both Gusto and QuickBooks offer low-cost entry-level and core products, but if you’re considering upgrades and additional features, prices can skyrocket.
All things considered, if you are a contractor with 10 employees, Gusto is probably right for you as it suits a smaller budget and fewer employees. Because it is online, users can pay a monthly subscription instead of a prepayment and users can log in securely through a web browser. It also includes features like automated charity donations and virtual wallets to help employees manage their finances. In addition, there are built-in free checking and high-interest savings accounts with salary advances for employees.
QuickBooks, which is more suitable for medium-sized businesses – it is customers ranging from Gruhn Guitars to the University of Massachusetts at Amherst – offering industry-specific editions, purchasing and supplier management, and sales and expense forecasting tools.
Note that starting June 2023, users of QuickBooks Desktop will lose security updates, live support, online backup, banking, and other services, so now may be a good time to start with the cloud.
