December 16, 2021

Gusto vs ADP

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The days of filling out timesheets by hand are long gone, and dusty punch card machines now sell on eBay for big bucks, with the term “vintage” included in their descriptions. Instead, organizations and enterprises have popularized software and technological management tools to reinvent staff management processes. Automation makes it easy for these software tools to take care of actions like employee payroll and HR tasks quickly and easily with a few clicks of a button.

Payroll software helps organizational managers by simplifying the process of providing payment and support to their staff members. These systems can also serve as HR solutions and have beneficial payment management capabilities and features.

In this piece, we will be comparing the products of two software vendors, Gusto and ADP, to see how their payroll solutions measure up. In analyzing these products, we will be looking at some of each payroll software tool’s important features and capabilities.

Jump to:

  • Onboarding documentation and tax filing
  • Staff compensation and benefits
  • HR capabilities and time tools
  • Employee self-service features
  • How to choose a payroll software

Onboarding documentation and tax filing

Gusto provides onboarding documentation and tax-filing features to simplify organizational processes. It performs payroll and year-end tax filings through the system, including preparation, filing, and remittance. Additionally, users can send and electronically sign I-9s and W-4s and provide their direct deposit information. With advanced product options, administrative permissions can be implemented to allow qualified staff to access sensitive documentation. The software can also send offer letters and onboarding documentation to new employees and automatically report new employees to the government.

ADP’s intuitive system, RUN Powered by ADP, lets users manage their payroll taxes and W-2/1099 processing in advanced plans. In addition, these plans can provide capabilities to assist in onboarding processes, such as sending offer letters and onboarding documents, and can even run up to five background checks for prospective hires each year.

Also Read: 3 Expensive Payroll Error Laws You Need to Follow

Staff compensation and benefits

Gusto payment processing is easy with the Autopilot automated payroll feature. Additionally, Gusto offers payroll software features that can be purchased as add-ons. These capabilities help management staff with managing compensation and benefits for employees. The software lets employees enroll in health insurance plans through the Gusto software platform, and 401k programs are provided for staff through the platform as well. Payments can be processed through direct deposit or snail mail. The system also provides the option of utilizing college savings plans for staff members who want to save for their children’s futures. Workers comp administration is also provided in all product plans.

ADP has several tools that help with staff compensation and benefits features. The system can provide payroll reports and analytics, so management staff can gain insight into their payroll data. ADP’s basic plan allows paychecks to be sent via direct deposit, and on advanced plans, payrolls can also be submitted by snail mail or via a prepaid Visa debit card. Payrolls can be processed for all employees and contractors through one central interface. Their single-service billing combines ADP payroll and complimentary partner services, so it’s easy to keep track of payments in the system. Benefits that ADP manages within their software include healthcare, workers compensation, retirement plan assistance, unemployment insurance, and wage garnishment assistance. 

HR capabilities and time tools

Gusto lets HR professionals take care of their responsibilities through the system. Paid time off tracking can be performed and managed, and it is easy to create flexible schedules in the system. Certified HR staff can access additional HR capabilities through their Gusto Concierge plan, which lets users create customized employee handbooks and HR documents. The paid-add ons also simplify the HR processes regarding benefit management, as it can all be taken care of through the system.

In addition to employee schedule creation capabilities, the ADP system features can help users with attendance tracking, overtime tracking, and time-off tracking and approvals. HR members can also access ADP’s HR forms and administration library for assistance. Advanced plans take ADP’s assistance to the next level, providing users access to a dedicated team of HR business advisors and free and discounted legal services provided through third-party vendors. And talent acquisition is simplified, as ADP is partnered with ZipRecruiter to help with onboarding and job postings.

Also Read: ZipRecruiter vs Indeed

Employee self-service features

Gusto has many service features that give staff members the freedom to view and manage their employment features easily. For example, staff can create employee profiles and access self-service capabilities in the Gusto Core plan. In addition, advanced plans let employees quickly locate information in the employee directory and make their voices heard with employee surveys. And of course, the independent add-on options are great for employees to manage their benefits and accounts, including tax-advantaged spending accounts, health savings accounts, flexible spending accounts, and commuter benefits. 

Employees can easily access ADP’s system and features through their mobile app. Staff members can create profiles and access self-service functions in the standard ADP system. In addition, workers can benefit from their employee assistance features, which can provide them with counseling, financial referrals, dependent care options, and more, all through the system. In advanced plans, employees can utilize the employee handbook wizard for assistance. Notable features of the advanced plans also include the option for employee discount programs and employee work-life assistance programs in addition to the other benefit perks of lower-level plans.

How to Choose a Payroll Software

To choose a payroll software system, you should make an educated decision based on the features most important to your organization. 

While these options may have a lot of overlapping features, some critical differentiators between them exist which should be taken into consideration. For example, Gusto provides users with the helpful option for automating payroll processes quickly, which is a feature that the ADP systems do not possess. However, when it comes to accessibility, ADP might be more beneficial, as users can access the system through the ADP app. In contrast, Gusto does not have a mobile app and therefore cannot be easily accessed on the go. 

Therefore, when choosing between the two software options, it is helpful to consider the unique features provided by each service and decide which ones may be more beneficial to your organization. TechnologyAdvice can help you with a free list of 5 vendors that meet your needs. Visit the payroll software page for more options.