Managing payroll is an essential part of running a successful business. With an ever-growing need for automation, accuracy, and compliance, modern companies are increasingly relying on cloud-based payroll software to streamline these functions. Two of the most popular platforms in this arena are Rippling and Gusto. Both offer robust tools for handling payroll, but they differ in features, pricing, and overall business application. In this article, we’ll dive deep into a comparison of Rippling and Gusto to help you decide which platform is the better fit for your organization.
TL;DR
While both Rippling and Gusto offer strong payroll services, they cater to slightly different needs. Gusto is ideal for small to medium-sized businesses looking for easy and affordable payroll and HR tools. Rippling, on the other hand, offers more comprehensive features, including IT and app management, making it ideal for businesses looking for an all-in-one workforce management solution. The best choice depends largely on your company’s size, complexity, and growth plans.
Overview of Rippling and Gusto
Founded in 2016, Rippling offers a modern and comprehensive workforce management platform that combines HR, IT, and Finance systems into one. It’s particularly appealing to tech-savvy organizations that manage devices, apps, and permissions alongside payroll functions.
Gusto, established in 2011, focuses on simplifying payroll and HR for small and growing businesses. Known for its intuitive interface and customer support, it’s a go-to solution for startups and early-stage companies looking for an easy-to-use, cost-effective platform.
Core Payroll Features Compared
- Automated Payroll: Both platforms offer automated payroll calculations, direct deposit, and tax filings. Gusto shines in user-friendliness, while Rippling gives more customization options.
- Tax Filing: Federal, state, and local tax filings are handled by both, but Rippling offers global payroll capabilities, a plus for international teams.
- Employee Self-Service: Employees can access pay stubs, benefits, and personal info via both platforms. Rippling integrates this with device and app access, which Gusto does not.
- Benefits Management: Gusto stands out with built-in benefits broker partnerships. Rippling connects with third-party brokers and provides more flexibility.
In terms of payroll-specific features, both Rippling and Gusto are neck-and-neck. Gusto has a cleaner interface, while Rippling’s interface supports more extensive integrations and automations across departments.
Ease of Use
One of Gusto’s biggest selling points is its simplicity. It’s designed for users with minimal experience in HR or payroll. Setup is guided with helpful tips and clear terminology, making it easier for smaller teams to get started quickly.
Rippling is also user-friendly, but it’s built with tech-forward teams in mind. The dashboard is robust and highly customizable, which can feel overwhelming to beginners. However, for larger companies or those using multiple software systems, Rippling’s flexibility is a major advantage.
HR and IT Integrations
This is where Rippling has a distinct competitive edge. Besides HR and payroll, it includes IT functions like app provisioning, device management for employees, and single sign-on access—all from one platform.
Gusto focuses strictly on HR features including employee onboarding, time tracking, and document storage. It offers no native IT management solutions. As a result, companies with simple HR needs may prefer Gusto, while those looking for a unified system will find more value in Rippling.
Pricing Breakdown
When it comes to cost, Gusto starts off more affordable:
- Gusto: Starts at $40/month base plus $6/month per employee (Simple Plan). Advanced plans offer additional features like time tracking and priority support.
- Rippling: Starts at $8/month per user, with a minimum base required. Pricing scales depending on which additional features (HR, IT, Finance modules) are enabled.
While Rippling can end up costing more when all modules are enabled, the platform is modular—meaning businesses pay only for what they use. Gusto is a more predictable, budget-friendly option for small teams.
Customer Support and Reviews
Gusto is often praised for its stellar customer service, with support available via phone, email, and chat. Many users also highlight the platform’s resource center and user community as valuable tools.
Rippling offers email and chat support, with phone support available for higher-tier plans. While generally responsive, some users mention a learning curve and a heavier reliance on self-configuration.
According to online review platforms like G2 and Capterra:
- Gusto has an average rating of 4.5/5 for ease of use and support.
- Rippling earns a 4.7/5 rating for functionality and integration capabilities.
Compliance and Security
Both platforms offer strong compliance tools, including automated tax filing, W-2 and 1099 processing, and ACA compliance.
Rippling goes a step further by offering device management and security permissions alongside HR compliance. This makes it easier for IT and HR departments to enforce permission protocols without switching systems.
Scalability and Global Capabilities
One of Rippling’s standout features is its international readiness. The platform supports global employee payments and compliance, which is a big win for companies with offices or remote workers abroad.
Gusto, while excellent for domestic payroll, lacks global payroll options. It’s more suitable for businesses that operate solely within the United States and want a solution focused specifically on local compliance and ease.
Which Should You Choose?
Here’s a quick breakdown to help you decide:
- Choose Gusto if: You’re a small business seeking a simple, affordable, and well-supported payroll platform with built-in HR tools. Ideal for smaller teams and startups.
- Choose Rippling if: You want a scalable, customizable platform that integrates HR, IT, and finance systems. Best for tech companies, mid-sized firms, and global teams requiring unified management.
Conclusion
Gusto and Rippling are both excellent payroll systems, but their strengths appeal to different types of businesses. If you’re just looking for solid payroll and HR tools, Gusto delivers in spades with simplicity and affordability. If you want something more comprehensive and scalable, Rippling gives you the flexibility and integrations to grow confidently.
As always, the “best” solution depends on your company’s unique needs. Take time to evaluate the scope of features, usability, and long-term scalability to make a decision that not only works today but also thrives as your business grows.
