Square Payroll Vs. Gusto – The Pro and Cons of Each

When it comes to choosing a payroll service for your business, there are a lot of options to choose from. Gusto and Square Payroll are two of the most popular services, but which one is right for you? In this article, we will compare and contrast the pros and cons of each service so that you can make an informed decision.

payroll tax

If you’re a business owner, then the time has come to start paying your employees. But, which payroll service is right for your small or large company? The answer might seem straightforward, so we are going to compare Gusto and Square Payroll, which are both quality providers. Both of these payroll services with highly-rated products that can be user-friendly even when it comes down to how much knowledge about technology is necessary on behalf of an employer/employee relationship; however, there’s always something else worth considering before just picking one system over another without giving them all equal consideration so here we will go ahead highlight some key differences between these two competing platforms in order make up our own minds about what would best suit us as well.


Gusto Pros & Cons:

  • All in one platform solely dedicated to payroll.
  • Offers direct deposit, paper checks, and debit card solutions
  • Easy integration with most apps
  • 1099, W-2, and multiple other forms for employees
  • The entire system is designed for easy scaling of business
  • Contractor payment processing in 80 countries

However, Gusto is not without its drawbacks. One of the main cons is that it doesn’t offer a way to manage your finances through invoicing or accounting software integrations. If you’re looking for an all-in-one solution for your business, Gusto may not be the right fit.

Square Pros:

  • Works mostly in the Square ecosystem
  • Offers direct deposit, paper checks, and cash app solutions
  • Third-party application integration
  • Only manages contractor payments in the USA
  • POS integration
  • Very limited to 1099 and W-2 forms

Gusto Payroll  for HR

Gusto payroll provides a simple and easy way to take care of all your company’s HR needs, from managing employees’ timesheets through compliance support. The software is designed so you can use it whether or not there are more than 10 employees at any given moment in the workplace – which makes it perfect for small businesses as well.

With the help of Gusto software, you can rest assured that your taxes are taken care of. All it takes is one click and everything will be processed automatically for all 50 states! You won’t have to worry about anything – HR tasks like hiring new employees or selecting medical coverage are made easy with this platform; not only do they provide tools but also make payroll as simple as possible by providing information on where different funds come from (i.e., pay stub). Here are a few great supporting solutions from Gusto:

  • All in one payroll solution
  • Employee benefit management
  • Employee time and attendance software
  • Hiring and onboarding
  • Talent management
  • Robust reporting

Originally known as ZenPayroll, Gusto is a payroll company that has been around since 2012. They process more than 200,000 payments per day and provide employee benefits like health insurance to companies while also helping them create an incredible workplace for their employees.


With the Gusto automation and simplification of payroll, benefits administration (including medical insurance), human resources management you can focus on what’s most important: doing your best work.

On the other hand, Square Payroll is a comprehensive and user-friendly solution that offers a suite of features to businesses of all sizes. In addition to being able to process payroll and pay taxes, Square Payroll also allows you to manage your finances through invoicing and accounting software integrations.

Some other things to consider:

The cost. Gusto can be more expensive than some of its competitors, so it’s important to make sure that the features offered are worth the price tag.

– Customer service. While Gusto does have excellent customer service, some users have reported long wait times for responses.

– Ease of use. Gusto is designed to be user-friendly, but some users find the interface to be a bit cluttered.

Overall, Gusto is a great option for small businesses that need an all-in-one HR solution. The pros definitely outweigh the cons, and the customer service is top-notch. If you’re looking for a payroll provider that can take care of all your HR needs, Gusto is a great choice.

Gusto payroll provides a simple and easy way to take care of all your company’s HR needs, from managing employees’ timesheets through compliance support. The software is designed so you can use it whether or not there are more than 50 employees at any given moment in the workplace – which makes it perfect for small businesses as well.

Nationwide Tax Registrations: The Gusto payroll system makes it easy to calculate tax deductions based on the state you are located in. If employees want, they can also establish withholding for any other states that may have income taxes as well.

Employee Time Tracking: The time- Tracking feature of Gusto is a lifesaver. With it, you can automatically implement employee times into your payroll software and allow them to clock in either on the desktop or with their mobile app! The geofencing verification ensures that only those who are at work get paid for what they do while away from office computers (and avoid any potential tax collectors).

Plenty of Payroll Options: Gusto is a company that offers different processes and services to businesses. They allow employees the ability of direct deposit, printable checks as well as providing them with their own Gust Card so they can use it anywhereFrustrated about having your money taken out? Get cash at an ATM or spend on groceries right away!

Square Payroll  for HR

Square offers a POS system for small businesses through their mobile and tablet applications. They also have payroll software, which is focused on being an affordable option to help owners run their business easily without any hassle.

Square Logo

Square is a full-service payroll much like Gusto although they can also implement multiple business aspects within the system. Most Square customers will choose their services because it allows them to file taxes on behalf of themselves or track time through its POS system, which runs many businesses’ operations in some shape form or another.

Square Payroll Pros:

-Affordable, multiple pricing tiers to choose from

-Free for businesses with less than $1000 in payroll each month

-Easily integrates with Square POS system

-File taxes on behalf of yourself or employees through the software

Square Payroll Cons: -Only offers direct deposit as a payment option

-No printed pay stubs

-Does not offer health insurance or 401k benefits yet, though they are working on it.

Square Payroll Cons:

-Only offers direct deposit as a payment option

-No printed pay stubs

-Does not offer health insurance or 401k benefits yet, though they are working on it.

-Customer support can be difficult to reach during busy times

-Some features are still in development and not available to all users yet.

Square’s mission is to make it easier for small businesses of any type, with or without a credit history. They provide all the tools that are needed from taking cards through equitable loans – everything you need in one place.

Now, Square is announcing a new way to help businesses get the most out of every transaction: Square Payroll. After years of requests from customers and hearing firsthand about the challenges they face managing payroll, we built a product that makes it easy for business owners to pay their employees—and stay compliant with taxes and regulations. It’s yet another way we’re working to make commerce easy for everyone.

Square Payroll is available now in all 50 states—and businesses can sign up online in minutes. We designed the product with feedback from customers, making it simple to use and offering features that save time and help business owners stay compliant. Plus, it’s affordable, with multiple pricing tiers to choose from. And for businesses with less than $1000 in payroll each month, Square Payroll is free.

Square Payroll integrates easily with Square POS and offers direct deposit as the only payment option. Employees can also access their pay stubs online. Business owners can file taxes on behalf of themselves or their employees through the software, and we’re working on adding health insurance and 401k benefits in the future.

Square vs Gusto Costs

Square pricing starts at a flat rate of $5 per person which includes direct deposit, paper checks, and unlimited payrolls. This program is for pay contractors only. To add on paying employees, the monthly base rate begins at $35, plus an additional five dollars per employee.

You can start using Gusto for as little as $39 a month plus an additional $6 dollars per person.

This is a full-service payroll complete with W-2 and 1099s.

Which One Is Best for Your Business?

Square and Gusto are both great choices for different needs. With no contracts or commitments, you can switch to another provider at any time if the features aren’t what you’re looking for with Square being more suited towards starting up small businesses who need simplicity while going through growing pains because they don’t have enough employees yet but once it grows then square will be able to help ease some pain points by providing additional tools that expand upon its original capabilities such as invoicing software which automatically creates payments from clients so there’s less work needed on behalf of companies using this system!

We’re here to help you find the best payroll software for your business. Just fill out our inquiry form and we’ll get in touch with providers who can meet all of your needs, quickly.