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Gusto vs Paychex
July 27, 2023 | Author: Adam Levine
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Gusto’s people platform helps businesses like yours onboard, pay, insure, and support your hardworking team. Payroll, benefits, and more.
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Paychex is a provider of human resource, payroll, and benefits outsourcing services for small- to medium-sized businesses.
Gusto and Paychex are both popular payroll and HR outsourcing solutions that offer different approaches to managing human resources and payroll needs for businesses. Gusto is known for its user-friendly interface and intuitive design, making it an excellent choice for small to medium-sized businesses seeking a modern and easy-to-use platform. It offers a range of services, including payroll processing, benefits administration, and employee onboarding, simplifying HR tasks and compliance. On the other hand, Paychex is a more comprehensive solution that caters to businesses of all sizes, providing a wider array of services such as payroll processing, HR administration, retirement plan management, and regulatory compliance support. Paychex's extensive experience and personalized service make it a preferred option for businesses with complex HR needs or those in heavily regulated industries.
See also: Top 10 Talent Management Systems
See also: Top 10 Talent Management Systems
Gusto vs Paychex in our news:
2020. Gusto is expanding from payroll into a full suite financial wellness platform
Gusto initially emerged as a payroll startup catering to small businesses. However, in recent years, the company has expanded its range of features beyond payroll, redefining the boundaries between payroll and financial wellness. This has led to a convergence that blurs the traditional lines of the fintech market. Presently, Gusto has unveiled a range of new offerings intended to provide employees with enhanced financial and health options through their employers. Notably, one noteworthy addition is Gusto Wallet, an app and suite of products designed for employees who receive their wages through Gusto. Gusto Wallet functions as a mini bank and financial health monitoring tool. It includes an interest-bearing cash account known as Cash Accounts, which can automatically allocate a portion of each paycheck into the user's savings, similar to offerings from Acorns and Digit.
2015. ZenPayroll rebrands as Gusto and takes on Zenefits
Payroll startup ZenPayroll, which now goes by the name Gusto, has broadened its range of services from solely payroll to include additional benefits like health insurance and workers' compensation. This development has sparked a rivalry with Zenefits, a cloud HR benefits company that previously collaborated with Gusto to offer payroll services to its clients. The partnership between Zenefits and Gusto proved crucial earlier this year when ADP, a major player in the payroll industry, terminated its access for Zenefits' small business customers. Zenefits turned to Gusto (previously ZenPayroll) to handle their payroll processing needs. Interestingly, Zenefits is also planning to introduce its own payroll service, mirroring Gusto's offerings. This turn of events has transformed the partnership between these cloud-based startups into a competition, as both aim to provide comprehensive payroll and benefits services on a unified platform.
2015. Cloud-based payroll service ZenPayroll scores $60 Million
Cloud-based payroll processing startup, ZenPayroll, has successfully concluded a Series B funding round, raising $60 million with Google Capital as the lead investor. ZenPayroll primarily targets the small business market, providing an alternative to manual payment and direct deposit processing. Its user-friendly, cloud-based interface offers convenience and efficiency, enabling ZenPayroll to compete with established industry leaders such as Paychex and ADP. While Paychex and ADP have transitioned to the cloud in recent years, allowing their existing customer bases to manage payroll online and via mobile platforms, ZenPayroll's recent funding round empowers it to target larger businesses currently serviced by Paychex and ADP.
