ADP vs. Paychex vs. Gusto (2025): Features, Pricing, and Who Each Serves Best

If you’re researching payroll solutions in 2025 and for 2026 (yes, it’s coming sooner than we think), chances are you’ve already seen three names over and over: ADP, Paychex, and Gusto.

They’re some of the most well-known providers, but here’s the challenge: every one of them claims to be “the best.” As a business owner, HR leader, or finance manager, how do you cut through the noise and know which actually fits your company’s size, needs, and budget?

That’s exactly what this guide is built for. At Lift HCM, we’ve helped dozens of businesses switch to (and from) all three providers. We’ve seen behind the curtain — the true costs, the features that actually get used, and the support teams that either save your week or disappear when you need them most.

Here’s the breakdown you won’t get from a vendor brochure: pricing, features, and who each payroll provider really serves best in 2025.

Table of Contents

• ADP vs. Paychex vs. Gusto Pricing (2025): What You’ll Actually Pay
• Payroll Features Compared: ADP vs. Paychex vs. Gusto
• Beyond Payroll: HR & HCM Features Compared
• Which Handles Compliance Best? (ADP vs. Paychex vs. Gusto)
• Customer Support Showdown: Who Actually Picks Up the Phone?
• Which Payroll Provider Fits Your Business Best? (Decision Matrix)
• FAQs: ADP vs. Paychex vs. Gusto
• Final Word: Making the Right Call for Your Business

ADP vs. Paychex vs. Gusto Pricing (2025): What You’ll Actually Pay

💡Note: Pricing varies by plan, employee count, and add-ons, but here’s what businesses typically see.

ADP Pricing

• Starts around $79/month base + $4–6 per employee.

• Costs rise quickly with add-ons (time, benefits, global payroll).

Paychex Pricing

• Starts around $39/month base + $5 per employee.

• Add-ons (such as time tracking, retirement, and benefits) can add up.

Gusto Pricing

• Transparent pricing: $40/month base + $6 per employee.

• Higher tiers ($80+) include HR tools such as performance and compliance management.

🎯Key Cost Insights

• Small teams (1-10): Paychex offers the lowest base cost, with ADP now much more competitive than expected
• Growing teams (10-25): ADP becomes surprisingly competitive, while Gusto maintains good value with transparency
• Mid-size (25-50): ADP actually costs less than Paychex at this scale, making features and support quality key differentiators
• Large teams (50+): ADP offers the best value proposition, while Gusto becomes the most expensive option
• Hidden costs: Add-ons can significantly increase Paychex and ADP pricing beyond these base estimates

 Pricing models can get confusing quickly (PEPM vs. per-process). If you’re not clear on the difference, here’s our complete breakdown on payroll service pricing models.

Payroll Features Compared: ADP vs. Paychex vs. Gusto

All three handle the basics, including direct deposit, tax filings, W-2/1099 Processing, and new hire reporting. Where they differ is in ease of use and extra features.

ADP Features

• Strong compliance support
  
  
• Custom reporting
  
  
• Global payroll options

Paychex Features

• Flexible payroll schedules
  
  
• Integrations with benefits + retirement
  
  
• Strong mobile tools

Gusto Features

• User-friendly interface
  
  
• Automated tax filings
  
  
• Employee self-onboarding
  
  

👉 Best For:

• ADP → Larger orgs with multi-state or global needs
  
  
• Paychex → Companies wanting payroll + benefits + retirement in one place
  
  
• Gusto → Small businesses that value simplicity and transparency

When you’re comparing payroll systems, it’s easy to get lost in long feature checklists. But not all features matter equally. We’ve put together a list of the top 12 payroll features most businesses actually use day-to-day — worth reviewing before you decide.

Beyond Payroll: HR & HCM Features Compared

Payroll doesn’t live in a silo anymore. Here’s how they stack up:

• ADP: Full HCM suite — recruiting, performance, learning, analytics.
  
  
• Paychex: Strong HR outsourcing (PEO) options, compliance help, and benefits.
  
  
• Gusto: HR lite — onboarding, PTO tracking, org charts, but limited depth.
  
  

👉 Takeaway:

• Need a full HCM platform? ADP wins.
  
  
• Want HR outsourced? Paychex is strong.
  
  
• Do you need basic HR functionality built into your payroll? Gusto is plenty.
  

Choosing payroll software often raises a larger question: Do you also need a comprehensive Human Capital Management (HCM) solution? If you’re not sure how deep you should go, here’s our guide to choosing the right HCM solution.

Which Handles Compliance Best? (ADP vs. Paychex vs. Gusto)

• ADP: Excellent — multi-state, union, industry-specific compliance.
  
  
• Paychex: Good — filings, ACA tracking, compliance guidance.
  
  
• Gusto: Decent — handles multi-state but struggles with niche industries.
  
  

👉 If compliance risk keeps you up at night, ADP or Paychex are safer bets.

Compliance is one of those areas where payroll mistakes can get expensive fast. From multi-state filings to ACA tracking, it’s easy to miss a step. We’ve broken down the 10 Common Payroll Mistakes/Errors (And How To Avoid Them).

Customer Support Showdown: Who Actually Picks Up the Phone?

This is where reviews get noisy — but it matters.

• ADP: Dedicated rep for large clients; smaller ones often report long waits.
  
  
• Paychex: Mixed — some love their rep, others say support is hit or miss.
  
  
• Gusto: High marks for user-friendly support, but limited with complex cases.

Support is often the tipping point that prompts businesses to switch to a new payroll provider. If you’re worried about leaping, we’ve pulled together 6 Expert Tips for Switching Payroll Providers Smoothly.

Which Payroll Provider Fits Your Business Best? (Decision Matrix)

When you strip away the feature lists and marketing claims, each provider really shines in a different lane. Here’s the simplest way to think about it:

• Choose ADP if… You’re 50+ employees, multi-state, or operating in a compliance-heavy industry. ADP has the tools, integrations, and global reach that bigger organizations need. Yes, you’ll pay more, but the cost of getting compliance wrong is far greater.

• Choose Paychex if… You’re a small-to-mid-sized business that wants payroll, retirement, and benefits managed under one roof. Paychex is especially appealing if you value having a dedicated representative who can step in when HR questions arise.

• Choose Gusto if… You’re under 50 employees, you want a clean and affordable payroll tool, and you don’t need enterprise-level compliance or HR depth. Gusto wins with transparency, ease of use, and automation — all things small teams love.

📌 To make this crystal clear, we’ve created a side-by-side comparison chart (including logos) so you can instantly see where each provider fits best.

📊 ADP vs. Paychex vs. Gusto (2025 Comparison Chart)

FAQs: ADP vs. Paychex vs. Gusto

Q: Which provider is cheapest for a 10-person business?
👉 Usually Gusto, thanks to its flat, transparent pricing. ADP and Paychex can scale up quickly once you add features and employees.

Q: Which handles compliance best in regulated industries?
👉 ADP is the strongest for multi-state, union, or global payroll compliance. Paychex also offers solid compliance support. Gusto handles the basics but isn’t built for high-compliance industries.

Q: Can I switch payroll providers easily?
👉 Yes — but the timing matters. Most businesses switch at the start of a new quarter or year to ensure clean reporting. If you’re worried about disrupting payroll, check out our article "When Should You Consider a New Payroll Provider (and When You Shouldn't)".

Final Word: Making the Right Call for Your Business

ADP, Paychex, and Gusto are all strong payroll providers — but the right choice depends on your team size, complexity, and risk appetite.

• ADP shines when compliance is non-negotiable and scale is the priority.
  
  
• Paychex works well if you want payroll, retirement, and benefits all bundled together.
  
  
• Gusto wins with small teams that value simplicity and transparent pricing.

But here’s the truth: picking wrong isn’t just a budget mistake — it’s hours lost, compliance headaches, and frustrated employees. And most leaders we talk to say the same thing: “I just don’t want to make the wrong move.”

That’s where we step in. At Lift HCM, we’ll show you the real math — line by line — and help you see which option fits your business today and tomorrow.

Get your personalized ADP vs. Paychex vs. Gusto breakdown — no fluff, just the numbers and trade-offs. Talk to our team today!