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What is FICA OASDI on My Paycheck What Is FICA OASDI on My Paycheck? (2026 Guide) | ADP Salary Calculator Pay Stub Glossary · Updated
⚡ Quick Answers
Pricing transparency
Gusto publishes it; ADP quotes custom
Gusto entry price (2026)
$49/mo + $6/employee
Easier for a first-time small business owner
Generally Gusto
Better for scaling into complex HR
Generally ADP
ADP and Gusto solve the same basic problem — running payroll and staying compliant — but they were built for different moments in a company’s life. ADP has served businesses of every size since 1949 and offers a deep product lineup that scales from a handful of employees to a global enterprise. Gusto launched in 2012 specifically for small businesses, with transparent pricing and an interface designed for owners without a dedicated HR team.
This guide compares them specifically through a small-business lens: what you’ll actually pay, what each platform includes, and which one tends to make more sense depending on your headcount and how fast you’re growing. If you’re estimating what payroll actually costs an employee, our free ADP Salary Calculator can help with the paycheck side of the equation.
1 The Basics
The Basic Difference
| ADP | Gusto | |
|---|---|---|
| Founded | 1949 | 2012 |
| Built primarily for | Businesses of all sizes, from small to global enterprise | Small and mid-sized businesses specifically |
| Pricing model | Custom quote (for ADP Run and above) | Published, tiered pricing |
| Small business product | ADP Run | Simple / Plus / Premium plans |
| Product breadth | Very wide — payroll, HR, benefits, PEO, global payroll | Narrower but deep for its target market — payroll, HR, benefits, time tracking |
In short: Gusto is a small-business specialist, while ADP is a generalist with products at every size — including a small business tier that competes directly with Gusto.
2 Gusto Pricing
Gusto’s 2026 Pricing, in Detail
| Plan | Base Fee | Per-Employee Fee | Best For |
|---|---|---|---|
| Simple | $49/mo | $6/mo | Single-state teams needing basic payroll |
| Plus | $80/mo | $12/mo | Multi-state teams needing time tracking and onboarding tools |
| Premium | $180/mo | $22/mo | Teams wanting dedicated HR support and advanced reporting |
| Contractor Only | $35/mo | $6/contractor | Businesses with 1099 contractors and no W-2 employees |
⚠️ Simple plan has real limits: Gusto’s Simple plan only supports single-state payroll. The moment you hire an employee in a second state, you’re required to upgrade to Plus — effectively doubling your per-employee rate from $6 to $12 for your entire team, not just the new hire.
All Gusto plans include unlimited payroll runs at no extra per-run charge, along with W-2/1099 preparation, delivery, and annual tax filings — a notable difference from some legacy providers that charge separately for year-end processing or per-run fees.
3 ADP Run
ADP Run: The Small Business Comparison Point
ADP’s direct small-business competitor to Gusto is ADP Run, not ADP’s larger mid-market or enterprise products (Workforce Now, TotalSource). Unlike Gusto, ADP Run’s pricing isn’t published — it’s built from a custom quote based on:
- Number of employees
- Number of states you operate in
- Pay frequency
- Which add-on modules you need (HR support, time tracking, benefits administration)
- Contract length
In practice, ADP Run’s pricing tends to land in a broadly similar range to Gusto’s mid tiers for comparable feature sets, but the only way to get an exact number is to request a quote — which is the single biggest practical difference in the shopping experience between the two.
4 Cost by Team Size
Cost Comparison by Team Size
Using Gusto’s published rates and typical ADP Run market pricing, here’s roughly what monthly payroll software costs at different team sizes. Treat the ADP figures as directional estimates — get an exact quote for your business.
5 Employees, Single State
💰 Estimated Monthly Cost — 5 Employees
Gusto Simple ($49 + $6 × 5)$79.00
ADP Run (estimated, comparable tier)~$75–$110*
15 Employees, Two States
💰 Estimated Monthly Cost — 15 Employees
Gusto Plus, required for 2nd state ($80 + $12 × 15)$260.00
ADP Run (estimated, multi-state)~$220–$350*
40 Employees, Wanting Dedicated HR Support
💰 Estimated Monthly Cost — 40 Employees
Gusto Premium ($180 + $22 × 40)$1,060.00
ADP Run or entry Workforce Now (custom quote)Custom quote — often $900–$1,400+*
*ADP figures are directional market estimates, not official published rates. Always request a current, exact quote from each provider before deciding.
5 Features
Feature-by-Feature Comparison
Payroll Runs
Both platforms support unlimited payroll runs on their standard plans, including off-cycle runs for corrections, bonuses, or terminations, without a per-run fee on either provider’s core small business plans.
Multi-State Payroll
Gusto requires at least the Plus plan for multi-state payroll; the Simple plan is strictly single-state. ADP Run generally supports multi-state payroll as part of a custom quote, without the same hard plan-tier gate.
Time Tracking
Gusto includes time tracking starting on its Plus plan. ADP offers a separate Time & Attendance module that can be added to ADP Run, functioning similarly but as an add-on rather than a built-in plan tier feature.
HR Support
Gusto’s Premium plan adds access to certified HR professionals and a dedicated service advisor. ADP offers HR support through add-on modules on ADP Run and more deeply through ADP Workforce Now and ADP TotalSource for businesses wanting a fuller HR outsourcing relationship.
Benefits Administration
Both platforms connect employees to health insurance, retirement plans (401(k)), and other benefits through partner integrations — Gusto through its own in-house benefits brokerage in many states, and ADP through its Marketplace ecosystem.
6 Hidden Costs
What’s Included vs. What Costs Extra
| Item | Gusto | ADP Run |
|---|---|---|
| W-2/1099 preparation & delivery | Included on all plans | May carry a separate charge on some plans |
| Garnishment processing | Included | May carry a per-garnishment fee |
| Unlimited payroll runs | Included on all plans | Typically included, confirm in your quote |
| Multi-state payroll | Requires Plus tier or above | Usually included, may raise the quoted price |
| Setup/onboarding fee | Not typically charged | Sometimes charged, sometimes waived by the sales rep |
💡 Ask about these specifically: When comparing quotes, ask each provider directly about garnishment fees, year-end form charges, and setup fees — these are exactly the kind of costs that don’t show up on a base price comparison but add up over a year.
7 Ease of Use
Ease of Use
Gusto was built from the ground up for small business owners who don’t have dedicated payroll or HR staff — its interface is generally considered clean and approachable, with guided setup flows for first-time users. ADP’s interface, particularly on its more powerful products, is often described as more feature-dense, which can mean a steeper learning curve in exchange for more configurability once you need it.
ADP Run specifically aims to narrow this gap for small businesses, but user experience between the two platforms remains one of the more commonly cited differentiators in side-by-side reviews.
8 Support
Support Compared
| Gusto | ADP | |
|---|---|---|
| Support channels | Email and chat on lower tiers; phone support added on higher tiers | Phone support commonly available, including 24/7 on larger plans |
| Dedicated support contact | Included with Premium plan | Common on mid-size and larger ADP products |
| Free trial | Not offered in a traditional sense; occasional promotions | Not typically offered; discounted introductory quotes are common instead |
9 Growing Past Small Business
Growing Past Small Business
This is where the two platforms’ different origins matter most. Gusto is built around small and mid-sized businesses — its Premium plan and add-ons can support meaningfully larger teams, but it isn’t designed as an enterprise HR platform.
ADP, by contrast, offers a continuous path upward: ADP Run for small teams, ADP Workforce Now for mid-market complexity, and ADP TotalSource or Comprehensive Services for businesses wanting deeper HR outsourcing or PEO-style co-employment. If you expect significant growth, multi-state expansion, or complex HR compliance needs within the next few years, that built-in upgrade path is worth factoring in even if Gusto is the better fit today.
10 Pros & Cons
Pros and Cons Side by Side
Gusto
✓ Strengths
- Transparent, published pricing
- Clean, approachable interface
- Unlimited payroll runs, W-2/1099s, and garnishments included
- Purpose-built for small business needs
✗ Watch-Outs
- Multi-state payroll locked behind Plus tier
- Less depth for complex, large-scale HR needs
- No traditional free trial
- Per-employee costs scale up notably at Premium
ADP (Run and Beyond)
✓ Strengths
- Scales from small business to global enterprise
- Deep HR, compliance, and PEO options as you grow
- Long track record and broad support infrastructure
- No hard multi-state tier gate
✗ Watch-Outs
- Pricing isn’t published — requires a quote to compare
- Possible per-garnishment or year-end form fees
- Can feel more complex for a first-time small business owner
11 Decision Guide
Which Should You Choose?
Choose Gusto if…
You’re a small business owner without dedicated HR staff, want predictable published pricing, and operate in one or two states without highly complex compliance needs.
Choose ADP if…
You’re growing quickly, expect to scale well beyond small-business headcounts, need deeper HR/compliance tools, or want a single provider that can grow with you for years without switching platforms.
Both are reputable, widely used providers — the right choice depends less on which is “better” in the abstract and more on which matches your current size, your growth trajectory, and how much you value published pricing versus a custom-fit quote.
Frequently Asked Questions
ADP vs. Gusto for Small Business — FAQs
Is Gusto cheaper than ADP for a small business?
For most small businesses, Gusto’s published pricing is easier to budget for and often cheaper at low headcounts, starting at $49/month plus $6 per employee for its Simple plan in 2026. ADP’s small business product, ADP Run, isn’t publicly priced and requires a custom quote, so a direct cost comparison depends on your specific quote.
Does Gusto charge extra for year-end tax forms like W-2s and 1099s?
No. Gusto includes W-2 preparation and delivery, 1099 generation, and annual tax filings in all of its plans at no extra charge. Some competitors, including certain ADP plans, may charge separately for year-end form processing or delivery.
Can Gusto handle multi-state payroll?
Yes, but only on Gusto’s Plus and Premium plans, not the entry-level Simple plan. A business on Simple that hires its first employee in a second state will need to upgrade to Plus to continue processing payroll correctly.
Which is easier to use, ADP or Gusto?
Gusto is generally considered more intuitive for small business owners without dedicated HR or payroll staff, with a modern interface built specifically for that audience. ADP’s interface, particularly on its larger products, is often described as more powerful but with a steeper learning curve.
When does a small business outgrow Gusto and need ADP instead?
Businesses often consider moving to ADP once they need more advanced HR compliance tools, dedicated account support, PEO-style HR outsourcing, or scale well beyond what a small-business-focused platform is designed to support — though many mid-sized companies also remain on Gusto’s Premium plan or add-ons for quite a while before switching.
Does ADP or Gusto charge per payroll run?
Neither charges a per-run fee on their standard small business plans — both include unlimited payroll runs, including off-cycle runs, as part of the base subscription. Confirm this specifically when reviewing an ADP quote, since exact terms can vary by contract.
Does Gusto offer a contractor-only plan?
Yes. Gusto’s Contractor Only plan, priced at $35/month plus $6 per contractor in 2026, is designed for businesses that pay only 1099 contractors and have no W-2 employees — it’s Gusto’s lowest-cost entry point overall.
Estimate Your Team’s Take-Home Pay
Whichever payroll provider you choose, see exactly how gross pay turns into net pay with our free ADP Salary Calculator.
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