Employ
RecruitDeel vs Gusto
In this comprehensive comparison of Deel vs Gusto, we’ll delve into each platform’s strengths, weaknesses, and unique features to help you make an informed decision.
Whether you’re a small business owner looking to streamline domestic payroll or a global company aiming to manage an international workforce, understanding the differences between these two services is crucial.
Key Points to Consider:
- Global Reach vs. Domestic Focus:
Deel specializes in international hiring and compliance, making it ideal for companies with a global workforce. Gusto, on the other hand, focuses on U.S.-based payroll and HR services tailored for small to medium-sized businesses. - Feature Set and Integrations:
Both platforms offer a range of features, but their tools and integrations cater to different needs. Deel excels in contractor management and global payments, while Gusto shines in employee benefits and time-tracking features for domestic teams.
Deel and Gusto offer practical solutions but cater to different business models and needs.
Both platforms serve distinct markets, yet their core missions remain the same: to simplify how businesses manage their workforce. For companies with a global footprint, Deel is an essential tool to ensure smooth international operations. For businesses focusing on U.S. employees, Gusto provides a reliable, scalable payroll and HR solution.
What You’ll Discover:
- In-Depth Feature Analysis: A thorough breakdown of the features and usability of both platforms.
- Pricing Comparison: A detailed look at the costs associated with each service to assist with effective budgeting.
- Pros and Cons: Unbiased assessments of the strengths and limitations of Deel and Gusto.
As you dive deeper into this comparison, you’ll gain a clear understanding of which platform is better suited to your organization’s specific needs.
Whether you need a platform that streamlines global hiring or one that optimizes domestic payroll, this review will give you the insight you need to make an impactful choice for your business’s future.
Deel vs Gusto Overview
Feature | DEEL | Gusto | Explanation |
User Reviews | G2: 4.8/5 Trustpilot: 4.9/5 | G2: 4.5/5 Trustpilot: 2.4/5 | Deel has excellent reviews, but Gusto’s reviews on Trustpilot are full of complaints about services. |
Pricing | $599/employee per month; $49/contractor per month | $599/international employee per month; $40 plus $9 / US employee per month $35 + $6 / contractor per month | Both companies charge the same starting fee for EOR services. Gusto charges monthly, tiered rates for services and a small per-person cost for US employees and contractors. |
User-friendliness | Very good | Excellent | Both companies feature easy-to-use platforms. |
Customer Support | 24/7 live chat support | 24/5 live chat (and phone support in the US) | Deel has daily live support, while Gusto’s support is only live on weekdays. |
Integrations | Very good | Excellent | Deel has an API and integration with major HR and accounting software like Ashby, QuickBooks, and Xero. Gusto can integrate with nearly 200 HR, accounting, and analytics apps. |
Data security | Excellent | Excellent | Deel is GDPR and SOC2 compliant and ISO 27001 certified. Gusto is HIPAA and SOC2-compliant. |
International hiring (EOR) | Excellent | Good | Deel offers EOR and contractor services in 150+ countries. Gusto, through a partnership with Remote, offers only nine for employees but 120 for contractors. |
Recruitment | Not offered | Good | Gusto doesn’t recruit itself but integrates with Gusto Recruiting, offering job boards and recruiters. Deel doesn’t offer recruitment services. |
Benefits administration | Good | Excellent | Deel manages standard benefits like PTO, bonuses, and social security. Gusto goes further, managing 401(k), health insurance plans, and more. |
Payroll | Excellent | Very good | Deel is a comprehensive payroll solution that lets you pay employees and contractors in numerous currencies through multiple methods. Gusto’s payroll services in the US are comprehensive but are much more limited for international teams. |
Comparison of Deel vs Gusto
Deel and Gusto are two quite different service providers. Deel is essentially a global payroll and employer of record (EOR) provider that works both in the US and overseas to help organizations manage their distributed teams.
Gusto is primarily based in the US and offers professional employment (PEO) services to manage payroll, benefits, and HR for US employees.
Deel
Deel works in over 150 countries to help foreign-based companies hire employees abroad without having to register entities in multiple countries. Instead, it hires employees through its partners and subsidiaries on its clients’ behalf and then manages their HR needs on an ongoing basis. Deel also allows companies to hire contractors and can manage global payroll for companies that already own entities abroad.
Services Offered by Deel
- Employer of Record (EOR): Acts as EOR for clients, managing HR needs through its partners and subsidiaries.
- Professional Employer Organization (PEO): Manages payroll, benefits, and HR for US-based distributed teams.
- Global Payroll: Management of payroll for employees in over 150 countries.
- Contractor Management: Supports hiring and management of contractors globally.
Gusto
Gusto focuses on managing HR, payroll, and benefits for US employees, with a strong emphasis on legal compliance and tax filing. It also assists with hiring contractors in over 120 countries and has recently partnered with Remote to offer EOR services, though these services are currently available in only nine countries.
Services Offered by Gusto
- Employer of Record (EOR): Partnering with Remote to provide EOR services in nine countries.
- Professional Employer Organization (PEO): Payroll, benefits, and HR management with a focus on legal compliance.
- HRMS Capabilities: Comprehensive management for US-based employees.
- Contractor Management: Support for hiring and managing contractors in over 120 countries.
Deel Pricing
| Plan | Price per employee/contractor per month |
|---|---|
| Deel EOR Services | $499 per employee per month and up |
| Deel PEO Services | $79 per employee per month and up |
| Deel Contractor Management | $49 per contractor per month and up |
| Deel Payroll | $29 per person per month and up for global payroll or $19 per person per month and up for US payroll |
Gusto Pricing
| Plan | Price per employee/contractor per month |
|---|---|
| Gusto Simple Plan | $40 per month + $6 per employee per month |
| Gusto Plus Plan | $80 per month + $12 per employee per month |
| Gusto Premium Plan | $180 per month + 22 per employee per month |
| Gusto Contractor ONLY | $35 per month + $6 per employee per month |
Key Differences
Service Expansion
- Deel: Deel offers extensive global payroll and EOR services, managing employees and contractors in over 150 countries.
- Gusto: Primarily focuses on the US market for HR, payroll, and benefits but has expanded its international reach through a partnership with Remote.
Global Reach
- Deel: Operates in more than 150 countries, facilitating international hiring and payroll management.
- Gusto: International EOR services, provided via Remote, cover only nine countries, with a broader reach in contractor management.
Pricing Transparency
- Deel: Utilizes a flat-fee pricing model for EOR and contractor services.
- Gusto: Tiered pricing structure for its services, with subscription fees and additional costs for each employee or contractor.
Deel and Gusto serve different niches in the HR management space, with Deel providing extensive global payroll and EOR services and Gusto focusing on US-based HR needs with additional international support through Remote. Deel’s flat-fee pricing model contrasts with Gusto’s tiered approach, which can affect cost predictability.
Businesses should evaluate their needs for international versus domestic HR management and consider pricing models when choosing between these platforms.
Deel Pros and Cons
Deel has a specific set of advantages and disadvantages as a service provider based in the EOR and global payroll industries. These include:
- Pros
Convenient payments
This platform is highly flexible regarding payments. Clients can pay their invoices in 24 currencies, and employees are then paid in 120 local currencies. It also lets contractors receive payments through Payoneer, Wise, and Revolut.
Easy onboarding
Deel’s onboarding can happen very quickly because of its employee and contractor self-serve portal. It also generates contracts automatically following the labor and tax laws of countries around the world.
Data security
Deel protects client data using encryption protocols and 2FA (two-factor authentication). Its platform is SOC 1, 2, and 3 compliant, GDPR compliant, and ISO 27001 certified.
Free HR offering
Deel HR, Deel’s basic platform, is free to use for small and medium enterprises (SMEs) with fewer than 200 employees.
Stateside benefits
When used as an EOR, Deel can provide health, vision, dental, critical illness, life, and hospital indemnity insurance. It can also arrange and manage 401(k) retirement plans for its US clients’ employees.
- Cons
Complex pricing
While Deel’s pricing seems straightforward, adding services, benefits, and other add-ons can quickly add up.
Learning curve
Deel’s user interface (UI) is fairly user-friendly for new users. At the same time, the level of functionality on offer can make it take a long time to learn how to use the full scope of functions on the platform.
High contractor management price
Deel’s contractor management, starting at $49/person per month, is higher than average for this industry.
Lacks features
Deel lacks features such as recruitment management and its benefits offerings for international employees are similarly lacking. It also has no mobile app on offer currently.
Gusto Pros and Cons
Gusto promotes itself largely as a payroll and PEO provider in the US, although it also offers international services. These are the specific advantages and disadvantages of using this platform:
- Pros
User-friendly interface
Gusto’s UI is incredibly easy to use and intuitive. Even first-time users can find the data and functions they’re looking for quickly and easily.
Scalability
Gusto’s platform can handle the workload of large enterprises, which makes it easy for any organization to scale up.
Data security
Remote is SOC 2 and HIPAA compliant. Like Deel, Gusto uses encryption protocols and 2FA (two-factor authentication) to protect its clients’ data.
Extensive US-based administration tools
Gusto provides a range of tools like payroll entry, PTO management, pre-tax deductions, check and W-2 printing and delivery, tax calculation and filing, and direct deposit management. However, these are not available at all service tiers.
Mobile app
Gusto offers a mobile app called Gusto Wallet to employees which lets them manage their profiles, edit tax elections, and view their payslips through iOS and Android devices.
Benefits packages
Gusto can provide benefits for its clients’ US employees, including pensions, health care, dental, vision, disability, and life insurance.
- Cons
Limited support for international hiring
While Gusto lets clients hire contractors around the world, it has only recently added EOR services through a partner. These are currently limited to only nine countries worldwide.
Limited support
Gusto offers only 24/5 live support through chat and phone. Recent user reviews suggest that Gusto’s support system is slow and often unsatisfactory.
Limited HR features
While highly integratable with other software, the Gusto platform itself offers limited features, making the use of other HR software necessary.
Head-to-Head Comparison: Deel vs Gusto Features
We’ve seen each platform’s strengths and weaknesses. Now, it’s time to compare these two service providers side-by-side to see which is better in different areas. Both are professional services that have their place in the current business world, and our goal isn’t to identify an overall winner. Rather, it’s to help you choose which provider would be a better choice for your organization’s needs.
User-friendly platform: Gusto Wins
Deel’s user interface is quite friendly to new users, and feels comfortable to learn. However, the platform offers extensive functionality, which can cause confusion and create a steep learning curve for new users. Gusto is more basic, and less complexity means fewer for new users. Gusto’s platform makes intuitive sense and has received very high ratings from users.
Resources: It’s a tie
Both service providers have extensive resources and tools on their websites and built into their platforms to improve the user experience. Deel features a useful blog, a global benefits tool, and a global employment comparison tool that lets employers calculate employee costs in different countries. With its US focus, Gusto offers many calculators for tax calculation, business planning, and payroll calculation in different states.
Integration with other software: Gusto Wins
It can integrate with many software solutions including Ashby, Asana, BambooHR, Greenhouse, HiBob, Lever, Quickbooks, Slack, Workable, Workday and Zapier. Deel has an API to enable developers to build integration with other software packages. However, Gusto has far more extensive integration possibilities. It can work with 195 different software solutions including big names like Google Workspace, Hubspot, Zendesk, Cloudflare, and Dropbox. This integration means Gusto can be added without disruption to just about any tech stack.
International hiring (EOR): Deel Wins
Gusto wouldn’t have entered into this category if it hadn’t recently partnered with Remote to offer international hiring and EOR services. However, with the possibility of hiring full-time employees in only nine countries, its offer can’t stand up to Deel’s 150+ countries. Deel stands out as an EOR that can hire employees around the world on behalf of its clients and maintain legal compliance in each country where it works.
Contractor Solution: Deel Wins
Gusto allows companies to hire independent contractors in 120 countries worldwide. It also facilitates contractor payments in multiple currencies and can pay contractors quickly once payroll is submitted and invoices are paid. Deel ups the ante to support contractor hiring in over 150 countries. It not only enables payments in multiple currencies but also facilitates payments through online systems like Payoneer, Wise, and Revolut to give contractors more flexibility.
Employee Benefits: Gusto Wins
While Deel manages mandatory benefits like paid time off and social security contributions in all the countries where it works, its benefits administration services end there. In contrast, Gusto administers health insurance plans, retirement plans, and even commuter benefits for its clients. This helps it help its clients contribute more to their employees’ well-being.
Payroll Management: It’s a tie
Deel makes setting up payroll simple and automates tax and social security deductions in compliance with local laws. It also manages contractor invoices and ensures their tax obligations are strictly followed. Gusto focuses on US compliance and is well set up to generate payslips and automatically calculate taxes. Both platforms make managing payroll extremely easy and highly efficient.
Our Verdict: Deel vs Gusto
We’ve examined Gusto and Deel independently and in close comparison. It should be clear by now that these providers offer quite different services. They overlap somewhat but never manage to genuinely better each other in the other’s specialty. This comparison comes down to use cases and the needs of individual organizations.
When to choose Deel
If you have a small or medium-sized business that wants to hire a distributed team of employees around the world, Deel is a better choice. It offers extensive support for employees in 150+ countries and also helps you hire contractors. If you also need to manage payroll and HR tasks for a few US-based staff, it can also provide this service.
When to choose Gusto
If you have a distributed team of workers throughout the US and you need to manage HR, payroll, and benefits for them, Gusto is a much better choice. It’s more affordable for this use case and has extensive experience managing compliance in the US. However, you can also use it to add a few contractors and even employees abroad.
Alternatives to Deel or Gusto
There are hundreds of different outsourcing providers on the market depending on your needs and budget. To explore EOR alternatives to Deel, check out our guide to the leading EOR companies.
To check out alternative payroll outsourcing options to Gusto, check out our guide to the leading outsourced payroll providers.