Under 50 employees, single or two-state, no PEO needs: Gusto. 50+ employees, multi-state, PEO/co-employment requirements, or your bank or lender specifically prefers ADP: ADP RUN.
Side-by-side
Pricing transparency is the headline difference. Gusto publishes; ADP requires a quote.
| Feature | Gusto | ADP RUN |
|---|---|---|
| Pricing transparency | Public list pricing | Quote-required; published starting points only |
| Entry plan starting cost | Simple: $49 + $6/employee | Essential: ~$79 + ~$4/employee (per third-party aggregators) |
| Setup fee | None | $500-$2,000 typical, per third-party reporting |
| Per-payroll-run charges | None (run as many cycles as you want) | Yes; charged per run, including off-cycle bonus runs |
| Multi-state | Plus and above ($80 + $12/employee) | Supported across tiers; long-standing strength |
| Contract length | Month-to-month | Long-term contracts common; varies by quote |
| PEO / co-employment option | No | Yes (TotalSource and other ADP enterprise products) |
| Target customer | 1-50 employees, growing teams | Wide range; small to enterprise |
| User-reported UX | Modern, fast, low-friction | Capable but dated by user reports |
| Sign-up bonus | $100 or $200 Visa via referral | Promotions vary |
What ADP RUN actually costs
ADP RUN's published starting point is around $79/mo + $4/employee on the Essential plan, per third-party aggregator reporting. The reality of what ADP customers pay is structurally different from Gusto's published pricing in three ways:
Per-run charges. ADP charges per payroll run. Bi-weekly is 26 runs a year. Plus any off-cycle runs (year-end bonus run, mid-cycle correction). Each costs you. Gusto includes unlimited payroll runs in the base subscription.
Setup fees. ADP typically charges a setup fee that aggregators report at $500 to $2,000, varying by complexity. Gusto charges nothing to set up.
Add-on inflation. Time tracking, benefits administration, workers' comp, and retirement are all paid add-ons that materially increase what you pay vs the published starting price. Some of these are bundled into Gusto's higher tiers at no incremental cost.
The net effect: ADP's "starting at $79" is rarely what an actual ADP customer pays. Operators who have run both report ADP costing roughly twice as much as Gusto for equivalent functionality at small headcount, before accounting for setup fees. I haven't run ADP myself; if you're seriously evaluating, get a written quote and price it against Gusto's published list.
Cost comparison at common headcounts
Gusto figures are 2026 list prices. ADP figures are starting-point estimates; actual quotes vary widely.
| Headcount | Recommended plan | Monthly | Notes |
|---|---|---|---|
| 5 employees, single-state | Gusto Simple vs ADP Essential | $79 vs ~$99 + per-run + setup | |
| 15 employees, single-state | Gusto Simple vs ADP Essential | $139 vs ~$139 + per-run + setup | |
| 25 employees, multi-state | Gusto Plus vs ADP Enhanced | $380 vs Quote | Multi-state has been an ADP strength historically. |
| 75 employees, considering PEO | Gusto Premium vs ADP TotalSource | Different products at this scale |
Choose Gusto if / Choose ADP if
Choose Gusto if
- You're under 50 employees and want predictable, published pricing. No setup fee, no per-run charges, no contract trap.
- You don't need PEO or co-employment. ADP's PEO products are a different conversation; if you don't need that, ADP is paying for muscle you won't use.
- You value modern UX. Gusto consistently rates higher in independent reviews; ADP RUN is capable but feels older to most users.
- You're contractor-heavy. Gusto's Contractor-Only plan ($35 + $6) is purpose-built.
Choose ADP if
- You're 50+ employees with multi-state complexity. ADP's enterprise lineage shows here; multi-state compliance has been an ADP strength for decades.
- You need PEO or co-employment. Gusto doesn't offer this. ADP TotalSource and other enterprise products do.
- Your accountant or banker explicitly prefers ADP. Some lenders and CPAs are more comfortable with the ADP brand.
- You're scaling fast through the 50-200 employee range. ADP's product line is built to scale through this band.
I have not personally run ADP. The points above are based on ADP's published documentation, third-party pricing aggregators, and user reports. ADP pricing is quote-driven, so your actual cost will depend on your specific quote.
FAQ
- Why doesn't ADP publish its pricing?
- ADP's sales model is quote-based. The published starting points are rough; actual quotes vary by company size, complexity, contract length, and what add-ons you take. The opacity is a real friction point in the comparison.
- Is the ADP setup fee always $500-$2,000?
- It varies. Some ADP customers report no setup fee at all; others report $1,500+. It seems to depend on the rep, the size of your business, and the complexity of your existing payroll history. Ask explicitly, in writing, before you sign anything.
- Can I switch from ADP to Gusto mid-year?
- Yes. Like any payroll provider switch, you'll enter year-to-date wages manually using Gusto's onboarding worksheet. Pull your most recent ADP payroll register, type the YTD totals into Gusto, and Gusto handles W-2 generation correctly at year-end. See the setup guide.
- What about ADP Workforce Now or TotalSource?
- Workforce Now is ADP's mid-market product (typically 50-1,000 employees); TotalSource is the PEO. Both target markets where Gusto isn't the obvious answer. The Gusto vs ADP comparison most readers care about is Gusto vs ADP RUN.
- Will my CPA care which one I pick?
- Sometimes, yes. Some CPAs have strong preferences for the platform that integrates with their workflow. Worth asking before you commit.
- Does the Gusto referral bonus apply if I'm switching from ADP?
- Yes. New Gusto customers qualify regardless of which provider they're coming from.
I run r/gustoreferral, a small subreddit for people signing up for Gusto and asking real questions before they commit.
r/gustoreferral community →Affiliate disclosure: I earn a commission if you sign up for Gusto through links on this page, at no extra cost to you. I have not personally run ADP RUN; the ADP coverage below is based on ADP's published materials, third-party aggregator reporting, and user reports from forums and Reddit.
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