Choose Justworks if you want a certified PEO to take on payroll, benefits, compliance and HR with you, with 24/7 support and access to group health plans. Choose Gusto if you want to keep running HR yourself with easy payroll software, unlimited payroll runs on every plan and AutoPilot to pay your team automatically. The deciding question is whether you want a co-employment partner or a tool.
I read Justworks' home, plans and PEO pages, and Gusto's home, plans and about pages. Both serve small US businesses, but they're built on different models, and that matters more than any single feature.
Justworks and Gusto compared
| Justworks | Gusto | |
|---|---|---|
| Model | Certified PEO, plus a payroll-only plan and global EOR | Payroll, benefits and HR software |
| Plans | Payroll, PEO Basic, PEO Plus, Global EOR | Simple, Plus, Premium |
| Credentials | IRS-certified and ESAC-accredited PEO | Launched in 2012 as ZenPayroll |
| Support | 24/7 support from a dedicated team | Expert support; help picking a plan |
| International | Contractors in 60+ countries; employer of record | Global contractor payments in 120+ countries as an add-on |
| Getting started | No implementation charge | Free account setup, no contracts |
| Free option (as of October 2026) | Not mentioned on the pages I read | No free plan; nothing to pay until you run payroll |
What a PEO changes
Justworks PEO is IRS-certified and ESAC-accredited, which its PEO page says means it's held to strict operational and financial standards. As a PEO it takes on more of the complex, higher-risk operations alongside you. The practical upside it highlights is benefits: access to small group, large group and individual health plans through CHOICE (formerly ICHRA), plus 401(k), mental health services and other employee benefits that its page says a PEO helps small businesses offer.
Justworks isn't PEO-only, though. Its plans page also lists a Payroll plan with HR tools and time tracking, and a Global EOR option for hiring full-time employees abroad without setting up a local entity. Its PEO plans include built-in applicant tracking. It also lists add-ons you can mix in, including time tracking, dedicated HR consulting, payments to US-based contractors and health insurance reimbursements through a CHOICE arrangement with its partner Thatch.
Where Gusto is stronger
Gusto says more than 500,000 businesses run on it. Every plan includes unlimited payroll runs, tax filings and payments, payroll approvals, multiple pay rates and Payroll on AutoPilot, which runs payroll for you. Plus adds contractor invoice upload and workforce reporting, and Premium adds same-day and instant pay plus unlimited custom admin roles.
The contractor detail surprised me. Gusto's global contractor add-on covers more than 120 countries, while Justworks lists international contractors in 60+ countries. If you pay freelancers around the world, check both lists for the countries you need. Gusto is also clear that it's a payroll services company, not a bank. Its other add-ons include state tax registration, where Gusto handles the state and local paperwork when you start filing payroll taxes in a new state, and help with R&D tax credits.
Questions to settle it
- Do you want a partner to share employer responsibilities? That's what a PEO such as Justworks offers.
- Do you just need payroll and taxes handled while you run HR? Gusto's software model fits.
- Is access to stronger health plans a priority for hiring? Look closely at Justworks PEO's benefits options.
- Do you pay contractors in many countries? Compare Gusto's 120+ against Justworks' 60+ for your list.
- Do you want 24/7 human support? Justworks makes that a headline on its PEO page.
For more on getting payroll right, read how payroll software can help with employee retention, and my guide to HR support services for small businesses if you're weighing outside help.
My advice on Justworks or Gusto
If you're a small team that wants payroll done well and you're happy owning HR decisions, Gusto is the simpler, lighter choice and its AutoPilot feature takes a chore off your plate. If benefits, compliance and HR risk keep you up at night, a certified PEO like Justworks takes more of that weight, and its 24/7 support is a real comfort when something goes wrong. Decide on the model first, then compare features.
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Frequently asked questions
Is Justworks a PEO?
Yes. Justworks says its PEO is IRS-certified and ESAC-accredited. It also offers a payroll-only plan and a global employer of record service.
Is Gusto a PEO?
Gusto describes itself as a payroll, benefits and HR platform and a payroll services company. The pages I read don't describe it as a PEO.
Does Gusto have a free plan?
Gusto's plans page lists Simple, Plus and Premium with free account setup, and says you won't pay anything until you're ready to run payroll. It doesn't name a free plan.
Can Justworks pay international contractors?
Yes. Justworks lists onboarding and paying international contractors in 60+ countries, plus an employer of record option for full-time staff abroad.
How many countries does Gusto cover for contractors?
Gusto's global contractor payments add-on covers more than 120 countries.
