Gusto vs Rippling: Which One is Right for Your Payroll?
Payroll isn’t just about paying people. It’s the heartbeat of your business. That’s why it’s so crucial to use a payroll solution you can rely on; a solution that gives your business freedom to grow.
While there are several solutions out there, we typically recommend either Gusto or Rippling to our clients. Both offer robust features, but which one is right for your business?
Why Gusto is the Go-To Choice for Startups and Small Businesses
For many startups and small businesses, Gusto is the ideal choice.
Why?
Because it offers:
- Automated tax filings and payments
- A self-service portal for employees
- Integrated health benefits and 401(k) management
- Compliance and accuracy
- Tracking for hourly workers
Employee forms are stored and organized online for easy access. Gusto even keeps track of changing tax laws and does calculations for you, saving you time and stress.
One big advantage of Gusto is that it’s very user-friendly. The learning curve is minimal, and automated features free up time to focus on more important tasks.
The biggest drawback? Gusto offers limited international support and fewer advanced automation tools compared to other solutions.
How Rippling Moves Beyond Payroll and Offers a More Holistic Solution
Are you growing? Scaling businesses may need something more robust and holistic for their payroll.
That’s where Rippling comes in.
Core features of this platform include:
- Unified workforce data. Change a salary in one place, and it will update it everywhere: finance, IT, HR – you name it.
- Global support. Hire and pay employees in more than 100 countries.
- App and device management. Provision software and devices automatically during the onboarding process.
As you can see, Rippling does so much more than just payroll. Plus, it offers unmatched scalability and robust reporting that supports your growth.
But like Gusto, it does have some drawbacks. Rippling is a feature-rich platform, but that comes with a steeper learning curve. The right training is crucial to avoid overwhelming your team.
Gusto vs Rippling: Which One is Right for Your Business?
Both Gusto and Rippling offer a reliable payroll solution. But which one should you choose?
Let’s compare the two solutions.
Compliance and Global Hiring
Is your workforce domestic, or do you have an international team?
For expanding businesses, the choice is clear: Rippling. It allows you to hire employees or contractors in over 100 countries. Another advantage is that you can transition a contractor to a full-time employee with the tap of a button, and without losing their historical data.
Gusto, on the other hand, is primarily a US-based platform. While it supports contractor payments in over 100 countries, its employer of record, or EOR, service for full-time employees is limited to fewer than 10 countries.
Onboarding
When you hire new employees, your payroll software can play a role in making the process as smooth as possible.
In this category, the winner will depend on your priorities and goals.
Gusto focuses primarily on the human or HR side of things. You can send beautiful offer letters, take care of I-9s and set up direct deposit with ease.
Rippling is a little more focused on the IT side of things. Sure, it handles HR basics. But it can also provision tech. For example, you can automatically ship a pre-configured laptop to a new hire or set up their Gmail accounts. You can even assign your new hire to the right department in your accounting software based on their offer letter.
Accounting and Financial Integrity
When it comes to accounting, each platform has its own perks and drawbacks.
Gusto offers a reliable and straightforward sync with accounting software like QuickBooks Online or Xero. It’s ideal for businesses with a single location. The best part? We can help you set up Gusto and connect it to your preferred accounting solution to save you time and stress.
Rippling is a little more complex. You can map payroll expenses to specific “dimensions,” like department, location or job code. If one of your employee’s roles changes mid-month, it can automatically split their salary across two different expense accounts in your books. Features like these make Rippling stand out for growing organizations.
Which One Should You Choose?
Both Gusto and Rippling have their places. Because every business is unique, it’s important to consider your individual needs, goals and growth plans.
But generally, you should:
- Choose Gusto if you’re a US-based company with fewer than 50 employees and want a simple, user-friendly interface.
- Choose Rippling if you’re scaling fast, plan to expand internationally or want to automate HR and IT tasks in addition to payroll.
To learn more about Gusto vs Rippling or how we can help you with your accounting needs, schedule a consultation now!
