ADP vs Gusto
Last updated: January 22, 2018
Fast, easy, and designed specifically for small businesses. From payroll and tax filing to HR, time tracking, and more, ADP helps Small Business succeed. Running a small business is 24/7 job. That’s why we make it easier with simple, reliable small business payroll and expert HR management services to help you make better, more informed decisions about your business.
Gusto’s people platform helps businesses like yours onboard, pay, insure, and support your hardworking team. Payroll, benefits, and more.
ADP vs Gusto in our news:
2018 - ADP acquired workforce management service WorkMarket
Payroll provider ADP acquired WorkMarket, a startup that specializes in workforce management software that operates across a wide range of employees and contractors. The software aims to create a kind of unified interface for managing an extended workforce that can include a variety of workers with different employment status, from contractors and freelancers to full-time employees. WorkMarket includes payment systems, management for extended employee networks, as well as a marketplace for piecing together a workforce that can fill the gaps for a company that’s looking to operate outside of the traditional range that full-time employees might operate. For ADP, it would seem to give the company that traditionally specializes in payroll another tool to convince enterprises to use it as part of a larger system of workforce products.
2015 - ZenPayroll rebrands as Gusto and takes on Zenefits
Payroll startup ZenPayroll changed its name to Gusto and is moving beyond payroll, into benefits such as health insurance and workers’ compensation. The addition and subsequent rivalry is a punch in the gut to cloud HR benefits company Zenefits –
which partners (for now) with the newly named Gusto to offer payroll
services to its clients. This partnership proved particularly helpful
earlier this year when payroll giant ADP shut off access to Zenefits
small business customers. Zenefits turned to then ZenPayroll for the
needed payday processing. It's interesting that Zenefits also plans to roll out a payroll service similar to the startup formerly known as ZenPayroll. In a weird twist, these cloud-based startups, once partners in offering each others services are now both planning to offer their own payroll and benefits services in one platform – in other words, Zenefits and Gusto are now competing for business.
2015 - Payroll giant ADP cut off Zenefits small business clients
Corporate payroll company ADP cut off Zenefits small business clients using the ADP RUN payroll system from sharing data with Zenefits, because Zenefits was, “pulling sensitive information, including unmasked Social Security numbers and employee banking information, in a manner that did not comply with ADP’s standards for data security.” Zenefits called out ADP for being unfair and said that this action came without warning to its clients. Zenefits offers HR services to small and medium businesses and works with several third-party partners to provide things like payroll and insurance. ADP is one of many companies Zenefits integrates with to provide payroll processing for these businesses.
2015 - Cloud-based payroll service ZenPayroll scores $60 Million
Cloud-based payroll processing startup ZenPayroll has closed on a $60 million Series B round, led by Google Capital. ZenPayroll mainly serves the small business market that would otherwise need to process payments and direct deposits manually. It offers an easy-to-use, cloud-based interface that allows it to take on industry incumbents Paychex and ADP. While Paychex and ADP have upgraded to the cloud in recent years, allowing them to make it easier for their own customer bases to handle payroll online and through mobile platforms, ZenPayroll’s recent raise allows it to take on larger businesses currently served by Paychex and ADP.