Square Payroll vs Gusto: Which The Top Pick in 2025?

Many businesses look to Square Payroll and Gusto for their payroll needs. However, choosing the right solution can be a complex task.

In this article, we’ll review what each solution offers and how they compare, helping you make an informed decision. Additionally, we'll also explore Rho as a third option worth considering.

Square Payroll Overview

Square Payroll is an online payroll software designed to simplify payroll processes and ensure tax compliance. It integrates seamlessly with existing POS systems, making it a practical choice for food and beverage, retail, home and repair, small businesses, and contractor-only operations. This allows business owners to focus more on their core activities.

Square Payroll Features

Some of the key features of Square Payroll include:

• Integrated with POS: Seamlessly processes payroll by importing timecards and tips from Square's Point of Sale system.
• Taxes and Compliance: Automatically handles state and federal tax filings, including quarterly and annual submissions.
• Flexible Pricing: Offers unlimited monthly pay runs with no long-term commitments, charging $35 per month plus $6 per person paid.
• Health Insurance: Provides options for medical, dental, and vision plans with straightforward enrollment processes.

Square Payroll Pricing

Square Payroll offers a straightforward pricing structure without subscription tiers, making it easy to understand and budget for.

• Basic Plan: Unlimited monthly pay runs, $35/month plus $6 per person paid.
• Health Insurance: Options for medical, dental, and vision plans included.
• Tax Compliance: Automatic state and federal tax filings included.

The prices for each tier are not publicly listed.

Drawbacks To Square Payroll

General user reviews of Square Payroll highlight its ease of setup and use, but some users have reported issues with tax overpayments and dashboard difficulties.

• "Square makes it incredibly simple to convert worked timecards into easy payroll processing for wages." - Verified User
• "Horrible experience from start to finish, especially with tax overpayments." - Heather M.

For more details, visit the Square Payroll Reviews on G2.

Gusto Overview

Gusto provides online payroll and HR solutions tailored for small to mid-sized businesses. Their main value proposition lies in simplifying payroll, HR, and benefits management, making it easier for businesses to handle these tasks efficiently. Gusto is particularly popular among small businesses, startups, and contractors-only operations.

Gusto Features

Some of the key features of Gusto include:

• Payroll: Automated deductions, direct deposit, and tax filing.
• Time and attendance: Time tracking and time-off requests.
• Workers’ comp: Protects you and your team if an injury or illness happens.
• Employee benefits: Health benefits, automatic savings, 401(k)s, and more.

Gusto Pricing

Gusto offers a variety of subscription tiers to cater to different business needs.

• Simple: $49/month + $6/month per person. Includes basic payroll, support, and employee self-service.
• Plus: $60/month + $9/month per person. Adds multi-state payroll, next-day direct deposit, and advanced hiring tools.
• Premium: $135/month + $16.50/month per person. Features a dedicated Customer Success Manager, HR resources, and compliance alerts.
• Contractor Only: $0/month + $6/month per person. Covers unlimited contractor payments and 1099-NECs.

Drawbacks To Gusto

Overall, Gusto is well-regarded for its user-friendly interface and efficient payroll and HR management, though some users note areas for improvement.

• "Gusto is a thoughtfully designed platform that offers an exceptionally user-friendly experience." - Jonathan A.
• "One downside is that some features may take a little time to get used to, especially for new users, and certain options can feel a bit buried within the platform." - Kris V.

For more details, visit the Gusto Reviews on G2.

What to Know Before Picking Square Payroll or Gusto

Looking at the reviews as a whole, businesses using Square Payroll often face issues with tax overpayments and difficulties in managing direct deposits. These problems can disrupt financial operations and require manual adjustments, which can be time-consuming.

On the other hand, Gusto users frequently report poor customer support and challenges with state tax filings. These issues can lead to penalties and frustration, especially when timely resolutions are not provided. Both platforms have their strengths, but these common limitations are worth considering.

Why Rho Is a Better Alternative

At Rho, we understand the challenges businesses face with payroll and HR management. Our platform addresses common pain points like tax overpayments and customer support issues found in Square Payroll and Gusto. By offering seamless integration and reliable support, we provide a more efficient and user-friendly solution.

Rho Features

• Expense Management: Our platform eliminates the need for manual expense reports, streamlining the process and reducing errors, a common issue with Square Payroll.
• AP Automation: Pay hundreds of vendors in minutes with zero platform fees, addressing the inefficiencies and potential costs associated with Square Payroll.
• Corporate Credit Cards: Real-time monitoring and custom controls help manage corporate spend more effectively, providing better oversight than Square Payroll.
• Business Banking: We offer dedicated support for managing cash and payments, providing a more comprehensive solution compared to Gusto's payroll-focused services.
• Rho Treasury: Safeguard idle cash and earn competitive yields, a feature not available with Gusto, helping businesses optimize their financial resources.
• Integrations: Direct integration with accounting, HR, and T&E software streamlines operations, offering a more cohesive experience than Gusto's offerings.
• Private Banking Support: Our 24/7 customer support ensures that issues are resolved quickly, providing a level of service that addresses the customer support challenges reported by Gusto users.

Rho Pricing

We offer a straightforward and transparent pricing structure that eliminates many of the traditional banking fees you might find with other services like Square Payroll and Gusto. Our pricing is simple and easy to understand, with many essential features available at no cost.

• $0 Same-Day ACH fees: No charges for same-day ACH transactions.
• $0 Wire fees: No charges for wire transfers, with some exceptions for international wires.
• $0 Monthly plans: No monthly subscription fees for accessing our services.
• $0 Support fees: Free live support from the first day of use.
• $0 Subscription fees: No recurring subscription costs.
• $0 Checking account minimum fees: No minimum balance fees for checking accounts.
• $0 Connected, in-platform capabilities: Free access to AP, Expense, and Accounting Automation features.
• $0 Per-user fees: No charges per user for accessing the platform.
• 1% Foreign currency transfer: A flat 1% fee on foreign currency transfers.

You can find all the details about our pricing here.

Why Users Love Rho

We’re proud of what we do, but we think our customers say it best. Take a look at why they prefer Rho over other options.

• "Rho offers our users a one-touch experience for reporting company expenses on a corporate card." - Sean F.
• "Centralized system that is easy to use for all levels of the organization with exceptional customer service." - Tyler M.
• "From day one, using Rho has been simple and straightforward." - Kevin K.

Want a firsthand look at Rho? You can request a free demo here.

Which Platform Is Right for Your Business?

Choosing between Square Payroll, Gusto, and Rho depends on your business needs. Square Payroll excels in POS integration, making it ideal for retail and food services. Gusto offers comprehensive HR and payroll solutions, perfect for small to mid-sized businesses.

This is where Rho comes in. We provide a more holistic approach with features like AP automation, corporate credit cards, and business banking. Our transparent pricing and 24/7 customer support ensure you get the best value and service.

Make the Smarter Choice with Rho Today

Curious to see what Rho can do for you? Discover how our platform can transform your business. Get started with Rho today.