Justworks vs. Gusto

Long story short, Justworks and Gusto do not have the same credentials. Justworks PEO is ESAC accredited, IRS certified, and SOC 1 and SOC 2 audited, which means we’re held to the highest operational standards. As a CPEO, Justworks PEO is recognized by the IRS for meeting rigorous requirements and must demonstrate a history of financial responsibility, organizational integrity, and tax compliance. Our CPEO certification ​​means our customers can feel confident that tax filings and document submissions are being handled properly and within compliance. Because Gusto and Justworks Payroll are payroll products, they are not ESAC accredited or IRS certified. Gusto is SOC 2 audited. 

Understanding the benefits of a PEO can be helpful when considering Justworks PEO vs. Gusto. Through Justworks PEO, you get bundled payroll, HR, compliance, and access to a variety of health insurance plans, plus health and wellness perks. Our PEO also enables us to provide more robust compliance support. We’ll help you stay compliant and help handle employment-related responsibilities, so you have more time for your business, whether your team is multi-state or not.

Both Justworks and Gusto offer health insurance options, though Gusto is limited to offering health insurance through the open market. The main difference between Justworks vs. Gusto is that through Justworks PEO, you can access large group health plans, workers’ compensation, and disability insurance. We work directly with health insurance carriers to offer access to plans only available in the large group market. But, you aren’t just limited to our PEO-sponsored health insurance plans. We also offer an expanded variety of health insurance plans, which means we can offer the same health insurance plans Gusto offers. Through our PEO-sponsored plans, we handle the administration of health insurance like benefits enrollment, claims processing, and compliance-related tasks. Plus, wellness service access is built into your health insurance coverage at no additional cost — including primary care through One Medical, healthcare navigation through Health Advocate, and fertility and family-building benefits through Kindbody.

When comparing compliance support at Justworks vs. Gusto, consider that Justworks PEO offers proactive compliance support, such as handling federal and state payroll tax filings, providing access to essentials like worker’s comp and EPLI, and sharing updates on employment regulations that can impact your business. This means less for you to worry about and handle on your own. While non-PEOs like Gusto can file W-2s, 1099s, and other state and federal documents on your behalf, Gusto is not a PEO, so filings fall under your employment insurance number (EIN). This means liability will fall on your company if any mistakes are made during the filing process and ensuring compliance largely falls on you to manage. 

Both Justworks and Gusto offer access to HR consulting. Justworks PEO offers HR consulting for guidance on compliance, employee relations, HR best practices, and more. For Justworks PEO, access to HR consultants is included in both our Basic and Plus plans at no added cost. With Gusto, access to HR consultants is available as an add-on or through their Premium Plan.

Yes, Justworks launched Justworks Payroll, a user-friendly payroll platform that streamlines payroll with the flexibility to adapt as your business needs change. In past comparisons of Justworks vs. Gusto, Justworks only offered a PEO solution. As part of our goal to help small businesses access the tools and resources to grow, we’re constantly innovating to bring new products and features to the table that enhance the customer experience.

Justworks PEO offers 24/7 full-service customer support via phone, email, chat, and Slack to admins and employees. Justworks Payroll offers support via phone and email with responses within one business day. All Justworks support, whether it’s for PEO or Payroll, is backed by a team of people who truly care about helping small businesses like yours succeed. We’ve even won the Stevie Award six years in a row, the world’s top honors for sales & customer service. Gusto offers support during regular business hours on weekdays.