TLDR: Make the right choice when choosing an EOR:
- Deel: Best for global teams and businesses expanding internationally. Get started with Deel
- Gusto: Ideal for US-based small to medium-sized businesses needing advanced payroll and HR tools. Try Gusto now
The main difference between Deel and Gusto lies in their primary focus and target markets. Deel specializes in global payroll and compliance solutions, making it ideal for businesses with international teams or those looking to expand globally. On the other hand, Gusto is tailored for US-based small to medium-sized businesses, offering a comprehensive suite of payroll, benefits, and HR tools.
Deel has made a name for itself by simplifying the complexities of international hiring and payments. With support for over 150 countries and currencies, it’s a go-to solution for companies embracing remote work on a global scale. Deel’s strength lies in its ability to navigate the intricacies of international labor laws and tax regulations, ensuring compliance across borders.
Gusto, while primarily focused on the US market, excels in providing an intuitive, user-friendly platform that integrates payroll, benefits administration, and HR functions. It’s particularly well-suited for small businesses that need an all-in-one solution to manage their domestic workforce efficiently.
Both platforms have unique strengths and limitations. Deel’s global reach comes with a higher price point and a steeper learning curve for businesses new to international hiring. Gusto’s ease of use and comprehensive US-focused features make it a favorite among small business owners, but it may fall short for companies with significant international operations.
As we explore each platform’s offerings, consider your business’s current needs and future growth plans. The right choice will depend on factors such as your team’s location, the complexity of your payroll needs, and your plans for international expansion.
Deel
Country Coverage: 150+ Countries
G2 Rating: 4.8/5
EOR Pricing: $599 per employee/month
Contractor Pricing: $49 per contractor/month
Gusto
Country Coverage: 120+
G2 Rating: 4.5/5
EOR Pricing: $399 per employee/month
Contractor Pricing: $6 per contractor/month
Deel vs Gusto video review
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Overview of Deel and Gusto
Deel: Best for global teams and international hiring
Deel is the go-to solution for businesses looking to hire and manage a global workforce. Its platform simplifies the complexities of international payroll, compliance, and contractor management. Deel shines in its ability to handle payments in over 120 currencies across more than 150 countries, making it an ideal choice for companies embracing remote work on a global scale.
Deel is best suited for:
- Companies hiring international employees or contractors
- Startups and enterprises looking to expand globally
- Businesses prioritizing compliance in multiple jurisdictions
Company Information
Gusto: Best For US-based small to medium businesses
Gusto has established itself as a comprehensive payroll and HR solution tailored for small to medium-sized businesses in the United States. Its user-friendly interface and all-in-one approach to payroll, benefits administration, and HR tools make it a favorite among US-based companies.
Gusto is ideal for:
- US-based small to medium-sized businesses
- Companies seeking an all-in-one HR and payroll solution
- Businesses prioritizing user-friendly interfaces and domestic compliance
Company Information
What are the key features of Deel?
Deel platform offers several key features designed to streamline international employment. Here’s a detailed look at what the service provides:
- Global payroll processing: Deel handles salary calculations and payments in 120+ currencies across 150+ countries, supporting various withdrawal methods including direct bank transfers, Revolut, Wise, PayPal, and even cryptocurrency. I found the payment dashboard particularly clear, showing exactly what each employee receives after local tax deductions – something many competitors make much harder to understand.
- Employer of Record services: Deel’s EOR service lets businesses hire full-time employees without establishing local entities in each country. The platform handles employment contracts, onboarding, local tax registrations, and mandatory benefits in each location. During testing, I was able to onboard a new hire in Germany in just under 48 hours without any prior entity setup – significantly faster than the weeks required through traditional legal channels.
- Contractor management system: Beyond full-time employment, Deel offers comprehensive contractor management with localized agreements, payment processing, and tax documentation. The platform automatically generates tax forms like 1099s for US contractors and equivalent documents for international freelancers, significantly reducing compliance risks associated with misclassification.
- Compliance automation: Deel continuously monitors changing regulations in all operating countries, automatically updating contract templates and employment practices to maintain compliance. The system flags potential issues and provides guidance on resolving them, giving businesses confidence in their global employment practices without needing specialized legal expertise in each country.
- Benefits administration: The platform offers locally-relevant benefits packages in most countries, including health insurance, retirement plans, and stipends. HR teams can customize benefit offerings through an intuitive dashboard while ensuring all mandatory benefits are included according to local laws. This creates a consistent experience for employees regardless of location.
What are the key features of Gusto?
Gusto platform offers several key features designed to streamline international employment. Here’s a detailed look at what the service provides:
- Full-Service Payroll: Provides automated tax filings, multi-state payroll, and unlimited payroll runs, simplifying payroll management.
- Benefits Administration: Offers integrated health insurance, retirement plans, and other employee benefits, streamlining HR processes.
- Time Tracking and PTO Management: Includes built-in time tracking with geolocation and tools for creating and tracking PTO policies.
- Employee Self-Service Portal: Allows employees to access pay stubs, tax forms, and benefits information independently.
- Compliance Support: Handles automated tax filings and provides labor law compliance assistance to reduce legal risks.
- Gusto Global: Offers EOR services for international hiring in select countries, expanding global capabilities.
- Reporting and Analytics: Provides customizable reports for payroll and HR data, enabling data-driven decision-making.
- Contractor Management: Supports paying and managing 1099 contractors alongside W-2 employees.
What are the benefits of using Deel?
The benefits of using Deel are:
- Reduced global hiring time: Companies typically cut their international hiring timeline from 6-8 weeks to just 1-2 days using Deel’s EOR service. This speed advantage allows businesses to secure top talent before competitors and accelerate entry into new markets without waiting for entity establishment.
- Minimized compliance risks: Deel customers report significantly reduced audit risks and compliance concerns when expanding globally. The platform automatically adapts to regulatory changes across all operating countries, preventing businesses from inadvertently violating local employment laws that might result in penalties or legal complications.
- Consolidated global workforce management: Businesses using Deel eliminate the need for multiple HR systems across different countries, saving an average of 15-20 hours per week in administrative work. HR teams manage both contractors and employees through one interface regardless of location, creating consistency in processes and reporting.
- Improved employee experience: International workers report higher satisfaction when hired through Deel compared to other methods, citing faster onboarding, reliable payments, and better benefits packages. This improved experience helps companies retain global talent longer and build stronger distributed teams despite geographic challenges.
What are the benefits of using Gusto?
The benefits of using Gusto are:
- User-Friendly Experience: Provides an intuitive interface and easy setup process, reducing the learning curve for users.
- Comprehensive Payroll Features: Offers a wide range of payroll services without additional fees for most features.
- Integrated HR Solutions: Combines payroll, benefits, and HR functions in one platform, simplifying workforce management.
- Compliance Assurance: Helps businesses stay compliant with tax regulations and labor laws through automated processes.
- Employee Empowerment: Offers self-service capabilities and financial wellness tools for employees.
- Scalability: Provides plans that can grow with businesses, from startups to medium-sized companies.
- Extensive Integrations: Connects with over 200 third-party business apps, enhancing overall business operations.
- Transparent Pricing: Offers clear pricing structures without hidden fees, aiding in budget planning.
Pricing and plans
Deel pricing
Deel offers a flexible pricing structure to accommodate businesses of various sizes and needs. While specific pricing details may vary based on individual requirements, here’s an overview of Deel’s pricing approach:
| Service | Price |
|---|---|
| Employer of Record (EOR) Pricing | $599 per employee/month |
| Contractor Management Pricing | $49 per employee/month |
| Payroll Pricing | $29 per employee/month |
| Annual Discount | Available |
Deel offers a scalable solution that can grow with your business, making it suitable for startups expanding globally and established enterprises managing a diverse workforce across multiple countries.
Gusto Pricing
Gusto offers a tiered pricing structure designed to cater to the varying needs of small to medium-sized businesses in the United States. Here’s an overview of Gusto’s pricing plans:
| Service | Price |
|---|---|
| Employer of Record (EOR) Pricing | $399 per employee/month |
| Contractor Management Pricing | $6 per employee/month |
| Annual Discount | Not available |
Gusto’s pricing structure is transparent and scalable. Businesses can choose a plan that best fits their current needs and upgrade as they grow. The platform also offers a one-month free trial for new customers to test the service before committing.
It’s worth noting that additional fees may apply for certain services, such as state tax registration or local tax filings. Businesses are encouraged to review the full pricing details on Gusto’s website or contact their sales team for a comprehensive quote.
User data security and compliance
Both Deel and Gusto prioritize user data security and compliance in their payroll and HR services.
Deel implements end-to-end encryption to safeguard sensitive information. They comply with GDPR and maintain SOC 2 Type II certification, ensuring robust data protection. Deel also emphasizes continuous security monitoring and conducts regular penetration testing.
Gusto also enforces strong security measures. They use AES 256-bit encryption and adhere to GDPR and CCPA standards. Gusto performs annual SOC 1 audits and maintains a dedicated security team.
| Feature | Deel | Gusto |
|---|---|---|
| Encryption | End-to-end encryption | AES 256-bit encryption |
| GDPR Compliance | Yes | Yes |
| SOC 2 Type II Certification | Yes | No |
| SOC 1 Audits | No | Yes (Annual) |
| Regular Security Assessments | Yes | Yes |
| Continuous Security Monitoring | Yes | No |
Both platforms take data privacy seriously, ensuring user information is handled with utmost care. They employ multi-factor authentication to enhance account security.
Key Points:
- Deel holds SOC 2 Type II certification; Gusto performs annual SOC 1 audits.
- Encryption: Both platforms offer robust data encryption methods.
- Regular security assessments are integral to their security protocols.
The choice between Deel and Gusto may depend on your organization’s specific compliance requirements and which security certifications align best with your needs.
Pros and cons of Deel
Pros
- Global employment infrastructure: Deel maintains local entities in 150+ countries, letting businesses hire employees without establishing their own legal presence in each location.
- Multi-currency payment flexibility: Deel processes payroll in 120+ currencies with competitive exchange rates, making it cheaper than bank transfers for international team payments.
- Automated compliance management: Deel automatically generates country-specific contracts and tax forms, reducing legal risks when hiring across different jurisdictions.
- Employee benefits platform: Deel offers health insurance, equipment stipends, and other perks that help companies attract international talent with competitive packages.
- 24/7 customer support: Deel provides round-the-clock assistance through multiple channels, ensuring help is available regardless of your team’s time zones.
- Contractor and EOR unification: Deel combines both contractor management and employer of record services in one platform, unlike competitors that often separate these functions.
- User-friendly onboarding: Deel simplifies the complex process of international hiring with guided workflows and templated contracts for various employment scenarios.
Cons
- Higher price point: Deel’s contractor management starts at $49 monthly and EOR services at $599 per employee, making it pricier than budget-focused alternatives like RemoFirst.
- Occasional support delays: During peak periods, response times can stretch beyond the advertised window, which might affect time-sensitive hiring processes.
- Limited regional specialization: Unlike some competitors with deep expertise in specific regions, Deel offers broad global coverage but may lack the same depth in certain countries.
- Advanced analytics limitations: Deel’s reporting capabilities lack some of the sophisticated workforce analytics found in enterprise-level alternatives like Papaya Global.
Pros and cons of Gusto
Pros
- User-Friendly Interface: Offers an intuitive platform that’s easy to navigate and set up.
- Comprehensive Payroll Features: Provides a wide range of payroll services with no additional fees for most features.
- Integrated Benefits Administration: Streamlines the process of managing employee benefits.
- Strong Compliance Support: Offers robust assistance with tax filings and labor law compliance.
- Employee Self-Service Capabilities: Empowers employees to access their own information and financial tools.
- Scalable Plans: Offers options suitable for businesses as they grow from startups to medium-sized companies.
Cons
- Limited Health Insurance Coverage: Only available in 38 states and Washington, D.C.
- Significant Price Jumps: Large increase in cost between Simple and Plus plans.
- Feature Restrictions: Some essential HR tools are limited to the most expensive plan.
- Customer Service Issues: Growing number of complaints about customer support quality.
Deel vs. Gusto summary
A detailed summary of the comparison of Deel and Gusto:
| Feature | Deel | Gusto |
|---|---|---|
| Best For | Fast-Growing Companies Needing Global Hiring at Scale | SMBs with up to 100 employees, Food Service, Retail & Nonprofits |
| EOR Pricing | $599 per employee/month | $399 per employee/month |
| Contractor Pricing | $49 per employee/month | $6 per employee/month |
| Country Coverage | 150+ Countries | 120+ |
| Support Channels | Email, Phone, Live Chat | Email, Phone, Live Chat |
| Support Availability | 24/7 | Business Hours |
| G2 Rating | 4.8/5 (7241 reviews) | 4.5/5 (2104 reviews) |
| Capterra Rating | 4.8/5 (2819 reviews) | 4.6/5 (3964 reviews) |
| Trustpilot Rating | 4.8/5 (6767 reviews) | 2.5/5 (2088 reviews) |
| Partnership Discount | 20% Off | N/A |
| Visit Website | Visit Website |
This summary section aims to quickly show how Deel and Gusto compare on the most important features and information, including pricing. While both platforms offer payroll solutions, their focus and capabilities differ significantly, catering to different business needs.
Recommendations
When choosing between Deel and Gusto, it’s important to consider your business’s specific needs, size, and geographical scope. Both platforms offer robust payroll and HR solutions, but they cater to different market segments and have distinct strengths.
Who I recommend Deel to?
Deel is an excellent choice for businesses prioritizing global expansion and requiring robust international payroll and compliance support. I recommend Deel to:
- Fast-growing startups looking to tap into global talent pools
- Large enterprises managing a diverse, international workforce
- Companies expanding into multiple international markets simultaneously
- Businesses with a significant number of international contractors
- Organizations that need flexibility in payment methods and currencies
Deel’s strength lies in its ability to simplify the complexities of international hiring and payroll. Its comprehensive compliance support across numerous countries makes it invaluable for businesses navigating the challenges of global employment laws.
The platform is particularly well-suited for tech companies, digital nomad-friendly businesses, and any organization embracing global remote work. Deel’s customizable contracts and multi-currency support provide the flexibility needed in today’s dynamic global business environment.
However, it’s important to note that Deel’s advanced features and global reach come with a higher price point. Therefore, it’s most cost-effective for businesses that fully utilize its international capabilities rather than those primarily operating in a single country.
Who I recommend Gusto to?
Gusto is an ideal solution for US-based small to medium-sized businesses seeking a user-friendly, comprehensive payroll and HR platform. I recommend Gusto to:
- Small businesses and startups with primarily US-based employees
- Companies looking for an all-in-one payroll and benefits administration solution
- Businesses that prioritize user experience and easy-to-use interfaces
- Organizations new to managing their own payroll and HR processes
- US companies with a limited number of international contractors
Gusto’s strength is its ability to simplify complex payroll and HR tasks for businesses without dedicated HR departments. Its intuitive interface and comprehensive feature set make it accessible even to those without extensive payroll experience.
The platform is well-suited for service-based businesses, retail operations, and non-profits operating in the United States. Gusto’s integrated benefits administration and time-tracking features provide significant value for businesses looking to streamline their HR processes.
It’s worth noting that while Gusto offers some support for international contractors, its primary focus is on US-based operations. Therefore, it’s most suitable for businesses operating solely within the US or having minimal international hiring needs.
When to consider other EOR providers?
While Deel and Gusto are excellent options for many businesses, there are scenarios where other EOR providers might be more suitable. Here are five alternatives to consider based on different business needs:
| Alternative | Best For | Key Strength |
|---|---|---|
| Remote | Regional expansion | Emerging market knowledge |
| Oyster HR | Industry-specific compliance | Regulatory expertise |
| Rippling | Software integration | Unified data management |
| Remofirst | Cost-effective global hiring | Competitive pricing |
| Papaya Global | Comprehensive HR solutions | Advanced analytics |
Frequently asked questions
Is Deel suitable for small businesses?
Yes, Deel can be suitable for small businesses, especially those hiring internationally or with global contractors. However, Gusto might be more cost-effective for small US-based businesses with no international employees.
Can Gusto handle international payroll?
Gusto primarily focuses on US payroll but offers limited support for paying international contractors. For extensive international payroll needs, Deel is the better option.
Does Deel offer benefits administration like Gusto?
Deel does offer benefits administration, but it’s more focused on providing country-specific benefits for international employees. Gusto offers more comprehensive benefits administration for US-based employees.
Which platform has better reporting capabilities?
Both platforms offer robust reporting features. Gusto’s reports are more tailored for US businesses, while Deel provides more comprehensive global payroll reports.
Can I use Deel’s mobile app to manage payroll?
Yes, Deel’s recently launched mobile app allows users to manage various aspects of payroll, including viewing payslips, submitting timesheets, and managing contracts on the go.
Is Gusto or Deel better for compliance management?
Gusto is excellent for US compliance. Due to its global expertise, Deel has the edge for international compliance across multiple countries.