Deel vs Gusto: In-Depth EOR Comparison for 2024

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.

Overview of Deel and Gusto

Overview of 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.

Key features that make Deel stand out include:

• Global payroll processing
• Contractor and employee management
• International compliance and tax support
• Multiple payment options
• Customizable contracts
• New mobile app for on-the-go management

Deel is best suited for:

• Companies hiring international employees or contractors
• Startups and enterprises looking to expand globally
• Businesses prioritizing compliance in multiple jurisdictions

Overview of 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’s core strengths include:

• Full-service payroll processing
• Employee benefits administration
• Time tracking and PTO management
• Intuitive user interface
• Extensive integration options
• Robust reporting and analytics

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

Deel vs. Gusto At a Glance

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.

Key Features of Deel

Global Payroll Processing

Deel’s global payroll processing is a standout feature, allowing businesses to pay employees and contractors in over 150 countries. This functionality streamlines international payments, handles currency conversions, and ensures compliance with local tax laws.

The platform automates tax calculations and deductions based on each country’s regulations, significantly reducing the administrative burden on businesses operating across borders. This global capability is particularly valuable for companies embracing remote work or expanding into new markets.

Contractor Management

Deel excels in contractor management, offering tools specifically designed for businesses working with international freelancers and contractors. The platform simplifies the process of creating compliant contracts, managing payments, and handling tax documentation.

With Deel, companies can easily generate localized contracts, set up various payment methods, and ensure proper worker classification. This feature is crucial for businesses looking to tap into the global talent pool while minimizing compliance risks.

Compliance and Legal Support

One of Deel’s core strengths is its robust compliance and legal support. The platform stays up-to-date with changing labor laws and tax regulations across multiple jurisdictions, helping businesses navigate the complex landscape of international employment.

Deel provides country-specific employment contracts, handles tax withholding, and assists with necessary filings. This comprehensive approach to compliance gives businesses peace of mind when hiring globally, reducing the risk of legal issues.

Multi-Currency Support

Deel’s multi-currency support is a game-changer for international businesses. The platform supports payments in over 120 currencies, allowing companies to pay employees and contractors in their local currency.

This feature simplifies payroll processing and provides flexibility for employers and workers. It eliminates the need for manual currency conversions and reduces the risk of exchange rate fluctuations affecting payments.

Customizable Onboarding

Deel offers a customizable onboarding process tailored to meet the specific needs of different roles and countries. This feature allows businesses to create a smooth and compliant onboarding experience for new hires, regardless of location.

The platform guides employers and employees through the necessary steps, ensuring all required documents are collected and local regulations are followed. This streamlined approach saves time and reduces the potential for errors in the hiring process.

Mobile App

Deel’s recently launched mobile app brings the power of its platform to users’ fingertips. The app allows managers and employees to handle essential tasks on the go, including viewing payslips, submitting timesheets, and managing contracts.

This mobile functionality enhances accessibility and user experience, making it easier for global teams to stay connected and manage their work-related tasks efficiently. The app’s intuitive interface mirrors the desktop version, ensuring a seamless device experience.

Key Features of Gusto

Full-Service Payroll

Gusto’s full-service payroll is at the core of its offering, providing a comprehensive solution for US-based businesses. The platform automates payroll calculations, tax filings, and direct deposits, significantly reducing the time and effort required to process payroll.

Gusto handles federal, state, and local tax calculations and filings, including year-end forms like W-2s and 1099s. This automation ensures accuracy and compliance, freeing up time for business owners to focus on other aspects of their operations.

Employee Benefits Administration

Gusto excels in benefits administration, offering a wide range of options for health insurance, 401(k) plans, and other employee benefits. The platform integrates benefits seamlessly with payroll, making it easy for businesses to manage and track employee enrollment and contributions.

This feature is particularly valuable for small to medium-sized businesses that want to offer competitive benefits packages without administrative headaches. Gusto’s user-friendly interface simplifies the often complex world of benefits management.

Time Tracking and PTO Management

Gusto’s time tracking and Paid Time Off (PTO) management features provide a streamlined solution for monitoring employee hours and managing time-off requests. The platform offers customizable PTO policies and an intuitive interface for employees to request time off and managers to approve requests.

This integrated approach ensures that time-tracking data flows directly into payroll calculations, reducing errors and saving time. The feature is especially useful for businesses with hourly employees or those looking to better manage their team’s time and attendance.

HR Tools and Compliance Support

Gusto offers a suite of HR tools to help small businesses manage their workforce effectively. These include employee onboarding checklists, document storage, and compliance support for various HR-related tasks.

The platform guides HR best practices and helps businesses comply with labor laws and regulations. This feature is particularly valuable for small businesses without dedicated HR staff.

Reporting and Analytics

Gusto’s reporting and analytics capabilities provide businesses valuable insights into their payroll and HR data. The platform offers a range of pre-built reports covering payroll summaries, tax liabilities, employee details, and more.

These reports help businesses make informed decisions about their workforce and financial planning. The intuitive interface allows users to customize reports and export data for further analysis, enhancing overall business intelligence.

Integrations

Gusto offers robust integration capabilities with various business tools and software. These include popular accounting software like QuickBooks and Xero, time-tracking tools, and expense management systems.

These integrations allow seamless data flow between different business systems, reducing manual data entry and improving overall efficiency. This feature is particularly useful for businesses looking to create a more connected and streamlined workflow.

Pricing and Plans for Deel

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:

Contractor Plans:

• Starting at $49 per contractor per month
• Includes features like payments in 150+ countries, compliance support, and customizable contracts

Employee Plans:

• Custom pricing based on the number of employees and countries
• Includes full EOR services, global payroll, benefits administration, and compliance management

Enterprise Plans:

• Tailored pricing for large organizations
• Includes advanced features, dedicated account management, and custom integrations

It’s important to note that Deel’s pricing can vary based on factors such as the number of employees, countries involved, and specific services required. Businesses are encouraged to contact Deel directly for a customized quote that fits their unique needs.

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.

Pricing and Plans for Gusto

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:

Simple Plan:

• $40 per month base price + $6 per person per month
• Includes full-service payroll, employee self-service, health insurance administration

Plus Plan:

• $80 per month base price + $12 per person per month
• Includes all Simple features plus time tracking, PTO management, and hiring tools

Premium Plan:

• Custom pricing
• Includes all Plus features plus dedicated support, HR resource center, and compliance alerts

Contractor-Only Plan:

• $6 per person per month
• Designed for businesses that only work with contractors

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.

Pros and Cons of Deel

Pros and Cons of Gusto

Deel vs Gusto: Simulated Real-World Scenarios

Scenario 1: Rapid International Scaling – Deel Wins

A tech startup in San Francisco is experiencing rapid growth and needs to hire talent from multiple countries quickly.

Deel’s Advantage:

• Supports hiring in 150+ countries with compliant contracts
• Handles international payroll and tax compliance
• Offers multi-currency payments

Gusto’s Limitation:

• Limited international hiring and payroll capabilities
• Primarily focused on US market

Winner: Deel is better equipped to handle rapid international scaling, offering the necessary tools and compliance support for global hiring.

Scenario 2: Small Business Going Global – Gusto Wins

A small US-based e-commerce business with 15 employees is considering hiring its first international contractor.

Gusto’s Advantage:

• Cost-effective for small teams
• Easy-to-use interface for businesses new to payroll management
• Supports limited international contractor payments

Deel’s Limitation:

• It may be more complex than needed for a small business just starting international hiring
• Higher costs for full international compliance features

Winner: Gusto is more cost-effective for a small US business taking its first steps into international hiring, especially if only dealing with a few contractors.

Scenario 3: Compliance in Challenging Markets – Deel Wins

A mid-sized consulting firm must hire employees in countries with complex labor laws, such as Brazil and France.

Deel’s Advantage:

• Expertise in navigating complex international labor laws
• Provides localized, compliant contracts for each country
• Handles tax withholding and reporting in challenging markets

Gusto’s Limitation:

• Limited expertise in international labor laws
• Primarily focused on US compliance

Winner: Deel’s specialized knowledge in international compliance makes it the better choice for hiring in countries with complex labor regulations.

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:

Specialized Industry Needs: Oyster HR

Oyster HR is an excellent alternative for businesses that require a strong focus on compliance, especially in industries with specific regulatory requirements. It offers:

• Comprehensive compliance tools for various industries
• Specialized support for tech and creative sectors

Extensive HR Software Integration: Rippling

Rippling stands out for its wide integration capabilities, making it ideal for businesses heavily relying on diverse HR and IT systems. Key features include:

• Extensive integration with HR, IT, and finance software
• Unified employee data management across systems

Region-Specific Expansion: Remote

Remote is a great choice for businesses focusing on expansion in specific regions, offering:

• In-depth knowledge of regional labor laws and practices
• Strong presence in emerging markets

Cost-Effective Global Solutions: Remofirst

Remofirst is an attractive option for businesses seeking a balance between global capabilities and cost-effectiveness:

• Competitive pricing for global employment services
• Streamlined processes for hiring international contractors

Comprehensive HR and Payroll Suite: Papaya Global

Papaya Global offers a robust suite of HR and payroll tools, suitable for larger organizations with complex needs:

• Advanced analytics and reporting capabilities
• Comprehensive workforce management features

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:

1. Fast-growing startups looking to tap into global talent pools
2. Large enterprises managing a diverse, international workforce
3. Companies expanding into multiple international markets simultaneously
4. Businesses with a significant number of international contractors
5. 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:

1. Small businesses and startups with primarily US-based employees
2. Companies looking for an all-in-one payroll and benefits administration solution
3. Businesses that prioritize user experience and easy-to-use interfaces
4. Organizations new to managing their own payroll and HR processes
5. 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.

My Final Thoughts on Deel vs Gusto

In comparing Deel and Gusto, it’s clear that both platforms offer robust solutions for payroll and HR management, but they cater to different business needs and scales.

Deel stands out as a powerhouse for global payroll and compliance. Its ability to navigate the complexities of international hiring, payment, and regulatory compliance across 150+ countries is unparalleled. This makes Deel an invaluable tool for businesses with a global workforce or those rapidly expanding into international markets. The platform’s multi-currency support, customizable contracts, and comprehensive compliance features provide a solid foundation for managing a diverse, worldwide team.

Conversely, Gusto excels in providing a user-friendly, all-in-one HR and payroll solution primarily for US-based small to medium-sized businesses. Its intuitive interface and features like integrated benefits administration and time tracking make it an excellent choice for companies looking to streamline their domestic HR processes. Gusto’s strength lies in its ability to simplify complex payroll tasks, making it accessible even to business owners without extensive HR experience.

When it comes to choosing between the two, the decision largely depends on your business’s current needs and plans:

• If you’re a small business based in the US with no immediate plans for international expansion, Gusto offers a more tailored, cost-effective solution. Its comprehensive domestic features and user-friendly interface make it ideal for streamlining payroll and HR processes within the US.
• If your business operates globally or plans to expand internationally, Deel’s robust global payroll and compliance capabilities make it the superior choice. Its ability to handle complex international labor laws and multi-currency payments makes it an essential tool for managing a global workforce.

Ultimately, Deel and Gusto are strong contenders in their respective focus areas. Deel’s global reach and compliance expertise make it indispensable for international operations, while Gusto’s user-friendly approach and comprehensive US-focused features make it a favorite among domestic small businesses.

The best choice for your business will depend on your specific needs, growth plans, and workforce composition. When making your decision, consider your long-term business strategy, the complexity of your payroll needs, and your budget. Whichever platform you choose, both Deel and Gusto offer powerful tools to streamline your payroll and HR processes, allowing you to focus on growing your business.

Frequently Asked Questions