Rippling vs Gusto: Best EORs Compared for 2024

Rippling and Gusto are two leading HR and payroll management platforms, offering distinct advantages for businesses of various sizes and needs. While both provide essential services for managing employee data, payroll processing, and benefits administration, they each have unique strengths catering to different organizations.

Rippling is a comprehensive all-in-one platform that integrates HR, IT, and finance functionalities. Its robust feature set and extensive customization options make it an attractive choice for medium to large businesses with complex needs and those looking for a scalable solution.

On the other hand, Gusto has carved out a niche as a user-friendly, straightforward solution that excels in payroll processing and basic HR functions. It’s particularly well-suited for small businesses and startups prioritizing ease of use and affordability.

The main difference between Rippling and Gusto is their scope and target market. Rippling offers a more comprehensive suite of services, including IT management and finance tools alongside HR and payroll, making it suitable for larger organizations with complex needs. Gusto focuses primarily on payroll and essential HR functions, with a user-friendly interface that appeals to smaller businesses and startups.

In this comparison, I’ll delve into Rippling and Gusto’s key features, pricing structures, and use cases. By examining their strengths and limitations, I aim to help you determine which platform best meets your business needs, whether you’re a small startup looking for a simple payroll solution or a growing enterprise requiring a more comprehensive HR and IT management system.

Overview of Rippling and Gusto

Rippling and Gusto are significant players in HR and payroll management, each offering unique solutions to help businesses streamline their operations.

Overview of Rippling: Best For Comprehensive HR, IT, and Finance Management

Rippling best suits businesses looking for an all-in-one platform that integrates HR, IT, and finance functions. Its platform is designed to streamline operations across these areas, making it particularly attractive for medium to large businesses with complex needs.

Rippling’s core strengths include:

• Comprehensive integration of HR, IT, and finance functions
• Extensive customization options
• Global payroll capabilities
• Robust compliance and security features
• Advanced reporting and analytics tools
• Wide range of third-party integrations (500+)

Overview of Gusto: Best For Small Business Payroll and HR

Gusto is ideal for small to medium-sized businesses looking for a user-friendly payroll and HR solution. It excels in providing straightforward payroll processing and essential HR functions.

Gusto’s core strengths include:

• User-friendly interface and intuitive design
• Excellent payroll processing features
• Affordable pricing for small businesses
• Solid benefits administration
• Good customer support
• Contractor-only plan available

Rippling vs Gusto At a Glance

This summary section aims to quickly show how these solutions compare on the most important features and information like pricing. Here’s a comprehensive comparison table:

Key Features of Rippling

Unified HR, IT, and Finance Platform

Rippling’s standout feature is its comprehensive integration of HR, IT, and finance functions into a single platform. This unified approach allows businesses to manage all operations from one central dashboard.

The platform enables seamless data flow between different departments, eliminating the need for multiple software solutions and reducing the risk of data inconsistencies. For example, when a new employee is onboarded, Rippling can automatically set up their payroll, benefits, and IT accounts simultaneously.

This integration is particularly valuable for growing businesses that need to scale their operations efficiently. It provides a holistic view of the organization, enabling better decision-making and resource allocation.

Global Payroll Management

Rippling offers robust global payroll capabilities, supporting processing in over 185 countries. This feature is crucial for businesses with international operations or remote teams spread across the globe.

The platform handles currency conversions, tax calculations, and compliance with local labor laws automatically. This saves time and helps businesses avoid costly errors and legal issues associated with international payroll.

Rippling’s global payroll system integrates seamlessly with its other HR and finance functions, providing a unified view of workforce costs across different countries and regions.

Advanced IT Management

Rippling’s IT management capabilities set it apart from many other HR platforms. The system allows businesses to manage employee devices, software licenses, and access permissions from the same platform used for HR and payroll.

Key IT features include:

• Device management: Track and manage company-owned devices
• App management: Control access to business applications
• Security policies: Enforce company-wide security standards

Integrating IT management with HR functions is particularly valuable for tech-focused companies or those with complex IT needs. It streamlines the onboarding and offboarding processes, ensuring employees have the right tools and access from day one and that access is promptly revoked when they leave.

Customizable Workflows and Automations

Rippling offers extensive customization options, allowing businesses to create workflows and automations tailored to their needs. This flexibility is crucial for organizations with unique processes or those operating in specialized industries.

The platform provides a visual workflow builder that allows users to create complex, multi-step processes without coding. These workflows can span HR, IT, and finance functions, further leveraging the platform’s integrated nature.

For example, a company could create a custom onboarding workflow that automatically triggers IT setup, payroll enrollment, and benefits selection, all based on the new hire’s role and location.

Advanced Reporting and Analytics

Rippling’s reporting and analytics capabilities are comprehensive, offering insights across HR, IT, and finance data. The platform provides a wide range of pre-built reports and the ability to create custom reports.

Key features of Rippling’s analytics include:

• Cross-functional reporting: Analyze data across HR, IT, and finance
• Custom report builder: Create tailored reports to meet specific needs
• Real-time data: Access up-to-date information for timely decision-making

These advanced analytics capabilities enable businesses to make data-driven decisions about their workforce, technology investments, and financial strategies. The ability to correlate data across different areas of the business can reveal insights that might be missed with separate, siloed systems.

Key Features of Gusto

User-Friendly Payroll Processing

Gusto’s core strength lies in its intuitive and easy-to-use payroll processing system. The platform is designed to simplify payroll management for small businesses, many of which may not have dedicated HR departments.

Key features of Gusto’s payroll system include:

• Automated tax calculations and filings
• Unlimited payroll runs at no extra cost
• Support for multiple pay schedules and types (hourly, salary, bonuses)
• Direct deposit and check payment options

The system’s autopilot feature allows businesses to set up recurring payroll runs, reducing the risk of missed or late payments. This automation is particularly valuable for small business owners who need to focus on core business activities rather than administrative tasks.

Comprehensive Benefits Administration

Gusto offers a robust benefits administration system that allows small businesses to provide competitive employee benefits packages. The platform supports a wide range of benefits, including:

• Health insurance (medical, dental, vision)
• 401(k) retirement plans
• Commuter benefits
• Health savings accounts (HSAs) and flexible spending accounts (FSAs)

Gusto’s benefits marketplace includes over 3,500 plans, giving businesses a wide range of options. The platform also provides tools to help employers compare plans and make informed decisions about benefits offerings.

For employees, Gusto offers a self-service portal to enroll in benefits easily, make changes during open enrollment periods, and access important benefits information.

Time Tracking and PTO Management

Gusto includes time tracking and paid time off (PTO) management features, which are crucial for many small businesses. These features seamlessly integrate with the payroll system, ensuring accurate payment for hours worked and proper accounting for time off.

Key features include:

• Employee self-service time tracking
• Customizable PTO policies
• Approval workflows for time off requests
• Automatic calculation of PTO accruals

The integration of time tracking with payroll processing helps reduce errors and save time, especially for businesses with hourly employees or complex time-off policies.

Employee Self-Service Portal

Gusto provides a user-friendly employee self-service portal that empowers employees to manage their information and access important documents. This feature reduces the administrative burden on HR teams and improves employee satisfaction.

Through the portal, employees can:

• View and download pay stubs and tax forms
• Update personal information
• Access and manage benefits
• Submit time-off requests

The portal also includes Gusto Wallet, a financial management tool that helps employees track their pay, set savings goals, and access financial wellness resources.

Hiring and Onboarding Tools

While not as extensive as Rippling’s offerings, Gusto provides hiring and onboarding tools designed to streamline bringing new employees into the organization.

Key features include:

• Offer letter templates
• Employee self-onboarding workflows
• I-9 and W-4 form completion
• State new hire reporting

These tools help small businesses create a more professional and efficient hiring process, even without a dedicated HR team. The self-onboarding features, in particular, can save employers and new hires significant time.

Pricing and Plans for Rippling

Rippling offers a flexible, modular pricing structure that allows businesses to customize their plan based on their specific needs. While this approach provides great flexibility, it also means that pricing can vary significantly between different customers.

The base pricing for Rippling starts at $8 per user per month, but this is just for the core Unity platform. Additional modules and features will increase the price. Here’s a general overview of Rippling’s pricing structure:

It’s important to note that Rippling requires businesses to get a custom quote for their specific needs. This can make it challenging to estimate costs without contacting their sales team.

Rippling does not publicly offer a free trial but provides demos to potential customers.

While the customizable nature of Rippling’s pricing can be advantageous for businesses that only need specific features, it can also lead to higher costs for companies that require a full suite of HR, IT, and finance tools.

Pricing and Plans for Gusto

Gusto offers a more straightforward pricing structure with three main tiers, plus a Contractor-only option. Here’s a breakdown of Gusto’s pricing plans:

Gusto’s pricing is more transparent than Rippling’s, making it easier for small businesses to budget for their HR and payroll needs. The base plan’s inclusion of core features like full-service payroll and benefits administration is particularly attractive for small businesses.

Gusto offers a 30-day free trial, allowing businesses to test the platform before committing.

It’s worth noting that while Gusto’s pricing is generally more affordable for small businesses, costs can add up quickly as a company grows, especially when moving to higher tiers or adding multiple employees.

Pros and Cons of Rippling

Pros and Cons of Gusto

Rippling vs Gusto: Simulated Real-World Scenarios

Scenario 1: Rapid International Scaling – Rippling Wins

A tech startup plans to hire 50 employees across 10 countries in the next six months.

Rippling excels in this scenario due to its robust global payroll capabilities and comprehensive HR and IT management features. Its ability to handle payroll in 185+ countries makes it ideal for rapid international expansion. The platform’s unified HR, IT, and finance approach would allow the startup to manage its growing, distributed workforce efficiently.

While excellent for US-based businesses, Gusto is limited to domestic payroll and doesn’t support international employees. This makes it unsuitable for a company planning significant international expansion.

Scenario 2: Small Business Going Global – Rippling Wins

A small US-based e-commerce company with 20 employees wants to hire its first five international team members.

While this is a closer contest, Rippling still edges out Gusto for this scenario. Rippling’s global payroll capabilities and unified HR-IT platform would provide the necessary tools for the company to manage both its domestic and international employees effectively. The ability to handle different currencies, tax systems, and compliance requirements would be crucial for this expanding business.

Unfortunately, Gusto doesn’t support international payroll, which makes it impossible for the company to use it for its new international hires. While Gusto could continue to serve the US-based employees, the need for a separate system for international employees would create additional complexity and potential for errors.

Scenario 3: Compliance in Challenging Markets – Rippling Wins

A medium-sized company must manage payroll and HR for 100+ employees across 30 countries, including several with complex labor laws and regulatory environments.

Rippling is the clear winner in this scenario due to its extensive global compliance features and ability to handle complex regulatory environments across multiple countries. Its unified platform would allow the company to manage all employees, regardless of location, in a single system while ensuring compliance with various local labor laws.

Gusto, being limited to the US market, simply cannot meet the needs of this internationally distributed workforce. Its compliance features, while strong for US regulations, don’t extend to international markets.

When to Consider Other EOR Providers

While Rippling and Gusto offer strong solutions for many businesses, there are scenarios where other providers might be more suitable. Here are some alternatives to consider:

Specialized Industry Needs: Deel

Deel offers robust solutions for businesses in industries with unique compliance requirements or those focusing heavily on hiring international contractors.

Deel specializes in global hiring and compliance, making it an excellent choice for companies prioritizing international expansion and needing deep expertise in managing a global workforce.

Extensive HR Software Integration: Oyster HR

Oyster HR excels in providing a comprehensive global employment platform focusing on compliance and seamless integrations.

It’s particularly well-suited for companies looking for extensive HR software integration capabilities, especially those hiring in multiple countries but wanting to maintain a unified HR system.

Region-Specific Expansion: Remote

Remote offers deep expertise in certain geographical areas if you focus on expanding into specific regions. They provide detailed knowledge of local labor laws and customs, making them an excellent choice for businesses targeting expansion in particular countries or regions.

Advanced Analytics and Comprehensive IT Integration: Papaya Global

Papaya Global stands out for its advanced analytics capabilities and comprehensive IT and finance integration. It’s an excellent choice for enterprises requiring in-depth workforce analytics and a holistic approach to global workforce management.

Who I Recommend Rippling To

Based on my analysis and experience with Rippling, I recommend it for:

1. Medium to large businesses with complex HR, IT, and finance needs: Rippling’s comprehensive platform is well-suited for companies that need to manage multiple aspects of their operations in an integrated system.
2. Companies with international employees or planning global expansion: Rippling’s global payroll capabilities make it an excellent choice for businesses with a distributed worldwide workforce.
3. Organizations seeking high levels of customization and automation: Rippling’s extensive customization options and workflow automation features are ideal for businesses with unique processes or those looking to streamline operations.
4. Tech-focused companies: The platform’s strong IT management features, including device and app management, make it particularly appealing to technology companies or those with significant IT needs.
5. Fast-growing businesses: Rippling’s scalability and modular structure allow it to adapt as a company grows, making it a good long-term solution for rapidly expanding organizations.

Rippling is particularly strong for businesses that value having a single, integrated platform for managing their workforce, technology, and financial operations. Its ability to handle complex, multi-country operations while providing advanced reporting and analytics makes it an excellent choice for businesses with sophisticated needs.

Who I Recommend Gusto To

Based on my analysis and experience with Gusto, I recommend it for:

1. Small to medium-sized businesses primarily operating in the US: Gusto’s user-friendly interface and comprehensive payroll features make it ideal for US-based SMBs.
2. Startups and growing businesses: The platform’s scalable pricing and features allow it to grow with your business, starting from affordable options for small teams.
3. Companies prioritize ease of use and simplicity. Gusto’s intuitive design and straightforward features make it accessible even to those without extensive HR experience.
4. Businesses with a mix of employees and contractors: Gusto’s ability to handle both types of workers, including a contractor-only plan, makes it versatile for various workforce structures.
5. Organizations looking for integrated benefits administration: Gusto’s robust benefits options and administration tools are excellent for small businesses wanting to offer competitive benefits packages.

Gusto is particularly well-suited for businesses in service industries, retail, and other sectors typical of small businesses. Its focus on simplifying complex processes like payroll and benefits administration makes it an excellent choice for companies without dedicated HR departments or extensive resources for managing these functions.

My Final Thoughts on Rippling vs Gusto

After thoroughly comparing Rippling and Gusto, it’s clear that both platforms offer valuable solutions for HR and payroll management. Still, they excel in different areas and cater to different types of businesses.

Rippling stands out as a comprehensive, feature-rich platform designed for businesses with complex HR, IT, and finance needs. Its ability to integrate these functions into a single platform, its extensive customization options, and global payroll capabilities make it an excellent choice for medium to large businesses, especially those with international operations or sophisticated IT requirements. The advanced reporting and analytics features provide valuable insights across all areas of workforce management. However, this breadth of features comes with a steeper learning curve and potentially higher costs, which may be overwhelming for smaller businesses or those with simpler needs.

Conversely, Gusto shines as a user-friendly, straightforward solution focused on payroll and core HR functions. Its intuitive interface, transparent pricing, and excellent payroll processing features make it ideal for small to medium-sized businesses operating primarily in the US. Gusto’s strength lies in its ability to simplify complex processes like payroll and benefits administration, making it accessible even to businesses without dedicated HR departments. The platform’s unlimited payroll runs and solid customer support are particularly appealing. However, its limitations in terms of international capabilities and some advanced features may make it less suitable for larger enterprises or those with global operations.

The best choice between Rippling and Gusto ultimately depends on your business size, complexity, and specific needs:

• Choose Rippling if you’re a medium to large business with complex HR, IT, and finance needs, especially if you have international employees or require extensive customization and automation capabilities.
• Opt for Gusto if you’re a small to medium-sized US-based business looking for an easy-to-use, affordable solution for payroll and basic HR functions, particularly if you value simplicity and excellent customer support.

Both platforms continue to evolve and improve their offerings. Rippling’s ongoing development of its integrated platform and global capabilities positions it well for businesses with growing complexity. Gusto’s focus on enhancing its core payroll and HR features while maintaining its user-friendly approach ensures it remains a top choice for small businesses in the US market.

As the business landscape continues to change, both Rippling and Gusto are well-positioned to meet the evolving needs of their target markets. Your choice between the two should align with your company’s current needs, growth trajectory, and the level of complexity you’re willing to manage in your HR and payroll processes.

Frequently Asked Questions