BambooHR vs Gusto: Which One Do You Need for HR, Hiring and Payroll? (2026)

Prices and features checked on each vendor’s own site on 21 October 2026. Neither vendor paid for or reviewed this article.

What is the difference between BambooHR and Gusto?

Both store employee data, onboard new hires and can run US payroll. The difference is which job each one was built to do first, and what you pay extra for.

BambooHR is an HRIS for small and midsize companies. Every plan includes employee records, reporting, time off management and an applicant tracking system, so it is often a company’s first ATS as well as its first HR system. Its pricing page says it is trusted by more than 30,000 companies, and it sells payroll, benefits administration and time tracking as add ons.

Gusto is payroll software for small US businesses. Every plan includes unlimited payroll runs and tax filings, and HR tools are layered on top as you move up a plan. Its pricing page says more than 500,000 businesses use it, and it is month to month with no contract.

Put simply: if your pain is keeping track of people, hiring and reviews, start with BambooHR. If your pain is paying people correctly and on time, start with Gusto.

How do BambooHR and Gusto compare side by side?

This table uses each vendor’s own pricing, product and help pages.

How much do BambooHR and Gusto cost in 2026?

Gusto publishes every plan and most add ons. BambooHR publishes its three HR plans but asks you to get pricing for payroll, benefits administration and time tracking.

One detail to watch on BambooHR: its plan cards show $10, $17 and $25 per employee, while its FAQ gives $10.25, $17.50 and $25. The FAQ says volume discounts apply automatically as headcount grows, there is a bundle discount for buying HR, benefits and payroll together, and registered nonprofits get 15% off.

What does Gusto charge on top of the plan?

Gusto lists its add ons openly. Priority Support is $30 a month plus $3 per person on Simple and Plus. Same day pay is $90 per payroll and instant pay is $100 per payroll unless you are on Premium. Remote I9 checks are $20 each, and keeping your own benefits broker costs $6 a month per eligible employee.

What does each one cost per year by team size?

This is a Work Insiders calculation from the published prices above, before add ons, insurance premiums and taxes. The BambooHR columns cover the HR plan only, with no payroll, and use the FAQ rates before any volume discount.

For a 10 person team, BambooHR Core is $250 a month and Gusto Plus is $200 a month. They are not the same purchase: the BambooHR figure buys HR and hiring with no payroll, and the Gusto figure buys payroll with lighter HR and a basic recruiting tool. Running BambooHR Core and Gusto Plus together for 10 people comes to $5,400 a year on these numbers.

Can BambooHR replace Gusto for payroll?

Yes, for US employees. BambooHR Payroll handles direct deposit, W2s, federal, state and local tax filing, multiple pay rates, garnishments and custom journal entries for QuickBooks Online, Xero, NetSuite and Sage Intacct. A dedicated payroll project manager sets it up with you, and a Managed Payroll service can run each cycle for you.

The catch is price and scope. BambooHR Payroll is an add on to an HR plan with a quoted price, so you cannot buy it on its own or see the cost before talking to sales. For people outside the US, BambooHR points to local payroll integrations, marketplace partners and a global employment option powered by Remote.

Is Gusto better for payroll alone?

For a small US company that mostly needs to pay people, usually yes. Gusto includes unlimited payrolls, tax filings, contractor payments and Payroll on AutoPilot on every plan, at a published price. Simple covers one state; you need Plus for multi state payroll. Gusto also pays contractors in more than 120 countries as an add on with no monthly per contractor fee.

Which is better for hiring and applicant tracking?

BambooHR, clearly, and this is the part recruiters should read closely. Its applicant tracking system comes with every plan, including Core. It posts to job boards such as Indeed, ZipRecruiter and LinkedIn, sends automated emails at each stage, lets candidates book their own interview slot, and sends offer letters for electronic signature.

BambooHR also includes a Candidate Sources report and a Candidate Funnel report, a separate Hiring mobile app for hiring managers, and background checks inside the product. When you mark someone hired, their data moves into the employee record and starts onboarding, so nobody types it twice.

Gusto Recruiting is simpler. Its recruiting help article says it is included on Plus and Premium. You get a company job board, free posting to LinkedIn and to more than 100 boards through its partner Jobcase, AI drafted job descriptions, a hiring team with scorecards, and one click import of new hires into payroll.

The same article lists what is missing: interview scheduling and email templates. Gusto says it does not send automated emails to applicants who apply or move through stages. For a team hiring a few people a year, that may be fine. For anyone running steady hiring, it means candidate communication happens outside the tool.

What if I need a real ATS with Gusto?

Connect one. Gusto’s hiring integrations include Ashby, JazzHR, Lever, BreezyHR, Teamtailor and Recruitee, plus Checkr for background checks. These send hired candidates into Gusto onboarding. Either BambooHR or a dedicated ATS will outgrow Gusto Recruiting for volume hiring, and a dedicated ATS such as Workable will outgrow BambooHR’s tracker too.

How do onboarding and performance reviews compare?

Both handle new hire paperwork well. BambooHR onboarding adds new hire packets, a progress dashboard, custom checklists, a “Get to Know You” welcome email, offboarding workflows and built in I9 workflows powered by Mitratech. Gusto offers onboarding checklists, self onboarding with electronic signatures, document storage and app account setup for new hires.

Performance is where BambooHR goes further. Pro adds 360 degree review cycles, one on one meeting tools, recognition and rewards, and Elite adds compensation planning with Mercer salary benchmarks. Gusto’s talent management page says performance reviews are included with Premium, covering self evaluations and manager reviews.

Do I need both BambooHR and Gusto?

Many companies use both: BambooHR as the system of record for people, hiring and reviews, and Gusto for payroll and benefits. That split made sense when BambooHR had no payroll, and it still does if you like Gusto’s published pricing and broker service.

Check the connection before you commit. BambooHR’s Gusto integration page says Gusto “is no longer listed as a partner” in its Apps Marketplace, that the integration is not receiving the same maintenance, and that it may be discontinued. BambooHR recommends a payroll partner from its marketplace instead.

While it works, the same page says it syncs employee records, hire dates and termination dates. After the first sync, data flows one way, from BambooHR to Gusto. Retroactive pay changes must be entered in both systems, and companies with several EINs are not supported. We did not find BambooHR in Gusto’s hiring integrations category.

Who should choose BambooHR?

• HR led companies buying their first proper HRIS.
• Teams that hire regularly and want an ATS in the same login as HR.
• Managers who want structured reviews, one on ones and compensation planning.
• Companies that prefer one vendor for HR and US payroll, and are fine with a quote.

Who should choose Gusto?

• Small US businesses whose first need is payroll and tax filing.
• Owners who want health insurance set up through a broker with no admin fee.
• Recruiting firms paying a small internal team plus some 1099 contractors.
• Buyers who want to see the full price and sign up without a sales call.

If you are also weighing a broader platform, our Rippling vs Gusto comparison covers global hiring and IT management.

What are the best alternatives to BambooHR and Gusto?

If neither fits, these tools cover the same ground in a different way. Each listing has current pricing and its own alternatives.

Tool	What it does differently	Best for
Rippling	HR, payroll, IT and finance on one employee record, priced by quote	Growing teams across states or countries
HiBob	Modern HRIS built for mid market teams	Companies past the BambooHR size band
Namely	Mid market HRIS for US employers	US companies wanting HR and payroll together
Justworks	PEO with pooled benefits	Small US teams wanting big company benefits
Paylocity	Full HCM with payroll and a recruiting module	Midsize companies wanting one larger suite
Workable	Dedicated ATS with sourcing, alongside any payroll	Teams whose real need is hiring volume

See every option in our HRIS category and our payroll software category.

How should you trial both before you switch?

Gusto lets you create an account online without a sales call, and says account setup is free. BambooHR starts with a pricing request or a demo. Ask BambooHR for a written quote that lists the HR plan, each add on, the billing unit, any volume or bundle discount, and whether you are on month to month or a longer term.

Then price the same scope on both: headcount, number of states, contractors, benefits and how often you hire. If you plan to run both, test the sync with a few real employee records before payroll goes live. If you move payroll, switch at a quarter end if you can, so year to date tax filings are cleaner.

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