Gusto HR vs Sage

(April 2025)

Gusto-HR-vs-Sage

Table of Contents

Our Verdict
Gusto-HR-vs-Sage-Our-Verdict

Gusto HR floors Sage for user-friendly interfaces and seamless payroll for a small business. Sage wins the trophy if you’re after a comprehensive suite of HR solutions, including talent management and compliance tools, and it’s best for larger enterprises. The one you choose depends on your company’s goals and scale. You want the software that aligns perfectly with your needs and creates no friction in the successful operation of your enterprise.

Why Choose Gusto HR
Gusto-HR-Software

Who Gusto HR Is Best For

Gusto HR offers you a lot of benefits if you’re someone who:

  • Runs a small business
  • Has a startup
  • Manages a medium-sized business
  • Needs a user-friendly interface
  • Wants streamlined payroll processing
  • Has a limited HR staff
  • Looks for affordable HR solutions

Who Gusto HR Isn't Best For

You’re not likely to fully resonate with Gusto HR if you’re an individual who

  • Manages a large enterprise with complex HR needs
  • Needs an extensive international payroll support
  • Requires advanced talent management tools
  • Has highly customized HR processes
  • Wants robust compliance features across multiple countries
Why Choose Sage
Why-Choose-Sage

Who Sage Is Best For

Gladly opt for Sage if you:

  • Have a large and established enterprise
  • Require complex HR needs
  • Need advanced talent management tools
  • Possess extensive compliance requirements
  • Run a business that operates in multiple countries
  • Need customizable HR solutions

Who Sage Isn't Best For

Think of another option if you’re an individual who:

  • Has a startup with limited budgets
  • Seeks a simple, user-friendly interface
  • Needs a quick and easy payroll processing
  • Has minimal HR requirements
  • Prefers cloud-based solutions with frequent updates
Main Differences
Main Differences Gusto HR Sage
Ideal For

If you need an HR software that meets the requirements below, Gusto HR is the perfect option to consider:

  • Small to medium-sized businesses: It is your perfect option for a comprehensive easy-to-use HR solution without overwhelming complexity.
  • User-friendly payroll processing: You can make a seamless and straightforward payroll system with the software
  • Onboarding processes: Simplify and automate your employee onboarding efficiently.
  • Benefits management: With Gusto HR, you enjoy an integrated system to manage employee benefits.
  • Compliance and tax support: Find help with federal, state, and local tax filings and take care of all compliance related issues with ease.
  • Team collaboration: If you value a tool that enhances team communication and engagement, Gusto HR is a great alternative to explore.

Use Sage for:

  • Comprehensive HR management: Perfect for your business if it requires a full suite of HR solutions.
  • Talent management: Simplify your recruiting, developing, and retaining top talent process.
  • Advanced payroll and benefits administration:  Need detailed and customizable payroll and benefits systems? Think of Sage.
  • Compliance and risk management: Enjoy robust compliance and risk management tools with Sage.
  • Custom reporting and analytics: Have access to deep insights through customizable reports and make data-driven decisions.
  • Scalability: Sage is scalable. It efficiently accommodates your business as it grows.
  • Integration capabilities: Sage makes integrating with various business and accounting software easy.
Standout Features
  • Automated payroll processing
  • Employee benefits administration
  • New hire onboarding
  • Compliance support
  • Time tracking and PTO management
  • Direct deposit and check options
  • Employee self-service portal
  • Integration with accounting software
  • Customizable reports
  • Dedicated customer support
  • 401(k) and retirement plan
 
  • Strong financial management
  • Inventory management
  • Advanced reporting and analytics
  • Automation capabilities
  • Scalability
Pricing

Gusto offers tiered pricing based on your business needs and number of employees. It has the following pricing options

  • Simple Plan: Choose this tier if you’re running a startup or small business with basic payroll needs. Starts at $40 per month, plus $6 per employee per month. This plan offers core payroll features and essential benefits administration.
  • Plus Plan: A good fit you can consider if you seek more comprehensive HR functionalities. You pay $80 (currently discounted to $60) per month, plus $12 per employee, per month (discounted to $9). This plan includes everything in the Simple plan, along with additional HR tools like onboarding, benefits management, and compliance support.
  • Premium Plan: You can only maximize this option if you run a larger business with complex HR requirements. Custom pricing applies. This plan offers everything in Plus, along with scalable payroll and benefits solutions, dedicated HR expertise, priority support, and a personal success liaison.
  • Contractor Only Plan: Consider this option if your business operates the contractor-only model. You pay $35/month (discounted to $0/month for the first six months) plus $6/month per user. The plan comes with unlimited contractor payments across all 50 states, 4-day direct deposit, 1099-NECs at the end of the year, and new hire reporting (if your state requires it).

Sage offers two main accounting software categories with different pricing structures: Sage 50 and Sage Business Cloud Accounting.

Sage 50: This is a desktop application that supports small and medium businesses. It comes in three tiers:

  • Pro Accounting: The most basic plan, starting at $595 per year (around $49.58 per month). It allows for one user and offers essential features like invoicing, bill tracking, reporting, inventory management, and expense management.
  • Premium Accounting: Commit to $970 per year (around $80.83 per month) and expand your user capacity to five. You also access  advanced reporting, budgeting tools, and serialized inventory tracking.
  • Quantum Accounting: Opt for this if you manage a larger team. This plan starts at $1,610 per year (around $134.17 per month). It adds role-based user permissions, workflow management functionalities on top of features from Premium Accounting, and can accommodate up to 40 users.

 

Sage Business Cloud Accounting: This cloud-based accounting software offers more flexibility and scalability. Pricing isn’t publicly available on Sage website, but it generally starts around $11 per month (including VAT) depending on the tier you choose.

Standout Features

Gusto HR Standout Features

What-Gusto-HR-Software-Offers

Automated payroll processing

Gusto simplifies payroll with automated calculations, tax filings, and direct deposits, ensuring accurate and timely payments without manual effort.

Employee benefits administration

The software offers a range of employee benefits management, including health insurance, retirement plans, and workers’ compensation, all integrated into the platform for easy administration.

New hire onboarding

With Gusto, you can streamline the onboarding process by accessing its digital offer letters, e-signatures, and automated onboarding checklists. Gusto makes it easy for you to get new employees up to speed quickly.

Compliance support

Gusto helps you stay compliant with federal, state, and local regulations by providing tools and resources for tax filings, new hire reporting, and labor law compliance.

Employee self-service portal

Your employees can access their pay stubs, tax documents, and benefits information through a self-service portal, reducing HR’s administrative burden and empowering your staff with easy access to their information.

Sage Standout Features

Sage-Standout-Features

Automated payroll processing

Sage streamlines payroll tasks with automated calculations, tax filings, and direct deposits. You save time and make little to no errors with the software.

Employee benefits administration

The software simplifies benefits management by offering a range of health insurance, retirement plans, and other perks, all seamlessly integrated into the platform.

New hire onboarding

Sage provides a smooth onboarding experience for new employees. It guides them through necessary paperwork and tasks to get them up and running quickly.

Compliance support

Stay compliant with federal, state, and local regulations with Sage. The software automates tax filings, generates required forms, and provides updates on changing laws.

Time tracking and PTO management

Sage allows your employees to clock in and out, track time they spend on projects, and request time off. Use it for visibility and control over scheduling and attendance.

Employee self-service portal

Like Gusto HR, Sage empowers your employees to access their pay stubs, tax documents, and benefits information. See it as a tool that helps you reduce administrative overhead and boost transparency.

Pros and Cons of Gusto HR
How-to-Qualify-for-Gusto-HR-Software

Pros

  • Features intuitive user interface
  • Offers seamless payroll processing
  • Provides extensive employee benefits options
  • Simplifies automated tax filings
  • Eases new hire onboarding
  • Offers excellent customer support

Cons

  • Has limited customization options
  • Offers limited international payroll support
  • Features limited integration options with other software
Pros and Cons of Sage
Pros-and-Cons-of-Sage

Pros

  • Offers comprehensive HR management suite
  • Provides advanced payroll solutions
  • Offers talent management tools
  • Provides customizable reporting and analytics
  • Features integration capabilities
  • Is scalable

Cons

  • Requires steeper learning curve
  • Is expensive, especially for smaller businesses
  • Requires dedicated IT support for implementation and maintenance
  • Features less user-friendly interface compared to some competitors
Customer Reviews

Gusto HR has a poor rating of 2.5 out of 5-star based on 2,038 customer reviews on TrustPilot. Unhappy customers express concern for Gusto’s poor customer service, lack of transparency, and incompetence in meeting taxes and payroll needs. Sage receives an excellent rating of 4.4 out of 5-star on TrustPilot based on 17,667 customer reviews. Happy customers praise Sage for quality service delivery and stellar customer support.

GET SMARTER >>> Paychex HR Software Review

Competitors

Paychex

Paychex is a comprehensive HR and payroll solution that simplifies your business’s administrative tasks and ensures compliance with regulations. With Paychex, you gain access to a range of services, including payroll processing, tax filing, benefits administration, and time and attendance tracking. Its user-friendly platform allows you to manage everything from employee onboarding to retirement planning efficiently. Plus, with dedicated customer support and a wealth of resources, Paychex provides peace of mind knowing that your HR needs are in capable hands. The platform empowers you to focus on growing your business while it handles the rest.

BambooHR

BambooHR is a human resources software solution you need to ease your business’s HR processes. The software centralizes employee data, manages time off and attendance, tracks employee performance, and streamline the hiring process with applicant tracking tools. Its intuitive interface and customizable features make it easy to adapt to your company’s unique needs, while its self-service portal empowers employees to access and update their information effortlessly. Whether you’re a small startup or a growing enterprise, BambooHR provides the tools you need to build a thriving and engaged workforce.

Pro Tips
 
  • Evaluate your needs: Assess your company’s size, industry, and specific HR requirements to determine which features are essential for your business.
  • Compare features: Conduct a side-by-side comparison of Gusto HR and Sage, focusing on payroll processing, benefits administration, compliance support, and scalability.
  • Consider budget: Calculate the total cost of ownership, including subscription fees, implementation costs, and ongoing support, to ensure it aligns with your budget constraints.
  • Seek recommendations: Reach out to colleagues, industry peers, or online communities for unbiased feedback and insights on their experiences with Gusto HR and Sage. You can read customer reviews on TrustPilot and Better Business Bureau about the Gusto HR and Sage.
Recap

When deciding between Gusto HR and Sage, remember that the best choice depends on your unique business needs. Gusto HR shines with its user-friendly interface, seamless payroll processing, and focus on small to medium-sized businesses. On the other hand, Sage offers a comprehensive HR management suite with advanced features tailored for larger enterprises.

To make the right decision, evaluate your company’s size, industry, budget, and specific HR requirements, and consider factors like scalability, customization options, and overall ease of use.

Whether you prioritize simplicity or need a robust suite of HR solutions, Gusto HR and Sage both offer powerful tools to help you streamline your HR processes and support your business’s growth.

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