Gusto vs. Competitors: What Makes It the Best Choice for Freelancers in 2023?

What you’ll get from this article

Make faster, safer decisions about paying yourself and other contractors. Save time on taxes. Avoid penalty risk. Get clarity on when Gusto is the smart, simple choice - and when a competitor serves you better.

If you’re a freelancer in the U.S. who wants streamlined payments, effortless contractor tax paperwork, and an intuitive product that scales as your business grows, this comparison will show why Gusto frequently wins. Read on for practical trade-offs, real use cases, and a clear recommendation.

Quick TL;DR - Gusto in one paragraph

Gusto is the best pick for many U.S.-based freelancers because it combines an approachable, modern interface with contractor-first features (easy contractor onboarding, direct deposits, and automated 1099 workflows), clear pricing, and solid integrations with common small-business tools. It’s simpler and friendlier than legacy incumbents like ADP, less enterprise-heavy than Rippling, and more U.S.-focused (and often cheaper and simpler) than global EOR platforms such as Deel - but if you need global contractor payroll or free invoicing you might choose a specialist instead.

What freelancers actually need from a payroll/contractor platform

Before we dig into products, let’s be explicit about freelancer priorities. If a provider doesn’t solve these well, it’s not a fit.

Effortless contractor payments (one-off and recurring).
Automatic 1099-NEC generation and e-filing so year-end isn’t a nightmare.
Contractor self-onboarding (W-9 collection) to reduce manual work.
Fast, reliable direct deposit and payment tracking.
Transparent pricing with low fees for small volumes.
Integrations (accounting, payment processors, time tracking).
Customer support and clear tax guidance.

Gusto covers these priorities in a way designed for small teams and independent professionals.

How Gusto addresses freelancer priorities

Contractor payments - Invite contractors, collect W-9s, and pay via ACH or check. The contractor portal reduces back-and-forth.
Year-end forms - Gusto can generate and e-file 1099s for contractors you pay through the platform, saving you manual filings.
Tax compliance - For employees, Gusto handles payroll taxes and filings automatically. For contractors, it centralizes forms and reporting so you stay compliant.
UX and automation - Clean dashboard, guided workflows, and smart reminders cut administrative overhead.
Integrations - Works with popular tools like QuickBooks, Xero, Stripe, and more - helpful for freelancers who want bookkeeping to stay tidy.

For official details see Gusto’s product pages and support center: https://gusto.com/product/payroll and https://gusto.com.

How competitors stack up (practical comparison)

I’ll summarize the most relevant competitors for freelancers and when they’re a better or worse fit.

QuickBooks Payroll (Intuit)
- Strengths - Tight integration with QuickBooks accounting, good for freelancers who already use QuickBooks for invoicing and bookkeeping.
- Weaknesses - UX can feel dated; payroll features are aimed at employers and small businesses rather than contractors-only workflows.
- Learn more: https://quickbooks.intuit.com/payroll/
ADP
- Strengths - Enterprise-grade compliance, extensive offerings.
- Weaknesses - Overkill and more expensive for most freelancers; steeper onboarding and admin.
- Learn more: https://www.adp.com
Rippling
- Strengths - Powerful HRIS and deep integrations; scalable for companies that want HR + IT automation.
- Weaknesses - Pricing and feature set skew toward companies, not solo freelancers.
- Learn more: https://www.rippling.com
Deel / Remote / Oyster (Global contractor platforms)
- Strengths - Best when you hire or are paid as an international contractor - they handle local compliance and payments worldwide.
- Weaknesses - More expensive for U.S.-only freelancers and often unnecessary if all your work and contractors are U.S.-based.
- Learn more: https://www.deel.com
Square Payroll
- Strengths - Simple pricing and a good choice if you already use Square for payments; straightforward contractor payroll.
- Weaknesses - Fewer advanced HR features and accounting integrations than Gusto.
- Learn more: https://squareup.com/us/en/payroll
Wave
- Strengths - Free invoicing; low-cost bookkeeping tools; payroll option exists but is limited by state support.
- Weaknesses - Payroll feature limitations and availability make it less reliable for some freelancers.
- Learn more: https://www.waveapps.com/payroll

Real-world scenarios - which provider to pick

You’re a U.S.-based solo freelancer who occasionally pays subcontractors - Gusto. It streamlines contractor onboarding, payments, and 1099 filing while keeping things affordable and simple.
You operate internationally (you or your contractors are outside the U.S.) - Consider Deel or Remote for localized compliance and payouts.
You already run QuickBooks end-to-end and want tight bookkeeping integration - QuickBooks Payroll may simplify your workflow.
You need free invoicing with occasional payroll for a very small operation - Wave can be attractive, but check state availability and tax support.
You run or plan to scale into a mid-size company with HR + IT automation requirements - Rippling or ADP make more sense as you grow.

Practical advantages Gusto offers freelancers (concrete examples)

Speed - Running a contractor payment takes minutes. No paper checks required. Direct deposit reduces waiting time.
Paperwork - Contractors fill their W-9 in the portal. At year-end, Gusto compiles 1099s and can e-file them on your behalf.
Predictability - Reminders and clear dashboards reduce missed filings and late-payment penalties.
Integrations - Sync payroll and contractor payments with accounting tools so your books match reality.

Example workflow: Invite a contractor → they submit W-9 → run contractor pay cycle → Gusto records the payment and tracks it toward a year-end 1099. Minimal manual reconciliation.

Costs and value (what to watch for)

Pricing and fees change, so check current plans before you buy. What matters more than the exact monthly fee is the total cost of ownership: time saved, risk avoided (e.g., missed filings), and whether the product integrates with your accounting stack.

Watch for:

Per-contractor or per-pay-run fees.
State availability (for payroll tax services).
Annual 1099 e-filing fees (some providers include this; some charge extra).

Gusto’s value proposition is that it bundles automated payroll and 1099 workflows into a single, approachable product - reducing the number of tools you must manage.

Downsides and limitations to be aware of

Gusto is primarily U.S.-focused. If you work or hire internationally, a global EOR/payout platform like Deel may be necessary.
If you need heavy-duty HR/IT automation or complex enterprise features, Rippling or ADP will serve you better - albeit at higher cost and complexity.
Gusto is not an invoicing-first product. If invoicing and client payments are your main pain point, combine a dedicated invoicing tool (or Wave) with Gusto for payroll.

Final recommendation - when Gusto is the best choice

If you’re a freelancer operating in the U.S. who wants a low-friction way to pay contractors, collect W-9s, automate 1099 filing, and keep your bookkeeping tidy, Gusto is the pragmatic, modern choice. It hits the right balance between affordability, automation, and user experience. It reduces year-end stress and lets you focus on billable work rather than payroll admin.

If your needs are global, or you require free invoicing or enterprise HR automation, pick a specialist instead. Otherwise, for most U.S.-based freelancers, Gusto is the fastest path from chaotic payments and tax anxiety to clean records and predictable compliance.