Gusto vs. Paylocity vs. Rippling: Which HR software is best

Choosing the right HR software can feel overwhelming, especially when you're comparing platforms like Gusto, Paylocity, and Rippling that all promise to simplify your HR operations. Each platform takes a different approach to payroll, benefits, and workforce management, and what works for one business might fall short for another.

I've spent time reviewing these three platforms to understand how they stack up in practice. I've looked at product walkthroughs, analyzed user feedback on review sites, and reviewed product data to understand their core capabilities. And, best of all, I have experience with all three platforms as an actual user. 

My goal is to help you figure out which one actually fits your needs.

In this comparison, I'll break down:

• How Gusto, Paylocity, and Rippling handle essential HR functions

• Where each platform excels and where it falls short

• Pricing structures and what you actually get for your money

• Real user reviews from multiple platforms

By the end, you'll have a clear picture of which HR software is the right fit for your business.

Quick comparison: Gusto vs. Paylocity vs. Rippling at a glance

Before we dive into the details, here's a quick glance at how these three platforms measure up across key features with this Rippling vs. Gusto vs. Paylocity comparison. 

HCM software that makes HR more strategic

See Rippling

Methodology: How we reviewed different payroll software

To give you an accurate comparison, I combined multiple research methods rather than relying on just one source.

• Hands-on experience. I’ve been an actual end-user of each platform. I use Gusto to run my micro-business’s payroll. I use Rippling as a contractor for multiple clients, and I recently used Paylocity as a contractor for one client. I have true hands-on experience with multiple features. 

• User reviews and feedback. I analyzed over a hundred reviews on sites like G2, Capterra, and Software Advice to identify consistent patterns in what users love and what frustrates them. I focused on reviews from the past year as much as possible to ensure the feedback reflects the current state of each platform.

• Product documentation and feature sets. I reviewed each platform's official documentation, feature lists, and help centers to verify capabilities and understand what's included in different pricing tiers right now. 

Rippling editorial policy: Rippling puts our customers (and prospective customers!) first. The Rippling team is committed to providing information supported by product data, insights, and customer feedback to inform our content.

Features comparison: Gusto vs. Paylocity vs. Rippling

Having used each of these platforms and assessing what other customers have to say, there are clear differences between features, capabilities, and business fit. So let’s dive in and talk about where each platform excels, where they may struggle, and which is best for you. 

Payroll processing

Payroll is the foundation of any HR platform. Here's how each handles it.

Rippling

Rippling Payroll handles payroll management for domestic and global workers through a single platform. The system automatically calculates taxes, files with federal, state, and local agencies, and adjusts when employees move to a new location. 

What sets Rippling apart is how payroll data flows through the entire platform. When you run payroll, that data automatically syncs to your financial systems, time tracking, benefits, and IT management. This eliminates manual data entry and reduces errors.

Rippling also supports global payroll in 11 countries and contractor management in 185+ countries with local compliance built in, making it the only platform in this comparison that truly handles international expansion without requiring separate systems.

Gusto

Gusto offers straightforward payroll for US-based businesses. It handles federal, state, and local tax calculations and filings, and offers direct deposit and paper check options, with options for manual and automated payroll processing.

The platform is designed with simplicity in mind, making it easy for micro and small businesses to get started quickly. However, Gusto has more limited automation compared to Rippling, and global payroll requires their Remote-powered Gusto Global EOR service.

Paylocity

Paylocity provides payroll processing with features like earned wage access through Everyday Pay (allowing employees early access to earned wages), expense management, and garnishment services. The platform handles multi-state payroll. They now offer global payroll after their acquisition of Blue Marble. 

The platform works well for mid-market businesses that need standard payroll features with employee engagement tools. However, Paylocity's architecture relies on synced modules and marketplace integrations rather than a truly unified database, which can create delays in data flow between systems.

Our verdict

Rippling wins for payroll processing, especially for growing businesses that need global capabilities and unified data across departments. Gusto offers straightforward features for small US-based businesses with simple needs, and Paylocity can well for mid-sized companies focused on domestic operations with basic international requirements.

Talent and performance management

Performance management keeps your team aligned and growing.

Rippling

Rippling offers comprehensive talent management tools including performance reviews, goal tracking, and feedback tools. The platform supports multiple review cycles, custom evaluation templates, and automated workflows that trigger based on employee attributes.

Because Rippling is a unified system, performance data integrates with compensation planning, succession planning, and learning management, giving you a complete picture of employee development. 

Gusto

Gusto provides basic performance review functionality but lacks the depth needed for strategic talent management. You can conduct simple reviews, but the platform doesn't include advanced features like 360-degree feedback, calibration tools, or detailed goal tracking.

Again — this can work for small or micro businesses, but larger or growing companies may want to consider Gusto alternatives. 

Paylocity

Paylocity includes performance management tools and learning resources, but the platform has limitations in workflow automation. According to product reviews, Paylocity doesn’t automate processes like mandatory LMS training assignments; it can only send notifications, requiring manual follow-up.

The platform provides performance tracking capabilities, but lacks the deep integration with compensation planning and succession that Rippling offers.

Our verdict

Rippling leads with the most comprehensive talent management capabilities, especially when combined with its succession planning and learning management features. Paylocity is strong for mid-market needs, while Gusto's basic functionality works only for companies with minimal performance management requirements.

Succession planning

Succession planning ensures business continuity by identifying and developing future leaders.

Rippling

Rippling includes succession planning through its App Studio, which integrates directly with your org chart, performance data, and learning management system. You can identify critical roles, tag potential successors, and create development plans, all within the same platform where you manage everything else.

Gusto

Gusto does not offer succession planning capabilities. Small businesses using Gusto need to manage succession planning separately. 

Paylocity

Paylocity provides succession planning features that help identify high-potential employees and create development paths. The functionality integrates with their performance management and learning tools.

Our verdict

Rippling and Paylocity both offer succession planning, while Gusto doesn't. Rippling's unified approach means your succession plans automatically connect to performance reviews, learning assignments, and compensation data. 

Learning management

Employee development requires accessible, trackable training programs.

Rippling

Rippling's learning management system (LMS) lets you create courses, assign training based on employee attributes, and track completion automatically. The platform supports various content types, including videos, documents, and quizzes.

What makes Rippling's LMS powerful is automation. You can automatically assign training based on role, department, location, or custom attributes — and integrations with time & attendance mean you can track time spent on learning for compliance purposes.

Gusto

Gusto offers limited learning management features. While you can store some training materials, the platform lacks the comprehensive course creation, automated assignment, and detailed tracking that growing businesses need.

Paylocity

Paylocity provides learning management features with course creation and training resources. However, the platform has significant automation limitations. It doesn’t automatically assign mandatory training based on employee attributes or trigger learning workflows. Instead, it relies on manual assignment and notification-based reminders.

Our verdict

Rippling and Paylocity both offer comprehensive LMS capabilities, while Gusto's features are too limited for most growing businesses. Rippling's advantage is the automated assignment based on employee data and integration with other systems like time tracking.

Benefits administration

Benefits administration affects every employee and requires accuracy and ease of use.

Rippling

Rippling handles benefits administration through a unified platform where employees can view, compare, and enroll in plans. The system supports medical, dental, vision, FSA, HSA, 401(k), and more. The platform prioritizes compliance, which is critical when it comes to benefits administration. 

Because Rippling is a unified platform, benefits data automatically syncs with payroll deductions, employee profiles, and financial systems. Changes to employee status (new hire, termination, life events) automatically trigger benefits updates without manual intervention.

Rippling also offers access to competitive benefits packages through its PEO software, giving small and mid-sized businesses access to enterprise-level benefits at better rates.

Finally, Rippling’s employee self-service features are phenomenal, making it easy for employees to enroll in benefits and access the information they need as they need it. 

Gusto

Gusto provides solid benefits administration for small businesses, with a good selection of health insurance, retirement plans, and other benefits. The platform makes enrollment straightforward and handles integration with benefits carriers.

However, Gusto's benefits options are more limited compared to Rippling and Paylocity, and the platform doesn't offer the same level of automation or unified data flow.

Paylocity

Paylocity offers benefits administration with plan management and enrollment capabilities. As an IRS-registered reporting agent, it handles benefits-related tax compliance and filings. The platform supports standard benefits like health insurance and retirement plans.

However, Paylocity's global capabilities are limited to payroll only. It doesn't provide integrated benefits or time-off policies for international employees, which can complicate global workforce management.

Our verdict

All three platforms handle benefits administration, but Rippling's unified approach means fewer data sync issues and better automation. Rippling also provides access to better benefits rates through its PEO option, which neither Gusto nor Paylocity can match for small to mid-sized businesses. That said, Gusto and Paylocity’s features may work for small or mid-sized businesses that don’t need advanced benefits administration. 

Time & attendance

Accurate time tracking ensures proper payroll and labor cost management.

Rippling

Rippling's time & attendance software integrates seamlessly with payroll, allowing employees to clock in from their devices, track PTO, and request time off — all within the same system. The platform supports custom overtime rules, break policies, and automated approvals based on employee attributes.

Because time data lives in the same system as payroll, there's no manual export or import process. Time entries flow directly into payroll calculations, reducing errors and saving time.

Gusto

Gusto offers basic time tracking that integrates with payroll. Employees can clock in and out, and managers can approve timesheets. The functionality works for simple time tracking needs but lacks advanced features like geofencing, project tracking, or sophisticated approval workflows.

Paylocity

Paylocity provides time & attendance features with mobile access for employees to track time and request PTO. The platform handles basic timekeeping and integrates with payroll for wage calculations.

However, Paylocity's time tracking doesn't offer the same level of automated workflows and complex approval chains that Rippling provides.

Our verdict

Rippling and Paylocity both offer comprehensive time & attendance, while Gusto's basic features work only for simple scenarios. Rippling's advantage is the unified data model and automation capabilities, with time entries automatically becoming payroll data without any manual steps or data sync issues.

HRIS

Your HRIS serves as the foundation for all employee data and processes.

Rippling

Rippling’s HRIS functions as a unified system of record across HR, IT, and Finance. Employee data lives in one place and automatically updates across every connected system and application. 

This means when you update an employee's job title, department, or location, that change instantly propagates to payroll, benefits, app access, device permissions, and any other connected tool — without manual updates or data syncs.

Rippling's HRIS also supports custom fields, automated workflows, and powerful reporting that pulls data from across the entire platform. Its advanced HR features make it a standout, offering enterprise capabilities as you need them. 

Gusto

Gusto provides basic HRIS functionality for storing employee information, managing documents, and tracking org structure. 

I can also personally vouch for Gusto’s compliance notification features, which have alerted me to requirements that I didn’t know about, including my Beneficial Ownership Information Report (BOI) that was due earlier this year. 

That said, Gusto works for small businesses with straightforward needs, but lacks the customization and automation that growing companies require. 

Paylocity

Paylocity provides an HR database for storing employee information with synced modules across its cloud-based platform. The system relies on a history of acquisitions and marketplace integrations to extend functionality, which can create complexity.

According to product analysis, Paylocity has limited cross-module automation and workflow capabilities. It cannot automate processes across different modules — for example, it can't automatically trigger payroll approvals or cascade changes across benefits and time tracking. The platform's reporting is also limited, lacking the ability to combine data from multiple modules (like benefits, payroll, and documents) in a single report.

Our verdict

Rippling's unified employee graph sets it apart. While Gusto and Paylocity function as HR systems, only Rippling serves as a true system of record across HR, IT, and Finance — ensuring every system stays in sync automatically. This architecture eliminates data silos and reduces manual work across departments.

Put HR busywork on autopilot

See Rippling

Gusto vs. Paylocity vs. Rippling: Pricing

Understanding what you'll actually pay helps you make an informed decision.

Rippling

Rippling offers custom pricing based on the specific modules and features you need. While this means you need to speak with sales to get an exact quote, it also means you're only paying for what you actually use.

For context, Rippling's pricing typically starts at around $8 per employee per month for basic HRIS, with additional costs for modules like payroll, benefits administration, time & attendance, IT management, and spend management.

The custom pricing model works well for growing businesses because you can start with core features and add capabilities as you scale without switching platforms.

Gusto

Gusto uses transparent, tiered pricing:

• Simple plan: $40/month + $6 per employee (payroll and benefits)

• Plus plan: $80/month + $12 per employee (adds HR tools and support)

• Premium plan: Starting at $180/month + $22 per employee (adds dedicated HR support and advanced features)

Gusto's straightforward pricing makes it easy to budget, but you're limited to the features in each tier. If you need capabilities outside your tier, you have to upgrade the entire account.

Paylocity

Paylocity offers custom pricing based on company size and selected modules. Like Rippling, you'll need to contact sales for a quote.

Paylocity's pricing is generally positioned for mid-market businesses with 50+ employees, making it more expensive than Gusto but comparable to Rippling, depending on the features you select.

Gusto vs. Paylocity vs. Rippling: Reviews

Real user feedback reveals how these platforms perform in daily use. Here's how they stack up on major review sites:

What users love about Rippling: Users consistently praise Rippling's unified platform, powerful automation, and excellent customer support. Common themes include time savings through workflows, the ease of managing HR and IT together, and the platform's ability to scale with growing businesses.

What users love about Gusto: Users appreciate Gusto's straightforward interface, transparent pricing, and ease of use for basic payroll and benefits. Small businesses value how quickly they can get started without extensive training.

What users love about Paylocity: Users highlight Paylocity's comprehensive reporting, essential HR features, and strong support team. Mid-sized businesses appreciate the platform's depth for performance management and benefits administration.

What users wish was better:

• Rippling: Some users mention the learning curve when first setting up workflows and the need to contact sales for pricing.

• Gusto: Users want more advanced features or better reporting capabilities. 

• Paylocity: Some users report that customer service can be slow during busy periods and that the interface feels dated compared to newer platforms.

Gusto vs. Paylocity vs. Rippling: Pros and cons

Let's break down the strengths and limitations of each platform.

Rippling pros and cons

Pros:

• Unified platform across HR, IT, and Finance eliminates data silos

• Powerful workflow automation saves significant time

• Global payroll capabilities for international expansion

• Comprehensive feature set that grows with your business

• Native integrations mean data stays in sync automatically

• Excellent customer support with high ratings

• Advanced reporting across all modules

Cons:

• Custom pricing requires sales conversation

• More features can mean a steeper learning curve initially, for some customers

• Some advanced capabilities may be more than very small businesses need

Gusto pros and cons

Pros:

• Transparent, affordable pricing for small businesses

• Simple, user-friendly interface

• Quick setup and onboarding

• Solid basic payroll and benefits features

• Good customer support for small businesses

Cons:

• Limited features compared to Rippling and Paylocity

• No international payroll capabilities

• Basic reporting and analytics

• No IT management or spend management features

• Limited automation capabilities

• Not built for rapid scaling

Paylocity pros and cons

Pros:

• Solid HR and payroll features for mid-market

• Strong performance management and talent tools

• Robust reporting capabilities

• Good benefits administration

• Full LMS functionality

Cons:

• Interface feels dated compared to modern platforms

• Customer service quality varies according to user reviews

• Pricing can be high for smaller businesses

• Lacks the unified data architecture of Rippling

Rippling: The better alternative to Gusto and Paylocity

After reviewing all three platforms, Rippling emerges as the most comprehensive solution for growing businesses — and here's why.

True unification, not just integration 

While Gusto and Paylocity offer integrations with other HR tools, Rippling is fundamentally different. It's built as a unified platform where employee data lives in one system of record and automatically flows to HR, IT, Finance, and every connected application, and it does this more effectively than either Gusto or Paylocity.

This architecture means when you update an employee's role, location, or department, that change instantly propagates everywhere. You can update their app access, device permissions, payroll calculations, benefits eligibility, and more. No manual updates. No data sync issues.

Built for scaling businesses

Gusto works well if you're small and plan to stay small. But as you grow — adding employees, expanding to new states or countries, or needing more sophisticated HR processes — you'll quickly outgrow the platform.

Paylocity scales better than Gusto, but still focuses heavily on HR and payroll. 

Rippling is built for growth. You can start with core HR and payroll, then add modules like learning management, performance management, IT management, or global payroll as you need them — without switching platforms or dealing with complex integrations.

Automation that actually saves time

All three platforms claim to save time, and they can — but Rippling delivers this through extensive workflow automation that Gusto and Paylocity can't match.

With Rippling's Workflow Studio, you can automate virtually any process based on employee attributes, custom fields, or triggers. Companies using Rippling report saving 50% or more of their time on HR and IT tasks.

Get started with a truly unified HR platform that scales alongside your business with enterprise features. Learn more about Rippling’s HR software today. 

FAQs about Paylocity vs. Gusto vs. Rippling