Eddy vs. Gusto: Which HR Platform Is Better for Your Small Business?

Eddy vs. Gusto: Which HR Platform Is Better for Your Small Business?

When it comes to managing HR and payroll for a small business, two names frequently come up: Eddy and Gusto. Both offer powerful tools to simplify hiring, onboarding, payroll, and compliance — but which one is truly better for your team?

In this detailed comparison, we’ll break down the key features of Eddy vs. Gusto to help you choose the platform that fits your business best.

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🧩 Overview: What Each Platform Offers

Feature	Eddy	Gusto
Target Audience	Small businesses (5–200 employees)	SMBs and startups
HR Tools	✅ ATS, onboarding, time tracking	⚠️ Limited ATS, strong payroll
Payroll & Benefits	✅ Built-in payroll	✅ Industry-leading payroll
Employee Self-Service	✅ Yes	✅ Yes
Compliance Tools	✅ Time + doc management	✅ Tax filings + benefits compliance
Support Model	Live chat, phone, onboarding assistance	Chat, email, and some live support

💡 Eddy excels in HR simplicity, while Gusto dominates payroll and benefits customization.

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🛠️ Core HR Features Comparison

✅ Eddy

• Full applicant tracking system (ATS)
• Digital onboarding with e-signatures
• PTO and time tracking built-in
• Employee document management
• Payroll and tax filing included

💬 Ideal for small businesses that need true all-in-one HR.

✅ Gusto

• Excellent payroll functionality
• Automated tax filings in all 50 states
• Benefits administration and 401(k) options
• Simple onboarding flows
• Time tracking (only in higher-tier plans)

💬 Best for companies focused heavily on payroll and benefits customization.

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💰 Pricing Comparison

Plan Feature	Eddy	Gusto
Starting price	~$8–$12 per employee/month (custom)	$40/month base + $6/employee/month
Free trial	✅ Available	✅ Available
Contract required?	No long-term contracts	No long-term contracts
Transparent pricing	✅ Yes	✅ Yes

📌 Eddy is more cost-effective for teams needing a full HR suite. Gusto becomes more expensive with add-ons like time tracking and benefits.

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🧠 Usability and Experience

Eddy is known for its simple, clean interface. It’s built for non-HR professionals, like founders and office managers. Onboarding is fast, and users report little to no training needed.

Gusto is sleek and polished, with an intuitive payroll system. However, managing multiple features may require more setup — especially if you scale quickly or add non-core modules.

📲 Both platforms are cloud-based and mobile-friendly.

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🔐 Compliance and Security

Both platforms offer strong compliance support, including:

• Secure document storage
• E-signatures
• Payroll tax filing
• Timekeeping records

⚖️ Eddy shines for compliance around HR documentation, while Gusto leads in payroll tax accuracy and filings.

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📣 Customer Support

• Eddy: Phone, chat, and email support with personalized onboarding and dedicated account reps.
• Gusto: Email and chat support; phone support available only on higher-tier plans.

💬 If you value white-glove support, Eddy may be the better fit.

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🚀 Which One Should You Choose?

Choose Eddy if you:

• Need simple HR tools all in one place
• Want a built-in ATS and time tracking
• Prefer a system tailored for small teams
• Are less focused on complex benefits or 401(k) plans
• Value personalized support and onboarding

Choose Gusto if you:

• Prioritize robust payroll features
• Need benefits management across multiple states
• Want integrations with finance and accounting tools
• Already use tools like QuickBooks or Xero
• Are okay with using add-ons for HR functionality

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Final Thoughts

Both Eddy and Gusto are powerful tools — but they serve different needs.

If you’re growing a small team and want simple, affordable HR software that includes everything from hiring to payroll, Eddy is an outstanding choice.

If you’re payroll-heavy and need deep benefits customization, Gusto may be the right fit — but expect to pay more as you scale.

👉 Looking for the best HR platform for your small business? Eddy gives you hiring, HR, and payroll in one simple system.