Quick verdict
How these two tools differ.
Wave combines free accounting and invoicing with a paid payroll add-on—attractive for very small teams that want books and pay in one place without paying for accounting. Gusto is a full payroll and HR platform with benefits, published pricing, and no accounting component. Overlap is payroll; the rest differs.
Wave wins on combined cost when you want free accounting and low-cost payroll. Gusto wins on payroll and HR features: benefits, time tracking, contractor self-service, and integrations. If you're already in Wave and only need basic payroll, Wave can work. If you need more than basics, Gusto is the stronger choice.
Comparison summary
Winner for accounting + payroll cost
Wave
Wave offers free accounting and a payroll add-on for low combined cost.
Winner for payroll and HR
Gusto
Gusto provides full payroll, benefits, and HR with published pricing.
Quick decision guide
Which product fits your situation.
Choose Wave if:
- You use or want Wave's free accounting.
- You're a micro business or solopreneur.
- You need simple payroll, not full HR or benefits.
Choose Gusto if:
- You want payroll plus benefits and HR in one platform.
- You need more than basic payroll (contractor portal, time tracking, etc.).
- You don't need Wave's accounting.
Ratings comparison
How we score each product.
| Category | Wave | Gusto |
|---|---|---|
| Ease of use | 4.5 | 4.9 |
| Features | 4.2 | 4.8 |
| Pricing | 4.5 | 4.6 |
| Support | 4.2 | 4.5 |
| Integrations | 4.0 | 4.7 |
Feature comparison
Side-by-side feature check.
SupportedPartial supportNot available
| Feature | Wave | Gusto |
|---|---|---|
| Payroll | Simple; add-on to Wave | Full payroll and tax |
| Accounting | Free accounting and invoicing | Integrates with accounting; no built-in |
| HR and benefits | Minimal | Benefits and HR tools |
| Pricing | Free accounting; payroll add-on | Published base + per person |
Pricing comparison
What to expect to pay.
Wave's accounting is free; payroll is a paid add-on (check Wave for rates). Gusto charges a base fee (e.g. $40/mo) plus per person. For combined accounting plus payroll, Wave can be cheaper for micro teams. For payroll-only value and features, Gusto offers more.
Pros and cons
Strengths and trade-offs.
Wave
Pros
- Free accounting
- Payroll add-on
- Simple
- Low combined cost
Cons
- Less HR and benefits
- Limited integrations
- Payroll availability by state
Gusto
Pros
- Full payroll and HR
- Benefits
- Published pricing
- Strong integrations
Cons
- No free accounting
- Base fee plus per person
Best for
Which tool fits your situation.
Best for Wave users
Wave is the better fit when you already use or want Wave's free accounting and need simple payroll in the same ecosystem.
Best for full payroll and HR
Gusto is the better fit when you need payroll, benefits, and HR with more features and no accounting bundle.
Alternatives
Other options we review.
QuickBooks PayrollAccounting and payroll in QuickBooks.
Read review →
Patriot PayrollBudget payroll; simple.
Read review →More comparisons
Read full reviews
Dive deeper into each product.
For detailed ratings, features, and pros and cons, see our standalone reviews:
Best payroll software guides
Find the right fit by use case or trade.
FAQs
Quick answers.