Key takeaways
Choose Justworks if you need a straightforward platform to manage payroll, benefits, and compliance in the U.S. It's ideal for small to medium-sized businesses looking for health benefits, tax filings, and 24/7 support without added complexity.
Choose Gusto if you're a startup or growing company needing an affordable, user-friendly payroll and HR solution. With a simple interface and robust integrations, it excels in automated payroll, benefits management, and tax support for U.S.-based employees.
Choose Wisemonk if your focus is on hiring in India, It offers specialized Indian payroll and compliance services, including salary calculations and equipment procurement, making it a cost-effective choice for expanding your workforce in India.
Managing a workforce, especially when entering new markets, presents several challenges in today's global economy. Choosing the right HR and payroll platform or Employer of Record (EOR) service is critical for optimizing human resource functions.
This article offers a detailed comparison of Justworks, Gusto, and Wisemonk, focusing on their features, pricing, compliance support, and user feedback to help identify the best platform for your business needs.
HR and Payroll Platforms play a pivotal role in automating tasks like payroll processing, tax filings, and employee record management. They are indispensable for businesses, enabling them to maintain control over HR functions and ensuring compliance with labor laws.
Overview: Justworks vs Gusto
To help you understand the differences between Justworks and Gusto, we've provided a brief analysis of their features. By comparing these key aspects side by side, businesses can determine which platform best meets their HR, payroll, and compliance requirements.
| Aspect |
 |
 |
 |
|---|---|---|---|
| User Reviews | 4.6/5 on G2 | 4.5/5 on G2 | 4.8/5 on G2 |
| Target Audience | Small to medium U.S. businesses needing an all-in-one platform for payroll, HR, and benefits | U.S. startups seeking affordable payroll and HR | Businesses hiring in India, needing tailored payroll, compliance, and HR services |
| Pricing | Starts at $59/employee/month for Basic, $109 for Plus | Starts at $40/month for Core, increasing with features and employees | From $75/employee and $19/contractor for EOR in India |
| Global Reach | Focuses on the U.S. market, serving all 50 states | Primarily serves U.S. companies for payroll and benefits | Specializes in the Indian market with expertise in local labor laws |
| Payroll Services | Offers automated payroll, tax filings, and compliance support | Automated payroll, direct deposits, and simplified contractor payments | Payroll services tailored to Indian regulations, including salary and tax |
| Compliance & Legal Support | Focuses on U.S. compliance, including tax filings and labor laws | Provides automated tax filings and compliance tools for U.S. regulations | Specializes in Indian labor law compliance, managing payroll and benefits |
| HR Management Tools | Includes tools for time tracking, employee onboarding, benefits administration, and PTO management | Offers HR tools for hiring, onboarding, benefits, and self-service | Localized HR solutions for onboarding, contracts, and equipment in India |
It's essential to compare Justworks, Gusto, and Wisemonk to understand their differences. This will help businesses choose the platform that best matches their HR, payroll, and compliance requirements, whether they are focused on U.S.-based operations or managing a workforce in India.
Head-to-Head Comparison: Justworks vs Gusto
Here's a detailed analysis of each platform's unique payroll and HR management strengths, focusing on EOR services and market-specific functionalities.
Payroll Processing and Automation
Justworks automates payroll for U.S. employees, including tax filings, direct deposits, and multiple pay schedules. It simplifies off-cycle payments and bonuses but does not offer global payroll support. It provides employees with self-service for viewing pay stubs and managing tax forms.
Gusto offers full-service payroll automation, including state and federal tax filings, benefits deductions, and support for contractor payments. Its platform integrates with various accounting tools like Xero and QuickBooks for streamlined bookkeeping. However, Gusto's payroll services are U.S.-centric, with minimal global coverage.
Tailored for the Indian market, Wisemonk handles end-to-end payroll processing, including salary calculations, provident fund contributions, and tax withholdings. It automates compliance with Indian tax regulations (such as TDS) and statutory requirements, offering a comprehensive solution for businesses operating in India. Additionally, Wisemonk provides employees access to detailed payslips with allowances, bonuses, and deductions breakdowns.
Employer of Record (EOR) Services
Justworks functions as a Professional Employer Organization (PEO) in the U.S., managing HR, benefits, and employee payroll. However, it does not offer EOR services internationally, limiting its utility for global businesses.
Gusto primarily serves as a payroll provider with HR tools, not a dedicated EOR service. While Gusto offers features like contractor payments and health benefits, it does not handle international compliance or offer EOR services outside the U.S.
Wisemonk acts as a full-fledged EOR in India, taking care of all employer responsibilities, from onboarding to payroll, tax filings, and benefits management. It enables companies to hire in India without establishing a local entity and navigating complex Indian labor laws and regulations on behalf of the client.
Compliance and Legal Support
Justworks specializes in U.S. compliance, supporting federal, state, and local labor laws. It automates tax filings, provides access to HR consultants, and keeps businesses informed of regulatory changes. However, its focus is solely on U.S. regulations, offering limited support for international operations.
Gusto provides automated tax filings and compliance checks within the U.S., including year-end forms (W-2s, 1099s). It simplifies compliance with benefits and labor laws for U.S.-based employees but needs more tools for managing international compliance, making it less suitable for global businesses.
Wisemonk offers in-depth compliance support specific to Indian labor laws, including employment contracts, tax regulations, provident fund management, and employee state insurance (ESI). It stays updated on changing regulations, ensuring that businesses meet all Indian legal requirements. It also handles labor law compliance audits and contract generation tailored to local regulations, minimizing risk for companies expanding in India.
Onboarding and Contract Management
Justworks streamlines the onboarding process with automated tools, digital paperwork, and pre-built contract templates suited for U.S. employment. Employers can customize onboarding documents and track new hires' progress, but the platform needs more international onboarding capabilities.
Gusto provides a simple, user-friendly onboarding process that includes e-signatures, document storage, and new hire checklists. While it excels in automating U.S.-based employee onboarding, it does not support creating contracts or managing onboarding for international employees.
Wisemonk specializes in the Indian market by offering a comprehensive onboarding process tailored to local labor laws. It manages contract creation that is compliant with Indian regulations, including background verification, tax documentation, and employee benefits enrollment. Wisemonk also offers post-onboarding support, ensuring a seamless transition for new hires in India.
Employee Benefits Management
Justworks offers a range of U.S.-based benefits, including health insurance, dental, vision, 401(k) plans, and commuter benefits. The platform partners with top insurance providers to give employees access to various plans, but its benefits services do not extend beyond the U.S.
Gusto provides benefits like health insurance, retirement plans, and wellness programs for U.S. employees. Its platform allows employees to manage benefits through an online portal. However, Gusto's benefits offerings are U.S.-specific and do not cater to employees in other countries.
Wisemonk focuses on Indian-specific benefits management, covering health insurance, provident fund (PF), gratuity, employee state insurance (ESI), and leave policies. Wisemonk ensures all benefits are administered in compliance with Indian labor laws and offers employees support in choosing the best package. Its localized approach ensures that businesses meet statutory requirements while enhancing employee satisfaction.
Equipment Procurement and Management
Justworks does not provide equipment procurement services. Employers must independently manage tools and equipment distribution for their employees.
Gusto lacks features related to equipment management, focusing primarily on payroll and HR functionalities. Employers are responsible for sourcing and managing necessary tools for remote employees.
Wisemonk offers equipment procurement services tailored for remote teams in India. Wisemonk handles the logistics of leasing or purchasing devices, ensuring employees have the necessary tools. It also manages device recovery and secure data wiping when employees leave the company, helping businesses maintain compliance with data protection standards.
This comparison highlights how Wisemonk stands out in providing EOR services in India, offering solutions tailored to the Indian market. Meanwhile, Justworks and Gusto are geared towards U.S.-based payroll and HR management and have fewer global capabilities.
Conclusion: Justworks vs. Gusto
After examining Justworks, Gusto, and Wisemonk, it's clear that each platform caters to different business needs.
When to choose Justworks?
Justworks is a solid choice for U.S.-based businesses that require a simplified payroll, benefits, and HR platform. Its focus on compliance with U.S. labor laws and robust benefits management make it ideal for small—to medium-sized companies looking to streamline their HR functions domestically.
When to choose Gusto?
Gusto is well-suited for startups and small businesses in the U.S. that need an affordable, easy-to-use payroll and benefits platform. Its integration capabilities and straightforward onboarding tools are perfect for companies seeking to effectively manage U.S.-based employees and contractors.
When to choose Wisemonk?
Wisemonk stands out as the best option for companies looking to hire and manage employees in India. With its comprehensive EOR services, localized payroll solutions, and expertise in Indian labor laws, Wisemonk provides businesses with a seamless and compliant way to expand their workforce in India. Additionally, Wisemonk's equipment procurement and tailored benefits management make it an all-in-one solution for navigating the complexities of the Indian market.
In conclusion, the right platform depends on your business's location, hiring needs, and compliance requirements. While Justworks and Gusto serve U.S.-based operations, Wisemonk is tailored to India, offering a complete suite of services for managing employees efficiently and fully compliant with local laws.
At Wisemonk, we specialize in providing a hassle-free EOR experience in India.
Contact us to learn how we can support your business's growth, or request a demo to see Wisemonk in action!
Frequently Asked Questions
What is the primary function of Justworks?
Justworks is a Professional Employer Organization (PEO) that provides HR, payroll, and benefits services to small and midsize businesses in the U.S. It helps companies manage compliance and employee benefits while streamlining payroll processes.
How does Gusto simplify payroll management?
Gusto simplifies payroll management by automating payroll calculations, tax filings, and direct deposits. Its user-friendly interface allows businesses to manage payroll, benefits, and HR tasks seamlessly.
What are the key benefits of using WiseMonk as an EOR?
WiseMonk offers comprehensive EOR services, including legal employment, payroll management, benefits administration, and compliance support tailored for businesses hiring in India. This simplifies the hiring process and mitigates legal risks.
Can Justworks help with compliance in states outside of the U.S.?
Justworks primarily focuses on compliance with U.S. labor laws and regulations. For international hiring, businesses may need to consider EOR services like WiseMonk.
What types of businesses are best suited for Gusto?
Gusto is ideal for small to midsize businesses in the U.S. that need an all-in-one payroll and HR solution. It is particularly beneficial for startups looking for an easy-to-use platform.
How does pricing work for Justworks?
Justworks operates on a transparent pricing model, typically charging a flat monthly fee per employee or contractor. Specific pricing details may vary based on the number of employees and services selected.
What features does WiseMonk provide for employee onboarding?
WiseMonk offers a streamlined onboarding process that includes document management, equipment services, e-signatures, and training resources to ensure a smooth transition for new hires in India.
Is there customer support available for all three platforms?
Yes, all three platforms—Justworks, Gusto, and WiseMonk—offer customer support. Justworks and WiseMonk provide 24/7 support, while Gusto offers support during business hours along with extensive online resources.
Can I use Gusto for hiring contractors?
Yes, Gusto allows businesses to manage payroll for both employees and contractors, making it easy to handle payments and tax filings for all types of workers.
What should I consider when choosing between Justworks, Gusto, and WiseMonk?
When choosing between these platforms, consider factors such as your business size, the complexity of your HR needs, whether you require EOR services for international hiring, your budget, and the specific features that align with your operational goals.