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Gusto Payroll vs Melio — Which One Wins?
A detailed, side-by-side comparison of Gusto Payroll and Melio to help you pick the right tool for your workflow.
TLDR
Quick Verdict
Gusto Payroll takes the lead with a 4.6 rating and is best for small businesses with 1-100 employees. Melio (4.5) is the better pick if you need small businesses paying vendors and contractors.
Side-by-Side Comparison
| Criteria | Gusto Payroll | Melio |
|---|---|---|
| Rating | ★★★★★ 4.6(220) | ★★★★★ 4.5(120) |
| Pricing Model | subscription | freemium |
| Starter Price | $40/mo + $6/person/mo | 2.9% (credit card) |
| Free Tier | Yes | Yes |
| Platforms | Web, iOS, Android | Web, iOS, Android |
| Learning Curve | Easy | Easy |
| API Available | Yes | No |
| Best For | Small businesses with 1-100 employees | Small businesses paying vendors and contractors |
| Verdict | Best Small Business Payroll | Best Free Bill Pay |
Feature Checklist
| Feature | Gusto Payroll | Melio |
|---|---|---|
| Payroll | — | |
| Benefits Admin | — | |
| Tax Filing | — | |
| Time Tracking | — | |
| HR Tools | — | |
| Free Bank Transfers | — | |
| Credit Card Payments | — | |
| Batch Payments | — | |
| Approval Workflows | — | |
| QuickBooks Sync | — |
Gusto Payroll
Pros
- ✓Incredibly easy to use
- ✓Automatic tax filings
- ✓Great employee self-service portal
Cons
- ✕Gets expensive as team grows
- ✕Limited international payroll
- ✕Benefits only in US
Melio
Pros
- ✓Free bank transfers
- ✓Pay by credit card to earn rewards
- ✓Dead simple UX
Cons
- ✕Limited features vs Bill.com
- ✕No AR features
- ✕US-only
The Bottom Line
Both Gusto Payroll and Melio are solid tools in the Accounting & Finance space. Gusto Payroll edges ahead with a stronger overall rating (4.6 vs 4.5) and is the better choice for small businesses with 1-100 employees. However, if you prioritize small businesses paying vendors and contractors, Melio is worth serious consideration. We recommend trying the free tier or trial of each before committing.
Frequently Asked Questions
Is Gusto Payroll better than Melio?▼
Gusto Payroll scores higher overall with a 4.6 rating vs 4.5. However, the best choice depends on your specific needs. Gusto Payroll is best for Small businesses with 1-100 employees, while Melio is best for Small businesses paying vendors and contractors.
Can I switch from Gusto Payroll to Melio?▼
Yes, most users can migrate between the two. Melio offers a free tier to test before committing.
Which is more affordable, Gusto Payroll or Melio?▼
Gusto Payroll starts at $40/mo + $6/person/mo, while Melio starts at 2.9% (credit card). Gusto Payroll offers a free tier. Melio offers a free tier.