Gusto Payroll vs Wave — Which One Wins?
A detailed, side-by-side comparison of Gusto Payroll and Wave to help you pick the right tool for your workflow.
Quick Verdict
Gusto Payroll takes the lead with a 4.6 rating and is best for small businesses with 1-100 employees. Wave (4.0) is the better pick if you need solopreneurs and micro-businesses who need real accounting software at zero cost..
Side-by-Side Comparison
| Criteria | Gusto Payroll | Wave |
|---|---|---|
| Rating | ★★★★★ 4.6(220) | ★★★★ 4.0(312) |
| Pricing Model | subscription | free |
| Starter Price | $40/mo + $6/person/mo | Payments: 2.9% + $0.60/transaction |
| 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 | Solopreneurs and micro-businesses who need real accounting software at zero cost. |
| Verdict | Best Small Business Payroll | recommended |
Feature Checklist
| Feature | Gusto Payroll | Wave |
|---|---|---|
| Payroll | — | |
| Benefits Admin | — | |
| Tax Filing | — | |
| Time Tracking | — | |
| HR Tools | — | |
| Full accounting (free) | — | |
| Invoicing (free) | — | |
| Bank connections (free) | — | |
| Financial reports (free) | — | |
| Receipt scanning (free) | — | |
| Payroll (paid add-on) | — |
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
Wave
Pros
- ✓Genuinely free accounting, invoicing, and reporting
- ✓Unlimited users at no cost
- ✓Feature set covers standard small business needs
Cons
- ✕No inventory management
- ✕Limited integrations compared to QuickBooks
- ✕No API limits custom automation
The Bottom Line
Both Gusto Payroll and Wave are solid tools in the Accounting & Finance space. Gusto Payroll edges ahead with a stronger overall rating (4.6 vs 4.0) and is the better choice for small businesses with 1-100 employees. However, if you prioritize solopreneurs and micro-businesses who need real accounting software at zero cost., Wave is worth serious consideration. We recommend trying the free tier or trial of each before committing.