Gusto vs Xero: which one fits your business?
Side-by-side comparison of Gusto and Xero — fees, features, ease, support, and which one fits your business. Scored on the same rubric.
Short answer: Gusto wins on our scorecard (7.9/10 vs 7.1/10).
| Scored on | Gusto | Xero |
|---|---|---|
| Right fit for small biz | 9 | 8 |
| Ease of use | 8 | 7 |
| Fees & pricing | 7 | 7 |
| Customer support | 6 | 5 |
| Features | 9 | 8 |
| Simple Base Fee | $40/mo | — |
| Simple Per-Person | $6/mo | — |
| Plus Base Fee | $80/mo | — |
| Contractor Only Base | $35/mo | — |
| Early Plan | — | $15/mo |
| Growing Plan | — | $42/mo |
| Established Plan | — | $78/mo |
| Gusto Payroll Add-on | — | Varies |
Gusto in one paragraph
Gusto is the gold standard for small business payroll automation, trading high-touch human support for a near-perfect digital interface.
Skip it if: You have a complex multi-state employee base and require a dedicated, 24/7 human account manager to handle manual tax adjustments.
Xero in one paragraph
Xero is a powerful, sleek alternative to QuickBooks that excels for businesses with international needs, provided you don't mind the lack of phone support.
Skip it if: Skip it if you need to call a human being on the phone whenever you have a software question.
Frequently asked questions
Which is better, Gusto or Xero?
On our five-axis scorecard, Gusto scores higher (7.9/10 vs 7.1/10). Gusto is the gold standard for small business payroll automation, trading high-touch human support for a near-perfect digital interface.
Who should skip Gusto?
You have a complex multi-state employee base and require a dedicated, 24/7 human account manager to handle manual tax adjustments.
Who should skip Xero?
Skip it if you need to call a human being on the phone whenever you have a software question.