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Software · head to head

Gusto vs Melio

Gusto logo

Gusto

Software

The people platform for small businesses

From
$49/month
Rated
-
Full reviewWebsite
Melio logo

Melio

Software

Simple business payments

From
Free
Rated
-
Full reviewWebsite

The short version

  • Only Melio has a free tier, so it costs nothing to try first.
  • Each has a real cost: Gusto customer service can be slow and unresponsive to issues; Melio go (free) plan limited to one user only
  • They diverge on capability: Gusto covers Automated payroll, Melio covers Vendor payments.

Where they differ

Only the attributes on which Gusto and Melio actually diverge.

Attributes where Gusto and Melio differ
AttributeGustoMelio
Starting price$49/monthFree
Pricing modelUnknownfreemium
Free tierNoYes
PlatformsWebWeb, Mobile app
Founded20112018

Identical on both: user rating (Not yet rated), category (Unknown).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in Gusto

  • Automated payroll
  • Tax filing
  • Benefits administration
  • Time tracking
  • Employee onboarding
  • HR compliance
  • Workers' comp
  • 401(k) management

Only in Melio

  • Vendor payments
  • Card to check
  • Payment scheduling
  • Approval workflows
  • QuickBooks sync
  • SOC 2
  • Web support
  • Ios support

Both cover

  • QuickBooks
  • Xero
  • FreshBooks
  • Bank-level encryption

What people use each for

The jobs each tool is most often brought in to do.

Gusto

  • Payroll processingnot Melio
  • Benefits administrationnot Melio
  • Tax compliancenot Melio
  • Employee onboardingnot Melio
  • Time trackingnot Melio

Melio

  • Accounts payable automationnot Gusto
  • Bill management and payment schedulingnot Gusto
  • Multi-vendor payment processingnot Gusto
  • Invoice receivables and payment collectionnot Gusto

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

Gusto

  • Customer service can be slow and unresponsive to issues
  • Weak reporting capabilities, cannot export data to spreadsheets for analysis
  • Support staff lacks deep payroll expertise and knowledge
  • Rehired employees do not have settings reset, causing manual cleanup work
  • City tax handling requires additional monitoring and monitoring
  • Onboarding can have issues with bank account verification and tax registration

Melio

  • Go (free) plan limited to one user only
  • ACH charges £0.50 per transaction beyond monthly allowance (5-50 free depending on plan)
  • Card payment fees range from 2.9% to 2.9% plus £75 maximum
  • International payments limited to select currencies only
  • NetSuite integration only available in Unlimited plan (£80/month minimum)

Pricing, plan by plan

Gusto

$49/month

No published plan breakdown. See the Gusto review.

Melio

Free

No published plan breakdown. See the Melio review.

Which should you pick?

Choose Gusto if

  • You need automated payroll.
  • You also want tax filing.
Gusto review

Choose Melio if

  • You need vendor payments.
  • You want to start without paying.
  • You work on Web, Mobile app.
  • You also want card to check.
Melio review

Questions people ask

Is Gusto or Melio better?
Neither clearly leads. Gusto starts at $49/month and Melio at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Gusto or Melio?
Melio has a free tier; the other does not. Paid plans start at $49/month for Gusto and Free for Melio.
Does Gusto or Melio run on more platforms?
Gusto runs on Web. Melio runs on Web, Mobile app.
Can I use Melio for free?
Yes. Melio has a free tier, so you can try it without paying. Gusto starts at $49/month.
What is Gusto best used for?
Gusto is most often used for payroll processing, benefits administration, tax compliance, employee onboarding. Of those, payroll processing and benefits administration are not what Melio is typically brought in for.
What can Gusto do that Melio cannot?
Gusto covers Automated payroll, Tax filing, Benefits administration, Time tracking. Melio covers Vendor payments, Card to check, Payment scheduling, Approval workflows. Both handle QuickBooks, Xero, FreshBooks, Bank-level encryption.

Answered from the vendors’ own pages

Gusto: What is Gusto's starting price?

Gusto starts at $49 per month plus $6 per person. The company also offers a Contractor-only plan for $35 per month plus $6 per contractor.

Source
Gusto: Does Gusto include unlimited payroll runs?

Yes, all Gusto plans include unlimited payroll runs at no extra charge, including off-cycle payrolls.

Source
Gusto: What core features are included in Gusto?

All plans include payroll processing, tax administration, digital onboarding, benefits enrollment, time tracking, performance management, and next-day direct deposit for most plans.

Source
Gusto: Does Gusto support integrations?

Yes, Gusto integrates with accounting software, applicant tracking systems, benefits providers, time-tracking tools, and other business platforms to reduce data entry.

Source
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