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All industries · head to head

Gusto vs Microsoft Teams

Gusto logo

Gusto

All industries

The people platform for small businesses

From
$49/month
Rated
-
Full reviewWebsite
Microsoft Teams logo

Microsoft Teams

All industries

Meet, chat, call, and collaborate in just one place

From
Free
Rated
-
Full reviewWebsite

The short version

  • Only Microsoft Teams 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; Microsoft Teams resource-heavy application; slow to load and consumes significant CPU/memory compared to alternatives
  • They diverge on capability: Gusto covers Automated payroll, Microsoft Teams covers Chat & channels.

Where they differ

Only the attributes on which Gusto and Microsoft Teams actually diverge.

Attributes where Gusto and Microsoft Teams differ
AttributeGustoMicrosoft Teams
Starting price$49/monthFree
Pricing modelUnknownsubscription
Free tierNoYes
PlatformsWebWeb, Windows, macOS, iOS, Android
Founded20111975

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

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 Microsoft Teams

  • Chat & channels
  • Video conferencing
  • Screen sharing
  • File collaboration
  • Office integration
  • Live events
  • Phone system
  • Apps & workflows

Both cover

  • SOC2

What people use each for

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

Gusto

  • Payroll processingnot Microsoft Teams
  • Benefits administrationnot Microsoft Teams
  • Tax compliancenot Microsoft Teams
  • Employee onboardingnot Microsoft Teams
  • Time trackingnot Microsoft Teams

Microsoft Teams

  • Remote meetingsnot Gusto
  • Team collaborationnot Gusto
  • Document sharingnot Gusto
  • Project managementnot Gusto
  • Webinarsnot 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

Microsoft Teams

  • Resource-heavy application; slow to load and consumes significant CPU/memory compared to alternatives
  • Limited channel structure; maximum of 200 public and 30 private channels per team
  • Cannot invite guest users to specific channels; guest access grants full team visibility
  • Unable to chat during screen sharing; limits real-time collaborative communication
  • Limited customization options for branding and interface; cluttered UX compared to Slack
  • Channels cannot be moved between teams; requires manual replication for reorganization

Pricing, plan by plan

Gusto

$49/month

No published plan breakdown. See the Gusto review.

Microsoft Teams

Free
  • FreeFree
    • Unlimited chat
    • 100 participants in meetings
    • 5GB file storage
  • Microsoft Teams Essentials$4/month
    • 300 participants in meetings
    • 10GB cloud storage
    • Phone & web support
  • Microsoft 365 Business Basic$6/month
    • Everything in Essentials
    • 1TB OneDrive storage
    • Web & mobile Office apps
  • Microsoft 365 Business Standard$12.5/month
    • Everything in Basic
    • Desktop Office apps
    • Webinar hosting

Which should you pick?

Choose Gusto if

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

Choose Microsoft Teams if

  • You need chat & channels.
  • You want to start without paying.
  • You work on Web, Windows, macOS, iOS, Android.
  • You also want video conferencing.
Microsoft Teams review

Questions people ask

Is Gusto or Microsoft Teams better?
Neither clearly leads. Gusto starts at $49/month and Microsoft Teams at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Gusto or Microsoft Teams?
Microsoft Teams has a free tier; the other does not. Paid plans start at $49/month for Gusto and Free for Microsoft Teams.
Does Gusto or Microsoft Teams run on more platforms?
Gusto runs on Web. Microsoft Teams runs on Web, Windows, macOS, iOS, Android.
Can I use Microsoft Teams for free?
Yes. Microsoft Teams 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 Microsoft Teams is typically brought in for.
What can Gusto do that Microsoft Teams cannot?
Gusto covers Automated payroll, Tax filing, Benefits administration, Time tracking. Microsoft Teams covers Chat & channels, Video conferencing, Screen sharing, File collaboration. Both handle SOC2.

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
Microsoft Teams: Does Microsoft Teams have a free tier?

Yes. Microsoft Teams offers a free Home tier with unlimited chat, 60-minute group meetings for up to 100 people, 5GB cloud storage, and basic file sharing, though limits are restrictive for growing teams.

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
Microsoft Teams: What are Microsoft Teams' paid plans?

Microsoft Teams Essentials costs $4/user/month (chat, calling, meetings, 10GB storage). Microsoft 365 Business Basic costs $7/user/month (includes desktop Office apps, 1TB storage). Premium plans with Copilot start at $23.50/user/month.

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
Microsoft Teams: What are Microsoft Teams' primary features?

Teams provides real-time chat, video and voice calling, meetings with up to 300 participants, file sharing and storage integration with OneDrive, recording and transcripts, and deep integration with Microsoft 365 apps (Word, Excel, PowerPoint, Outlook).

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
Microsoft Teams: What integrations does Teams support?

Microsoft Teams integrates with calendar apps (Outlook, Google Calendar), project management tools (Trello), and works with Zapier for custom workflow automation. Teams also has native connectors to many Microsoft 365 apps and third-party services.

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