Startup Payroll Solutions: Gusto vs Rippling vs Deel
A comprehensive guide to choosing the right payroll platform for your startup, whether you have a US-only team or employees around the world.
Payroll is one of the most critical—and most regulated—financial functions in your startup. Get it wrong, and you face unhappy employees, tax penalties, and compliance headaches. Get it right, and payroll becomes a seamless background operation that just works.
The good news: modern payroll platforms have made this dramatically easier. Gone are the days of complex calculations, manual tax filings, and paper checks. Today's solutions handle everything from direct deposits to benefits administration to compliance filings—often automatically.
This guide compares the three leading payroll solutions for startups: Gusto, Rippling, and Deel. Each serves different needs, and the right choice depends on your team structure, growth plans, and geographic footprint. A fractional CFO can help you select and implement the right solution.
Quick Recommendation
Gusto for US-only teams under 50 employees—it's affordable, user-friendly, and handles everything you need. Rippling for tech-forward companies wanting unified HR/IT/payroll. Deelfor global-first teams with international employees or contractors.
Payroll Platform Overview
| Platform | Best For | Starting Price | Global Support |
|---|---|---|---|
| Gusto | US-only teams, simplicity | $40 + $6/person/mo | US only (contractor intl) |
| Rippling | Tech-forward, unified platform | $8/person/mo base | US + limited global |
| Deel | Global teams, remote-first | $49/contractor, $599/employee | 150+ countries |
What Modern Payroll Platforms Include
Automated Tax Filing
Calculate, withhold, and file federal, state, and local payroll taxes automatically. Handle W-2s and 1099s at year-end.
Direct Deposit
Pay employees directly to their bank accounts. Most platforms process within 2-4 business days.
Benefits Administration
Manage health insurance, 401(k), HSA, and other benefits. Handle enrollment and deductions.
Compliance Management
Stay compliant with changing regulations. Handle new hire reporting, workers' comp, and more.
Gusto: Best for Most US Startups
Why We Recommend Gusto
Gusto is the go-to payroll solution for US startups. It's affordable, incredibly user-friendly, and handles everything from payroll to benefits to HR—all in one platform. For most startups under 100 employees, it's the right choice.
Gusto Plans
Simple
$40 + $6/person/moFull-service payroll with automated filings, employee self-service, and basic HR tools. Perfect for very small teams.
Best for: 1-10 employeesPlus
Most PopularEverything in Simple plus next-day direct deposit, time tracking, PTO management, and advanced HR features.
Best for: 10-50 employeesPremium
Custom pricingEverything in Plus plus dedicated support, compliance alerts, and advanced analytics. HR resource center included.
Best for: 50+ employeesKey Features
Autopilot Payroll
Set it and forget it. Gusto can run payroll automatically on your schedule once you've set up your team. Handles all the calculations, deductions, and filings without intervention.
Benefits Marketplace
Shop for health insurance, dental, vision, 401(k), and other benefits through Gusto. They handle enrollment, deductions, and COBRA administration.
Contractor Payments
Pay contractors in the US and internationally (in 80+ countries). Handle 1099 filing at year-end. Different from full EOR services but works for contractor-only international relationships.
Integrations
Direct integrations with QuickBooks, Xero, and other accounting software. Also integrates with time tracking, expense management, and applicant tracking systems.
Best For
- US-only teams (or US + international contractors)
- Companies under 100 employees
- Startups wanting simplicity and affordability
- Teams that need benefits administration included
Limitations
- No true international employee payroll (contractor only)
- Less automation than Rippling for IT/app provisioning
- May outgrow at 100+ employees
Rippling: Unified HR/IT/Finance
Rippling Overview
Rippling is more than payroll—it's a unified platform for HR, IT, and Finance. When you hire someone, Rippling can automatically set up their payroll, provision their laptop, create their email, and give them access to all the right apps. It's the most integrated solution available.
How Rippling Pricing Works
Rippling uses modular pricing. You pay a base fee per employee plus additional modules you select:
Key Features
Automated Onboarding/Offboarding
When you hire someone, Rippling automatically: sets up payroll, orders their laptop, creates their email and Slack, provisions access to 500+ apps, and enrolls them in benefits. Offboarding reverses everything with one click.
Device Management
Order, ship, set up, and manage employee devices. Rippling can pre-configure laptops with company settings before shipping to new hires. Remote wipe when employees leave.
App Management
Single sign-on and automatic provisioning for 500+ apps. When someone joins engineering, they automatically get GitHub, AWS, Figma access. When they leave, access is revoked everywhere instantly.
Workflow Automation
Build custom automations: "When someone joins Sales, send them sales training, add to Salesforce, and schedule a 1:1 with their manager." Powerful for scaling processes.
Best For
- Tech-forward companies that value automation
- Teams wanting unified HR/IT/Payroll in one system
- Companies with significant software stack to manage
- Growing teams that onboard frequently
Limitations
- More expensive than Gusto when you add modules
- Can be overkill for very small teams
- Global payroll available but not as comprehensive as Deel
- Complexity requires more setup time
When Rippling Makes Sense
Rippling shines when you're hiring frequently and want to automate the entire employee lifecycle. If you're onboarding 2+ people per month and use a lot of SaaS tools, the time savings justify the higher cost. For slower-growing teams, Gusto's simplicity often wins.
Deel: Global Teams Made Easy
Deel Overview
Deel is purpose-built for global teams. It lets you hire employees and contractors in 150+ countries without setting up local entities. Deel acts as the Employer of Record (EOR), handling local compliance, taxes, and benefits while you maintain the employment relationship.
Deel Pricing
Contractors
$49/contractor/monthCompliant contractor agreements, payment in 150+ countries, multiple currencies, and automated invoicing. Great for international freelancers.
EOR (Employees)
$599/employee/monthFull employment through Deel as Employer of Record. Local compliance, statutory benefits, taxes—all handled. Hire employees anywhere without an entity.
Global Payroll
Custom pricingFor companies with their own entities, Deel can run payroll in multiple countries through a single platform.
Key Features
Employer of Record (EOR)
Hire full-time employees in countries where you don't have an entity. Deel employs them legally and handles all local requirements while they work for you day-to-day.
Contractor Management
Compliant contractor agreements with proper classification. Pay contractors in their local currency. Automated tax form collection (W-8BEN, etc.).
Global Benefits
Offer competitive benefits packages to international employees including health insurance, equity management, and local statutory benefits compliance.
Flexible Payments
Pay anyone in their preferred currency. Employees and contractors can withdraw to bank accounts, PayPal, Payoneer, or crypto. Low FX fees.
Best For
- Remote-first companies hiring globally
- Teams with employees in countries where you don't have entities
- Companies with significant international contractor base
- Startups wanting to hire anywhere without legal complexity
Limitations
- Expensive for EOR ($599/employee adds up quickly)
- US payroll less feature-rich than Gusto/Rippling
- Less comprehensive HR/benefits for US employees
- May need separate US payroll solution for US team
EOR vs. Entity
At $599/month per employee, Deel's EOR becomes expensive with many employees in one country. Once you have 5-10 employees in a single country, it often makes sense to set up a local entity and use local payroll. Deel is ideal for distributed global teams with 1-4 employees per country.
Feature Comparison
| Feature | Gusto | Rippling | Deel |
|---|---|---|---|
| US Payroll | |||
| International Employees | - | Limited | |
| International Contractors | |||
| Benefits Admin | Global only | ||
| IT/Device Management | - | Basic | |
| App Provisioning | - | - | |
| Ease of Use | Excellent | Good | Good |
| Best For | US teams | Tech companies | Global teams |
Cost Comparison (20 Employees)
Note: Deel pricing is for EOR services (international employees). For US-only, Gusto or Rippling are much more cost-effective.
Which Should You Choose?
Choose Gusto If...
- Your team is entirely (or mostly) in the US
- You have under 100 employees
- You want simple, affordable payroll that "just works"
- Benefits administration is important
- You value excellent customer support
Choose Rippling If...
- You want unified HR/IT/Payroll in one platform
- Automated onboarding/offboarding is valuable
- You use many SaaS apps and want auto-provisioning
- You're tech-forward and value automation
- You plan to scale significantly
Choose Deel If...
- You have international employees (not just contractors)
- You want to hire globally without setting up entities
- Your team is distributed across many countries
- Compliance with international employment law is critical
- You're building a remote-first, global company
Hybrid Approach
Many companies use multiple payroll platforms: Gusto or Rippling for US employees, plus Deel for international team members. This optimizes cost (avoiding Deel's EOR fees for US) while enabling global hiring.
Implementation Checklist
Setting up payroll requires attention to detail. Here's what you need:
Before You Start
Setup Steps
Common Mistakes to Avoid
Misclassifying Workers
The IRS takes contractor vs. employee classification seriously. When in doubt, employees are safer. Misclassification can result in back taxes, penalties, and legal issues.
Missing State Registrations
You need to register for payroll taxes in every state where you have employees. Remote work has made this complex—track where people actually work.
Skipping Workers' Comp
Required in most states even for small teams. Payroll platforms often offer pay-as-you-go workers' comp that integrates directly.
Waiting Too Long to Set Up
Set up payroll before your first employee starts, not after. Processing takes time, and you don't want to delay someone's first paycheck.
Ignoring Local Requirements
Some cities have their own payroll taxes (San Francisco, NYC). Some states have unique requirements like California's paid family leave. Your payroll platform should handle this.
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