Gusto vs Paylocity

Gusto has recently focused on enhancing its payroll and HR offerings for small businesses, launching a redesigned Gusto Pro platform and expanding its partner program for accountants. The company is also addressing compliance challenges with new solutions and deepening integrations, such as the partnership with Chase for Business to offer Chase Payroll powered by Gusto. Alongside these business moves, Gusto has ventured into non-core products with the launch of a new GTG carbon gravel bike, indicating some diversification outside its main software services.

Paylocity’s recent activity centers more on financial performance and market positioning. The company has been preparing for its upcoming Q1 FY27 earnings call and has seen mixed investor sentiment despite growth metrics. Analysts have adjusted price targets and ratings, with some highlighting Paylocity’s product investments as a driver for renewed growth. The debut of EasySource’s Paylocity Marketplace and expansion beyond payroll have also been noted as factors influencing its investment appeal.

While both companies operate in payroll and HR software, Gusto is actively refining its product suite and partner ecosystem to better serve small businesses, whereas Paylocity appears focused on financial results and market confidence, supported by strategic product investments. Sales and product teams competing with either should watch Gusto’s moves to deepen compliance and integration capabilities, and Paylocity’s efforts to leverage marketplace offerings and broaden service scope beyond payroll.