Can BambooHR handle payroll?

Yes, but as a paid add-on. BambooHR Payroll covers all 50 states and handles tax filings. However, it launched years after Gusto and lacks some of the depth in tax compliance and benefits integration that Gusto offers natively. For straightforward payroll needs it works fine. For complex multi-state setups, Gusto is more battle-tested.

Does Gusto have performance reviews?

No. Gusto has no built-in performance management features. You will need a separate tool like Lattice, 15Five, or BambooHR itself for reviews, goal tracking, and employee feedback. This is the biggest gap in Gusto's platform.

Which is cheaper for a 50-person company?

Gusto, typically by 20-30%. A 50-person company on Gusto Plus pays roughly $5,400 annually. BambooHR with payroll for the same headcount runs $6,000 to $9,600 depending on the negotiated rate. Gusto also publishes pricing openly while BambooHR requires a sales call.

Can I switch from Gusto to BambooHR mid-year?

You can, but wait until January if possible. Mid-year payroll migrations create tax filing complications. If you must switch mid-year, do it at a quarter boundary and budget extra time for your accountant to reconcile filings.

Which is better for remote teams?

BambooHR edges ahead for remote teams because of its onboarding workflows and employee directory. Remote employees benefit from self-service features and the ability to find colleagues across the org chart. Gusto handles remote payroll well but lacks the people-management features that distributed teams rely on.

BambooHR vs Gusto: Complete HR Comparison 2026

An in-depth comparison of features, pricing, and user experience to help you make the right choice.

Gusto

4.6(5,247 reviews)

Payroll and HR platform for small businesses with benefits, compliance, and hiring tools.

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BambooHR

4.5(2,847 reviews)

HR software for small and medium businesses with hiring, onboarding, and employee management.

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TL;DR

BambooHR is the stronger HRIS. Gusto is the stronger payroll platform. If you need robust performance reviews, onboarding workflows, and employee self-service, BambooHR wins. If payroll accuracy and tax filing keep you up at night, Gusto handles that better and cheaper.

The HR Tool Decision That Trips Up Growing Companies

Here is what happens every time. A startup hits 25 employees. The founder realizes spreadsheets and manual paychecks are a liability. They Google 'best HR software for small business' and land on BambooHR and Gusto within five minutes.

Both look great on paper. Both have slick marketing. Both promise to simplify HR. But they solve fundamentally different problems, and picking the wrong one means switching later when you have 80 employees and a mess of historical data to migrate.

I have helped companies through that exact migration. Twice last year alone. It is not fun. One took three months and cost $14,000 in consulting fees.

Why This Comparison Matters More Than Most

BambooHR started as an HRIS - a system of record for employee data. Performance reviews, time-off tracking, org charts, onboarding. Payroll came later. Gusto started as a payroll company. Benefits, tax filing, compliance. HR features came later.

That origin story defines everything about how these tools feel in practice. BambooHR treats payroll as a feature. Gusto treats HR management as a feature. Neither does both equally well, no matter what their marketing pages claim.

Quick Comparison

Aspect	Gusto	BambooHR
Best For	Small businesses and startups (1-100 employees)	Small to medium businesses (25-500 employees)
Pricing Model	Subscription	Subscription
Starting Price	$40/mo	$6/mo
Deployment	cloud	cloud
Platforms	WEB, IOS, ANDROID	WEB, IOS, ANDROID
Rating	4.6/10	4.5/10

9/10

Pros & Cons

Gusto

Pros

Excellent payroll that handles all 50 states flawlessly
Easy setup—most companies run first payroll same day
Affordable benefits access typically reserved for larger companies
Clean, intuitive interface for employers and employees
Strong customer support for complex payroll questions

Cons

HR features are basic compared to dedicated HRIS platforms
Gets expensive as employee count grows past 50
Limited international capabilities—US focused
Reporting and analytics could be more powerful

BambooHR

Pros

Intuitive interface that employees actually enjoy using
Strong onboarding workflows reduce new hire paperwork
Excellent mobile app for employee self-service
Good applicant tracking for companies hiring frequently
Responsive customer support with dedicated success managers

Cons

Payroll add-on is limited compared to dedicated payroll providers
Pricing gets expensive for larger organizations
Benefits administration requires third-party integration
Limited customization for complex approval workflows

Switching Costs

Migration Difficulty

Moderate

Data Export

Both export employee data to CSV. Gusto's payroll history exports cleanly, which matters for year-end tax reporting. BambooHR exports are comprehensive but performance review history can be tricky to move. Budget 2-4 weeks for a clean migration of a 50-person company, mainly because payroll tax registrations need to transfer.

Contract Flexibility

Gusto offers monthly billing on all plans. BambooHR typically requires an annual contract, though they occasionally offer month-to-month for smaller accounts. Neither charges excessive cancellation fees, but BambooHR's annual commitment makes switching more deliberate.

Pricing Comparison

Product	Pricing Model	Starting Price
Gusto	subscription	$40/mo
BambooHR	subscription	$6/mo

When to Choose Gusto

✓You need structured performance reviews and goal tracking
✓Employee self-service for PTO, documents, and personal info is a priority
✓Your onboarding process involves multiple departments and custom workflows
✓You want a single source of truth for all employee records

When to Choose BambooHR

✓Payroll accuracy and automated tax filing are your top concerns
✓You want built-in benefits brokerage without a separate vendor
✓Transparent, published pricing matters to your budgeting process
✓Your company is under 50 employees and needs payroll handled right

Our Verdict

The Real Decision Framework

Forget the feature matrices. Ask yourself one question: what keeps your HR person up at night?

If the answer is payroll mistakes, tax penalties, and benefits enrollment chaos, pick Gusto. It was purpose-built for exactly that. The payroll engine is bulletproof and the benefits brokerage saves you a vendor relationship.

If the answer is 'I cannot find anything in our employee records, nobody knows how to request PTO, and we have not done performance reviews in two years,' pick BambooHR. It brings order to HR chaos in a way Gusto simply does not attempt.

Here is what I tell founders: companies under 30 employees with straightforward HR needs usually start with Gusto and add BambooHR later. Companies that already feel the pain of disorganized employee data should go straight to BambooHR and add its payroll module or pair it with a dedicated payroll service.

The worst decision? Trying to make Gusto do real HR management or BambooHR do complex multi-state payroll. Play to each tool's strengths.

Frequently Asked Questions

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