Payroll Service Comparison: Gusto vs UKG vs isolved
There is a lot to consider when running and growing a business, but paying your employees must be at the top of the list. Businesses must decide whether or not they have the capability to run payroll in-house or if they need to outsource this process. When a business decides to outsource their payroll to a third party vendor, there is no shortage of options available. A few of the more popular payroll vendors for small businesses include Gusto, UKG and isolved. In this article, we will provide a payroll service comparison of Gusto, UKG and isolved.
What is a third party payroll service provider?
First, let’s establish what a payroll vendor does. A payroll vendor takes on the entire responsibility of paying a business’ employees. Typically, through automated software, a vendor will:
- pay employees via live check or direct deposit
- withhold proper payroll taxes
- make necessary pre-tax and post-tax deductions
- manage wage garnishments
- file appropriate taxes with the IRS
Additionally, some payroll vendors can provide additional services to businesses. These services can include:
- timekeeping and time off tracking
- applicant tracking
- employee onboarding and offboarding
- benefit administration
- expense management
- and more
What is Gusto?
Gusto is a cloud-based software platform for payroll, HR, and benefits management. Based in San Francisco, Gusto’s core belief is that small businesses have been underserved, and their manual payrolls and tax compliance can be fraught with errors and complications.
- Quick and easy setup, usually within 30 minutes.
- Integrated, easy-to-use platform that is straightforward and intuitive.
- AutoPilot feature for automatic payroll runs.
- Ability to electronically file, sign, fax, and store all tax documents within the Gusto dashboard.
- Employees have the flexibility to choose their own pay schedules and get paid when they want.
- Gusto Cashout feature means a portion of the accrued wages can be requested by employees between paydays.
- Paperless self-boarding process with e-signing options and I-9 and W-4 storage.
- Enable companies to create a competitive package with expert guidance and help with add-ons such as 401(k), life insurance and commuter benefits.
- Limited HR Value, better for payroll processing.
- Employee self-service and reporting features are not supported.
- Questionable customer service quality.
- Whereas many HR software competitors have live 24/7 support, Gusto offers email, chat, and limited phone support but only during short timeframes.
- The $149/month Concierge plan includes help from HR pros but also only during limited business hours.
- Gusto does not branch out its’ non-payroll HR functions, so the customer has to pay for payroll features whether they need them or not.
- Most of the HR functions such as workers’ compensation coverage, require use of its’ payroll service, rendering these features useless in themselves.
Applicant Tracking System
- Lack of Talent Acquisition features.
- Gusto’s support starts with the job offer letter, so another strategy may be needed throughout the recruiting process.
- Lack of performance tracking, goal-setting, reviews and feedback features.
Currently, Gusto’s basic pricing looks like this:
Automatic payroll and benefits integration
$40/month plus $6/month per person
Payroll, benefits and HR tools
$80/month plus $12/month per person
*Additional $8/month per person for HR support and service
What is UKG?
UKG (Ultimate Kronos Group) is a result of a merger between Kronos and Ultimate Software in April 2020. With main offices located in Florida and Massachusetts, UKG serves companies across 165 countries.
- Large and financially solvent.
- Increased market share with merger.
- Single platform for Payroll, HR, Time and Attendance.
- Enterprise focused.
- International capability.
- Strong applicant tracking system features: knock out questions, different recruiting processes, featured opportunities.
- Configurable benefits enrollment workflows based on the organization’s plans and policies.
- Personalized dashboard and reporting capabilities.
- Free training for life.
- Slower implementation time.
- Higher implementation cost.
- Support case response has slowed since UKG has expanded.
- Below average for its’ learning management capabilities.
- Newly realized market share and scope of solutions from the merger.
- Branding isn’t fully UKG: their website takes you to 4 different websites: UKG, Kronos, Ultimate Software, Everything Benefits.
UKG’s pricing looks like this:
Activation fee of $22,000 to $30,000 based on 250 employees and specific pricing on scope of work.
Core payroll and benefits integration
$18/month per person
Core plus: Recruiting, Onboarding, Talent Management, Compensation Management, Learning Management, Employee Sentiment Analysis Surveys
$40/month per person
What is isolved?
isolved is a dynamic HR platform that Paper Trails uses to provide people-first human capital management and payroll services. This platform assists Paper Trails and its’ clients in automating human resource tasks to help employers manage employees. Based in Salt Lake City, Utah, isolved is a leading software provider for small-to-midsized companies, serving 5 million employees and 145,000+ employers.
- Caters to small and medium sized businesses, predominantly companies with less than 250 employees.
- Attract & Hire is robust, allowing for faster application process and a very user friendly experience for hiring managers and HR personnel.
- Well-integrated payroll and time and attendance features.
- Versatile Benefits Administration software and services helps companies streamline their benefit frameworks and ensure successful IRS and DOL audits.
- Learn & Grow is a comprehensive learning management system with courses, user instructions, guides and video tutorials. This allows for self-paced, on-demand learning reducing the burden on managers for training and education.
- People Services provides comprehensive service packages to make organizations of all sizes and across all industries more productive.
- Expense Management helps eliminate the frustrating workload of managing expenses, reimbursing employees, and creating reports.
- Share & Perform is a full-service engagement and performance management platform with features including employee portal intranet, collaboration, rewards and recognition, performance management with goal setting and reviews.
- Strong mobile friendly employee self-service portal. Allows employees to manage their payroll and HR needs including updating direct deposit information, printing paystubs and W2’s, clocking in and out, requesting time off, enrolling in benefits, submitting expense reimbursements, and more!
- Does not offer a free trial.
- Pricing structure is not as transparent.
- Currently no international capabilities.
- More small business and mid-market focused, as opposed to large business or enterprise focused.
- Being a budding player on the HCM scene, brand awareness is less than some competitors.
At Paper Trails, we tailor pricing based on your specific business needs. As opposed to Gusto and UKG package pricing, we have two models that we follow.
Per Employee Per Month (PEPM) Model
Our per employee per month (PEPM) model charges one price for each active employee in our system every month. Depending on how many HR tools that your business requires, the PEPM price can range from $15 to $25. The more services you use, the higher the monthly payroll cost.
Your business has 50 employees and you use a few of our HR tools such as payroll and timekeeping. We have agreed on a $20 per employee cost. Your monthly invoice would be: 50 employees x $20 per employee = $1,000 per month
The PEPM model generally favors larger businesses that need to take advantage of more tools that Paper Trails has to offer.
Per Payroll Run
The per payroll run method charges a base fee plus a smaller per employee charge every time you run a payroll. If you make a mistake in your payroll and need to process payroll again, there will be that set fee plus the per employee charge. The base fee generally is around $28 and the per employee fee can range from $3.75 per employee to upwards of $10 per employee. The final price will be depending on how many services your business uses.
Your business has 10 employees. You use the same tools as before, payroll and timekeeping. We have agreed on a $5 per employee cost.
Every time you run a payroll, your business would be charged the base fee of $28. Then, 10 employees x $5 per employee = $50. $28 base fee + $50 for employees = $78 per payroll.
If you make an error and need an additional pay check for one employee, you would be charged the $28 base fee + $5 employee fee for a total of $33.
This per payroll method is generally a better solution for smaller business. Or if you are a business with dramatic seasonal swings and you only need a few employees during the winter months, this method is more favorable.