Gusto vs Relay
A side-by-side comparison of two accounting tools for small businesses.
Bottom line
For most small businesses, Gusto edges out Relay on overall SMB fit (9/10 vs 8/10), especially for Gusto is a strong match for service businesses, retail shops, restaurants, agencies, and…. That said, weigh pricing and the feature breakdown below against your needs.
At a glance
| Attribute | Gusto | Relay |
|---|---|---|
| SMB score | 9/10 | 8/10 |
| Category | Accounting | Accounting |
| Free tier | No | Yes |
| Starting price | From $40/user/mo | From $20/user/mo |
| Best for | Gusto is a strong match for service businesses, retail shops, restaurants, agencies, and professional practices with 1–100 employees that need payroll handled reliably without a dedicated HR hire. It particularly shines for businesses operating in multiple states where tax filing complexity multiplies quickly, and for any owner who has been doing payroll manually or through an accountant and wants to reclaim that time. Teams that already use QuickBooks or Xero benefit immediately from the accounting sync. Companies offering health benefits—or wanting to start—appreciate having payroll and benefits under one login rather than juggling separate vendors. | Relay fits service businesses, freelancers, and small retail or e-commerce operators with 1–25 employees who want their bank account and bookkeeping software to stay in sync without manual exports. It is particularly strong for owners who already use QuickBooks Online or Xero and want spend controls without issuing unlimited corporate cards. Bookkeepers and fractional CFOs who manage several small-business clients will find the multi-client dashboard and bill approval workflows reduce back-and-forth with owners. Any business doing envelope-style budgeting—separating tax reserves, payroll, and operating cash into distinct buckets—benefits directly from the multi-account structure at no extra cost. |
Gusto
Run payroll in minutes, file taxes automatically, and manage HR for your whole team in one place.
Picture a 12-person restaurant with hourly and salaried staff, a mix of W-2 employees and a couple of 1099 contractors, and a owner who spends every other Sunday manually calculating overtime and chasing down tax forms. That owner is exactly who Gusto was built for. Within a typi…
Key features
- Automatic federal, state, and local payroll tax filing included on every plan
- Unlimited payroll runs with no extra charge for off-cycle payments
- Employee self-onboarding portal collects W-4, I-9, and direct deposit digitally
- Integrated health, dental, and vision benefits administration with employee plan shopping
- Time tracking and PTO management synced directly into each payroll run
- Native two-way sync with QuickBooks, Xero, and other accounting tools
- Contractor payments and 1099 filing handled alongside regular W-2 payroll
- HR compliance alerts and offer letter templates to reduce legal exposure
Limitations
Gusto's pricing scales per employee per month, so costs can climb noticeably as headcount grows beyond 20–30 people. The Plus and Premium tiers, which unlock dedicated support and more advanced HR tools, carry a significantly higher base fee—verify current pricing on the vendor site before budgeting. Reporting capabilities, while adequate for most small teams, lack the custom drill-down that larger operations or multi-entity businesses may need. International payroll is not natively supported; businesses with employees outside the US will need a separate global payroll solution. Customer support response times have drawn mixed reviews during peak tax seasons.
Relay
Business banking with built-in spend controls, bill pay, and bookkeeping sync so you always know your real cash position.
Picture a five-person landscaping company whose owner juggles three active jobs, a part-time bookkeeper, and a growing pile of vendor invoices. Every Friday she spends two hours reconciling what her crew spent on fuel and supplies against what QuickBooks thinks is in the account.…
Key features
- Up to 20 FDIC-insured checking sub-accounts for envelope-based cash management
- Physical and virtual debit cards with per-card spend limits and merchant controls
- Two-way sync with QuickBooks Online and Xero for real-time reconciliation
- Multi-step bill approval workflows to prevent unauthorized vendor payments
- Batch ACH and check payments to multiple vendors in a single action
- Built-in invoicing and receipt capture on the free Starter plan
- Role-based access so bookkeepers and employees see only what they need
Limitations
Relay does not accept cash deposits, which is a hard stop for any business that regularly takes cash payments (restaurants, contractors paid on-site, market vendors). There is no business credit card or line of credit; lending products are outside Relay's current scope, so borrowing needs must be handled elsewhere. The $30/month Grow plan is required for bill approvals and batch payments—features that feel essential once you try them, making the free tier feel limited for businesses with more than a handful of vendors. Customer support is chat and email only; phone support is not available, which can be frustrating during time-sensitive payment issues. International wire transfers have limited support—verify current capabilities on the vendor site.
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Frequently asked questions
- Is Gusto or Relay better for small businesses?
- For most small businesses, Gusto edges out Relay on overall SMB fit (9/10 vs 8/10), especially for Gusto is a strong match for service businesses, retail shops, restaurants, agencies, and…. That said, weigh pricing and the feature breakdown below against your needs.
- How does pricing compare between Gusto and Relay?
- Gusto offers paid plans from about $40/mo. Relay offers a free tier or trial with paid plans from about $20/mo. Always confirm current plans on each vendor's website before you commit.
- Which is cheaper, Gusto or Relay?
- Relay has the lower advertised entry price ($20/mo), but the best value depends on the plan tier and seats your business actually needs.
- When should I choose Gusto over Relay?
- Gusto is a strong fit for Gusto is a strong match for service businesses, retail shops, restaurants, agencies, and professional practices with 1–100 employees that…. Lean toward Relay if you need Relay fits service businesses, freelancers, and small retail or e-commerce operators with 1–25 employees who want their bank account and….
Read the full profiles: Gusto · Relay · All Accounting tools