Gusto vs Rippling vs ADP: Best Payroll Software for Handyman & Contractors
Payroll mistakes hit hard, especially when your crew relies on accurate paychecks to cover tools, rent, and daily needs. For independent electricians, plumbers, general contractors, or any home services pro, picking the right payroll system matters. Gusto, Rippling, and ADP offer different approaches: simple payroll, all-in-one HR/IT, and robust enterprise features. The best choice depends on your current team size and how fast you plan to grow your operations in the next 18 months.
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The Quick Answer
Gusto is the right starting point for most newly independent tradespeople and small home service businesses with 1-10 field staff. It's simple, well-designed, and handles all payroll taxes for W-2 employees and 1099 subcontractors without needing an HR expert. Rippling is the right choice if you're a growing remodeling company or HVAC firm needing to manage payroll, benefits, IT for field tablets, and even vehicle assignments in one platform. It makes sense if you're scaling fast enough to justify the higher cost. ADP is best when you are past 50 employees, need features like certified payroll, or have an office manager already used to a larger system.
Side-by-Side Breakdown
Gusto: Simple plan starts at $40/month + $6/person/month. Offers full-service payroll, automatic tax filing for W-2 employees, and handles 1099s for your subcontractors (like painters or drywallers). Includes employee self-service and basic benefits administration.
Rippling: Starts at $8/person/month (modular pricing). Provides a unified platform for payroll, benefits, HR, and IT (like managing field tablets or job site apps). It’s strong on workflow automation, helping you onboard new technicians, but has a steeper setup time.
ADP Run (small business): Starts at $79/month + $4/person/month. Full-service payroll with deep tax compliance, useful for multi-state jobs or specific construction reporting. Offers access to HR advisors. The user interface is functional but can feel dated compared to newer options.
When to Choose Gusto
Choose Gusto if you have under 50 people on your payroll, including W-2 employees (like your lead plumber or HVAC technician) and 1099 independent contractors (like a flooring specialist). You want payroll to just work, handling federal and state taxes without you needing a deep HR background. If you plan to offer benefits (health, dental, vision, 401k) to attract skilled tradespeople, Gusto can manage this through the same platform. It’s perfect if your team includes both full-time field staff and occasional subcontractors – Gusto manages both from one easy dashboard.
When to Choose Rippling
Rippling is for you if your home services business is scaling fast (going from 5 to 50 employees in 12-18 months) and you need to automate more than just payroll. Think about provisioning new company vans, setting up job-tracking software on field tablets, or assigning security permissions for project management apps. If you want one source of truth for all employee data, connecting HR, payroll, and IT, Rippling is powerful. Just be ready for the budget and comfort level needed to configure a more complex system.
When to Choose ADP
Pick ADP if you are in a regulated trade like construction, where complex compliance (like prevailing wage or union reporting) is a regular part of your bids. If you have over 50 journeymen, apprentices, and office staff, and need enterprise-grade reporting for multi-state projects with dedicated support, ADP is a strong contender. Also consider ADP if you are acquiring another contracting firm or merging with a team that already uses their system.
The Verdict
Start with Gusto for your first 1-30 field staff and office support. It handles the essentials so you can focus on projects. Evaluate Rippling when you hit 20+ employees and find yourself spending significant time on onboarding new technicians, managing fleet vehicles, or setting up new job site software. Consider ADP when your team crosses 50 employees, you start bidding on large-scale commercial or government projects with complex compliance, or need a dedicated HR support relationship. The migration from Gusto to Rippling is low cost, so you can switch when your business needs evolve.
How to Get Started
Gusto: Sign up at gusto.com, enter your business details and EIN, add your W-2 employees and 1099 contractors, and run your first payroll within a week. Gusto handles state registration for payroll taxes in all 50 states, useful if you take jobs across state lines.
Rippling: Request a demo – Rippling requires a scoping call before setup. Expect 2-4 weeks for full implementation, especially if you include IT and HR modules for your field team.
ADP Run: Start with the online sign-up flow or request a sales call for volume pricing. ADP assigns an implementation specialist who can help migrate your existing payroll history, including any complex union deductions or certified payroll records.
RECOMMENDED TOOLS
Gusto
Full-service payroll from $40/month + $6/person
Rippling
Unified HR, payroll, and IT from $8/person/month
ADP Run
Enterprise payroll and HR compliance
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FREQUENTLY ASKED QUESTIONS
Does payroll software file my payroll taxes automatically?
Gusto, Rippling, and ADP all offer full-service payroll that calculates, files, and remits federal, state, and local payroll taxes automatically. Verify that auto-filing is included in your plan tier before you commit.
Can Gusto handle contractors (1099s) and employees (W-2s) together?
Yes. Gusto supports both contractor and employee payroll in the same account. Contractors are paid via direct deposit and receive 1099-NEC forms at year-end.
How hard is it to switch payroll providers mid-year?
Possible but annoying. You need to transfer year-to-date payroll totals so W-2s are accurate at year-end. The cleanest migration point is January 1st. Mid-year is doable if you have complete YTD records from the old provider.