Gusto vs. TriNet vs. Deel: What's the difference?

As a business owner, choosing the right HR, payroll, and compliance solution is critical to ensuring smooth operations and supporting your employees.

But with so many options on the market—each offering different services and pricing models—it can be challenging to know which platform is best suited for your specific needs.

Three popular providers are Gusto, TriNet, and Deel.

All three of these providers are excellent choices, and we are using them as examples because

While they may seem similar at first glance, each caters to slightly different types of businesses and offers unique features.

To make it more confusing, they operate under different models:

• ASO (Administrative Services Organization)
• PEO (Professional Employer Organization)
• EOR (Employer of Record)

Understanding these distinctions is critical to selecting the right service for your business.

What’s the Difference Between ASO, PEO, and EOR?

Before diving into Gusto, TriNet, and Deel, it’s essential to clarify what ASO, PEO, and EOR mean:

1. ASO (Administrative Services Organization): ASOs provide businesses with outsourced HR services like payroll, benefits administration, and compliance, but they do not co-employ your employees.

The company remains the sole employer, and the ASO is a third-party administrator for HR tasks. Businesses still retain full responsibility for legal compliance and risk.

2. PEO (Professional Employer Organization): A PEO provides comprehensive HR services, similar to an ASO, but with one significant difference: co-employment. In a co-employment arrangement, the PEO shares specific legal responsibilities for your employees, such as tax filings and compliance.

This co-employment model allows the PEO to offer larger-scale benefits, like health insurance plans typically reserved for big companies, and can reduce risk for small to medium-sized businesses.

3. EOR (Employer of Record): An EOR is responsible for being the legal employer of your employees or contractors in specific countries. At the same time, your company remains in charge of day-to-day management and work. This is most commonly used when a company is hiring internationally.

The EOR manages employee payroll, compliance, and legal responsibilities, ensuring compliance with local labor laws without the business needing to establish a local entity.

Now that we’ve defined the three models let’s explore how Gusto, TriNet, and Deel fit into these categories.

Gusto: An ASO Solution for Small and Medium-Sized Businesses

Overview:

Gusto is an ASO that offers all-in-one HR, payroll, and benefits services. It is ideal for small and medium-sized businesses that want to outsource HR and payroll tasks without entering into a co-employment relationship.

Gusto helps streamline processes but leaves the full legal responsibility of employment with the business owner.

Key Features:

? Payroll: Gusto handles payroll, tax filings, and payments across all 50 states. It automates tax calculations, filings, and compliance, making it ideal for U.S.-based small businesses.

? HR Tools: Offers employee onboarding, time tracking, PTO management, and compliance tools to help small businesses streamline HR functions.

? Benefits Administration: Provides access to health insurance, 401(k) plans, and other employee benefits through partnerships with major providers.

? Affordable Pricing: Gusto’s pricing is based on a monthly subscription model with a base price and an additional per-employee fee, making it a cost-effective option for smaller teams.

Who Should Use Gusto?

Gusto is ideal for U.S.-based small businesses that need an easy-to-use payroll system with basic HR functionality.

It’s an excellent fit for companies that want to handle everything from payroll to benefits in one place without needing the legal protections and support of a PEO.

TriNet: A Full-Service PEO for Growing Companies

Overview:

TriNet is a Professional Employer Organization PEO that provides comprehensive HR outsourcing services under a co-employment model. As a PEO, TriNet handles payroll and shares legal responsibility for your employees, including tax filings and compliance.

TriNet is an excellent option for growing companies that need more robust HR support and access to large-scale benefits typically reserved for larger organizations.

Key Features:

? PEO Services: TriNet offers comprehensive PEO services, including payroll, HR, benefits, workers’ compensation, and risk management. TriNet is legally responsible for compliance issues as part of the co-employment model.

? Comprehensive Benefits: TriNet gives small and medium-sized businesses access to health insurance plans, 401(k) options, and other benefits packages typically only available to large enterprises.

? Industry-Specific Expertise: TriNet offers specialized services for various industries, including tech, financial services, and nonprofits. This allows businesses to access HR and compliance solutions tailored to their industry.

? Dedicated Support: Unlike Gusto, which is largely self-service, TriNet provides high-touch customer service, including dedicated HR specialists who help companies navigate complex compliance issues and HR needs.

Who Should Use TriNet?

TriNet is best suited for rapidly scaling businesses that need a full-service HR partner to manage everything from payroll and benefits to compliance and risk management.

Companies that want to offload HR's administrative burden and give their employees access to high-quality benefits will find TriNet’s PEO model valuable.

Deel: A Global EOR for Managing International Workforces

Overview:

Deel is an EOR specifically designed for companies with a global workforce.

As an EOR, Deel becomes the legal employer of your international employees or contractors, ensuring compliance with local laws in each country where you operate. This is particularly useful for businesses hiring employees in different countries without setting up local entities.

Key Features:

? Global Payroll: Deel supports payroll in over 150 countries, ensuring compliance with local tax laws and regulations in each region. They handle contractor payments, full-time employee payroll, and required tax filings for global workers.

? Contractor and Employee Management: Deel offers robust tools for managing contracts, compliance, and benefits for international contractors and employees, making it easy for businesses to onboard and manage remote talent.

? Local Compliance: Deel ensures that companies stay compliant with labor laws in every country, including handling legal contracts, taxes, and mandatory benefits.

? Global Benefits: In addition to payroll, Deel also offers benefits like health insurance, pensions, and equity plans for employees in multiple countries.

Who Should Use Deel?

Deel is ideal for companies with a global workforce or looking to hire talent across multiple countries. If your business relies on contractors or remote workers outside the U.S., Deel offers the infrastructure to seamlessly handle international payroll and compliance.

It’s also an excellent solution for businesses that need to quickly scale their global hiring efforts without a traditional PEO or ASO.

Which Solution is Right for You?

ASO - if you’re a small to medium-sized U.S. business looking for an affordable, easy-to-use payroll and HR solution, Gusto is likely the best option.

Gusto is an ASO designed to help small businesses manage payroll, taxes, and employee benefits with minimal hassle.

PEO if you’re a growing company that needs a full-service PEO to handle more complex HR and compliance needs, TriNet offers comprehensive services, industry-specific expertise, and access to large-scale benefits.

TriNet is ideal for businesses that need high-touch HR support as they scale.

EOR if your business operates globally or you’re hiring remote workers and contractors across multiple countries, Deel’s EOR model is the standout choice.

Deel simplifies international payroll, compliance, and benefits for global workforces, making hiring and managing employees anywhere in the world easy.

Final Thoughts: How to Choose the Right Platform

Assessing your business’s current needs and growth trajectory is essential when choosing between Gusto, TriNet, and Deel.

Gusto's ASO model is a cost-effective option for those seeking a domestic solution with minimal legal complexity.

TriNet’s PEO model is ideal for companies seeking a more hands-off approach to HR and legal compliance as they scale.

Deel’s EOR model is the best option for businesses hiring internationally to manage global workforces without establishing foreign legal entities.

By understanding the differences between ASO, PEO, and EOR and how each platform fits into these categories, you can select the service that best meets your business’s needs—whether you’re just starting, scaling, or going global.

If you need help figuring this stuff out, then let's talk. I've been helping companies for the last 17 years find the perfect solution for every stage of their company.

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Rodney Steele is the CEO of Dinsmore Steele , a leading PEO brokerage that helps businesses simplify their HR, payroll, and employee benefits. With years of experience in the PEO space, Rodney is passionate about assisting companies to navigate complex decisions, from PEO renewals to benefit plan negotiations.

Known for his humor, wit, and straightforward advice, Rodney provides valuable insights that make HR outsourcing easy to understand and execute. When he's not closing deals or advising clients, you can find him playing pickleball or enjoying time with his family on Long Island.