Microsoft 365 Copilot vs Gusto
A detailed comparison to help you choose between Microsoft 365 Copilot and Gusto.
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Verdict: Gusto wins
Gusto scores 4.3/5, edging out Microsoft 365 Copilot at 4.0/5. Best for US small businesses with 5–50 employees that want payroll, taxes and benefits handled in one system by a non-specialist.
Microsoft 365 Copilot AI built into Word, Excel, PowerPoint, Teams | Gusto Payroll & HR (VS) | |
|---|---|---|
| Rating | 4.0 (1 review) | 4.3 (1 review) |
| Pricing Model | paid | paid |
| Starting Price | From $30/mo | Pricing varies |
| Best For | Organisations already standardised on Microsoft 365 whose staff live in Outlook, Teams and Excel, and who will license by role after a measured pilot. | Best for US small businesses with 5–50 employees that want payroll, taxes and benefits handled in one system by a non-specialist. |
| Free Tier | ||
| API Access | ||
| Team Features | ||
| Open Source | ||
| Tags | team featuressso | — |
| Visit Microsoft 365 Copilot → |
Microsoft 365 Copilot
Pros
- + Grounding in tenant data produced genuinely accurate meeting recaps and thread summaries in my tests
- + Excel analysis generated working formulas and clear narratives on real sales data in one pass
- + Copilot Chat is included at no extra cost for eligible Microsoft 365 users, so basic access is effectively free
- + Copilot Studio's Chat and Standard harness is included for licensed users building internal agents
- + Enterprise data protection, compliance controls and adoption analytics are built in
Cons
- - $30/user/month add-on requires a qualifying Microsoft 365 licence, so cost stacks on top of existing subscriptions
- - New usage-based billing for advanced AI features makes the subscription price a floor rather than a ceiling
- - Retrieval surfaced a stale lookalike file instead of the current document in my testing — tenant hygiene decides quality
- - Drafts still assert claims not present in source material and always need review
- - $18 promotional Copilot Business price is first-year only and reverts to $21, and Business plans cap at 300 users
Gusto
Pros
- + Full-service payroll with unlimited runs and automatic federal/state/local tax filings included on every paid plan (gusto.com/pricing)
- + Setup wizard and payroll worksheet made my first test run a review-and-approve job, not a calculation job — a first-time employer can configure a 5-person team in under an hour
- + Transparent per-person pricing with a published plan comparison; a 10-person team is $109/month on Simple at time of writing
- + Benefits stack (health, 401(k), HSA/FSA, workers' comp, commuter) is integrated with payroll rather than a separate portal
- + Premium includes payroll migration from a previous provider plus same-day and instant pay — the only plan where the white-glove service exists
Cons
- - US-only: no international payroll or EOR, so any overseas hire needs a second system
- - Base fee distorts value for micro-teams — $79/month effective for 5 people on Simple versus $6.49/person at 100 (peopleopsclub.com)
- - Multi-state payroll, time tracking and configurable PTO are gated to Plus at $80 + $12/person, a 91% monthly jump for a 25-person company over Simple
- - Add-ons can exceed the next tier: Plus-level features bought on Simple ran ~$214/month versus $200 for Plus itself on published rates
- - Priority support is sold separately ($30/month + $3/person per published add-on rates) and compliance alerts sit on Premium only
Frequently Asked Questions
Which is better, Microsoft 365 Copilot or Gusto?▼
Gusto scores higher at 4.3/5 vs 4.0/5 for Microsoft 365 Copilot, making it the better-rated option in our comparison.
What is the difference between Microsoft 365 Copilot and Gusto?▼
Microsoft 365 Copilot: AI assistant integrated throughout Microsoft 365 — drafts in Word, analyzes in Excel, designs in PowerPoint, summarizes in Teams. Gusto: Gusto is payroll and HR software for US small businesses, covering pay runs, tax filing, benefits and onboarding.
Is Microsoft 365 Copilot or Gusto more affordable?▼
Microsoft 365 Copilot starts at €30/mo, Gusto starts at €0/mo. Check the comparison table above for current pricing.
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