Gusto vs Deel: What Mid-Market Companies Actually Need to Know About Global Payroll

Here's what you're actually buying: Gusto runs US payroll for $40-$180/month base plus $6-$22 per employee when you already have a US entity. Deel employs people for you in 150+ countries through their local entities at around €550 per employee monthly. But before you pick either one, ask yourself this: do you need US payroll processing, someone to employ your international team, or help figuring out when to use contractors versus EOR versus your own entities?

What Actually Matters When You're Signing for the Risk

Most platform comparisons show you feature lists and pricing tables. That's not what keeps you up at night when you're running payroll in 10 countries. Here's what we looked at instead: Do you get actual human advisors who can help you decide between contractors, EOR, and entities? How deep is their local legal knowledge when classification questions come up or EU Pay Transparency hits? Can they handle the complexity when you're 500 employees across multiple subsidiaries facing quarterly audits? If you're a UK company entering the US market, do they understand both sides? And when you grow from 5 contractors to 50 employees in a market, can they help you transition smoothly?

These criteria matter because mid-market companies with 200-2,000 employees commonly operate in 5-15 countries within 24 months of beginning international hiring (Teamed analysis of 47 mid-market clients, 2023-2025; results vary by industry and growth rate). This velocity creates payroll vendor fragmentation risk and reporting reconciliation workload that simple feature comparisons ignore entirely. For EU/UK-headquartered companies, EOR cost break-even commonly occurs at approximately 15-30 employees in a single country over a 24-36 month horizon (estimate based on Teamed client data; varies by wages, benefits, and provider), after which an entity plus local payroll is often cheaper on a total-cost basis. The right choice depends on your employment strategy, not which platform has more integrations.

Platform Comparison for Mid-Market Global Payroll

Note: All pricing is indicative and varies by country, plan tier, and negotiated terms. Euro pricing reflects January 2026 list prices where available; USD pricing presented in native currency. No currency conversion applied.

Gusto: US Payroll Engine for Entity-Led Strategies

Gusto makes sense when you've got a US entity that's here to stay and you need solid domestic payroll. It's not built for global hiring.

Gusto processes payroll across all 50 US states with automated federal, state, and local tax calculations, filings, and year-end W-2 and 1099 generation. Pricing starts at $40/month (USD) plus $6/employee (USD) for single-state operations, scaling to $180/month (USD) plus $22/employee (USD) for multi-state payroll with next-day direct deposit. The platform integrates benefits administration including health insurance, 401(k), and PTO tracking. Gusto does not offer Employer of Record services and provides no guidance on whether or when to establish entities versus using other employment models.

Best for: EU/UK companies with a substantial, lasting US entity employing 10-200 W-2 workers who need straightforward US payroll without global complexity.

Not ideal for: Companies needing multi-country hiring, contractor management across borders, or EOR flexibility.

Deel: Global EOR Infrastructure for Multi-Country Hiring

Deel works when you need employees in multiple countries fast and can't wait months to set up entities. Think weeks, not quarters.

Deel enables compliant employment in 150+ countries through its EOR infrastructure, with typical onboarding completed in 2-5 days. EOR pricing runs approximately €550/employee/month, while contractor management costs €45/contractor/month. The platform handles localised employment contracts, statutory benefits, and multi-currency payroll in 120+ currencies. Deel also offers device lifecycle management for remote teams at additional cost. Deel provides country facts and compliance tooling but not independent strategic advice on employment model selection.

Best for: Scaling tech and services firms hiring across 5+ countries before building local entities, particularly those testing market fit before committing to long-term presence.

Not ideal for: Long-term, large headcount presence in specific countries without a plan to form entities. EOR costs at scale can exceed entity establishment costs within 18-24 months.

Hybrid Stack: Deel Plus Gusto for Two-Track Operations

Running both Deel and Gusto can make sense when you've got established US operations but you're testing the waters internationally. You're not ready for entities abroad yet.

This two-track approach uses Gusto for US entity payroll (W-2 employees, benefits administration, tax filings) while Deel handles international EOR and contractor engagement. The combined cost structure means US employees run through Gusto's $40-$180/month (USD) base plus per-employee fees, while international staff cost approximately €550/employee/month through Deel's EOR.

Best for: Companies with 20+ US employees already on Gusto adding their first 5-15 international hires who need structured integration and reporting across both systems.

Not ideal for: Organisations without capacity or advisory support to manage policy consistency and data governance across two platforms.

Teamed: Strategic Employment Model Advisor for Global Mid-Market Firms

Consider talking to Teamed when you're juggling contractors and employees across 5+ countries and your board keeps asking why you chose each model. We can help build that defensible rationale your auditors want to see.

Teamed provides independent advisory on employment model selection, then executes through EOR at €400/employee/month, contractor management at €39/contractor/month, and entity management across 90+ countries. The approach starts with your employment strategy and risk posture, then places tools like Gusto or Deel into a long-term plan you won't outgrow. Access to local legal insight in 180+ countries covers EU classification, Pay Transparency Directive compliance, US state rules, and permanent establishment guidance.

Best for: EU/UK-headquartered companies in regulated industries (financial services, healthcare, defence) with 200-2,000 employees, operating in 5-15 countries now or planning expansion within 12 months.

Not ideal for: Teams seeking only a software purchase decision without broader model design.

EOR Platforms Beyond Deel: Strategic Context for European Expansion

Choose EOR over contractors when the worker will be integrated into core operations, is managed with set working hours and company tools, or represents a role that would be costly to reclassify after an inspection.

Remote, Oyster, G-P, and similar platforms sit in the same EOR category as Deel, with pricing typically ranging from €499-€699/employee/month. Remote offers EOR in 75+ countries with equity administration capabilities. Oyster focuses on distributed teams with self-service compliance guides. G-P (Globalization Partners) provides EOR in 180+ countries with emphasis on enterprise compliance.

Best for: Teams with an EOR shortlist needing neutral validation against 3-5 year plans and regulatory milestones.

Not ideal for: Buyers focused only on price and features without considering classification, pay transparency, and PE risks.

The primary decision is not which EOR brand to select. It's whether EOR is right for each market and for how long. An EOR differs from an owned entity in that the EOR is the legal employer on its own local entity, whereas an owned entity makes your company the direct employer with full local statutory and employment-law obligations. EOR use does not automatically prevent corporate tax presence if local activities meet permanent establishment thresholds (fact-specific; treaty-dependent; consult tax counsel).

US PEO and HR Suites: Gusto vs Rippling in Strategic Terms

Choose a PEO or HR suite when you need co-employment and HR administration for a US entity, not global hiring infrastructure.

US PEOs and HR suites solve different problems than global EOR platforms. Rippling offers unified HR, IT, payroll, and spend management with pricing available on request, typically scaling based on modules selected. Gusto's PEO option provides co-employment for US entities needing richer local HR support. Justworks offers PEO services at $79-$109/employee/month with bundled benefits.

Best for: Mid-market companies making significant US entity investments requiring richer local HR support, multi-state compliance, and benefits administration.

Not ideal for: Companies assuming PEOs can replace global EOR or entity strategies. A US PEO focuses on co-employment and HR administration for a US entity, while a global EOR focuses on employing workers in foreign jurisdictions where you lack an entity.

These choices sit alongside, not instead of, EOR and entity decisions abroad. Gusto differs from Deel in that Gusto is primarily designed for US entity-based payroll and benefits administration, while Deel is designed to support multi-country engagement through EOR and contractor infrastructure.

Here's How I'd Decide If I Were in Your Seat

Go with Gusto when you've got a US entity with 10+ employees that's not going anywhere for the next few years. Your hiring plans are US-focused, maybe with a few domestic contractors mixed in.

Pick Deel when you need to hire in 3+ countries in the next 6 months and don't have entities there. You want one platform handling both your international employees and contractors.

Use both Gusto and Deel when you're already running US payroll on Gusto and need to add 5-15 people across 2-5 countries. Just make sure your team can handle keeping policies consistent across two systems.

Choose an owned entity plus local payroll if you expect sustained presence in a country, typically 15-30 employees over 24-36 months (estimate; varies by wages, benefits, and provider), and need tighter control over benefits design, works council engagement, and employment policy consistency.

Talk to Teamed when you're in 5+ countries with a mix of contractors and employees, and your board wants to know why. Or when you're expanding into regulated markets where misclassification and permanent establishment risks keep you up at night. We can provide the independent counsel you need.

Choose EOR over contractors if the worker will be integrated into core operations, managed with set working hours and company tools, or the engagement will exceed 6-12 months while the worker is managed like an employee.

Choose vendor consolidation if Finance cannot produce a single, reconcilable global payroll cost view within the month-end close window, or HR cannot demonstrate consistent employment policy baselines across countries.

Choose to stay on EOR despite reaching headcount thresholds if you are still testing the market (first 1-2 years), regulatory or political uncertainty is high, you lack local HR and legal support resources, or employees are spread across many countries with fewer than 10 total.

Choose entity establishment if you have reached 15-30 employees in a single country, plan 3+ year presence with stable or growing headcount, and your annual EOR costs multiplied by expected years exceed entity setup cost plus ongoing annual costs.

Choose independent advisory before any platform decision if you're making six-figure employment model decisions based primarily on vendor sales pitches rather than strategic analysis of your specific circumstances.

Strategic FAQs on Gusto vs Deel for Global Hiring

Is Deel or Gusto better for European mid-market companies hiring in the United States?

Neither is inherently better—the choice depends on your employment model, not platform features. Gusto suits entity-led US payroll for companies with an established or planned US subsidiary, while Deel suits EOR-led global hiring for companies testing the US market without entity commitment. European companies should determine their US employment model first, considering permanent establishment risk (fact-specific; treaty-dependent; consult tax counsel), headcount projections, and timeline to profitability.

What strategic considerations matter most when comparing Gusto vs Deel?

Prioritise employment model, regulatory exposure, and future scale over features. Consider worker classification rules (the US Department of Labor's 2024 Final Rule makes contractor status materially harder to justify under the economic reality test), EU Pay Transparency deadlines (member states must transpose Directive (EU) 2023/970 by 7 June 2026; implementation varies by jurisdiction), and permanent establishment risk. The right platform depends on whether you're pursuing entity-first, EOR-first, or hybrid strategies across your target markets.

How should we plan an EOR to entity transition if we start with Deel?

Define headcount, revenue, and regulatory triggers per country upfront. EOR cost break-even commonly occurs at 15-30 employees in a single country over 24-36 months (estimate; varies by wages, benefits, and provider). Entity establishment timeframes vary: Tier 1 countries (UK, Ireland, US, Singapore) typically require 2-4 months, Tier 2 countries (Germany, France, Spain) require 4-6 months, and Tier 3 countries (Brazil, China, India) require 6-12 months. If switching from one EOR provider to a different entity management provider, add €17,000-€35,000 per country in transition costs (Teamed estimate based on 23 client transitions, 2023-2025; varies by country complexity and headcount).

What documentation do auditors expect for global employment compliance?

In regulated industries, a common audit requirement is producing worker-by-worker evidence of employment model rationale, right-to-work checks, and payslip records within 5-10 business days of request. Audit-ready workforce governance means documented controls proving who is employed under which model (contractor, EOR, or entity), why that model was chosen, and how payroll, classification, and data processing decisions are approved and recorded. UK HMRC can assess unpaid payroll taxes for up to 6 years in cases of careless error and up to 20 years in cases of deliberate behaviour (Finance Act 2008, Schedule 39).

Does using an EOR platform remove permanent establishment risk entirely?

No—EOR simplifies employment compliance but does not automatically eliminate tax presence risk. Permanent establishment analysis is fact-specific and treaty-dependent; factors include employee activities, authority to bind the company, and commercial purpose of the local presence. The OECD's 2025 commentary on Article 5 of the Model Tax Convention provides updated guidance, though the United States has reserved the right not to follow certain aspects of the commentary. Companies should conduct formal PE risk assessments as part of employment model selection; consult tax counsel for jurisdiction-specific advice.

What This Really Comes Down To

The Gusto vs Deel comparison reveals a deeper truth about global employment decisions. Platform selection matters far less than employment model design. Gusto excels at US entity payroll. Deel excels at multi-country EOR infrastructure. Neither answers the strategic questions that determine long-term success: when should you use contractors versus employees, when does EOR make sense versus entity establishment, and how do you sequence these decisions as you scale?

For mid-market companies operating in regulated industries, the stakes are particularly high. Contractor misclassification can trigger back taxes, social contributions, penalties, and employment rights liabilities that extend years into the future. Permanent establishment exposure can create corporate tax presence you didn't anticipate (fact-specific; treaty-dependent; consult tax counsel). The EU Pay Transparency Directive's June 2026 deadline affects job postings, pay reporting, and information rights across every EU market you operate in (subject to member-state transposition and implementation; consult employment counsel).

The companies that navigate this complexity successfully share a common approach. They design their employment model first, considering regulatory trajectory, headcount projections, and risk appetite across each market. Then they select platforms that execute that model. They build in transition triggers that move them from contractors to EOR to entities based on defined thresholds, not vendor economics. And they work with advisors who understand their specific industry, regulatory environment, and growth stage.

If you're making employment model decisions across 5+ countries, converting contractors to employees, or questioning whether your current EOR spend makes sense at your headcount, you don't need another platform comparison. You need strategic counsel that sequences the right tools into a coherent plan. Talk to the experts at Teamed for an independent strategy review that aligns People, Finance, and Legal around a vendor-neutral employment architecture you won't outgrow.

Note: All pricing is indicative and varies by country, plan tier, and negotiated terms. Euro pricing reflects January 2026 list prices where available; USD pricing presented in native currency. No currency conversion applied. Teamed benchmarks are estimates based on client data (sample sizes and time windows noted where applicable); results vary by industry, geography, and company-specific factors. Regulatory and tax guidance is general in nature; rules vary by jurisdiction, treaty, and specific facts. Consult qualified legal and tax counsel for advice on your circumstances.