Last Updated: February 2026
Startups operate in a fundamentally different reality than established companies. With limited budgets, rapid team growth (sometimes doubling headcount in months), equity compensation as a key recruiting tool, distributed/remote teams across multiple states or countries, and founders wearing every hat including "accidental HR manager"—generic enterprise HR platforms are complete overkill (and overpriced).
Startup-optimized HR software must deliver:
Pricing: From $40/month + $6 per employee | Website: gusto.com
Gusto is the go-to choice for thousands of YC-backed and early-stage startups, offering full-service payroll, benefits, and HR in a straightforward package that founders can set up in an afternoon.
Best for: Pre-seed to Series A startups (1-100 employees) focused on US hiring who need reliable, straightforward HR without complexity.
Pricing: From $8 per user/month + platform fees | Website: rippling.com
Rippling is the "all-in-one" platform that combines HR, IT, and finance—provision laptops, Google Workspace accounts, payroll, and benefits from one system. Perfect for startups planning aggressive scaling.
Best for: Series A+ startups (20-500 employees) growing rapidly who want unified HR and IT systems and plan to hire globally.
Pricing: From $49 per contractor/month; $599 per EOR employee/month | Website: deel.com
Deel specializes in international hiring, making it effortless to hire contractors and full-time employees in 150+ countries without setting up local entities.
Best for: Startups building distributed, global-first teams who need to hire talent anywhere without entity setup headaches.
Pricing: From $59 per employee/month | Website: justworks.com
Justworks operates as a Professional Employer Organization (PEO), meaning they become your co-employer to provide enterprise-grade benefits, comprehensive compliance support, and HR expertise at startup scale.
Best for: First-time founders (10-150 employees) who want comprehensive compliance support and enterprise benefits without hiring an HR team.
Pricing: From $2,400/year for cap table; HR features additional | Website: carta.com
Carta is the gold standard for cap table management and equity administration. While not a full HRIS, it's essential for startups using equity as compensation and pairs well with Gusto or Rippling for payroll.
Best for: Startups offering meaningful equity compensation (post-seed through IPO) who need sophisticated cap table management and want to provide employees transparency into their equity value.
| Feature | Gusto | Rippling | Deel | Justworks | Carta |
|---|---|---|---|---|---|
| Starting Price | $40 + $6/EE | $8/user + fees | $49/contractor | $59/EE | $2,400/year |
| Full Payroll | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ | ⭐⭐⭐ (non-US) | ⭐⭐⭐⭐⭐ | ❌ |
| Benefits Administration | ⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ | ⭐⭐⭐ | ⭐⭐⭐⭐⭐ | ❌ |
| Equity Management | ⭐⭐⭐ | ⭐⭐⭐⭐ | ⭐⭐⭐ | ⭐⭐ | ⭐⭐⭐⭐⭐ |
| Global Hiring (EOR) | ❌ | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ | ❌ (US only) | ❌ |
| Ease of Setup | ⭐⭐⭐⭐⭐ | ⭐⭐⭐ | ⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ | ⭐⭐⭐ |
| Scalability | ⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐ | ⭐⭐⭐ | ⭐⭐⭐⭐⭐ |
| IT/Device Management | ❌ | ⭐⭐⭐⭐⭐ | ⭐⭐ | ❌ | ❌ |
| HR Support | ⭐⭐⭐⭐ | ⭐⭐⭐ | ⭐⭐⭐ | ⭐⭐⭐⭐⭐ | ⭐⭐ |
| Integrations | ⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ | ⭐⭐⭐ | ⭐⭐⭐ | ⭐⭐⭐⭐ |
| Best For | Early-stage US | Rapid growth | Global teams | Compliance focus | Equity-heavy comp |
Every startup is unique, but these decision factors will guide you to the right platform:
Look beyond the base price:
You (or your ops person) will live in this software daily:
PEOs provide more comprehensive support and better benefits access but cost more and require co-employment (less control). Choose a PEO if you're a first-time founder prioritizing risk mitigation and want enterprise benefits. Choose traditional payroll if you want full control, lower costs, and are comfortable handling compliance basics. Most VC-backed startups choose Gusto/Rippling over PEOs.
Equity for international employees is complex due to tax implications in their home countries. Carta and Rippling support international equity grants with proper tax reporting. Deel also handles equity for international workers on their EOR platform. Always consult with an international tax specialist before granting equity across borders—the tax implications for employees can be dramatic.
Switching payroll providers is straightforward (1-2 payroll cycles) with Gusto, Rippling, or standalone platforms. PEOs like Justworks are harder to leave (2-3 month process). Carta cap tables can be exported if needed. Plan for switching to be possible but annoying—choose carefully upfront. Most startups use the same platform from seed through Series B+.
Contractors are self-employed (you pay them via Deel/Wise, they handle their own taxes and benefits). EOR (Employer of Record) makes international workers full employees with local benefits, taxes handled by Deel/Rippling as the legal employer. Contractors are cheaper ($49/month vs $599) but you have less control and misclassification risk. Use EOR for long-term, full-time roles; contractors for project-based or part-time work.
Depends on complexity. Gusto and Rippling handle basic option grants, vesting tracking, and tax reporting adequately for straightforward cap tables. Choose Carta if you have multiple share classes, need scenario modeling for fundraising, want employee equity dashboards, or plan complex equity structures. Most seed-stage startups start with Gusto/Rippling equity features and add Carta at Series A when cap tables get complicated.
Gusto and Justworks can be operational same-day to next-day if you have all documents ready (EIN, bank info, employee W-4s). Rippling takes 2-5 days for full setup including IT integrations. Deel can onboard international contractors in 24-48 hours. Carta requires 1-2 weeks for proper cap table setup and historical data entry. Plan for one week from decision to first payroll run for most platforms.
None of these platforms excel at performance management—it's not their focus. Gusto and Rippling have basic performance review tools. For serious performance management, add dedicated tools like Lattice, Culture Amp, or 15Five alongside your HR platform. Most early-stage startups (pre-50 employees) handle reviews with simple Google Docs templates rather than dedicated software.
Yes, but with varying sophistication. Rippling handles complex compensation structures best with flexible workflows. Gusto supports commissions and bonuses adequately. Justworks can handle it but requires more manual setup. Equity refreshes and annual option grants are easy in Carta but more manual in Gusto/Rippling. If your compensation structure is highly unusual, verify the specific use case with the provider during demos.
Gusto offers pay-as-you-go workers' comp (huge for startups with variable payroll). Justworks includes workers' comp in their PEO pricing. Rippling partners with providers. Deel handles workers' comp for EOR employees internationally. This is a significant benefit—traditional workers' comp requires annual premium estimates and true-ups, which is terrible for unpredictable startup payrolls. Pay-as-you-go means you only pay for actual wages each payroll cycle.
For most early-stage US-focused startups (pre-seed through seed), start with Gusto. It's affordable, reliable, and covers 90% of what you need without overwhelming founders with complexity. Add Carta when you start offering equity to employees (typically after first institutional funding).
If you're planning aggressive growth and want unified HR/IT systems from day one (Series A+), invest in Rippling. The automation and scalability justify the higher cost when you're doubling headcount quarterly.
For global-first or remote-first startups hiring internationally, use Deel for contractors and EOR employees, paired with Gusto or Rippling for US team members.
If you're a first-time founder anxious about compliance and want maximum support, Justworks PEO provides peace of mind and enterprise-grade benefits access—just be prepared for the premium pricing.
And regardless of your primary platform choice, if equity is a meaningful part of your compensation strategy (which it should be for competitive startup hiring), invest in Carta by Series A to properly manage your cap table and provide employees transparency into their equity value.
Remember: your HR platform is infrastructure, not a competitive advantage. Choose something reliable and founder-friendly, get it set up quickly, and focus your energy on building your product and growing your business. You can always upgrade later—but make sure whatever you choose today won't become a blocker when you start scaling.
Disclaimer: Pricing and features are accurate as of February 2026 but may change. Equity compensation and international employment have significant tax and legal implications—consult with qualified legal and tax advisors before implementing equity plans or hiring internationally.