Which payroll software is better?

This guide will help you understand which payroll solution is best for your company and will describe pricing, features, and pros and cons.

Paylocity and ADP are viable payroll applications, but that doesn’t mean both products will work for you. Paylocity is best for businesses that need an all-in-one solution. Payroll software can include workforce management, employee benefits, talent acquisition, and more. And ADP focuses on quality payroll and HR tools.

SEE: We’ve got all the rivals, and here’s a look at ADP’s competitors.

Knowing the details of the products can help you understand which option is best for your business.

Jump:

Paylocity vs. ADP

Payroll software is an essential element of a successful business. Unfortunately, payroll solutions can be complicated or unhelpful to employees, which can lead to other workplace issues. For this reason, and many others, it’s important to know which payroll apps are the best. As mentioned above, Paylocity and ADP are both great payroll options, but one may be better for you. This article compares both payroll apps to help you decide which product is right for your team.

Paylocity vs ADP: Comparison Chart

Characteristics	Paylocity	ADP
Automation	Yes	Yes
Global payroll	Yes	Yes
Tax compliance tools	Yes	Yes
Direct deposit	Yes	Yes
Mobile application	Yes	Yes
HR tools	Yes	Yes
	Visit Paylocity	Visit ADP

Paylocity and ADP pricing

Neither Paylocity nor ADP display public rates. In order to receive an accurate quote for your business, you must provide your details to payroll applications. However, general pricing is a bit easier to spot. ADP offers different packages depending on the size of your business. Small businesses have access to four different payroll packages, while larger organizations can choose from three options. The most common ADP package starts at roughly $79 per month, plus $4 per employee.

Paylocity starts at $2 per employee. However, with both services, it’s important to note that prices can add up quickly. Paylocity and ADP support global payroll, so large teams can mean high expenses for your organization.

Feature Comparison: Paylocity vs. ADP

Automation

Paylocity and ADP both offer automation tools for you. Paylocity prides itself on its automated capabilities that reduce reporting errors and allow employees to be paid faster. The software also automatically calculates certain figures, this function is also supported by ADP. ADP’s automated tools are also good, though better for larger organizations. These companies have access to fully automated data synchronization that is not available to smaller companies.

SEE: Small businesses looking for the right payroll software will find a helpful guide.

While it’s hard to say that one payroll platform offers better automation than another, ADP includes more quality-of-life features than its competition. Even small businesses can automate messaging, calculations, payments and more. In contrast, Paylocity only allows automated tools for certain manual tasks. The service offers some default automation configurations and only allows users to do things like retroactive payments and automatic calculations for prorated workers. This provides slightly less flexibility.

Global payroll

Paylocity and ADP also offer global payroll. When comparing Paylocity and ADP, one has to argue that the former is better for global payroll solutions. It’s not because ADP’s tools are bad; in some ways they are better than Paylocity. ADP supports global payroll in 140 countries, which is more than Paylocity, but it also lacks flexibility. The service is primarily intended for HR professionals. Additionally, ADP states that its global solutions are designed for businesses with more than 1,000 employees.

Alternatively, Paylocity supports payroll in over 100 countries. However, Paylocity offers live reporting and global employee management. It’s easier for your business to arrange payments around the world.

Tax compliance tools

The tax compliance tools offered by Paylocity and ADP are similar, although ADP has more advantages in comparison. Paylocity is an IRS registered filer, which means it’s easy to stay up-to-date on US taxes. However, if your organization operates globally, ADP offers compliance tools that can be applied to countries around the world. ADP’s SmartCompliance software can even be used with other payroll applications if you choose not to use ADP.

Direct deposit

ADP and Paylocity allow employees to receive their payments directly. While ADP offers classic direct deposit tools, Paylocity offers on-demand payments that allow employees to access payments early. If your organization wants to be flexible when it comes to payments, Paylocity may be the right choice for you.

Mobile application

Both Paylocity and ADP offer mobile apps to manage employees, communicate with teams, initiate payments, and more. Of the two applications, ADP is the most popular tool.

Pros and cons of Paylocity

Figure A

Benefits of Paylocity

• Great global payroll tools.
• Easy customization.
• Great for small to medium-sized organizations.

Disadvantages of Paylocity

• Limited automation.
• Pricing information is not public.
• Absence of features or inexplicable.

Advantages and disadvantages of ADP

Figure B

Advantages of ADP

• Easy scalability.
• Excellent HR tools.
• Flexible payment plans.

Disadvantages of ADP

• Inflexible global payroll.
• Pricing information is not public.

Methodology

This overview contains information compiled from several relevant sources. The above information about the Paylocity and ADP payroll platforms has been collected from users, vendors and reputable third party organizations.

Should the organization use Paylocity or ADP?

Hopefully, this guide has helped you better understand Paylocity and ADP, although you may still be wondering how to choose between them. Quite simply, you need to consider your own business needs. Think about your team, your operations and your current payroll solutions. What are you looking for?

Businesses looking to scale and interested in automation and powerful HR tools should consider using ADP. Paylocity may be more attractive to smaller businesses, especially global businesses. It can also be easier to customize the service if you like it. And remember, neither option is bad. It’s simply a matter of choosing what you think will best benefit your team. With that in mind, it’s hard to go wrong.