ADP vs Paylocity
Side-by-side comparison — pricing, features, ratings, use cases. Find which Payroll fits you best.
🔍 Independently researched ·
📊 Data-driven
57/100
$79 starting
Small and growing businesses with at least 10 employees that need full-service payroll, tax filing, and HR tools without
★ Best
💰 Pricing
Starting at $79 (hybrid)
Fee notes:
- Base monthly fee includes a set number of employees; each additional employee costs $4 per month.
- One-time setup fee may apply (often waived for annual contracts).
- All plans include state unemployment insurance tax management.
- Additional fees may apply for payroll preview outside of scheduled payroll runs.
- For 'RUN Powered by ADP' plans, prices are as of 2025-2026 and may vary by state.
⚠ Watch for:
- Additional employee fees: $4 per employee per month may not be clearly disclosed upfront.
- Late payroll submission fees: may apply if not submitted within cutoff.
- Previously advertised at $29/month for first year with no commitment, but current plans start at $79/month base.
- State-specific fees: some states (e.g., New York, California) may have higher administrative costs.
🔧 Features
✓ Payroll✓ Tax Filing✓ Hr Tools✓ Time Tracking✓ Benefits✓ 900k Businesses✓ Enterprise Grade
📋 Assessment
💪 Strengths
- Full-service payroll with automatic tax filing: ADP handles federal, state, and local tax calculations, filings, and payments automatically. At year-end, they prep and submit W-2s and 1099s, so you don't have to worry about deadlines or errors. This is a massive time-saver and reduces the risk of penalties, especially for multi-state employers.
- Scalability from SMB to enterprise: Whether you have 5 or 5,000 employees, ADP grows with you. You can start with a basic payroll plan and add modules for time tracking, benefits, or HR management as your company expands. This means you won't need to switch providers as you scale, avoiding painful data migrations.
- Built-in HR tools and compliance support: ADP provides access to HR advisors, a library of employee handbooks and training materials, and compliance alerts that keep you updated on changing labor laws. For small businesses without a dedicated HR person, these tools are invaluable and can help prevent costly mistakes.
- Comprehensive benefits administration: Beyond payroll, ADP can manage employee benefits like health insurance, 401(k) plans, and workers' compensation. It integrates with many major carriers and simplifies open enrollment and deductions, giving employees a self-service portal.
- Reliable and established: With over 70 years in business, ADP has a proven track record. Their systems are bank-grade secure, and they handle payroll for millions of employees. If you have complex payroll needs (e.g., unions, garnishments, multiple pay rates), ADP's deep experience is a major plus.
⚠ Watch out for
- Opaque pricing and hidden costs: There's no list price on ADP's website; you must schedule a sales call. Depending on your needs, you might be quoted anywhere from $79 per month for a basic plan to several hundred for more robust features. Additionally, costs can increase after the first year, and some users report unexpected fees for integrations or extra services.
- Slow and manual onboarding: Getting set up on ADP involves a lot of paperwork, including state registration forms and voided checks. It can take several days to a few weeks to get fully operational, whereas competitors like Gusto allow you to run your first payroll within minutes. For businesses in a hurry, this can be frustrating.
- Dated and clunky user interface: The software feels like it's from the last decade — it's menu-heavy, and navigation isn't intuitive. The mobile app is functional but lacks the sleekness and intuitive design of modern payroll apps like those from Gusto or QuickBooks. For tech-savvy users, this can be a significant annoyance.
- Higher cost than some competitors for small payrolls: If you have just a handful of employees and only need basic payroll, ADP is often more expensive than flat-rate options like SurePayroll ($29.99/mo) or Gusto ($49/mo). The extra cost may not be justified if you don't need the advanced HR features.
- Customer support inconsistencies: While ADP offers support via phone, chat, and email, response times can vary. Some users report long hold times, and the quality of support can be hit-or-miss depending on the representative. For a company this size, you'd expect more consistent service.
🎯 Best for
Small and growing businesses with at least 10 employees that need full-service payroll, tax filing, and HR tools without immediately jumping to an enterprise-grade HR suite.
🚫 Who should skip
Very small businesses or solopreneurs on a tight budget that want transparent flat-rate pricing, self-service onboarding, and a simpler all-in-one tool like Gusto or QuickBooks Payroll.
📚 Learning curve
Moderate — setting up tax registrations, employee data, and benefits can take days or weeks, but once configured, daily payroll runs are straightforward.
🧑⚖️ Verdict
Buy ADP if you need a scalable, full-service payroll solution that handles complex tax/filing and HR compliance, especially for multi-state operations. Look elsewhere if you want a low-cost, modern, easy-to-set-up payroll for a small team and don't need advanced HR features. The bottom line: ADP is
26/100
—
Mid-size to enterprise companies (50-1,000+ employees) that need an integrated payroll, HR, benefits, and time tracking
💰 Pricing
Pricing not publicly available
Fee notes:
- Custom pricing: Paylocity does not publicly list fixed prices. Costs vary based on payroll frequency, number of employees, and selected modules.
- Implementation fee: Typically charged for setup and data migration, amount varies.
- Annual contract required in most cases.
- Additional fees for add-ons: benefits administration, time & attendance, talent management, etc.
⚠ Watch for:
- Payroll processing fees per payroll run may exceed base fee, especially for off-cycle runs.
- Fees for each W-2 or 1095-C form may be charged separately.
- Service fees for support beyond standard hours or dedicated support may apply.
- Data migration fees can be significant.
🔧 Features
✓ Payroll✓ Hr✓ Benefits✓ Talent Mgmt✓ Workforce Mgmt
📋 Assessment
💪 Strengths
- All-in-one suite eliminates the need for juggling multiple systems. With payroll, HR, benefits, talent, and workforce management all in one platform, you get seamless data flows. For example, when you approve a time-off request in the HR module, it automatically updates the employee's paycheck and PTO balance — no manual sync needed. This reduces data entry errors and saves administrative time, especially for companies that previously had to reconcile between separate payroll and HR systems.
- The mobile app is truly best-in-class. Employees can clock in and out with GPS or QR code scanning, view paystubs and W-2s, update W-4s, request PTO, and even access their 401(k) contributions. The app also supports employee recognition and social feeds, which can boost engagement. For managers, it allows approval of timecards and time-off requests on the go, so you don't have to be at your desk to run your team.
- Automated tax filing and compliance updates. Paylocity handles all federal, state, and local payroll tax filing, including new hire reporting. It automatically updates tax tables when rates change, and you can receive alerts about filing deadlines. This reduces the risk of penalties for late or incorrect filings, which can be costly. The system also supports multi-state payroll, so if you have employees in multiple states, it calculates the correct taxes for each jurisdiction.
- Powerful reporting and analytics. The built-in report suite includes over 70 pre-built reports, from standard payroll summaries to headcount trends and labor cost by department. You can also customize reports with the drag-and-drop builder. For example, you can create a report showing overtime costs by supervisor, or track benefits enrollment across locations. These insights help you make informed decisions about staffing and budgeting.
- Workforce scheduling with labor cost forecasting. The scheduling tool lets you create shift schedules, assign employees based on skills and certifications, and set shift differentials. It integrates with time tracking to show real-time labor costs versus budget, which is a huge asset for industries like hospitality and healthcare. You can also forecast labor needs based on historical traffic data, helping you avoid overstaffing or understaffing.
⚠ Watch out for
- Pricing is opaque and can get expensive. There's no public pricing; you must contact sales. Costs depend on the modules you choose and the number of employees, with per-employee monthly fees. Small businesses may find it pricey compared to competitors like Gusto or SurePayroll, especially when you add optional modules. Budget-conscious buyers should be prepared for a custom quote and potential sticker shock.
- Implementation can be lengthy and data-heavy. While the vendor provides a project manager, getting everything set up is manual and requires your team to gather employee data, benefit plans, and historical payroll info. Be prepared for a multi-week process (4-8 weeks), and you may encounter data migration hiccups, such as incomplete benefit accrual histories. If you're switching from another provider, you'll need to carefully validate the first few payroll runs.
- Customer support consistency is a concern. While some users praise the phone and chat support, others report long wait times during peak periods (like January or after tax season), and occasional cases that take days to resolve. The knowledge base is extensive but not always up to date. If you encounter a payroll deadline issue, you might find yourself on hold for longer than you'd like.
- The sheer feature set can overwhelm small teams. With so many modules, the UI can feel cluttered, and you may need to train your HR staff on multiple workflows. For companies with simple payroll needs, this complexity is unnecessary. You might find yourself paying for features you don't use.
🎯 Best for
Mid-size to enterprise companies (50-1,000+ employees) that need an integrated payroll, HR, benefits, and time tracking platform with strong tax compliance and self-service tools.
🚫 Who should skip
Very small businesses or startups that need simple, low-cost payroll with minimal HR features, and freelancers/solopreneurs who don't need comprehensive workforce management.
📚 Learning curve
Moderate — the breadth of features and customization options require training for administrators, though employee-facing tasks are mostly intuitive.
🧑⚖️ Verdict
Paylocity is a robust, all-in-one HCM platform best suited for mid-size companies (50-1000+ employees) with complex payroll needs and the resources to handle a lengthy implementation. If you're a small business with fewer than 25 employees, consider a simpler, cheaper solution like Gusto. Bottom lin
📊 Use Case Suitability
Higher score = better fit. Scores from editorial review.
Use CaseADPPaylocity
Automated Payroll Runs95—
Full-service payroll processing is core to ADP, with reliable direct deposit sch
Multi-state Tax Compliance90—
ADP has deep tax expertise and files federal, state, and local payroll taxes acr
HR Compliance and Employee Handbooks84—
ADP's HR tools include state-specific compliance guides, employee handbooks, tra
Paid Time Off and Time Tracking82—
Built-in time tracking and PTO management flow into payroll, reducing manual dat
Benefits Administration78—
Higher-tier ADP plans can manage health insurance enrollment, deductions, and be
Mid-size company payroll processing and tax compliance—92
Paylocity automates payroll calculations, tax filings, and year-end reporting, w
Unified HR and benefits administration—88
It combines HR records, benefits enrollment, payroll, and time tracking in one p
Workforce scheduling and labor cost management—85
Built-in time clocks and scheduling tools help optimize shift coverage and calcu
🧭 Which One Should You Pick?
Choose ADP if...
- You are: Small and growing businesses with at least 10 employees that need full-service payroll, tax filing, and HR tools without
- 👍 Reliable full-service payroll with automatic federal, state, and local tax filing, including year-en
- 👍 Scalable from small businesses to large enterprises, so you can stay with ADP as your company grows.
- 👍 Built-in HR tools, such as employee handbooks, compliance alerts, training, and HR advisor access, a
- 💰 From $79/mo
- ⚠ Trade-off: No transparent pricing — you must request a quote, and costs can be higher than
Choose Paylocity if...
- You are: Mid-size to enterprise companies (50-1,000+ employees) that need an integrated payroll, HR, benefits, and time tracking
- 👍 Comprehensive all-in-one platform: payroll, HR, benefits, talent, and workforce management in one pl
- 👍 Strong employee self-service mobile app that lets staff view paystubs, update W-4s, request PTO, and
- 👍 Automated tax filing and compliance updates across all 50 states, which helps reduce payroll tax pen
- ⚠ Trade-off: Pricing is opaque and can become expensive as you add modules or per-employee fe
❓ Frequently Asked Questions
Is ADP really free?
No standalone free plan is available for payroll. The 'free' listing usually refers to a free quote, demo, or trial period — full-service payroll requires a paid subscription that varies by company size and payroll frequency.
What does ADP payroll actually cost?
ADP does not publish public pricing because quotes depend on number of employees, pay frequency, and selected modules. You can expect a monthly base fee plus a per-employee fee, and add-ons like benefits administration or advanced reporting increase the price.
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