Paycom vs. Paylocity: 2026 Comparison

Both platforms address core payroll management needs such as tax compliance, garnishment management, and expense processing. However, Paycom's approach leans towards automation and direct employee involvement in payroll accuracy, while Paylocity provides a more administrator-centric system with pre-processing checks and customization options. The suitability of each platform depends on an organization's specific operational style and priorities regarding automation and employee responsibility in the payroll process. Paylocity offers automated payroll processing, a pre-submission audit system, and tools for tax compliance, including geolocation support. It integrates with benefits and retirement plans, manages garnishments, and facilitates global payroll. Additional functionalities include expense management and reporting capabilities and the system allows for customization in areas like check types and time-off accruals.

Paycom also focuses on automation, notably through its proprietary employee-driven payroll verification feature (Beti®), which aims to reduce errors before processing. It handles tax filings and payments across various levels and automates garnishment administration. The platform also offers expense management and integrates payroll data with general ledger systems. Its design emphasizes streamlining payroll tasks and providing employees with visibility into their pay information.

Payroll management for Paylocity:

Among the reviews evaluated, 96% rated Paylocity’s payroll management feature as important or highly important, with an average satisfaction rating of 4.4/5. Users value the ease of accessing payroll records and making changes to tax forms, alongside the automation of payroll tasks, accurate tax calculations, and the ability to track payroll history. This suggests that Paylocity caters well to businesses that need a reliable and efficient payroll solution to streamline their operations and ensure compliance with tax regulations

Payroll management for Paycom: 

A majority of reviewers (93%) rate Paycom’s payroll management capabilities as important or highly important, with an average satisfaction rating of 4.6/5. Its strengths lie in payroll management accuracy, ensuring timely and correct employee payments, tax withholdings, and financial reporting. The automation of payroll processes and the positive reception of the ‘Approve My Check’ feature suggest Paycom is well-suited for businesses that need to manage their payroll operations and prioritize employee involvement in verifying payroll accuracy before processing.

Both platforms offer direct deposit capabilities, but Paycom focuses on automating the payroll process and employee verification, while Paylocity emphasizes self-service and on-demand pay. Paylocity allows staff to manage bank account information and allocate funds. Specifically, employees can add or edit their banking details and split their pay across multiple accounts, a feature particularly highlighted by reviewers for its convenience. Paylocity employs various security measures, including data encryption, multi-factor authentication, and regular security audits to protect data. Additionally, the platform offers on-demand pay options, enabling employees to access their earned wages early. Reviewers also emphasize that the mobile app provides easy access to paystubs.

Paycom’s payroll verification feature allows employees to review and verify pay details before processing, streamlining direct deposits and reducing errors. It handles wage garnishments and offers Paycom Pay, where paychecks are issued from Paycom's account to simplify reconciliation. Paycom also provides a direct deposit alternative via a reloadable prepaid debit card. The platform similarly implements several security measures, including encryption for data in transit and storage, multi-factor authentication, and security audits. Overall, reviewers appreciate the convenience and efficiency of direct deposits, highlighting Paycom’s ability to save time and reduce the risk of lost or stolen checks.

Direct deposit for Paylocity:

Paylocity's direct deposit feature earned an average rating of 4.7/5, with 93% of reviews rating it as important or highly important. Users highlight its integration with payroll, which simplifies the payout process, and the mobile app that allows for easy access to paystubs. 

Direct deposit for Paycom: 

All reviewers (100%) rate Paycom’s direct deposit capabilities as important or highly important, and it received an average satisfaction score of 4.9/5. Paycom's effectiveness in ensuring timely payments and simplicity of use makes it a suitable choice for users who prioritize reliable and easy-to-manage payroll.

Both platforms enable businesses to support their payroll reporting needs, but Paylocity provides a set of customizable reporting options, while Paycom focuses on streamlining the integration of payroll data with accounting processes.

Paylocity offers a range of standard payroll reports and also provides customizable reporting options, allowing businesses to adjust reports to their specific requirements. This includes tools for in-depth analysis of payroll data and trends, and the ability to create custom reports. Paylocity's reporting capabilities allow users to analyze data, detect trends, and create custom reports. Finally, the platform also offers a variety of pre-built reports, including payroll journals, tax reports, deduction reports, and employee earnings reports.

Paycom also comes with reporting tools, with a focus on streamlining the process of integrating payroll data with accounting systems. The platform includes features for generating payroll general ledger reports, designed for direct and simplified import into various accounting software. The general ledger mapping feature allows users to align payroll data with their chart of accounts, while customizable report formats enable users to tailor their reports to meet the specific requirements of their accounting software. Additionally, Paycom's ‘Direct Data Exchange’ tool provides live insights into HR and payroll analytics.

Payroll reporting for Paylocity:

Among the reviews evaluated, 90% rated Paylocity’s payroll reporting feature as important or highly important, with an average satisfaction rating of 4/5. Users highlight the reporting system for its ease of use and the range of standard and custom reports available. This suggests that Paylocity is a suitable choice for businesses seeking flexible reporting options to accommodate various payroll requirements.

Payroll reporting for Paycom:

A majority of reviewers (90%) rate Paycom’s payroll reporting capabilities as important or highly important, with an average satisfaction rating of 4.4/5. Its strengths in financial record-keeping tools, mobile app access, and rapid report generation, making it well-suited for businesses that need analytical control over their financial data and prioritize the convenience and efficiency of accessing payroll reports on mobile devices.