Payroll isn’t easy.
Small businesses often struggle with processing paychecks because they aren’t efficient manually or use software that’s too complex. As a result, more than 40 percent of SMBs are fined about $850 a year for payroll errors. And 49 percent of Americans start looking for a new job if they experience two errors in their paychecks.
To avoid these issues, small and midsize businesses (SMBs) need easy-to-use payroll software that helps them remain compliant with regulations.
Since you’re reading this, you already know about or use Paylocity’s payroll solution, called Web Pay. The solutions works for most businesses, regardless of size or industry type. Paylocity also helps businesses manage human resources, benefits, talent as well as time and labor. These features are also offered in its mobile app.
Paylocity features in Software Advice’s list of FrontRunners for Payroll Management as one of the top solutions in the market.
But if you don’t think that Paylocity doesn’t fit your requirements, there are other solutions that offer different features and are easier to use.
Below, we’ve listed five competitors of Paylocity that also feature in our FrontRunners for Payroll. Software users on our website rate these solutions highly for their ease of use.
Here are five of the top competitors to Paylocity:
ADP Workforce Now
ADP Workforce Now
ADP Workforce Now is a cloud-based HR suite, with payroll being a major offering. The solutions are offered as part of an integrated platform with an accompanying mobile app.
If you’re considering ADP Workforce Now, ensure you have at least 50 employees to get the most benefits from the software.
Like Paylocity, ADP offers the payroll feature as a complete solution on its own. Payroll features include payroll processing, tax filing, new hire reporting, online pay statements, standard reports and a wage garnishment processing service. But add-ons in ADP include data analytics and expert advice.
There are some differences as well in both solutions, though. ADP Workforce Now offers general ledger as an add-on that costs extra, unlike Paylocity. Also, small businesses with less than 50 employees may find some of the standard payroll offerings unnecessary.
Here’s an overview of what users like about ADP Workforce Now and some improvements they’d like to see:
Paycor Perform is an integrated HR solution platform that suits SMBs businesses across various industries.
A USP of Paycor Perform is that it allows users to manage child support services online.
The solution also handles tax notices about payroll compliance from the IRS. It alerts businesses about any errors or issues regarding changes in pay or non-payment to an employee. These help fix potential issues before each payment cycle.
Both Paylocity and Paycor Perform have feature-rich mobile apps that allow employees to access their pay stub history, W-2s and 1099s online. They’re also able to resolve queries via the self-service feature.
As for the differences, Paycor Perform offers customized general ledger integration as an additional feature, while it’s part of the core payroll in Paylocity. But Paycor has various payment options, such as Paycards (similar to direct deposit accounts) and Paycor Official Checks (requires a Paycor bank account) for secure and easy checking.
Check out the graphic below to understand what users like and want to improve in Paycor Perform:
Paychex Flex is a web-based solution with a single platform and login for its various offerings.
Paychex Flex is among the oldest payroll processing solutions in the market, with more than 45 years of industry experience.
The vendor offers a tiered customer support program. Like Paylocity, Paychex Flex provides the services of experienced payroll professionals to its clients.
While Paylocity’s experts help customize general ledgers, accruals and complex reports, Paychex Flex has a dedicated payroll specialist as a single point of contact between the company and client.
A key difference between the vendors is the additional offerings that Paychex Flex provides. For example, the basic Express Payroll package offers 24/7 customer support, an employee financial wellness program, direct deposit and/or paycards, payroll tax administration and new hire reporting.
Another differentiator is that Paychex Flex offers payroll solutions based on business size, starting from 1-9 employees to over 1,000. Based on their size, businesses can choose the features and support program they need.
The graphic below highlights user reviews of and recommendations for Paychex Flex:
UltiPro‘s cloud-based HR suite includes payroll services in both US and Canadian dollars.
The solution helps companies deal with the complex calculations for shift premiums, pieceworker and makeup pay, average pay rates for overtime calculations as well as garnishments and levy calculations.
UltiPro aims for leaner and more efficient HR processes. Likewise, Paylocity’s Web Pay payroll management solution emphasizes the digital process of payments over the traditional paper-based on for greater transparency, ease and accuracy.
UltiPro differs from Paylocity as it considers all tax jurisdictions, including local tax rules as well as the federal tax rules of US and Canada. It can also be configured to process payroll outside these countries, with localizations based on clients’ preferred payroll provider.
Below is a graphical view of what users like and dislike about UltiPro:
The Workday HR suite feeds data from its HR, benefits, compensation and time tracking entries into the payroll feature. This makes it easy to calculate accurately and reduce multiple or manual entries.
Workday has programs that help companies integrate with regional and local payroll/tax calculation providers to manage employees in the US, Canada, UK and France.
Similar to Paylocity, Workday offers payroll in its human capital management (HCM) suite. The integrated system makes it easy to manage the hire-to-pay process with payroll, time tracking and other HCM features.
Workday added multi-factor authentication in January 2018 to increase security. This can stem phishing attacks on devices. But Paylocity has been offering this feature since 2016. Also, Workday targets larger SMBs and enterprise customers, unlike Paylocity which caters to small businesses as well as larger ones.
Check out the graphic below to understand what users like and dislike about Workday:
You should compare payroll software to find other Paylocity competitors and alternatives with better offerings and suitability to your business type and size. For more information, reviews and screenshots of these solutions, check out their pages on Software Advice:
We’ve got more comparison reports for some of the alternatives mentioned here. Here’s a quick list for your benefit:
- Top ADP Competitors
- Paylocity vs. Paychex Flex
- Paylocity vs. ADP
- ADP vs. Paychex
- Namely vs. Workday HCM
You can also call our advisors for a FastStart Consultation at (844) 675-2849. They will help you narrow down the options based on your unique needs and the state of your business. You can find out more solutions that have worked well for similar buyers in your industry.