ADP vs. Paylocity: A complete comparison

Payroll is a major component of a business’s operational backbone. Businesses need to ensure they pay employees accurately and on time while adhering to the compliance requirements set by frequently changing regulations. With so much at stake, choosing the right payroll software can feel overwhelming.

Both ADP and Paylocity offer powerful tools, but which one, if either, delivers what your business needs?

In this article, we break down ADP vs. Paylocity, feature by feature, so you can choose the HR tech that fits your business. Whether you’re scaling a startup or managing a multi-location enterprise, this guide can give you the clarity you need to make the right call.

We’ll also introduce a smarter alternative: Rippling, the all-in-one platform that can make payroll and HR effortless for businesses of every size.

ADP vs. Paylocity overview

When comparing ADP vs Paylocity, understanding their core offerings can help you decide which aligns best with your payroll needs. Below is a side-by-side comparison of key features to give you a quick snapshot of how these platforms stack up: 

ADP vs. Paylocity: Payroll and HR features

When it comes to functionality, ADP and Paylocity take different approaches. Here’s a breakdown of their standout payroll and HR features, so you can see how each platform might support the specific needs of your business:

ADP features

• Global payroll support: ADP simplifies managing payroll across multiple countries with features like multi-currency support and compliance tools tailored to local regulations. This can be especially valuable for businesses with an international workforce or plans for global expansion.
• Comprehensive HR suite: The platform covers a wide range of core HR needs, including recruiting, benefits administration, and performance management. 
• Customizable payroll scheduling: ADP allows businesses to set payroll runs based on specific needs, such as weekly, biweekly, or monthly pay periods. 
• Time and attendance tracking: The platform integrates time tracking with payroll to automate overtime calculations and reduce manual errors. It helps businesses maintain accurate payroll processing with fewer administrative tasks.

Paylocity features

• Automated payroll processing: Paylocity automates tasks like tax calculations, direct deposits, and compliance monitoring. This streamlines payroll and reduces the chance of errors.
• HRIS (Human Resources Information System): Paylocity centralizes employee records, onboarding processes, and performance data in one system. Businesses can gain efficiency and improve organizational management with its all-in-one design.
• Employee self-service access: Paylocity provides a portal for employees to view pay stubs, access tax forms, and submit time-off requests.
• Compliance and reporting tools: Paylocity includes features that monitor regulatory updates and help keep businesses compliant with labor laws. Its reporting tools can help leaders analyze workforce trends and make informed decisions.

ADP vs. Paylocity: Integrations

Both ADP and Paylocity offer a wide range of integrations to enhance their payroll and HR functionalities. These tools connect seamlessly with other platforms to streamline workflows, improve data accuracy, and reduce manual work. Below are a few examples of integrations offered by each platform, highlighting how Paylocity and ADP compare:

ADP

• QuickBooks: ADP connects with QuickBooks to simplify accounting processes by syncing payroll data directly into financial records.
• Xero: The Xero integration allows ADP users to manage payroll and bookkeeping easily, while eliminating the need for manual entries.
• Workday: This integration links ADP’s payroll system with Workday’s HR and talent management platform, creating a unified system for workforce management.

Paylocity

• Bank of America: Paylocity integrates with Bank of America to facilitate direct deposits and streamline payroll distribution.
• UnitedHealthcare: This integration links payroll with benefits management, simplifying insurance enrollment and updates for employees.
• Vanguard: Paylocity connects with Vanguard to manage employee retirement plans, providing easy access to contributions and balances.

ADP vs. Paylocity: Scalability

Scalability is a significant factor for businesses when selecting payroll and HR platforms. Both ADP and Paylocity cater to businesses of different sizes, but their approaches to scaling differ. Below is an overview of how each platform supports small, medium, and large businesses:

ADP scalability

ADP offers solutions designed to grow alongside businesses. Its range of plans, from the basic Do It Yourself option to enterprise-level solutions like Workforce Now, provide options to businesses. With global payroll capabilities, ADP supports companies operating across multiple countries, handling multi-currency payroll and compliance with international regulations. Customizable features allow businesses to tailor the platform to their evolving needs, adding more advanced HR tools as they scale.

Additionally, ADP provides flexible pricing models based on workforce size and selected services. As such, ADP can be a scalable solution for startups, large enterprises, and everything in between.

Paylocity scalability

Paylocity primarily focuses on supporting small to midsize businesses, offering cost-effective solutions that make scaling more accessible. Paylocity’s intuitive design ensures that businesses can efficiently manage workforce expansion without requiring extensive training or onboarding.

The platform’s HRIS (Human Resources Information System) centralizes employee data and simplifies HR workflows, which can make it easier to handle larger teams as businesses grow. However, Paylocity primarily serves domestic markets, with limited international support. As such, it's typically a better option for businesses that don’t plan on global expansion. 

ADP vs. Paylocity: User experience

Usability, interface design, and accessibility are essential factors when selecting a payroll and HR platform. When it comes to user experience, ADP and Paylocity generally cater to the needs of their target markets. Below is an overview of how each platform performs based on user feedback and features:

ADP user experience

ADP provides a feature-rich platform with powerful tools for businesses of all sizes. Its interface, while comprehensive, can often feel overwhelming for new users, particularly those managing smaller teams or without prior experience with enterprise-level HR software. ADP tries to compensate for this complexity with thorough onboarding and training resources, including tutorials and 24/7 customer support.

The platform’s mobile app extends many core functions, allowing employees to access their payroll information, benefits, and time-off requests on the go. However, some users report that the app’s navigation could be more intuitive, particularly when compared to newer, more streamlined systems. ADP’s user experience tends to shine for larger organizations with the resources to fully leverage its extensive features, though it may pose a steeper learning curve for smaller teams.

Paylocity user experience

Paylocity focuses on providing an intuitive and user-friendly interface that resonates with small and midsize businesses. The platform simplifies common tasks like payroll processing, time tracking, and compliance reporting.

The Paylocity mobile app enables employees to view pay stubs, update personal information, and manage time-off requests. Employers benefit from clear workflows and well-organized dashboards that streamline payroll and HR tasks.

While Paylocity excels in usability, some users note that its features may lack the depth needed for larger or more complex organizations. The focus on simplicity and affordability aligns with the needs of smaller teams, but businesses requiring advanced customization options may find it less versatile than ADP.

ADP vs. Paylocity: Pros and cons

Both ADP and Paylocity have unique strengths and weaknesses. Here's a balanced look at the advantages and limitations of each platform to help you weigh your options:

ADP

Pros

• Scalability: ADP offers a range of plans for small businesses, mid-sized organizations, and large enterprises.
• International payroll: With multi-currency support and compliance tools for global regulations, ADP can be a good option for businesses with international operations.
• A range of  HR tools: ADP provides comprehensive HR capabilities, including benefits management, talent acquisition, and workforce analytics, reducing the need for multiple systems.

Cons

• Higher costs: ADP’s extensive features often come with a premium price, which may be less appealing for smaller businesses or those on tight budgets.
• Steep learning curve: The platform’s advanced capabilities can often feel overwhelming for new users, requiring additional time and resources for training and onboarding.

Paylocity

Pros

• Affordable for smaller businesses: Paylocity’s pricing structure can be cost-effective depending on needs, making it accessible to small and midsize businesses.
• User-friendly interface: The platform prioritizes simplicity, enabling HR teams to quickly navigate its tools.
• Employee self-service: Paylocity empowers employees with a self-service portal to manage payroll details, time-off requests, and benefits information independently.

Cons

• Fewer customization options: Compared to ADP, Paylocity offers fewer opportunities for advanced customization, which may limit its appeal for larger organizations with specific needs.
• Limited international support: Paylocity is typically a better choice for businesses operating within the US, as it has minimal capabilities for handling global payroll.

Should your company use ADP or Paylocity?

Each platform caters to different types of organizations, offering specific strengths that may align better with certain use cases.

ADP might be a better fit for businesses with international operations or those planning for significant growth. Companies that require advanced features, such as multi-currency payroll or enterprise-level benefits management, may benefit from ADP’s offerings.

Paylocity, on the other hand, generally serves small to midsize businesses looking for an affordable and user-friendly solution. Its simplified interface and cost-effective pricing can make it an attractive choice for teams with limited resources or less complex requirements. Paylocity’s focus on employee self-service and streamlined HR functions can make it an appealing choice for businesses seeking efficiency without sacrificing usability.

The “best” choice depends entirely on the specific priorities of your company. Consider factors such as workforce size, growth plans, payroll complexity, and budget constraints to determine which platform aligns with your goals. 

Rippling: Payroll software for businesses of every size

If you're seeking a truly unified solution, Rippling stands out as a superior alternative to both ADP and Paylocity. Unlike traditional payroll systems that either focus on one function or have added on modules piece by piece, Rippling integrates HR, IT, and finance into one innovative platform. Built on a single source of truth, the Rippling streamlines operations, enabling you to manage your workforce more efficiently. 

• Global payroll capabilities: With Rippling, you can run payroll for employees and contractors, no matter where they are in the world. The platform automatically handles local tax filings in over 50 countries.
• All-in-one workforce management: Rippling allows you to manage not only payroll but also employee benefits, compliance, onboarding, and more, all in one place. 
• Faster onboarding: Rippling sets up new hires with payroll, benefits, apps, and devices in just 90 seconds, ensuring a seamless start for employees while saving HR teams significant time.
• Automation across systems: By integrating HR, IT, and Spend, Rippling automates repetitive tasks like employee data syncing, so changes update across every connected system instantly.

Rippling’s modern platform goes beyond traditional payroll software by offering an unmatched level of flexibility and integration:

• Rippling is the only platform that unifies all workforce systems, from payroll to benefits to devices, in one connected system.
• You can effortlessly manage your workforce, IT tools, and expenses globally, eliminating the need for multiple disconnected systems.
• Rippling helps you manage compliance across various jurisdictions with ease, helping you stay up to date with local regulations automatically.

Whether your business is a startup or a global enterprise, Rippling provides the tools to scale efficiently and manage a modern workforce with confidence. 

ADP vs Paylocity FAQs

Which platform offers better compliance support?

ADP offers more advanced compliance support than Paylocity, particularly for businesses operating in multiple states or countries. It does this through built-in tools and the monitoring of regulatory changes. Paylocity also provides compliance tools, but focuses more on domestic businesses.

How do ADP and Paylocity handle data security?

Both platforms prioritize data security to protect sensitive employee and business information. ADP uses advanced encryption protocols, two-factor authentication, and regular audits to ensure data safety. Paylocity also employs thorough security measures, including compliance with SOC 2 standards, to safeguard payroll and HR data. 

Do ADP and Paylocity offer APIs for integration?

Yes, both platforms provide APIs to integrate with third-party systems. ADP’s API capabilities support extensive customization and integration with various tools, such as accounting software, HR systems, and ERPs. Paylocity also provides an API that streamlines data sharing between platforms, focusing on small to midsize businesses with basic connectivity needs.

Do ADP and Paylocity provide end-to-end payroll solutions?

Both platforms offer end-to-end payroll solutions. ADP supports every stage of the payroll process, including onboarding, tax filing, benefits deductions, and compliance management. Paylocity also provides a comprehensive payroll solution, automating tax calculations, direct deposits, and reporting. 

How do I choose the best payroll software for my business?

Choosing the right payroll software requires a thoughtful, step-by-step approach to match your business’s unique needs. Here’s how to make an informed decision:

1. Assess business size and structure: Identify your workforce size, locations, and whether you employ salaried, hourly, or contract workers.
2. Identify key features: Determine must-have tools such as automated tax filing, direct deposits, time tracking, and compliance management.
3. Evaluate scalability: Choose software that supports business growth, including workforce expansion and complex compliance needs.
4. Check integrations: Ensure compatibility with existing tools, like accounting software, HR platforms, or time-tracking apps.
5. Review user experience and support: Look for intuitive interfaces, mobile apps, and responsive customer service.
6. Consider pricing: Make sure the pricing structure fits your budget and accounts for future growth or additional features.
7. Ensure security and compliance: Verify vigorous data protection features and compliance support for tax and labor laws.
8. Explore all-in-one solutions: Platforms like Rippling combine payroll, HR, IT management, and Spend into a single system, streamlining operations for businesses of all sizes.

This blog is based on information available to Rippling as of January 8, 2025.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.