Paycom vs. ADP: Comparison of payroll and HR features

Choosing the right payroll HR solution can be a crucial business decision. Whether you’re the director of HR at an enterprise organization, an HR manager at a midsize firm, or a small business owner, you need a platform that can handle your unique needs, from payroll processing to time tracking, employee benefits administration, and beyond. With so many platforms on the market, picking the right solution for your employees is no small feat. That’s why, if you’re stuck comparing Paycom vs. ADP, you’re far from alone.

Paycom and ADP are two powerful and well-known payroll service providers. Both also offer robust HR software solutions that can help small businesses, midsize organizations, and large employers streamline their workflows—from handling compensation and taxes, to simplifying onboarding, employee benefits, compliance, and other administrative tasks. And while both Paycom and ADP manage payroll effectively, each excels in different areas, whether it’s offering access to comprehensive employee benefits, powerful third party integrations, or a convenient self service portal for employees. Furthermore, both platforms cater to various business sizes and industries, with Paycom often recommended for medium to large employers, and ADP Run and ADP Workforce Now often favored by small businesses and those needing scalable solutions.

In this article, we’ll break down the main differences, focusing on payroll software features, HR tools, integrations, and customer support. As you compare these platforms, keep in mind that there are other great payroll solutions and HR software options out there, like Rippling, a powerful alternative that can help employers process payroll, streamline benefits, automate compliance, and more, all within one intuitive HCM system.

What are the main differences between Paycom and ADP?

Overview

Both Paycom and ADP are well-known payroll providers, but their feature sets differ in ways that might matter to your organization—whether you’re a small business or a larger employer looking for advanced HR software. Let’s look at a few key features side-by-side:

Paycom vs. ADP: Payroll features 

When it comes to payroll features, both Paycom and ADP payroll tools provide what employers need to run payroll accurately. Their payroll solutions can help you process payroll, handle compensation, manage payroll taxes, and reduce manual work through automation. Still, there are important differences:

• Paycom: Uses Beti, its proprietary payroll automation tool, to give employees access to a self service portal to approve their pay amounts before payroll runs are finalized. With Paycom, you can easily manage payroll, track compensation, and handle payroll tax filing. Paycom’s payroll software is known for robust features that streamline the payroll process for midsize and larger employers.
• ADP: Offers a suite of flexible payroll services, including ADP Run, a simple payroll service geared toward small businesses, and ADP Workforce Now, a more comprehensive HR platform. This makes ADP payroll software highly scalable, serving small businesses, midsize organizations, and large enterprises. ADP can handle complex payroll needs, from multi-state tax filings to industry-specific compensation structures. ADP payroll systems also integrate seamlessly with their PEO offerings and other HR tools.

Paycom

1. Self-service payroll app for employees

Paycom’s payroll solution includes a user-friendly self service portal and a mobile app that allows employees to view their paychecks, use their paycard, track hours, and submit expenses. With Beti, Paycom guides employees through reviewing and approving their own payroll data before finalizing payroll runs, which gives employees access to real-time compensation information and can help reduce payroll errors.

2. Expense reimbursement management 

Paycom’s payroll software includes expense reimbursement tools. This helps employers and employees handle compensation for mileage, travel, or other expenses without relying on third party systems. All reimbursements are integrated directly into the payroll process, which helps with timely payouts.

3. Mileage tracking and reporting

With Paycom’s payroll solution, employees can record mileage within the platform, streamlining tracking for expense and reimbursement purposes. This eliminates the need for third party mileage software and ensures accurate compensation for employees on the go.

ADP

1. AI support to file taxes

ADP’s payroll solutions, including ADP Run, integrate AI to help manage payroll taxes more efficiently. This feature reduces manual work and errors in payroll tax calculations, so employers can stay compliant with local and federal regulations with less administrative overhead. It’s especially helpful for small businesses and midsize organizations looking for reliable payroll tax compliance.

2. PEO services

ADP stands out with its professional employer organization (PEO) offerings. Employers can outsource critical HR tasks and benefits administration to ADP’s PEO services, gaining access to robust employee benefits, compensation benchmarking, and comprehensive payroll solutions without hiring additional internal HR staff.

3. Specialized payroll by industry 

Whether you’re running a small business or a larger company, ADP can adapt to specific industry requirements. From healthcare to retail, ADP payroll and HR software can handle nuanced compensation structures and ensure your employees receive accurate paychecks.

ADP vs. Paycom: HR features 

Beyond payroll software, both Paycom and ADP offer full HR software suites that can assist with onboarding, time tracking, employee benefits administration, and more. They help employers create a streamlined HR solution that covers the employee lifecycle from hiring to retirement.

• Paycom: Known for robust HR software capabilities, Paycom simplifies many aspects of HR—from onboarding to compensation management, time tracking, and more. Paycom benefits administration is another appealing feature. Paycom’s platform covers virtually every HR function for medium to large employers.
• ADP: ADP Workforce Now is designed to scale. Smaller organizations often start with ADP Run for payroll services and later upgrade to ADP Workforce Now as they grow. With ADP, small businesses can start simple, adding more advanced HR features like ZipRecruiter job postings, benefits administration, and background checks as they scale into midsize territory.

Paycom

1. Time and attendance 

Paycom HR provides a built-in time tracking system, eliminating the need for third party tools. Employees access their hours, request time-off through the self service portal, and ensure accurate compensation for every hour worked. The integrated time tracking reduces errors and makes it easier to process payroll.

2. Customizable learning management system (LMS)

Paycom offers a customizable LMS so employers can train employees efficiently. This LMS integrates with onboarding, making it easier to provide employees access to training materials as soon as they start, and helps HR monitor progress for improved compensation strategies and compliance.

3. On-demand paychecks before payday

Paycom allows employees to get paychecks before the official payday, if approved, which gives employees more financial flexibility and sets Paycom apart from some other payroll providers. This feature can appeal to employees and improve their experience using the platform.

ADP

1. ZipRecruiter job posting 

ADP integrates with ZipRecruiter, allowing employers to seamlessly post ZipRecruiter job listings directly from the platform. This reduces reliance on third party systems, helps with recruiting and onboarding new employees, and integrates seamlessly with ADP Workforce Now’s native recruiting features.

2. Employee self-onboarding

ADP’s HR software offers streamlined onboarding tools. Employees access a self service portal to complete paperwork, upload documents, and review employee benefits and compensation details. This cuts down on manual administration tasks and makes for a smoother process when new hires start work.

3. Background checks

ADP’s HR solution includes background checks, so employers can verify new hires’ credentials directly without relying on multiple third party providers. This helps with compliance, enhances security, and streamlines the hiring process.

Paycom vs. ADP: Integrations

Integrations are an important consideration when choosing payroll and HR software. Both Paycom and ADP offer third party integrations, but ADP generally supports a wider range of options, including leading HR tools and productivity platforms. Paycom focuses on delivering many capabilities in-house, reducing the need for too many third party apps, while ADP’s marketplace integrates with various external software solutions, such as Greenhouse and Lattice.

Paycom

1. Applicant tracking systems (ATS)

Paycom can integrate with select third party ATS solutions, streamlining recruitment and onboarding.

2. Accounting software

Paycom supports basic accounting integrations to simplify compensation entries and tax reporting.

3. HCM tools

Paycom offers an HCM suite, though most features are native, minimizing the need for multiple third party integrations.

ADP

1. Greenhouse

ADP Workforce Now integrates easily with Greenhouse, a leading recruiting software, enabling seamless onboarding for new hires.

2. Lattice

By integrating with Lattice, employers can link performance reviews and compensation data directly into ADP Workforce Now.

3. Accounting platforms

ADP Run connects with top accounting software, helping small businesses and midsize employers simplify administrative tasks and manage payroll taxes more efficiently.

ADP vs. Paycom: Customer Support

When evaluating payroll providers, don’t forget to consider customer support. Both Paycom and ADP have robust customer support offerings to help with tax questions, payroll runs, onboarding, and more.

Paycom

Paycom offers 24/7 phone customer support and provides a dedicated payroll specialist for every client. This means employers always have a go-to contact for help with payroll processing, tax compliance, and other questions that may arise. Employees can access assistance through a user-friendly self service portal as well.

ADP

ADP offers 24/7 phone and email support, plus dedicated payroll and tax professionals to guide employers through challenges. One advantage: ADP generally receives fewer customer complaints than some competitors, making it a strong choice for those who value responsive customer support. 

Who is Paycom for? 

Paycom is a solid choice for medium to large employers. Its robust HR software includes everything from time tracking to employee benefits administration and PEO integrations—it’s a comprehensive HR solution for employers that want full-service administration under one roof.

Paycom’s payroll solution, Beti, offers guided payroll runs, and AI tools to handle complex compensation structures, multiple pay schedules and more.

Paycom integrates payroll and many other HR features into one platform, reducing the need for other software. Its emphasis on automations and a dedicated payroll specialist can simplify implementation and ongoing administration.

Who is ADP for?

ADP’s broad offerings, from ADP Run to ADP Workforce Now, are a great choice for smaller organizations that want to start simple and scale as they grow. Small businesses with fewer than 50 employees often find ADP Run particularly appealing, and as the company grows into a midsize employer, it can easily add more features with the more comprehensive Workforce Now platform.

With ADP payroll services, employee benefits options, and PEO solutions available, ADP can handle the entire lifecycle from small business startup to midsize enterprise. ADP offers benefits administration, built-in time tracking, third party integrations, scalable compensation tools, PEO services, and many other features that make it a reliable payroll provider and help streamline HR processes according to your business needs.

Rippling: The best alternative to Paycom and ADP

Paycom and ADP aren’t the only options for businesses looking for powerful payroll and HR solutions. There’s another platform you need to consider: Rippling.

Rippling Payroll is intuitive, easy to use, and has a 100% error-free guarantee on every pay run. It also offers 600+ integrations, automatic tax registration and filing, and a dedicated mobile app where your employees can view their W-2s and paystubs, submit expenses directly, and more. With Rippling, you can:

• Pay employees and contractors in the same platform
• Manage time and attendance natively 
• Run unlimited off-cycle pay runs at no extra cost 
• Set up multiple pay schedules, pay rates, and pay types in just a few clicks 
• Add recurring reimbursements (like cell phone payments, gym memberships, etc.) that are automatically paid out every pay period, monthly, or at whatever interval you choose
• Automatically calculate prorated pay runs for new or promoted employees 
• Manage all currency conversions, including payroll adjustments 
• Automatically calculate overtime for every country 
• Make changes after submitting payroll

But Rippling is much more than just payroll software—it’s a powerful HCM that makes your HR department more strategic and productive with time-saving automations, better decision-making, and a modern, intuitive experience employees love. Rippling is the only true all-in-one HR platform. Our product breadth and depth mean you’ll save all the time and money you currently spend connecting disparate systems. See how companies that run on Rippling perform better.

Paycom vs. ADP FAQs

What industries are best suited for Paycom vs. ADP?

Paycom often suits midsize to large employers that need extensive HR software, while ADP’s scalable plans fit small businesses and midsize companies looking to grow over time.

How do Paycom and ADP handle compliance and legal support?

Both support payroll tax filings and compliance checks. Paycom offers dedicated payroll specialists, while ADP integrates tax and compliance features into its ADP Run and ADP Workforce Now platforms.

Can Paycom or ADP handle global payroll and HR needs?

ADP supports broader global coverage and integrates with third party tools for international operations. Paycom is generally more U.S.-focused and might need external support for complex global needs.

What are Paycom pros and cons?

Paycom pros include payroll and HR tools with guided payroll. Cons include fewer third party integrations than some other platforms.

What are ADP pros and cons?

ADP pros include broad scalability, extensive third party integrations, and robust compliance. One con is that it can feel more complex for smaller teams early on.

This blog is based on information available to Rippling as of December 18, 2024.

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.