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Payroll Solutions Providers

Top Companies in 2024

ADP vs Paychex

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Pros
  • Proprietary mobile app
  • Multi-platform self-service portal
  • Promotions for small businesses
  • Serve all business sizes in many industries
  • Two product demo options available
  • Scalability through multiple levels of products
Pros
  • Comprehensive solutions
  • Scalability
  • Compliance assurance
  • Time-saving automation
  • Mobile app
Cons
  • No free trial for medium and large companies
  • Many features considered add-ons
  • No pricing transparency
  • HR assist tools and guidance as an optional add-on
Cons
  • Customer support response time
  • Add-on features
Summary

ADP is a human capital management (HCM) solutions provider, utilizing a cloud-based interface for their services that include payroll as well as management of businesses' HR, talent, time, taxes, and benefits. They were founded in 1949 and are based in Roseland, NJ, and offer businesses of all sizes the ability to streamline their payroll processes. They serve many industries such as restaurants, retail, healthcare, financial services, non-profit, construction, services, and the government/education sector. Their services include direct deposit and mobile payroll solutions that integrate with time and attendance tracking, automatically calculating deductions for taxes and retirement contributions, and providing expert support to ensure business compliance. They have many plans listed on their website depending on business size, four for small businesses and three for middle to large-sized businesses. However, clients must submit for a personalized pricing quote. They have received many industry accolades such being named "Global Payroll Supplier of the Year" in 2022 and were in Fortune World's Most Admired Companies list for the past 17 years. They are BBB-accredited with an A+ rating there but have received many complaints there. They have a 1.3 out of 5 Trustpilot score due to clients having trouble logging in or accessing ADP's services, among other things.

Summary

Paychex, an industry leader, has been trusted by around 740,000 businesses in the United States and Europe since 1971. Based in Rochester, New York, Paychex has spent decades simplifying payroll processes for businesses of all sizes. At the core of Paychex's offerings is the intuitive Paychex Flex platform, designed to revolutionize payroll management with automation, ensuring accuracy and efficiency. Beyond payroll, Paychex extends its expertise to comprehensive talent management, benefits administration, workforce management, and robust payroll support. Customers benefit from a seamless experience thanks to Paychex's commitment to user-friendly interfaces and mobile accessibility. With services ranging from direct deposit options to educational platforms like the Learning Management System, Paychex empowers businesses and employees. A testament to Paychex's success is that PLANSPONSOR magazine ranked them as the top 401(k) recordkeepers in 2023. The company's commitment to compliance assurance, time-saving automation, and scalability positions them as a partner dedicated to reducing the complexities of payroll and HR administration.

Quick Stats
  • Free Trial : 3 months (smaller businesses only)
  • Pricing Option : Per-employee/ Per-payroll
  • Transparent Pricing : Unavailable
  • Pricing : Undisclosed
  • Trustpilot Score : 1.3 out of 5
  • BBB Rating : A+
Quick Stats
  • Free Trial : Undisclosed
  • Pricing Option : Monthly fee plus per employee per month/quote-based
  • Transparent Pricing : Available
  • Pricing : $39 per month, plus $5 per employee per month
  • Trustpilot Score : 1.1 out of 5
  • BBB Rating : A+
Selling Points
  • State & federal forms and tax filing
  • Computer, mobile app, phone call support
  • Flexible options & robust reporting
  • Three months of free payroll for small businesses
Selling Points
  • Customizable plans
  • Serves all business sizes
  • They offer multiple mobile apps
Payroll Features
  • 401K Tracking
  • API/Integration Capabilities
  • Direct Deposit
  • Undisclosed
    FMLA Tracking
  • Generation of Pay Stubs & Reports
  • Mobile App for Employees
  • Multi-Country
  • Multi-State
Payroll Features
  • 401K Tracking
  • API/Integration Capabilities
  • Direct Deposit
  • FMLA Tracking
  • Generation of Pay Stubs & Reports
  • Mobile App for Employees
  • Multi-Country
  • Multi-State
Tax Features
  • Compliance With State & Federal Tax Laws
  • Form 1099-Misc
  • Form W-2
  • Form W-3
  • Form W-4
  • Tax Filing
Tax Features
  • Compliance With State & Federal Tax Laws
  • Form 1099-Misc
  • Form W-2
  • Form W-3
  • Form W-4
  • Tax Filing
Training
  • Documentation
  • Undisclosed
    FMLA Training
  • Live Online
  • Videos
Training
  • Documentation
  • FMLA Training
  • Live Online
  • Videos
Automation Features
  • Calculate & Pay Employee Salaries
  • Real-Time Reports
  • Time, Attendance & Overtime Tracking
  • Update Real-Time Employee Information
Automation Features
  • Calculate & Pay Employee Salaries
  • Real-Time Reports
  • Time, Attendance & Overtime Tracking
  • Update Real-Time Employee Information
Compatibility
  • Android
  • Cloud-Based
  • iOS
  • Mac
  • Windows
Compatibility
  • Android
  • Cloud-Based
  • iOS
  • Mac
  • Windows
Business Size Supported
  • Large Businesses
  • Medium-Sized Businesses
  • Small Businesses
Business Size Supported
  • Large Businesses
  • Medium-Sized Businesses
  • Small Businesses
Customer Support
  • Blog
  • Demos
  • Undisclosed
    Email
  • FAQs
  • Help Guides
  • Live Chat
  • Mobile App
  • Phone
Customer Support
  • Blog
  • Demos
  • Email
  • FAQs
  • Help Guides
  • Live Chat
  • Mobile App
  • Phone

ADP vs. Paychex

Paychex and ADP are key players in payroll services, each offering robust payroll solutions for businesses. This comparison aims to dissect their approaches, focusing on factors such as pricing transparency, ease of use, security, and pricing. Navigating these nuances sheds light on essential considerations for businesses seeking efficient payroll solutions.

Service range & customization options

ADP and Paychex provide extensive payroll services tailored to businesses of varying sizes. ADP stands out with its highly flexible and scalable payroll software, featuring numerous third-party integrations through ADP Marketplace to meet diverse business needs. While Paychex excels in serving small and medium-sized businesses (SMBs), ADP is better suited for growing and large companies. Paychex provides a slightly richer array of tools for a more enjoyable work experience, whereas ADP offers a superior set of payroll tools and features.

Both providers ensure user-friendly payroll options, solid tax compliance, and robust integration capabilities. ADP presents four plans for small to mid-sized companies, including options for one-employee companies and contractors. In comparison, Paychex lists three plans on its website with different tiers of coverage. 

Ease of use & integrations

Paychex and ADP prioritize ease of use in their payroll services, offering user-friendly interfaces and efficient navigation. Paychex's Flex Software Solution has an easy-to-navigate dashboard, employee self-service capabilities, and cloud-based data access. Paychex Flex integrates seamlessly with QuickBooks Online, ensuring smooth data transfer between platforms. The software's API library facilitates integrations with various productivity and financial tools. Paychex's integration with QuickBooks Time and Chally further enhances its functionality, allowing for streamlined payroll processing and predictive talent assessments.

In contrast, ADP's payroll services are renowned for their speed, simplicity, and user-friendly features. The platform prioritizes quick payroll processing, automated payroll tax calculation, and hassle-free employee tools and benefits. ADP's payroll packages offer mobile capabilities, enabling payroll processing anytime, anywhere. The integration capabilities of ADP extend to platforms like Workday, contributing to reduced system costs and optimized business processes. Additionally, ADP emphasizes integrating its payroll and retirement plan platforms, ensuring real-time updates, secure data transfer, and an engaging and compliant retirement plan experience.

Security & compliance 

In terms of security and compliance, Paychex conducts ongoing security risk assessments and adheres to top-rated practices, aligning with standards like AICPA SOC2 and ISO 27701. Access to payroll data is carefully limited to key stakeholders, with employee training playing a pivotal role in ensuring secure system usage.

Similarly, ADP adheres to security standards such as AICPA SOC2 and ISO 2770. Employing a holistic strategy, the company takes a comprehensive approach by implementing administrative, technical, and physical safeguards. Furthermore, ADP reinforces its commitment to security by offering interactive training and conducting thorough background checks. This approach solidifies the commitment to maintaining the confidentiality of client data and compliance with pertinent payroll and employment laws.

Pricing

Paychex and ADP emphasize tailoring solutions for businesses of all sizes. They offer customized payroll plans and diverse payment methods, adapting to the unique preferences of their clients. Notably, Paychex provides transparent pricing for its Flex Essentials plan, with a base fee of $39 per month plus $5 per employee. In contrast, ADP's pricing is based on factors like employee count and business complexity, lacking transparency. Additionally, ADP goes a step beyond Paychex by offering users the opportunity to explore its services through a trial period. 

Paychex does not explicitly detail extra tools but highlights competitive pricing within the industry. On the other hand, ADP stands out by offering advanced features like automated filings and supplementary tools such as time and attendance features and health insurance, albeit at an extra cost. 

In summary, Paychex and ADP offer tailored payroll solutions with distinct strengths. Paychex is ideal for SMB enterprises, emphasizing simplicity and QuickBooks integration. While ADP caters to larger companies, quick processing and broad integrations remain their primary focus. Both prioritize security and compliance, earning certificates that solidify their security capabilities. Paychex provides transparent pricing for the Flex Essentials plan, while ADP's costs are based on employee count and complexity. Ultimately, the choice between Paychex and ADP depends on the specific needs and priorities of the business.

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