ADP VS Paychex Comparison

When it comes to the top payroll software options, many business owners find themselves comparing ADP vs. Paychex. Paychex and ADP are top payroll software contenders offering essential features, such as payroll tax support, PTO, benefits administration, employee management, and payroll services, but which is better?

We’ll dive into how ADP vs Paychex stack up in terms of features, pricing, customer support, and more.

ADP VS Paychex: At A Glance Comparison

While ADP and Paychex have a lot in common, there are some significant differences to consider with the in-app features, integrations, and pricing when choosing between ADP and Paychex.

In the battle of ADP vs. Paychex, the biggest differences include their benefits administration, customer support, and integrations. While both ADP and Paychex offer insurance and retirement benefits for employees, Paychex has more extensive options, including financial wellness tools, business insurance, and emergency loans.

Both ADP and Paychex are known for their 24/7 customer service and support, but Paychex provides customers with an assigned payroll specialist. ADP leads Paychex in the integrations category, as it offers a much larger selection of integrations, although Paychex isn’t lacking in that department either.

Where ADP Wins

ADP Payroll sets itself above the competition as a payroll solution by offering a robust set of payroll, HR, and employee management features for businesses ranging from one to 1,000 employees. With ADP, businesses can easily run payroll with just a few clicks, get payroll tax support, run customizable reports, onboard new employees, and much more.

Where ADP Falls Short

ADP’s greatest drawback is its lack of pricing transparency, making it hard for smaller businesses to determine whether they can afford the software quickly.

Here are the areas ADP falls short:

Where Paychex Wins

Paychex provides payroll and HR solutions for businesses of all sizes. Beyond running payroll, Paychex is known for its variety of additional services, including retirement plans, health care, benefits administration, PEO services, and much more. Businesses looking to integrate their payroll and HR on one platform will find that Paychex checks all the boxes.

Like ADP, Paychex boasts a lengthy list of add-ons that make it easy to customize Paychex services and select the features that best fit the scope of your business. Paychex offers 24/7 customer support across all of its plans if you encounter any issues or need some tech-savvy support. Paychex will also take care of the setup and implementation process for you.

Here’s where Paychex outshines ADP:

Where Paychex Falls Short

Both ADP and Paychex have the same main drawback — non-transparent pricing. Here’s a breakdown of where Paychex leaves customers wanting:

ADP VS Paychex Pricing Comparison

Neither ADP nor Paychex is transparent about plan pricing. To get pricing information, you’ll need to get a free quote from ADP and/or Paychex to see what type of monthly payment your business would be looking at. We did, however, find on Paychex’s website that payroll pricing starts at $39/month + $5/employee, so that’s a start.

Both ADP and Paychex include variable add-on fees that will drive up your bill if you’re interested in features like:

• Time tracking
• Benefits administration
• Advanced HR support
• Garnishment wage
• Checks

Be sure to factor these extra fees into your quote as well.

If affordability is your main concern regarding payroll software pricing, check out the best cheap payroll software options instead.

ADP VS Paychex Feature Comparison

ADP and Paychex carry many of the same features and tools. Still, there are some key differences in scope, and the availability of certain features may depend on which plan you go with. We’ll dive into the feature differences between ADP and Paychex below.

For a more in-depth look at the Paychex vs. ADP features breakdown, take a look at our Paychex review and ADP review, respectively. You’ll find a detailed explanation of each platform’s features, pricing, and much more.

Only ADP Offers

• Custom reporting on any plan (whereas Paychex only has this on the top two tiers)
• A more developed employee portal that lets workers clock in or out without purchasing the time-tracking add-on service
• More integrations

Only Paychex Offers

• Two-day payroll processing
• A myriad of wellness and financial literacy tools in its benefits package

Which Payroll Software Should I Choose: ADP Or Paychex?

ADP and Paychex are both tried-and-true payroll applications with many similar features, which, on the one hand, makes it hard to decide which is best and, on the other hand, should give you confidence that either software is a great payroll option.

Across all four plans, ADP Run easily integrates with other software. Beyond its full-service payroll processing, ADP’s most prominent features are its extensive reporting and analytics, HR support, and time tracking. Additionally, 24/7 customer service can give small businesses peace of mind, especially if working outside standard 9-5 business hours. Since ADP doesn’t disclose pricing, the time demand and uncertainty of negotiating a price — plus hidden fees — may make this payroll solution a bad fit for smaller businesses.

Paychex is another solid choice for strong payroll features, such as automatic payroll tax filing, direct deposit, and new hire reporting. Paychex’s wealth of tools and features can be a big plus for securing a full-service payroll and HR system. While the lack of time-tracking and attendance capabilities, plus limited integrations, could increase costs through extra add-ons, a committed payroll specialist could reduce your payroll processing workload enough to justify the heftier price tag.

Still not sure which is right for you? Here are some more points to consider.

Choose ADP If…

Choose Paychex If…

If you’re still undecided about which payroll software solution would work best for your business, check out the best payroll software options on the market for small businesses. The detailed breakdown of the top payroll software options on the market will help you make an informed decision and narrow down your list of contenders.