Home Topics Finance ADP vs. Paychex Review: Which One Is Right For Your Business?

ADP vs. Paychex Review: Which One Is Right For Your Business?

ADP and Paychex are two of the biggest and oldest names in payroll outsourcing. Both options provide business owners with cloud-based, fully automated payroll software while maintaining strong, human-powered support teams. The services of both companies go far beyond payroll accounting and offer comprehensive services for personnel and social benefits.

This comprehensive comparison of ADP and Paychex can help you figure out what makes each service unique so you can decide which is best for your business.

Overview: ADP

ADP is one of the oldest and largest employer service companies in the country: Since its inception in 1949 as a pure payroll company, ADP has provided comprehensive human capital management solutions to 700,000 small businesses and businesses around the world.

If all you need is a payroll service, you will likely be using Powered by ADP, the company’s online payroll platform specially designed for small business owners to help entrepreneurs optimize their payroll and payroll taxes and automate – but even if you use the online software, you have 24/7 access to ADP’s own payroll and tax experts. If necessary, you can also use the other HR and benefit solutions from ADP.

ADP functions

ADP serves over half a million small businesses (which they define as having 1 to 49 employees) with their cloud-based payroll solutions. In addition to running payroll through ADP’s central digital dashboard, ADP automatically deducts your employees ‘compensation insurance and automatically deposits your employees’ paychecks by check, direct deposit or payment card each payment period.

ADP offers small business owners four online payroll packages that expand the capabilities available and are designed for businesses of growing sizes and needs:

  • Essential: This plan is best for startups or for companies that just need a payroll solution. With this plan, you get pay slips, W2 and 1099 forms, reporting functionality, relevant state and federal forms, and direct deposits, among other things – and your employees can access their own online portal, where they can view and manage important information, forms and Information.

  • Extended: With this plan, you get everything that is in the Essential package, plus check signing and filling, prepaid cards, poster compliance, state unemployment insurance, and wage garnishment services.

  • Complete: This plan provides business owners with all of the payroll functionality included in the advanced plan, as well as key HR services such as employee handbooks, background checks and access to ADP’s HR help desk.

  • HR Pro: ADP’s most comprehensive package, HR Pro, offers business owners full service payroll and HR support.

In addition to its payroll solutions, ADP offers comprehensive employer services, all integrated with your payroll and HCM system:

  • Time and attendance: Digitally track the hours, release requests, scheduling and more of your employees.

  • Talent: ADP’s Talent Services will help you streamline the entire lifecycle of your employees, from hiring, hiring, managing employees and helping them grow, to delivering retirement plans.

  • Employee bonus: ADP provides digital solutions for employee benefits management, as well as online and in-person benefits advisory services. ADP’s partnerships with insurance agents and freight forwarders also allow you to purchase retirement plans, group health insurance, and corporate insurance.

  • HR services: ADP offers a wide range of HR services with varying degrees of personalization. If you have a general HR question, you can contact HR HelpDesk, the team of HR experts, by phone, email or chat. You can also access key HR documents and an employee handbook wizard. If you need more intensive support, you can use ADP’s HR consulting services or work with a dedicated HR expert who will help you develop and implement a tailor-made HR solution. Alternatively, you can outsource part or all of your HR management to ADP experts or work as a PEO with ADP.

You can also integrate tons of apps with your ADP platform, including accounting solutions like QuickBooks and Xero. Enterprise Resource Planning (ERP) software; Time tracking apps; and much more. ADP also has its own app marketplace where you can find and download compatible apps to meet your business needs.

ADP pricing

Among other things, ADP charges custom pricing based on the size of your business, the services you need, and the billing package you sign up for. You can get a free custom quote by completing basic information about your business on their website or by contacting an ADP sales representative directly.

ADP user ratings

Overall, ADP receives largely positive user reviews on all major review platforms: They received a rating of 4.2 out of 5 for G2 Crowd and 5 out of 5 stars for Trustpilot, but a slightly lower rating for consumer matters with a little more than 3 out of 5 stars.

Positive reviewers say the ADP software is easy to use, their service delivers the exact services they need, and the ADP customer service team is responsive and knowledgeable. On the downside, some reviewers say they struggled to set up their accounts, had occasional direct deposit issues, and encountered other issues. Whatever their shortcomings, one point for ADP is that they responded promptly to almost every negative and positive review on Consumer Affairs and Trustpilot.

Overview: Paychex

Since its inception in 1971, Paychex has grown to become one of the best-known providers of payroll and HR solutions for small and medium-sized businesses. In addition to these two main services, Paychex offers an absolutely thorough range of employer services including time and attendance, benefits management, compliance services, records management, recruitment and onboarding, health insurance and retirement planning, and various types of relevant insurance, such as employee comp and Business car insurance. It’s also worth noting that Inc. named Paychex Flex the Best Small Business HR Outsourcing Service, especially for offering on-site HR professionals when you need hands-on help.

Paychex is only offering 3 months of free payroll for a limited time. So if you are thinking of upgrading your payroll services, now is a good time to get Paychex.

Let’s take a closer look at what Paychex offers its 605,000 or so small business customers.

Paychex features

Paychex offers so many services on its platform, but first let’s examine the small business payroll services that are suitable for businesses with 49 employees.

Paychex calculates, pays, and files most local payroll taxes on your behalf. You also have access to Paychex’s online payroll software, which you can access using the free mobile app on your computer or phone. Other features of Paychex’s small business payroll service include:

  • The ability to pay any type of worker (full time, hourly or contract) by direct deposit, checks or wage cards

  • Automatic tax accounting management

  • HR analysis and an event calendar

  • Custom reports and analysis

…and much more. Employees also receive registrations for an employee self-service portal where they can access documents such as new hiring documents and payroll forms, change their personal information and apply for a leave of absence. Paychex can also help you switch to Paychex if you already work with a contract processor.

Paychex also offers combined salary and HR solution packages for companies of all sizes: between one and nine employees; 10-49 employees; or 50-1,000+ employees. Their packages include comprehensive time and attendance management, PEO services, recruitment services, employee benefits and corporate insurance.

In addition, Paychex may offer additional services not normally offered by payroll / HR solution providers such as financial management services, payment processing, tax services and services specifically aimed at startups such as startup support and an online marketing platform.

Paychex prices

Like ADP, Paychex offers custom pricing based on the size, needs of your business, and the four packages of Paychex (Express Payroll, Paychex Flex Select, Paychex Flex Pro, or Paychex Flex Enterprise) you are interested in.

You can request a free quote for any of these four packages by providing your company information on the Paychex website. For a limited time, Paychex is offering free services for two months before you have to commit to a paid plan.

Paychex User Reviews

User reviews of Paychex are mixed: the company received 4 out of 5 stars on G2 Crowd and an A + rating on BBB, but it also received just over 2 out of 5 stars on Consumer Affairs and a 2 out of 5 star rating on BBB . On the positive side, the Paychex interface is easy and efficient to navigate, and many users have had successful experiences with the payroll service themselves. The company’s negative reviews focused on technical issues and a lack of transparency about their processes.

Plans start at $ 39 per month (base) and $ 6 per person per month.

Plans start at $ 59 per month (base) and $ 4 per person per month.

Plans start at $ 36 per month (base) and $ 4 per person per month.

Plans start at $ 20 per month (base) and $ 6 per person per month.

Vendors may offer lower advertising prices.

A version of this article was first published on Fundera, a subsidiary of NerdWallet


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