If you are a business owner who is in need of payroll software, then most likely, you might have bumped into two best payroll software, ADP and Paychex. Are curious to know which one is better between ADP Vs. Paychex.
Both ADP and Paychex have been in the industry for long and are the most trusted solutions for businesses of all sizes.
But there has to be one that is best suited for your business, and finding this out could be a challenge.
But do not worry! In this guide, we have compared the two options based on price, features, support, etc., and we promise you will find a suitable option for your business by the end.
| Features | ADP | Paychex |
|---|---|---|
| Automated payroll and tax processing | Yes | Yes |
| Multiple payment options | Yes | Yes |
| Employee self-service | Yes | Yes |
| 24/7 human-assisted customer service | No | Yes |
| Integrations | Yes | Yes |
| Mobile application | Yes | Yes |
| Global payroll | Yes | No |
| Pricing | Varies based on the services you pick. | Starts at $39/month + $5/employee |
| Visit ADP | Visit Paychex |
ADP Overview
ADP is a leading provider of payment and human resource solutions to businesses of all sizes, be it a start-up with less than 50 employees or a large company with thousands of employees.
According to the company’s website, ADP is trusted by 920,000 clients, making it a reliable source for providers of cloud-based HCM solutions that integrate payroll, HR, time, talent, tax, etc.
And that’s not it; ADP also offers employee background check that helps in obtaining reports such as medical screening, drug testing, and more.
Paychex Overview
Although Paycheck is capable of handling businesses of any size, it is ideal for small businesses between 9-49 people.
Paychex is considered one of the best HR and payroll software and is even recognized by Inc. as the best HR outsourcing service for small business owners.
Paychex offers plenty of services, including recruiting, time and attendance tracking, compliance, etc. But the best part is it also offers on-site assistance from HR professionals for business owners.
Now that we know what the two platforms are about let us discuss them in detail and compare both on the basis of different points.
ADP Vs Paychex: Comparison
Features
Let us see what all features the two platforms offers to find out which one is better in terms of this.
Both ADP & Paychex offer:
- Mobile app
- Payroll tax support
- Background check services
- Direct deposit
- Benefits administration
- An employee portal
- New-hire reporting
- Garnishments
- APIs
- Reports
- PTO management
- Compliance posters
Only ADP offers:
- Auto-scheduled payroll
- ZipRecruiter integration
- Onboarding support on all plans
- Small business marketing toolkit (add-on only)
Only Paychex offers:
- An assigned payroll specialist
- Business insurance
- Financial wellness tools
- ERC funding services
- Emergency loans
Both platforms offer many similar features and a few different ones. So it is upto you to decide the features of which platform you need or like most.
Ease of Use
ADP
ADP has an intuitive interface with cloud-based tools and online how-to guides for ease of use.
Everything on the website is sorted into sections telling you exactly what your next steps should be.
We really liked ADP’s modern and robust interface.
Paychex
Even Paychex has an intuitive interface and how-to guide making it very easy to navigate on the platform.
However, Paychex lacks a dedicated customer success manager (CSM) and has limited third-party software. Because of this, we like ADP slightly more in terms of use.
Winner: ADP
Price & Plans
ADP Price & Plans
| Plan | Price |
|---|---|
| Essential | $59 per month plus $4 per employee, per month |
| Enhanced | Custom pricing |
| Complete | Custom pricing |
| HR Pro | Custom pricing |
Paychex Price & Plans
| Plan | Price |
|---|---|
| Essentials | $39 per month plus $5 per employee |
| Select | Custom pricing |
| Pro | Custom pricing |
ADP is more expensive than Paychex and might not be suitable for small businesses; hence we like Paychex more in terms of pricing.
Winner: Paychex
Integrations
ADP
ADP allows customers to integrate with other services.
For example, Customers can integrate with Oracle, FinancialForce, Sage, and more for enterprise resource planning. For accounting solutions, customers can integrate with Wave, Quickbooks, and Xero.
And for time and attendance, they can integrate with Deputy, 7Shifts, and Clock Shark.
Paychex
Paychex integration features also allow customers to connect with popular financial, productivity, and HR tools such as Quickbooks, BambooHR, Workday, and Xero.
Since ADP allows integration to a larger extent, we like it slightly better.
Winner: ADP
Payroll
 |  | |
|---|---|---|
| Unlimited and Automatic Payroll | Automatic pay runs only | Automatic pay runs only |
| Multistate Payroll | ✓ | ✓ |
| Payroll Tax Calculations, Payments, and Filings | ✓ | ✓ |
| Generates, Prints, and Files W-2/1099 Tax Reports | ✓ | ✓ |
| International Payroll | Via FMP Global | ✓ |
| Direct Deposit Timelines | Two days | Two days |
| Pay Card and Pay On-demand | ✓ | ✓ |
| Paper Checks with Signing and Stuffing Services | ✓ | ✓Includes paychecks with fraud protection features |
| Wage Garnishment Payments in All States | ✓ | ✓ |
| Dedicated Payroll Specialist | ✓ | ✕ |
ADP and Paychex both are pretty similar in terms of the payroll services they offer. However, Paychex is the winner here since ADP charges additional fees for year-end tax reporting.
Winner: Paychex
HR Capabilities
| | |
|---|---|---|
| Job Postings | Posts to dozens of job sites | Posts to 25,000+ job sites |
| HR Advisory Services | Paid add-on | Available in higher tiers |
| Health Insurance Coverage | All 50 states | All 50 states |
| Health Insurance, Retirement, and Workers’ Comp | ✓ | ✓ |
| Employee Discounts with Retail Shops | ✕ | ✓ |
| Other Benefits | Premium-only plan | Premium-only plan |
| Early Access to Wages | ✓ | ✓ |
| Financial Wellness Program | ✓ | ✕ |
| Employee Handbook Builder | ✓ | ✓(also offers handbook creation support) |
| Other HR Tools | Applicant tracking, Background checks, Time tracking, Performance reviews, Learning management | Applicant tracking, Background checks, Time tracking, Learning management, Salary benchmarks |
In terms of HR tools, we like ADP better since it offers additional features such as employee handbook creation support, salary benchmark, etc.
Pros & Cons
The Pros and Cons of ADP
Pros
- Multiple price & plans
- How-to guides
- Customizable reporting features
- Plenty of integration options
Cons
- Pricing is not transparent
- No free trial
- Expensive for small businesses
The Pros and Cons of Paychex
Pros
- 24/7 human-assisted customer support
- How-to guides
- Offers integrations with popular business management tools
- Offers employee onboarding tools
- Best for small businesses
Cons
- Pricing is not transparent
- No free trial
- Payroll is limited in the US
There is not much difference between the two in terms of pros and cons, so it is upto you to decide which platform you like the most.
Customer Support
ADP
Customers can get in touch with the ADP support team from Monday-Friday, 7:30 am to 10:00 pm ET. This means that the customers can access live chat only on weekdays.
Paychex
On the other hand, customers on Paychex can find solutions to simple payroll issues via the assistance of a bot engine as well as get live support from agents 24×7 support.
Since Paychex offers 24×7 human-assisted live support, we like it better in terms of customer service.
Winner: Paychex
ADP Vs Paychex: Winner?
After comparing ADP Vs Paychex, on the basis of different criteria, we saw that both the platforms are exceptionally good, and Paychex won the battle just by one criterion.
In the end, which platform you should choose depends on the size and nature of your business, your budget, and your needs.
One thing we can say for sure is if your business is small in size, then you should definitely choose Paychex, and if you have a large-sized business, you should choose ADP.
For mid-size businesses, you can choose any of the platforms depending on your needs.
FAQs
When should you choose ADP?
You should choose ADP when you have a small business that is expanding quickly or already have several employees in your company.
Is ADP legit?
Yes, ADP is legit and is trusted by tens of thousands of organizations and companies for their HR and payroll needs. For the past 15 years, ADP has been named as the most admired company by Fortune magazine. And 80% of Fortune 500 companies rely on ADP.
Does Paychex offer employee benefits?
Yes, Paychex offers quite a few employee benefits options, including retirement services and group health insurance.
Shefali Jain is a Content Writer & Editor at USWorkforce.org
After completing her graduation in hospitality, Shefali decided to follow her passion and started writing. Shefali has been writing for two years now and contributes to our website as a skilled editor and content writer with strong research skills. Writing product and service reviews, biographies, and book reviews are some of her key areas, among many others in which she specializes. In her time at the organization, she has written and edited content on a range of topics, including employment law, human resources, and business management.