There are numerous ADP competitors and payroll alternatives, many of which offer similar services at much lower prices. Many of ADP’s competitors are also easier to set up and use and may provide better customer support. The best ADP alternatives for small businesses will be loaded with processing features at an affordable price.
Top 7 ADP Alternative Payroll Competitors
ADP Alternative | Who It’s Right for | Estimated Annual Cost for 25 Employees* |
---|---|---|
Gusto | (Best overall) Businesses with up to 99 employees | $2,268/year |
Square Payroll | Retail stores & restaurants already using square payments | $1,850/year |
Mobile businesses like food trucks that manage work using mobile apps | $2,600/year | |
Fast-growing companies that complete HRIS software plus payroll | $2,664/year | |
Businesses or nonprofits that use QuickBooks and want a payroll add-on | $890-$2,090/year | |
Businesses that require HR functions plus health insurance | $3,780/year | |
Specific industries, particularly retail, hospitality, and health care businesses | $2,500-$7,000/year |
*As a benchmark, we used an every-other-week payroll for 25 employees, which would likely cost more than $4,000 per year using ADP Run, ADP’s product that’s geared toward small businesses.
Which ADP Payroll Alternative Is Right For You?
Who ADP Is Right For
ADP is right for larger complex businesses due to its industry experience and ability to customize its software. However, the smallest of businesses and those running weekly payroll cycles may not have the need or budget for ADP. In addition, ADP is priced per payroll run and often costs double that of newer cloud-based payroll software.
What ADP Offers
ADP offers full-service payroll and markets itself as “a more human resource.” As such, it provides all the payroll and most of the human resources (HR) and benefit features your small business might need.
ADP has multiple tiers of payroll software and services that include:
- Run payroll calculations: For employees and contract workers
- Manage payroll deductions: Including 401(k) and garnishments
- Track benefits insurance: Ensure Affordable Care Act (ACA) & Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) compliance
- Pay employees: Via direct deposit, paper check or pay card
- Process taxes: Like federal, state, and local tax deductions and payments
- Manage year-end reporting: Such as tax filings, Federal Unemployment Tax Act (FUTA) and Federal Insurance Contributions Act (FICA)
- Prepare year-end forms: W-2s for employee and 1099s for contractors
- Provide basic reports: This includes payroll runs and new hire reporting
- Help purchase workers’ compensation: You can either purchase directly or through a third party.
Many of the ADP alternative payroll software programs, depending on add-ons they have, offer workers’ compensation, integrate with HR systems, provide labor law posters, track time worked, manage vacation and paid time off (PTO) balances, and provide custom reports. As we review each of the ADP competitors, we’ll discuss these additional benefits and services.
What Does ADP Cost?
For a business with a staff of 25 employees running an every-other-week payroll, ADP Run would likely cost your business about $4,000 per year. However, prices are not posted on its website, so you’ll have to request a quote for an exact amount. If you run weekly payroll, it’s likely to cost more, because ADP is priced by payroll run, not by employee headcount like some of the newer online payroll software.
ADP Pros & Cons
One of the benefits of going with ADP from the start is that ADP can support your business as it grows. For example, once you get to 50 full-time-equivalent (FTE) employees, you’ll need to provide health insurance; ADP can provide that as can many of ADP’s competitors. ADP also can help you with new hire reporting, setting up workers’ compensation insurance, and filing state and federal taxes.
On the downside, ADP is more expensive, and upgrading from one tier to the next isn’t always seamless. Also, getting set up with ADP can take weeks, whereas many of the newer payroll software providers offer self-service setup to get you up and running in days.
When to Use ADP
If you know your business is planning to grow well past 50 employees, or you’re already familiar with ADP, then it makes sense to stick with an industry expert. However, if you’re just starting out or don’t imagine your business growing past a dozen or so employees, you may find one of the competitors to be a much better value. Many offer similar services at half the price. Visit ADP’s website to contact a representative.
Which Payroll Software Is Best for You?
Gusto: Best Overall ADP Alternative for Small Businesses
Based on its low price, ease of use, great reviews, and robust features, Gusto is the best payroll software for small businesses that want great payroll software without the ADP price tag. Gusto offers payroll in all 50 states, and it’s the same price whether you need to run payroll in one state or several, making it best for any business up to about 99 employees.
Gusto provides tremendous flexibility, including an employee portal and direct deposit for your staff. You can pay hourly workers, salaried workers, or independent contractor employees all from one system. It’s electronic filing, e-signatures, and state compliance allow you to run payroll worry-free. Gusto, like ADP, takes care of new hire reporting, tax filings, and year-end reporting.
Gusto offers an easy-to-set-up payroll solution for small businesses.
Gusto has all the features mentioned above even though it costs just half of what ADP costs. On top of that, Gusto provides basic HR functions like a coworker directory and organizational chart, which ADP Run doesn’t have. So, in a way, you’re getting more for less. If you’re in one of the 24 states where Gusto provides benefits insurance, that’s a nice bonus to be able to offer to your employees.
Gusto Pricing
Gusto costs $39 per month plus $6 per user, per month. For our comparative pricing, using a company with 25 employees paid every other week as an example, Gusto would cost $189 per month. By comparison, ADP Run, which charges per payroll, would cost more than $300 per month.
Best of all, there is no annual contract and no setup fee with Gusto. ADP charges a $200 setup fee and requires you to commit to at least one year.
ADP Run vs Gusto Comparison Summary
Feature | ||
---|---|---|
Pricing | +$200 setup fee | No setup fee |
Run Payroll & Manage Pre- and Post-tax Deductions: 401(k), Benefits & Garnishments | ||
401(k) Enrollment | ||
Benefits Enrollment & ACA Compliance | ||
Workers' Compensation | ||
Time & Attendance | ||
Payment Methods | ||
State & Local Taxes | ||
Compliance & Tax Filings | ||
Year-end W2s & 1099s | ||
Labor Law Posters | ||
Reports | ||
Mobile Access & Employee Self-service | ||
Integrations | Deputy & Xero | |
Support | 24 hours/7 days a week | |
Add-ons | Time & labor Workers' comp | Benefits insurance HR advisory services 401(k) plans/529 plans FSA/HSA Commuter benefits |
On an annual basis, Gusto would cost about half as much as ADP, and there is no additional cost if you have employees in multiple states. Unlike ADP, which charges for every payroll run, including if you have to re-run a payroll due to an error, Gusto’s rate is based on the number of employees each month, not the number of payroll runs, ensuring your payroll costs remain predictable.
Gusto Features
Gusto provides payroll as part of an HR and payroll software package. So, in addition to payroll processing, you also receive basic HR functionality, such as employee data and PTO tracking, at no extra charge. Workers’ compensation administration, W-2s, and 1099s are also included in this price. With ADP Run, you can’t shop around for workers comp, and you have to pay extra for year-end tax documents. That adds up.
What Gusto Is Missing
Gusto is missing customer support on the weekend, although its support gets good reviews for solving any issues, and it won’t print and mail checks for you as you can print checks once you complete your payroll run. Unlike ADP, Gusto does not offer labor law posters, but that’s not a huge downside because you can download them for free from the United States Department of Labor (DOL) or Gusto’s website.
Both ADP and Gusto can process garnishments―money taken out of wages for certain legal reasons, such as a court order to pay child support―but Gusto doesn’t manage garnishments in South Carolina.
Gusto Reviews
Although Gusto’s online reviews were among the best payroll software reviews we found, there are some naysayers, especially companies that grow past 100 employees and feel Gusto lacks customization options. Many customers commented on the low cost, responsive customer service, and variety of services that Gusto provides.
Get Started With Gusto
Gusto offers a one-month free trial that starts with your first payroll run. Gusto continues to be our top pick for small business payroll software due to its ease of set up and use. You can typically set it up on one day using its step-by-step process. Start using Gusto free for 30 days.
Square Payroll: Best for Retailers Using Square Payments
If you’re using Square for payment processing in your retail or restaurant establishment, you may want to give its payroll software a look. In addition to payroll, it can manage timekeeping and scheduling―keeping all of your data in one app. Therefore, it’s a great option if you’re a small business already using Square for your point-of-sale (POS) system.
Square Payroll is a newer software, best saved for smaller businesses that need to pay either employees or contract workers. While it doesn’t have the HR features of Gusto, ADP, or Paychex, such as online I-9 document storage or health insurance offerings, it’s priced right for small business as a payroll solution.
Square Payroll can be used to pay employees and contractors
Square Payroll Pricing
Square Payroll costs less than half the price of ADP. Square Payroll costs only $29 per month plus $5 per month, per person, which translates to about $1,850 per year instead of about $4,000 with ADP. If you pay only contract workers, not employees, the cost is $5 per month, per contractors, with no monthly fee. In addition, it has the benefit of time and attendance included at no extra charge.
ADP Run vs Square Payroll Comparison
Feature | ||
---|---|---|
Pricing | No setup fee | |
Run Payroll & Manage Pre- and Post-tax Deductions: 401(k), Benefits & Garnishments | ||
401(k) Enrollment | ||
Benefits Enrollment & ACA Compliance | ||
Workers' Compensation | ||
Time & Attendance | ||
Payment Methods | ||
Mobile Access & Employee Self-service | ||
State & Local Taxes | ||
Compliance & Tax Filings | ||
Year-end W2s & 1099s | ||
Labor Law Posters | ||
Reports | ||
Integrations | ||
Support | ||
Add-ons | Time & labor Workers’ comp |
Square Payroll Features
Square Payroll offers all the standard payroll processing features a small employer would need, such as the ability to pay both employees and contractors using checks or direct deposit. It provides online accounts so that employees can view their own paychecks and tax forms, and it provides state-mandated new hire reporting and tax filings at no extra cost.
What Square Payroll Is Missing
The one thing missing from Square Payroll is that it doesn’t support household or agricultural employers. It also doesn’t include local tax rates, which you’ll have to determine and input manually, along with any other deductions, such as for health benefits or 401(k). It’s less configurable ADP or other ADP competitors, like Gusto, when it comes to payroll timeframes, a factor to consider if you’re wanting specific pay period start and end dates.
Square Payroll Reviews
Our research showed that Square Payroll earns mixed reviews in the 3 to 5 out of 5-star range. Users like that it includes nice features like tip calculations and online employee accounts, but it lacks benefits and retirement plans that are available with ADP, Gusto, and Paychex.
Getting Started With ADP Alternative Square Payroll
To start using Square Payroll, you can add it in your Square online dashboard. If you want to add both Square and Square payroll, you can do that directly from its website. Get Sign up on the website to start using it for free.
Paychex Payroll: Best ADP Alternative for Mobile Functionality
One of the cool benefits of Paychex Payroll is the ability to run payroll from your mobile app. Neither ADP Run nor Gusto does that. When you run payroll, it runs reports for you, so they’re ready to view right away. You don’t have to run them yourself or wait while they process. That saves time.
Paychex Payroll offers similar features to ADP and Gusto, including basic HR data, like hire data and employee contact information, mobile access to paystubs, tracking of balances like 401(k), ability to put an employee on leave, and ACA compliance.
Paychex Flex is Paychex’ small business payroll solution
Paychex Payroll also offers something called “open API,” which allows software developers or your internal programmers to integrate payroll data with your custom or proprietary software.
Paychex Payroll Pricing
Like ADP Run, Paychex bases its pricing on the number of payroll runs so, in our example of a company with 25 employees and every other week payroll, the price would be about $217 per month for 26 pay runs a year. That ends up being cheaper than ADP in our 25 employee comparison as shown below―and there’s no setup fee.
However, there are multiple pricing tiers and small upcharges, such as $10 for payroll delivery. Paychex Payroll, like Gusto, is nearly half the cost of ADP Run. For other Paychex pricing tiers, read our review of Paychex Payroll.
ADP vs Paychex Payroll Comparison Summary
Feature | ||
---|---|---|
Pricing | No setup fee | |
Run Payroll & Manage Pre- and Post-tax Deductions: 401(k), Benefits & Garnishments | ||
401(k) Enrollment | ||
Benefits Enrollment & ACA Compliance | ||
Workers' Compensation | ||
Time & Attendance | ||
Payment Methods | ||
Mobile Access & Employee Self-service | ||
State & Local Taxes | ||
Compliance & Tax Filings | ||
Year-end W2s & 1099s | ||
Labor Law Posters | ||
Reports | ||
Integrations | ||
Support | ||
Add-ons | Time & labor Workers’ Comp |
We used pricing from Paychex Flex Pro, which is most similar to ADP Run, but you could also get an option that has timekeeping functionality for about $1 a month more per employee if you need both timekeeping and payroll. ADP Run also has a timekeeping option at $2.60 per person, per payroll run―more than double the price of Paychex. In comparison, Gusto’s timekeeping is accomplished with an interface to Homebase software, which is free for unlimited employees in one location.
Paychex Payroll Features
Like ADP, Paychex Payroll runs payroll, and you can purchase add-ons such as timekeeping, and HR applications that allow it to function like an all-in-one package, similar to Gusto. Paychex Payroll includes pre-employment background screenings and an employee handbook builder in its offering that ADP doesn’t have. Paychex also includes labor posters. ADP charges extra for posters and Gusto provides a link to government websites where you can download them for free.
Paychex also offers an employee portal for self-service so that employees can do things like updating their tax withholdings and use a mobile app to view pay stubs. These are time savers that mean you don’t have to do as much payroll administration work yourself.
What Paychex Payroll Is Missing
The biggest things missing with Paychex Payroll are integrations to external timekeeping and accounting software―as it has its own packages for an additional cost. As far as pricing, it’s much less than ADP but still higher than Gusto. Like ADP, it charges extra for year-end W2s, whereas Gusto includes W2s and 1099s at no extra charge.
Paychex Payroll Reviews
Paychex Payroll has mixed reviews. On the plus side, business users like the software and tax compliance. However, some find its sales team pushy, customer service inconsistent, and fees annoying. For a side-by-side comparison of these top three ADP competitors, check out our robust comparison of ADP, Paychex, and Gusto to see how similar they are.
Getting Started With Paychex Payroll
Like ADP, Paychex Payroll doesn’t provide pricing online and, therefore, you’ll need to contact them for pricing. It’s best to understand your exact payroll processing requirements in advance before you set up an appointment for a demo and sales pitch.
Paycor Perform: Best for an All-inclusive HR Solution
Paycor Perform provides the basic payroll functions along with employee data administration and can scale up to 10,000 employees. Employees can view their pay stubs via mobile phone. But Paycor Perform, like many of the ADP alternatives, offers much more in its packages, such as PTO and vacation tracking, workflow, and communication tools.
Like Gusto, Paycor Perform is one of the easiest payroll platforms to get started on. Once you decide to use it, you can be set up in days and will have a dedicated customer support team to answer questions. Inova, which offers similar features, requires a four-to-six week set-up time frame―similar to Paychex and ADP.
Paycor Perform provides all-in-one payroll with an HR dashboard
Paycor Perform also has an interface that uses widgets―boxes on the screen―for commonly used functions like the company communication option. That allows you to send out reminders to employees about payroll, or any topic, such as next month’s holiday schedule.
Paycor Perform Pricing
Paycor Perform starts at $49 per month for up to 10 employees and works out to about $188 per month for 25 employees if you run payroll every other week. In our example of 25 employees, it would run $2,664 vs more than $4,000 for ADP. However, that price includes year-end tax processing―whereas ADP and Intuit charge extra for that. Like ADP, your price will go up if you process payroll more often.
Adding functions, such as ACA compliance when you get to 50 employees, is also not expensive with Paycor Perform at only about $2 per employee. Time and attendance cost extra―about $3 per month plus a setup fee.
ADP vs Paycor Perform Payroll Comparison Summary
Feature | ||
---|---|---|
Pricing | ||
Run Payroll & Manage Pre- and Post-tax Deductions: 401(k), Benefits & Garnishments | ||
401(k) Enrollment | ||
Benefits Enrollment & ACA Compliance | ||
Workers' Compensation | ||
Time & Attendance | ||
Payment Methods | ||
Mobile Access & Employee Self-service | ||
State & Local Taxes | ||
Compliance & Tax Filings | ||
Year-end W2s & 1099s | ||
Labor Law Posters | ||
Reports | ||
Integrations | ||
Support | No call center | |
Add-ons | Time & labor Workers’ comp | Time clock Onboarding Applicant tracking Learning management Labor costing |
Paycor Perform also has a more entry-level payroll system that we didn’t compare. Since its pricing isn’t available on its website, you’ll need to contact them directly for that option. Features like HR Analytics and Recruiting can be added as your business grows.
Paycor Perform Features
Paycor Perform payroll is built on its Perform human resource management system (HRIS) platform, and that means you can add functionality as your business grows. It has clients of all sizes from one to 10,000 employees, so you won’t have to change payroll companies if you grow to more than 100 employees and realize you want to add features like a new hire onboarding checklist, applicant tracking or training tools. It also provides software integrations to systems like QuickBooks and more.
In addition to payroll, Paycor Perform has lots of add-ons, such as managing PTO and vacation balances, the workflow that reminds you to do things like adding a bonus, and customizable views. Its payroll data displays on a pay grid, which looks like a spreadsheet on steroids and allows you to view all data at once, exactly as you want to see it including base pay, overtime, commissions, and so on. Once payroll runs, the reports provide visual data with color charts.
What Paycor Perform Is Missing
Paycor Perform was difficult to get in touch with via web and email. After completing the online form for a quote, and viewing a demo, we received daily system-generated marketing emails that felt spammy. However, we never received a personal response via phone or email until we called and asked for the sales department.
Paycor Perform Reviews
Our research shows that Paycor Paycor Perform earns solid reviews on third-party websites. What users like is the integration and the fact that the platform grows as their business grows. Its chat feature lets you provide software feedback directly on its website. It uses customer feedback to determine its software improvement priorities.
Getting Started With Paycor Perform
Once you contact Paycor Perform, it sets you up with a quick 30-minute demo and gives you pricing right away. It doesn’t offer a free trial as the setup is unique to each employer. Therefore, if you want a quote, it’s best to contact them directly. Visit the Paycor Perform website.
Intuit Payroll: Best ADP Competitor for QuickBooks Users
Intuit Basic Payroll is designed for anyone using QuickBooks. Intuit makes both products, and Intuit Payroll integrates with QuickBooks for general ledger and taxes. If you’re already using QuickBooks, Intuit Basic Payroll can be a quick and easy payroll solution. Intuit Payroll is also great for anyone who wants to be able to run payroll even while out of the office since you can run payroll from your laptop, iPad, or even your smartphone, similar to Paychex Payroll.
While you don’t need QuickBooks to run the cloud-based Intuit Basic Payroll, you’ll find it saves you time by avoiding duplicate data entry if you have both Intuit applications―Intuit Basic Payroll is compatible with QuickBooks Online or a 2015 or newer version of QuickBooks Desktop. Therefore, it’s a solid option for existing users of QuickBooks software.
Intuit Payroll integrates seamlessly with QuickBooks accounting software
Intuit Basic Payroll Pricing
Intuit Basic Payroll pricing starts at $290 per year with an additional $2 per employee per month if you pay annually. On the surface, Intuit Basic Payroll appears to cost significantly less than ADP Run at $890 per year for 25 employees vs $4,000 year with ADP Run or any of the ADP competitors. However, the way that Intuit Basic payroll is priced, fees start adding up if you add workers’ compensation, direct deposit, and year-end tax processing.
ADP vs Intuit Basic Payroll Comparison Summary
Feature | ||
---|---|---|
Pricing | ||
Run Payroll & Manage Pre- and Post-tax Deductions: 401(k), Benefits & Garnishments | ||
401(k) Enrollment | ||
Benefits Enrollment & ACA Compliance | ||
Workers' Compensation | ||
Time & Attendance | ||
Payment Methods | Direct deposit costs $2 per check bank processing fee | |
Mobile Access & Employee Self-service | ||
State & Local Taxes | ||
Compliance & Tax Filings | ||
Year-end W2s & 1099s | ||
Labor Law Posters | ||
Reports | ||
Support | 24 hours/7 days a week | |
Integrations | ||
Add-ons | Time & labor Workers’ comp | Time tracking Labor law posters |
Notice all the features that aren’t included in the Intuit Basic Payroll base price. For example, direct deposit alone would cost $1,300, bringing the total to $2,190 per year, without all the features that a vendor like Gusto provides.
However, unlike ADP, there is no charge per payroll run, and you can even run salaried and hourly payrolls on different pay dates―for example, you may wish to pay hourly staff weekly, and pay salaried employees every other week. If you run weekly payroll and print your own paper checks, Intuit Basic Payroll might be the best value. You can upgrade to get additional features like timekeeping when you need them. The different pricing tiers Intuit has makes it a flexible option.
Intuit Features
Intuit Basic Payroll has versions that run with or without QuickBooks. You input your payroll hours and run payroll. Employees can be paid via check, pay card like a credit card to pay employees without bank accounts, or direct deposit, and they can view their pay stub online via smartphone.
However, you’ll pay a fee for each direct deposit. Like ADP, Intuit also provides labor law posters, workers comp, and 1099s for an upcharge. If you’re interested in adding payroll to your QuickBooks account, the process to sync the two is simple.
What Intuit Is Missing
You have to upgrade or pay extra with Intuit Basic Payroll to get automated year-end tax forms. However, the data is provided so you can give year-end payroll and tax data directly to your tax accountant. Like ADP, Intuit also has no access to benefits providers and can manage only the benefits deduction, not enrollment. Intuit also doesn’t have ACA compliance so that, as you grow past 50 employees, it might not be the best option.
However, given the overall annual savings and QuickBooks compatibility, Intuit may still be the right ADP alternative for you if you plan to print and distribute paper checks manually.
Intuit Reviews
We found that many of Intuit Payroll’s user reviews are solid. However, it gets a good share of complaints as well. The biggest issue current users report is the fee charged for each direct deposit. In addition to that, some users feel that its customer support takes too long.
Getting Started With ADP Competitor Intuit Payroll
Also, ask about specials. At the time this was written, Intuit was offering the first month free. Also, if you buy QuickBooks and Intuit QuickBooks Payroll at the same time, you can save 50% off both. Sign up for Intuit Payroll today.
Zenefits: Best ADP Competitor for Regulated Industries
Zenefits is HRIS software that includes payroll. It’s designed for those businesses looking for more HR options such as hiring, onboarding, company directory, and organizational chart, which are not available with ADP Run. However, if you’re planning on adding HR tools anyhow, then you could do so with Zenefits getting both HR and payroll for less than the cost of ADP.
Zenefits offers payroll process as part of its HRIS software
Zenefits is best for any organization that wants to make its benefits process front and center. It includes health insurance and other benefits as well as HR processes. Some of the other ADP alternatives like Paycor Perform and Inova have an upcharge for its benefits and HR features.
Zenefits Pricing
Zenefits costs $40 per month plus $5 per employee per month for its HR software, and another $6 per employee, per month, to add payroll, making them a bit more costly than solutions like Gusto or Paycor Perform―albeit still less than ADP. In our example using 25 employees, Zenefits would cost slightly less than $4,000, while ADP would be over that amount.
Because it prices its offerings based on monthly rates rather than per pay run like ADP and Paycor Perform, Zenefits may be less expensive for payroll if you run payroll weekly. However, there is an extra cost of $2 per check to pay contractors and vendors.
ADP vs Zenefits Comparison Summary
Feature | ||
---|---|---|
Pricing | ||
Run Payroll & Manage Pre- and Post-tax Deductions: 401(k), Benefits & Garnishments | ||
401(k) Enrollment | ||
Benefits Enrollment | ||
Workers' Comp | ||
Time & Attendance | ||
Payment Methods | ||
Mobile Access & Employee Self-service | ||
State & Local Taxes | ||
Compliance & Tax Filings | ||
Year-end W2s & 1099s | ||
Labor Law Posters | ||
Reports | ||
Integrations | ||
Support | ||
Add-ons | Time & labor Workers’ comp |
If you pay for an annual contract, you can receive a discount of up to 25% off. Even without the discount, the cost of Zenefits would be $315 per month for 25 employees paid every other week to get HR and payroll, compared to ADP, which would cost about $330 for payroll alone.
Zenefits Features
Zenefits provides a demo and a free trial, so you can evaluate the software before you commit. We recently wrote an article reviewing Zenefits, and another on Zenefits competitors in the HR/Payroll market. With employee HR and payroll integrated, all your employee data is in one place so that there’s no need for duplicate data entry, saving you time and reducing mistakes.
What Zenefits Is Missing
While Zenefits tracks garnishment deductions, it doesn’t send them to a third party, so you’ll have to do and track that manually. One of our reviewers said the time-off request function in Zenefits was clunky as compared to ADP. If you pay employees via commissions only, Zenefits can’t help. Also, Zenefits currently doesn’t offer payroll processing in all 50 states, whereas ADP and most of the ADP alternatives do.
Zenefits Reviews
Small business owners don’t rate Zenefits highly, at least not as high as they rate Gusto or Paycor Perform for payroll processing. However, those looking for an HR and benefits solution primarily find it nice to have all-in-one integration, including tools like performance management for $4 per month per employee extra.
Getting Started With ADP Competitor Zenefits
Zenefits provides a demo you can view before talking with a salesperson. This is a great way to familiarize yourself with the tool before you set up a sales call. Like ADP and Paychex, you’ll want to have your requirements defined in advance to avoid being pressured into purchasing features your small business may not yet need. Visit the website to view a Zenefits demo.
Inova: Best ADP Alternative for Retail & Healthcare Businesses
Inova is another ADP alternative that’s rated highly by users and affordable for small businesses. It’s a good choice for companies experiencing growth or expansion as you only pay for what you need until your employee population requires you to bump up to the next tier with additional compliance features for employers of that size, such as ACA compliance at 50 FTE or equal employment opportunity (EEO) reporting at 100 employees.
Inova was designed with specific industries in mind. For example, it integrates with POS systems for retail and hospitality, which ADP Run doesn’t do. Like ADP, Inova can manage the robust payroll requirements within the healthcare industry, such as shift differential pay.
Inova Payroll screenshot image
Inova provides HR functionality like Gusto, and also adds I-9 verification through E-Verify, which is a benefit in regulated industries like health care. In time, with Inova, you can add everything a large scale enterprise HRIS provider might offer―similar to Paycor Perform.
Inova Pricing
Inova bases its pricing per pay run and per check, similar to ADP. For our comparison of 25 employees with every-other-week payroll, Inova averaged less than $200 per month for payroll. Inova also offers a discount for nonprofit organizations. However, its pricing isn’t online and varies significantly based on the services you sign up for.
ADP vs Inova Comparison Summary
Feature | ||
---|---|---|
Pricing | ||
Run Payroll & Manage Pre- and Post-tax Deductions: 401(k), Benefits & Garnishments | ||
401(k) Enrollment | ||
Benefits Enrollment & ACA Compliance | ||
Payment Methods | ||
Workers’ Compensation | ||
Time & Attendance | ||
Mobile Access & Employee Self-service | ||
State & Local Taxes | ||
Compliance & Tax Filings | ||
Year-end W2s & 1099s | ||
Labor Law Posters | ||
Integrations | ||
Support | ||
Add-ons | Time & labor Workers’ comp | Health insurance Background screening 401(k) plans Timekeeping Human capital management |
However, there’s a catch. The annual payroll processing price doesn’t include tax payments. For those, you’ll pay about $300 extra per state that your employees work in. That’s great if all your employees are in only one state. It can be expensive if your employees are in five or more states, adding $1,500 per year―$300 per state―to your payroll costs.
Inova Payroll Features
Like ADP Run, Inova is cloud-based but is more like Paychex Payroll with cool benefits such as a mobile app for employee self-service. Inova provides automated new hire reporting and unlimited deductions. It also processes payroll calculations real-time―you don’t have to run a process to see and verify the net check amount.
Inova had one of the best reporting options out of all the ADP competitors we tested. All its standard payroll reports are customizable on the fly, and report data can be downloaded in a dozen formats―from .xls to .html.
What Inova Is Missing
Wage garnishments, such as child support, are managed through a third-party provider. Most of the other payroll providers calculate the deduction and make the payment directly. This could create a hassle if you have to track down a missing payment and may even create a liability if payments aren’t done correctly.
Its prices are not posted on the website, so you’re required to sit through a 90-minute demo before it shares pricing with you. Its tax processing fees go up based on the number of states you have employees in. That can get costly if you have multiple employees nationwide.
Inova Reviews
We found that Inova’s user reviews are solid four and five out of five-star reviews on third-party websites. However, we have received few reviews from small business owners, which may be because Inova pricing isn’t online or that small businesses haven’t yet discovered it.
Getting Started With ADP Competitor Inova
Inova requires that you contact them for pricing. Once you make that contact, it’ll provide a demo and pricing proposal. At that point, it will take a few weeks to get your software set up as compared to services like Gusto that can be set up immediately. Visit the website to request a free demo.
Other Alternative Payroll Providers
In addition to direct ADP competitors, your small business has options like free payroll providers or payroll calculators that may be missing some of ADP’s features―to a professional employer organization (PEO) that can provide full-service co-employment for your business.
Professional Employer Organization
PEOs, such as ADP Total Source and Justworks, can provide full-service HR, benefits, and payroll for a monthly per-employee fee that starts at less than $100 per month per employee. PEOs require you to complete an application process as it wants to ensure your business complies with federal and state labor laws. Once you’re approved, it can serve as a co-employer taking on employment liability.
The benefit of a PEO is that you can offer your employees the experience of working with a much larger employer―providing insurance, 401(k) and larger employer benefits at less cost than you may be able to negotiate on your own. ADP Total Source is a good PEO alternative to ADP Payroll.
Free Payroll Software
A very small employer―with under three employees or a few seasonal hires―may want to consider the option of managing payroll with a free payroll provider. Typically, free payroll software won’t manage your new hire reporting to the state or file payroll taxes for you. However, if you’re already managing your own accounting and tax filing, you may find a free payroll software program to be an inexpensive way to provide paychecks to employees.
Bottom Line
All of the ADP competitors we described above cost less than ADP Run, which is ADP’s small business package. So, although ADP has the largest share of the payroll market, it’s not the only option. While some of the ADP alternatives like Gusto and Paychex offer similar services, others like Zenefits, Inova, and Paycor Perform offer a full HR suite.
Before you sign an annual contract with ADP, look at the competition out there. You may find payroll software you like better, such as Gusto, which does more at half the cost, saving you money. Sign up for a free 30-day trial.
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