ADP is one of the best choices for businesses that plan to expand and hire more employees in the near future. It has advanced HR features like new hire onboarding and background checks, on top of its full-service payroll and tax services. However, ADP is not ideal for small businesses with a tight monthly budget because it charges for extra payroll runs and year-end reporting. If you don’t need robust HR features or just need to save money, a top ADP competitor may work better for your business.
- Paychex Payroll: Best overall for small businesses that plan to grow
- Inova Payroll: Best for small business owners who want to customize their payroll plans.
- Gusto: Best for companies (<100 employees) looking for affordable, full-service payroll and free, year-end reporting.
- QuickBooks Payroll: Best for small business QuickBooks users needing an affordable but popular payroll and accounting option to pay employees.
- Zenefits: Best for companies in heavily regulated industries that need top-notch HR support.
- Rippling: Best for businesses relying heavily on technology that need an integrated way to manage HR, payroll, and information technology (IT).
How We Chose the Best 6 ADP Alternatives
We considered dozens of payroll services and looked into how closely they compare with ADP. We then evaluated their best features for running payroll and HR services that are most important to small businesses, scoring them according to the criteria below. Then, we chose the top six software most similar to ADP yet better in some aspect to help you decide which ADP alternative is best for your business.
Overall, for features and customer satisfaction, Paychex is the best ADP alternative. The further you proceed down the list of our top picks, the more contrast you’ll see among features.
To see our full evaluation criteria, click through the tabs in the box below.
30% of Overall Score
We looked for convenience features like automatic pay runs, tax filing, and the ability to pay contractors and employees. We also considered specific pay processing needs like a live check option and if they offer a penalty-free guarantee. Paychex scored highest in this area as its features most closely align with those of ADP, with the exception of free year-end reporting vs ADP’s paid options.
25% of Overall Score
The best payroll software includes at least simple HR features, such as onboarding, self-service portals, and employee benefits. We also favored companies with advisors on hand to help with legal compliance issues. Both Paychex and Inova scored high under this criteria.
15% of Overall Score
Payroll software should be easy to use. We looked for customer support and helpful features (like software integrations and file exports), plus considered user comments on the learning curve and day-to-day operations. Paychex scored highest, tied with QuickBooks Payroll, for ease of use; it comes with the most support but also has a steep learning curve like ADP. Gusto, and Zenefits follow closely behind because their systems are smaller and easier to learn.
15% of Overall Score
In addition to the price per employee and setup fees, we also determined their available plans or if they offer customized pricing. We also looked for free trials. Paychex and Inova are more closely aligned with ADP in this category. Gusto differs the most from ADP when it comes to pricing, which is good if affordability and a free trial are most important to you.
10% of Overall Score
Software reviews show feedback from real users and can be a maximum of 5 stars. We considered online user reviews, including those of our competitors, wherein any option with an average of 4+ stars is ideal. Also, software with 1,000 or more reviews on third-party sites is preferred. All of the software we ranked scored well under popularity.
5% of Overall Score
In addition to the number of payroll reports, we considered whether they are customizable or if you could create special reports that fit your specific needs. Paychex and Inova are more competitive in this area; similar to ADP, they provide a large number of reports and give users the ability to build their own from scratch.
Paychex
PROS
- Offers two-day direct deposits
- Flexible plan options
- New hire reporting
- 24/7 customer support
CONS
- Must contact sales for pricing; fees can increase from year to year
- Garnishment payment services are available for the premium plan only
- Limited integration with small business software
- Expert advisers cost extra
| RATING CRITERIA | Pricing | 3.50 | OUT OF | 5 |
| HR Features | 5.00 | OUT OF | 5 | |
| Popularity | 5.00 | OUT OF | 5 | |
| Reporting | 5.00 | OUT OF | 5 | |
| Payroll Features | 5.00 | OUT OF | 5 | |
| Ease of Use | 4.63 | OUT OF | 5 |
Like ADP, Paychex is a full-featured payroll system that has different packages for small to enterprise-level businesses, including solopreneurs. None of the software in this list offer plans geared towards solopreneurs and self-employed individuals.
Paychex is capable of handling payroll and tax administration, onboarding, and workers’ compensation for you from anywhere. It even assigns a dedicated specialist for your payroll and tax requirements, in addition to 24/7 client support. Scoring 4.72 out of 5 stars, it’s best for businesses that plan to expand operations and increase manpower. You can speak to a member of the sales team to customize a package based on your needs.
It was also rated favorably for payroll features, HR tools, reporting capabilities, and user reviews. Many reviewers even commented that Paychex is simple to set up, user-friendly, and convenient to use. However, the lack of a free trial and its limited integration options with the most common small and midsize business (SMB) software (like When I Work, QuickBooks Time, and Homebase) cost significant points against this provider.
If you want to learn whether or not its payroll functionalities can handle your business needs, read our Paychex Flex review.
Paychex Pricing
Paychex offers three full-service payroll solutions, Paychex Go ($39 plus $5 per employee monthly), Paychex Flex Select (custom priced), and Paychex Flex Enterprise (custom priced).
Paychex Standout Features
- Flexible system: Paychex offers options that allow you to review, edit, and submit payroll from desktop computers and mobile devices (for iOS and Android). You can start running payroll on your smartphones/tablets and then resume it on your computer, and vice versa. Unlike Gusto and Zenefits, Paychex, and ADP, Paychex can grow with your business, providing you with efficient pay processing tools regardless of whether you have 10 or more than 500 employees.
- User-friendly payroll features: Its easy-to-use online tools are designed to simplify the way you pay employees and contractors. You can even set your payroll to run automatically. It also handles payroll tax calculations, payments, and filings (for federal, state, and most local taxes) for you. Note that QuickBooks Payroll only handles federal and state payroll taxes. In addition, Paychex provides automatic W-2s and 1099s—with ADP, you have to pay extra for year-end reporting.
- Multiple pay options: You can pay employees through pay cards, direct deposits, and paper checks. Paychex like ADP even offers check signing and stuffing services. If your staff requests early access to earned wages before a payroll date, you can use its pay-on-demand feature to help employees with their financial needs.
- Robust reporting: The reporting options of other providers in this guide aren’t as robust, except for Paychex and Inova Payroll. Aside from offering customizable reports, Paychex has over 60 reports that you can use for payroll and analyzing HR data.
- Full range of HR and payroll features: In addition to payroll, it has a suite of HR solutions and services for new hire onboarding, time and attendance, employee benefits, workers’ compensation, garnishment payment services, business insurance options, and hiring services. QuickBooks Payroll and Zenefits don’t have hiring tools, and most of the other providers in this guide don’t post to job boards (with the exception of Inova and Rippling, and ADP).
- Dedicated support: Paychex has a team of compliance experts, HR professionals, and payroll specialists who can provide knowledgeable advice on labor regulations and HR-related issues. You also get 24/7 phone and chat support, which none of our other recommended providers in this guide offer.
Inova Payroll
PROS
- Self-service portal
- Professional tax team support
- Quality customer service
CONS
- Pricing isn’t transparent
- Steep learning curve
- Limited third-party integration
| RATING CRITERIA | Pricing | 3.50 | OUT OF | 5 |
| HR Features | 5.00 | OUT OF | 5 | |
| Popularity | 5.00 | OUT OF | 5 | |
| Reporting | 5.00 | OUT OF | 5 | |
| Payroll Features | 4.50 | OUT OF | 5 | |
| Ease of Use | 3.75 | OUT OF | 5 |
Inova Payroll may not be as popular as ADP, but it offers integration of full-service payroll and HR solutions for businesses of all sizes. It handles payroll for both contractors and employees, calculates taxes, and manages benefits. Inova’s payroll team specializes in information technology and can customize its software and features to meet your needs—although it will cost extra.
Inova also offers full-service HR outsourcing, time and attendance, group health benefits, and retirement plan options. Professional tax teams help in monitoring federal, state, and local tax updates and resolutions. However, just like ADP and Paychex, Inova Payroll doesn’t publish its pricing online. You will have to ask for a customized quote to conform to your specific needs. Overall, Inova Payroll scored a total of 4.44 out of 5 stars.
In terms of user reviews, Inova Payroll received a lot of positive feedback from users who said that it has excellent customer support, efficient payroll processing tools, and an intuitive interface. On the other hand, some reviewers dislike that it has limited integration options, especially with third-party time clock systems.
To learn more about Inova and whether it will fit your business needs, read our Inova Payroll review.
Inova Payroll Pricing
Inova Payroll offers custom-priced plans. We were quoted approximately $16–$17 per employee monthly when factoring in all payroll fees, including year-end reporting but excluding benefits and other products. Note that direct deposit costs around an extra $9 per employee but is included in our quote. For weekly payroll runs, expect to pay a base fee of around $24 and $1.60 per paycheck processed.
Inova Payroll Standout Features
- Robust feature variety: Compared to Gusto, QuickBooks Payroll, and Rippling, Inova has a more feature-rich platform. Aside from payroll, Inova offers online tools for time tracking, background checks, and employee benefits like health insurance, 401(k) plans, and workers’ compensation. It also has a suite of human capital management (HCM) solutions that include applicant tracking, onboarding, learning management, and performance management.
- Efficient pay processing: The software can handle simple pay runs to complex multi-location payrolls. Similar to ADP, you can pay your staff either through direct deposits, paper checks, or debit pay cards. You don’t need to worry about payroll taxes because Inova provides accurate calculations, including tax forms (W-2s/1099s) and federal, state, and local tax filing services (unlike QuickBooks that doesn’t handle local payroll taxes). It even lets you pre-process payroll so you can review and make last-minute adjustments prior to submission.
- Smart reporting: Inova, like Paychex, has a wide range of reporting options that show payroll summaries, job costs, direct deposit details, general ledgers, and more. You can also create ad hoc reports and export these into Excel and CSV files.
- HR and compliance support: In addition to live phone support, Inova Payroll offers “HR On-Demand” services to help you stay compliant and provide you with expert advice from HR professionals. This service—which is similar to ADP’s HR support solutions—also includes access to HR tools and resources, such as custom employee handbooks, job descriptions, HR forms, and a policy library.
Gusto
PROS
- Easy to use
- Affordable for small business owners
- Unlimited pay runs
CONS
- Benefits aren’t available in all states
- No dedicated payroll specialist
- Lacks plan options that support small businesses growing into enterprises
| RATING CRITERIA | Pricing | 3.25 | OUT OF | 5 |
| HR Features | 4.25 | OUT OF | 5 | |
| Popularity | 5.00 | OUT OF | 5 | |
| Reporting | 4.00 | OUT OF | 5 | |
| Payroll Features | 4.75 | OUT OF | 5 | |
| Ease of Use | 4.50 | OUT OF | 5 |
For small business owners with fewer than 100 employees who require monthly unlimited pay runs, Gusto is the best choice. The software is easy to use—no excess features you don’t need. It files and pays federal, state, and local taxes and automatically generates and sends W-2s and 1099s to employees and contractors at no extra cost, unlike ADP. Multiple pricing options are also available and set up and migration are free—you have to pay a setup fee with both ADP and Paychex.
Scoring 4.13 out of 5 stars, Gusto received high marks for payroll functionalities, ease of use, HR features, and reporting options. It also has a lot of positive reviews online in which reviewers commended its affordability, good customer support, and intuitive interface. However, the lack of customizable plans and dedicated payroll specialists, including the limited coverage of its health insurance benefits prevented Gusto from ranking higher on our list. Competitors, such as QuickBooks Payroll and Paychex (including ADP), have health insurance that’s available in all states—Gusto’s health benefits cover only 39 states.
To learn more about how Gusto is designed to help small businesses with their payroll and HR tasks, read our Gusto review.
Gusto Pricing
- Core plan: Priced at $39 plus $6 per employee monthly, Core comes with full-service payroll, employee benefits, accounting and time tracking integrations, and a self-service portal. For direct deposits, you are granted access to two- and four-day options.
- Complete tier: This plan includes additional functionalities like next-day direct deposits, time tracking, paid time-off (PTO) management, project tracking, hiring and onboarding, and team management tools. It costs $39 plus $12 per employee monthly.
- Concierge option: For $149 plus $12 per employee monthly, you get premium features such as compliance alerts, dedicated support, expert advice from HR professionals, and access to an HR resource center.
- Contractor only plan: Get full-service payroll services to process contractor payments for only $6 per person monthly.
Gusto Standout Features
- Ease of use: Gusto is easy to set up and use, plus it has an intuitive interface that allows you to process payroll in just a few clicks. Unlike Paychex and ADP (which have slightly steep learning curves), you can start using Gusto’s online tools without any training required—provided you have a good background on how payroll works. If you need assistance, it provides how-to guides and unlimited phone, email, and chat support.
- Payroll processing and services: Process payroll as many times as you need without having to pay extra fees. It can handle multi-state payroll and tip credits, plus its automated pay runs are a very handy feature. In addition to garnishments and new hire reporting, Gusto provides payroll tax payment and filing (federal, state, and local) services. Your staff can also access their W-2s/1099s (note that year-end reporting with ADP costs extra), pay stubs, and benefits information through a self-service portal.
- Multiple pay options: Gusto lets you pay employees and contractors through direct deposits, checks, pay cards, and pay on-demand (Inova, QuickBooks Payroll, Zenefits, and Rippling don’t have pay on-demand capabilities). For direct deposits, you get next- to four-day processing timelines, depending on your chosen plan.
- Full range of payroll and basic HR features: Aside from payroll, Gusto has solutions for hiring, onboarding, health benefits administration, PTO management, and simple time tracking. It also offers a robust selection of benefits, such as medical, dental, vision, retirement, flexible spending accounts (FSAs), health savings accounts (HSAs), and pay-as-you-go workers’ compensation plans.
QuickBooks Payroll
PROS
- Unlimited payroll runs
- Integrates with QuickBooks and QuickBooks Desktop
- Same- and next-day direct deposits
CONS
- Limited third-party integrations
- Doesn’t handle local taxes
- Inconsistent customer support quality
| RATING CRITERIA | Pricing | 3.25 | OUT OF | 5 |
| HR Features | 3.88 | OUT OF | 5 | |
| Popularity | 5.00 | OUT OF | 5 | |
| Reporting | 4.00 | OUT OF | 5 | |
| Payroll Features | 4.00 | OUT OF | 5 | |
| Ease of Use | 4.63 | OUT OF | 5 |
QuickBooks Payroll can handle most payroll functions, from onboarding to tax preparation, although it doesn’t report new hires to the state—note that the other solutions we reviewed in this guide have this feature. It allows you to run auto payroll for salaried employees on same-day or next-day direct deposit. Plus, it automatically calculates, files, and pays federal and state taxes, including submission of year-end W-2s/1099s. And unlike ADP, QuickBooks Payroll has an internal accounting program specifically for small businesses—QuickBooks—that seamlessly integrates with its payroll system.
Earning an overall score of 4.05 out of 5 stars, QuickBooks Payroll was rated highly for ease of use, payroll functionalities, and reporting tools. However, its limited employee payment options and third-party software integrations, including its inability to pay and file local taxes contributed to its low scores. In terms of user reviews, QuickBooks Payroll received positive feedback from online reviewers who said that its user-friendly interface makes pay processing easy for them.
To learn more about QuickBooks Payroll and how to use it for your business, read our QuickBooks Payroll review.
QuickBooks Payroll Pricing
- Core plan: This option costs $45 plus $4 per employee monthly and includes full-service payroll with next-day direct deposits, health benefits options, and automated federal and state tax calculations, payments, and filings.
- Premium tier: Priced at $75 plus $8 per employee monthly, you get all the features included in Core plus workers’ compensation administration, time tracking, and same-day direct deposits.
- Elite option: This plan, which costs $125 plus $10 per employee monthly, comes with additional features like 24/7 support, tax penalty protection, and access to a personal HR adviser.
QuickBooks Payroll Standout Features
- Intuitive interface: The software has intuitive controls that allow you to set up and run payroll in a few easy steps. It doesn’t have a complicated-looking interface, and if you have questions about its functionalities, QuickBooks Payroll has how-to articles that can guide you through its features. Plus, compared to Paychex and ADP, this software doesn’t have a learning curve.
- Efficient pay processing: Set payroll to run automatically so you have more time to focus on business-building projects. With its full-service payroll, you can efficiently pay both employees and contractors, although you have to handle local payroll tax payments and filings yourself. All of the providers we reviewed in this guide and also ADP offer federal, state, and local payroll tax processing.
- Fast direct deposits: QuickBooks Payroll is the only software in this article that allows you to pay employees quickly. Aside from next-day direct deposits, it offers same-day direct deposits—provided you subscribe to either its Premium or Elite tier.
- Seamless integration with QuickBooks: While it doesn’t integrate with a lot of third-party software, its native integration with QuickBooks allows for seamless data transfers between Intuit QuickBooks products. This means that your payroll information can flow directly to the general journal, plus you can use wage-related information for analytics and other reports using QuickBooks.
- Expert support: For new clients, QuickBooks Payroll has an easy-to-follow setup wizard and implementation support to help you get the system up and running. In addition, you are granted access to payroll experts that you can contact via phone and chat. If you subscribe to its highest tier, you get an HR professional who can provide expert advice. However, if you need a dedicated payroll specialist, then you may want to consider Paychex and ADP.
Zenefits
PROS
- Simple to use
- Unlimited pay runs
- Robust integration options
CONS
- Payroll is an add-on cost
- HR and payroll expert advising cost extra
- Customer support quality is inconsistent
| RATING CRITERIA | Pricing | 1.75 | OUT OF | 5 |
| HR Features | 4.50 | OUT OF | 5 | |
| Popularity | 5.00 | OUT OF | 5 | |
| Reporting | 4.00 | OUT OF | 5 | |
| Payroll Features | 4.25 | OUT OF | 5 | |
| Ease of Use | 4.50 | OUT OF | 5 |
Scoring 4.04 out of 5 stars, Zenefits is best for businesses in highly regulated industries given its end-to-end employee management solution that streamlines and automates HR, payroll, and benefits administration. It offers payroll as an add-on (unlike ADP and most of the software in this guide that provide it as a base product) and includes unlimited pay runs, automatic federal and state tax filing, and new hire state filing. You can pay your employees via direct deposit, and they will be able to access their pay stubs through a web portal.
Businesses with an hourly workforce even find its direct integration to the payroll system very useful. And if you need time tracking tools, all of its core products come with a time and attendance solution at no extra cost—under ADP, this is a separate product.
While it offers multiple tiers, the lack of customizable plans and a free trial contributed to its low ratings for pricing. In terms of user reviews, many reviewers said that Zenefits is user-friendly while some commented that its customer service is less than ideal.
If you want to learn whether or not its payroll and HR functionalities can handle your business needs, read our Zenefits review.
Zenefits Pricing
- Essentials plan: For $10 per employee monthly, this option provides you time tracking, scheduling, and core HR tools (such as hiring and employee management). You are also granted access to third-party software integrations and mobile apps (for iOS and Android devices).
- Growth tier: This plan has all the features of Essential, plus compensation and performance management tools. It costs $18 per employee monthly.
- Zen option: Priced at $27 per employee monthly, you get additional premium features like engagement surveys and team communication tools.
- Payroll add-on: You have to pay an additional $6 per employee, per month in order to access Zenefits’ pay processing tools.
- Other add-on services: Access to Zenefits’ advisory services cost $10 per employee monthly, while benefits administration using your own broker is priced at $5 per employee monthly.
Zenefits Standout Features
- Feature-inclusive: While ADP, Paychex, and Inova Payroll have a wide range of HR solutions, Zenefits’ platform is more robust, helping you manage the entire employee lifecycle—from hiring to retirement. Aside from payroll, it offers hiring, onboarding, time tracking, benefits, compensation planning, performance reviews, employee information management, engagement surveys, and communication tools through its “Zenefits People Hub.”
- Integrated payroll: Zenefits automatically syncs employee data, including actual work hours, PTO details, and benefits information from its other solutions directly into payroll.
- Efficient pay processing: From employee and contractor payments to tip reporting and wage garnishments, Zenefits has all the essential tools you need to accurately process payroll and payroll taxes. It even has dynamic pay stubs (accessible through its mobile apps) where you can add messages in case there are salary changes and special payouts (none of the providers in this guide, including ADP, offer this feature).
- Robust integrations: Unlike QuickBooks Payroll, you can connect Zenefits to popular applicant tracking, time and attendance, accounting, productivity, legal, and learning software. Some of its integration partners include Greenhouse, JazzHR, Deputy, QuickBooks, Xero, Lessonly, Slack, and Asana.
Rippling
PROS
- Handles federal, state, and local taxes
- Pricing is more transparent compared to ADP
- Robust products can be purchased separately and as needed
CONS
- Limited payment options
- Its core Employee Management plan must be purchased before any other product
- Live phone support costs extra
| RATING CRITERIA | Pricing | 0.00 | OUT OF | 5 |
| HR Features | 4.50 | OUT OF | 5 | |
| Popularity | 5.00 | OUT OF | 5 | |
| Reporting | 4.00 | OUT OF | 5 | |
| Payroll Features | 4.25 | OUT OF | 5 | |
| Ease of Use | 3.00 | OUT OF | 5 |
Similar to Zenefits, Rippling’s payroll product comes as an add-on to its HR platform. Aside from IT and HR management tools, it offers an extensive payroll feature set with automatic tax calculations and filing, and direct deposit payment options. You can also print manual checks, but there’s no payroll card or on-demand pay options that you would get with ADP, Paychex, or Gusto. It does automatically sync your HR data with payroll though, which can be a time saver.
Overall, Rippling scored 3.55 out of 5 stars. With it, you can track PTO and pay your employees (including contractors) working anywhere in the world. It also has pre-built reporting templates and customizable options. There is no free live phone support like there is with ADP, but many users rate Rippling’s live chat, in-app, and email support as highly responsive. It also received a lot of positive online reviews, wherein users commented that it is user-friendly with robust features and third-party software integrations.
To learn more about Rippling’s robust HR features and payroll add-on, read our Rippling review.
Rippling Pricing
- Base program: You have to purchase its Employee Management module ($10 per employee monthly) before you can access its other solutions.
- Payroll add-on: For $8 per employee monthly, you can unlock Rippling’s pay processing tools.
- Other add-on services: You have to pay extra for applicant tracking ($6 per employee monthly), employee benefits ($6 per employee monthly), HSA and FSA benefits ($6 per employee monthly), HR help desk ($100 monthly), device management ($8 per employee monthly), and app management ($8 per employee monthly).
Rippling Standout Features
- Unified platform: Similar to Zenefits, Rippling has an integrated HR platform in which all of its solutions automatically connect with the other. This helps you save time since you don’t need to input employee data twice in order to capture staff information (like salary changes, time sheet data, and benefits) that will affect payroll.
- Full range of HR and IT features: You get a full HR suite with robust employee management, benefits administration, time and attendance, and applicant tracking. It also has onboarding and offboarding automation, mobile apps for iOS and Android devices, and information technology (IT) management tools (note that none of the software in this list, including ADP, have this feature).
- Efficient pay processing: Rippling offers full-service payroll that lets you pay employees in just a few clicks and provides your staff easy access to online pay stubs and tax forms through its mobile apps. You also don’t have to worry about payroll taxes, because it automatically calculates and files federal, state, and local taxes for you. Compared to competitors like Gusto and Zenefits, Rippling’s pay processing capabilities are a bit more robust since, like ADP, it can handle global payroll.
- Robust integrations: In addition to application programming interface (API) access, you can connect Rippling to more than 400 third-party systems that include accounting, expense management, recruiting, training and onboarding, and office management software among others. ADP and the other providers in this article don’t integrate with as many third-party solutions in comparison to Rippling.
- Dedicated support: While you do have to pay extra in order to call its HR help desk, you get one-on-one support from certified HR professionals. Rippling also provides real-time compliance updates to help keep you up-to-date with labor regulations.
For a wider range of payroll service options, check out our buyer’s guides on the best payroll services and best payroll software.
Bottom Line
ADP is an excellent payroll service, but depending on your requirements, there are also several other great options to choose from. All the ADP payroll competitors included in this list offer paycheck and direct deposit services, onboarding and employee self-service, and tax and benefits calculations. Some primarily cater to small businesses, while others are more suited to a range of business sizes. HR support is included with most options but is limited under the most affordable options.
Overall, we found Paychex to be the best ADP competitor for payroll services, with the right features that small businesses need, like two-day direct deposit and 24/7 quality payroll support. It’s very similar to ADP in the range of services it provides but has additional employee benefits you may want to offer plus a special plan for solopreneurs. Sign up to get started.
