7 Best Paychex Competitors for 2023

ADP no longer lists its pricing online but for ADP Run, it does offer four plans at two levels—under 50 employees and 50-plus employees:

• Essential: Includes tax filing, multijurisdiction payroll, Wisely debit card, new hire onboarding, time and attendance, retirement, workers’ compensation and health insurance administration, and access to Upnetic small business marketing tools
• Enhanced: Essential, plus ZipRecruiter, check signing, state unemployment insurance (SUI) management, and more
• Complete: Enhanced, plus HR helpdesk, employee handbook wizard, salary benchmarks, HR tracking, forms, and training (no Upnetic small business tools with this plan)
• HR Pro: Complete, plus marketing tools and live advice, legal assistance services, HR help desk, applicant tracking, employer and employee training, and sexual harassment prevention training

We received an estimate for $3 per employee plus $65 per weekly pay run for the Essentials plan. This is more expensive than Paychex until you have more than 13 employees.

ADP TotalSource, its PEO solution, starts at $85 per employee according to the estimate we received.

A snapshot of ADP’s main dashboard
(Source: ADP)

• Payroll: You get full-service payroll that lets you pay employees via direct deposit and the Wisely debit card. (Paychex, Paycor, and Gusto also offer pay cards.) It also offers check signing and stuffing services and will deliver the paychecks to your office in time for you to hand them out to employees.
• International payroll: If you have global staff, ADP (like Rippling) can handle your international payroll needs. In contrast, Paychex offers global payroll services via its partner, FMP Global. Gusto only processes payments for international contractors while the other providers in this guide don’t have international payroll capabilities.
• Employee benefits: ADP provides you access to a wide variety of enterprise-level benefits plans—from life insurance to retirement plans. Unlike Gusto and TriNet Zenefits, ADP’s health insurance options are available in all 50 states. However, it lacks the financial wellness tools that both Paychex and Gusto offer.
• Hiring support: ADP Run provides hiring solutions for posting jobs on ZipRecruiter, conducting background checks, and onboarding new hires. In comparison, Paychex offers its hiring services as an add-on. Gusto also has onboarding capabilities and can help you track applicants, but its job posting tool doesn’t post to popular job boards.
• PEO services: Similar to Paychex, ADP TotalSource PEO services include strong compliance support and access to Fortune 500-level benefits. However, it isn’t as flexible as Rippling, which allows you to turn its PEO service off and switch to its HR platform easily.
• HR tools: Aside from employee information management, ADP offers basic learning management tools, such as courses for HR record keeping and sexual harassment prevention training. Like Paychex and Rippling, it charges for time and attendance tracking. TriNet Zenefits’ starter tier comes with time-tracking features. Gusto, Paycor, and QuickBooks Payroll all have time and attendance tools in higher tiers.

• Simple ($40 base plus $6 per employee monthly): Full-service payroll, tax filings, health insurance, employee financial benefits, payroll and time-off reports, integrations, and basic support
• Plus ($80 base plus $9 per employee monthly): Simple plus next-day direct deposits, time and PTO tracking, hiring and onboarding tools, project tracking, and workforce costing
• Premium (custom priced): Plus plan, plus HR Resource Center, compliance alerts, access to certified HR experts, health insurance broker integration, research and development (R&D) tax credit discount, performance reviews, employee survey, and dedicated support
• Contractor-only plan ($35 base plus $6 per contractor monthly): Unlimited contractor payments, 1099 filing, four-day direct deposit, international contractor available as an add-on

Processing payroll with Gusto involves four easy steps, plus you can set it to run automatically.
(Source: Gusto)

• Payroll: Gusto beats ADP and Paychex in that it allows unlimited pay runs. It offers multiple ways to pay employees such as through checks, pay cards, and direct deposits. Its direct deposit services are two and four days, with a next-day option included in its higher tiers. Meanwhile, Paychex, ADP, and the other providers here (except QuickBooks Payroll) only offer two-day direct deposits.

• Automated tax payments and filings: Similar to Paychex and other Paychex competitors, Gusto automatically calculates, withholds, remits, and files taxes on federal, state, and local levels. However, it offers free year-end tax reporting (W-2s and 1099s) unlike Paychex and ADP, which charge extra for this.
• Affordable contractor-only plan: Apart from unlimited pay runs, you get year-end 1099-NEC tax reports and state new hire reporting (if required). While Square also has a contractor plan, it cannot handle international contractors like Gusto.
• Employee benefits: Gusto’s health insurance plans are unavailable in 11 states, but it includes benefits administration in all of its plans. (Others charge for this.) As with TriNet Zenefits, you can bring in your own broker to manage your benefits plans. It also offers nonstandard benefits options, such as college savings plans, a free financial management app (Gusto Wallet), and early access to earned wages via Gusto Cashout.
• Hiring solutions: Gusto had a basic applicant tracking system, which others charge extra for. It posts jobs, but only to Google Jobs and to your career website via shareable links. ADP has a wider job posting reach, however. Like Rippling, Gusto offers basic IT provisioning and deprovisioning tools. It isn’t as robust as Rippling, though, which handles the entire process.
• HR tools: Unlike Rippling, ADP, and Paychex, which charge extra for time tracking, Gusto’s Complete and human capital management (HCM) plans include this. It also has performance review tools and templates that you can use to create employee evaluation forms, job descriptions, policies, and an employee handbook.

Square Payroll has two plans that include unlimited pay runs per month and no obligations. It’s among the least expensive on our list and is slightly less expensive than Paychex:

• Employee + Contractors: $35 per month plus $6 per person paid per month
• Contractor only: $6 per contractor paid per month

You can upload timecards from other sources or put in the information manually. (Source: Square Payroll)

• Multistate payroll: Square includes multistate payroll in its basic price. Run payroll across multiple states or pay employees who work from home.
• Pause billing: If you have seasonal workers or shut your doors for specific times of the year, Square lets you turn off your payroll. You don’t pay for unused months but, when you start up again, it starts right back with you. None of the others on our list offer this feature.
• Full integration with Square: If you are a retailer who uses Square POS or Square Teams, then all that information is integrated into payroll seamlessly for tracking time, tips, commissions, and more. Most of the payroll services on our list integrate with a few time trackers or software like Salesforce, but most require application programming interfaces (APIs) for integrating into point-of-sale (POS) software. It also integrates with QuickBooks for accounting.
• Cash App: Your employees can sign up for the Square Cash App. Similar to Gusto Wallet, it lets you deposit their pay into their account, where they can withdraw via ATM, transfer to other accounts instantly, or use to pay for items with other Square POS-using retailers. Cash App is insured to $250,000 by the Federal Deposit Insurance Corp. (FDIC) under certain conditions.
• Instant payout: If you need to pay your people right away, you can use Square Instant Payments to pull money from your Square balance to pay them via direct deposit or the Square Cash App. This service works on weekends as well. QuickBooks comes close with same-day direct deposit.

Like many HR payroll solutions, Paycor no longer lists its pricing online. However, for comparison purposes, these are the latest quotes we’ve received. Paycor is one of the most expensive on our list. However, it does allow unlimited payroll while ADP Run and Paychex charge according to the number of pay runs per month.

Small Business plans (those with up to 49 employees):

• Basic ($99 base plus $5 per employee monthly): Includes payroll, tax filing, check stuffing, and mobile apps
• Essentials ($149 base plus $6 per employee monthly plus $59 one-time setup fee): Basic plus PTO management, workers’ comp, onboarding, report building, job costing, 401(k), recruiting, and HR support
• Complete ($199 base plus $7 per employee monthly plus $99 one-time setup fee): Essentials plus 1:1 support from HR pros, expense management, and Paycor HR software
• HCM ($199 base plus $12 per employee monthly plus $199 one-time setup fee): Complete plus performance reviews, automated workflows, compensation management, and advanced analytics

Midmarket plans (businesses with 50 and more employees) are custom priced. Paycor is one of the few that offers a free (14-day) trial.

Paycor’s HR dashboard lets you manage employees, view PTO details, and more.
(Source: Paycor)

• All-in-one HR platform: Paycor’s all-in-one platform combines payroll with a wide suite of HR tools—from new hire onboarding and employee benefits to performance reviews and engagement surveys. Other Paychex alternatives, such as Gusto and QuickBooks Payroll, don’t have a robust offering of HR solutions. However, Zenefits offers more HR functionality in its basic plan.
• Payroll and tax processing: Paycor stands out from Paychex and ADP in that it offers unlimited and automatic payroll and year-end tax reporting. Pay employees through pay cards and two-day direct deposits. (Consider QuickBooks Payroll for next- and same-day direct deposits.) If you prefer to pay employees via paychecks, Paycor (like ADP) also provides check-stuffing services.
• HR support: Similar to Paychex, Paycor provides a variety of HR support tools and services to help keep you compliant while streamlining processes. Its Complete or HCM plans include access to HR professionals who can provide expert advice in handling employee issues. Rippling and TriNet Zenefits charge extra for HR advisory services.
• Communication tools: Paycor offers communication tools to help promote collaboration between teams. One standout feature is the company chat, where employees can communicate with one another directly through its platform. You can also use Paycor to send company announcements to keep your employees informed. Only TriNet Zenefits has something similar.

Rippling doesn’t publish clear pricing on its website, except for the starter monthly fee of $8 per employee for its Workforce Management module. After that, you purchase modules separately. However, if you sign up before December 1, 2023, you’ll get your first month FREE!

We were given a quote of $8 per employee monthly, plus a platform fee of $35 per month. This gives time tracking, employee onboarding and offboarding tools, and full-service payroll with payroll tax filings. You are also granted access to Rippling’s extensive network of partner systems, enabling you to integrate its platform with more than 500 third-party software.

Here are some quotes for other HR and IT modules:

• App, device, and computer inventory management: $8 per employee monthly, for IT tools to manage business apps and computer provisioning and deprovisioning processes
• Benefits administration: Pricing varies, depending on your insurance broker
• Global payroll: $20 per employee monthly
• Global contractor payroll: $20 per employee monthly
• Employee of record (EOR): $599 per employee monthly
• Applicant tracking and learning management, or HR advisory services: Quote based on specific needs

Rippling automatically syncs employee attendance, PTO, and benefits deduction data from its other modules into its payroll solution for processing.
(Source: Rippling)

• Modular solutions: What sets Rippling apart from the other providers here is its modular system that enables you to mix and match the HR, payroll, and IT features you want (after you purchase the core workforce management platform). Paychex and ADP also let you add features, but Rippling is more compartmentalized.
• Workflow management: The workforce management solution simplifies your people operations from new hire onboarding to employee offboarding. It lets you set up and automate workflows that work across Rippling’s modules and partner apps. None of the providers on this list have the robust integrations and workflows that Rippling offers.
• International payroll and tax filings: Rippling offers full-service payroll and tax filing services, including year-end tax reporting, which some charge extra for. Even more, it can pay employees and contractors across the United States and in more than 100 countries. However, for a pay card option, you need Gusto, Paycor, ADP, or Paychex.
• Flexible PEO: Rippling has a PEO option with an on/off switch that no other providers on the list offer. This means you can turn off its PEO service from your account settings and easily transition to using its HR platform. While ADP and Paychex do have PEO products, the process of leaving the service is more complicated than Rippling.
• HR tools: Rippling has a wide offering of HR tools, including time and attendance, applicant tracking, and job posting. Its learning management add-on includes prebuilt compliance courses or build-your-own training programs. However, it lacks the compensation planning tools that Paycor and TriNet Zenefits offer.
• IT solutions: Rippling’s app management module lets you set up and manage the business software that employees will use easily while its device management solution lets you assign and track computer devices. Rippling can store, set up, send, and retrieve devices for you, something we did not find with other providers on our list.

Like Rippling, there are add-on modules, but Zenefits lists its pricing upfront. Thus, you can easily budget for your best plan. Unlike the others on our list, however, you will pay for a minimum of five employees.

Base plans

• Essentials ($10 per employee monthly): Includes onboarding, employee management, time and PTO tracking, and staff scheduling
• Growth ($20 per employee monthly): Essentials plus performance reviews, workforce analytics, and compensation management
• Zen ($27 per employee monthly): Growth plus employee surveys and a collaboration tool (People Hub)

Add-ons

• Payroll ($6 per employee monthly): Full-service payroll with unlimited pay runs and tax filing services
• Advisory services ($10 per employee monthly): Access to certified HR pros
• Benefits administration if you have your own broker ($5 per employee monthly): Use your broker instead of a Zenefits partner
• Recruiting (Starting at $62 per month): Sourcing, hiring, and onboarding talent

A view of TriNet Zenefits’ payroll dashboard
(Source: TriNet Zenefits)

• Feature-rich HR platform: While most of the providers in this list (except Gusto and QuickBooks Payroll) have a wide range of HR solutions, TriNet Zenefits’ platform is more robust. It comes with compensation planning tools to help you better understand how to pay employees, and online surveys and prebuilt assessment forms to measure staff well-being.
• Integrated payroll: Although a paid add-on, its payroll plan includes unlimited pay runs and tax form filing. ADP, by comparison, prices according to pay run and charges extra for year-end tax filing. TriNet Zenefits also syncs employee data, such as actual work hours, PTO, and benefits information, from its other solutions directly into payroll automatically.
• Time and attendance tools in every plan: Like Square Payroll, TriNet Zenefits includes time tracking in all plans. Gusto and QuickBooks Payroll will require you to upgrade to their higher tiers while Rippling, ADP, Paycor, and Paychex offer this as a paid add-on.
• Communication tools: Like Paycor, TriNet Zenefits offers communication tools through its online People Hub. This includes a company feed where you can post announcements. You can also customize its setting, enabling you to select whether employees can also post messages or reminders on the company feed.
• Compliance support: Zenefits often places high in our best HRIS software lists, such as best HRIS payroll, for its compliance tools. In addition to built-in overtime and break safeguards, it has an online compliance assistant, which tracks your HR, payroll, and benefits compliance status and alerts you of the unique form submission deadlines critical to your business.

QuickBooks Payroll can be purchased separately or with a subscription to QuickBooks Online. Like Paycor, it has a free trial, but for 30 days, not 14.

• Core ($45 base plus $6 per employee monthly): Includes full-service payroll, next-day direct deposits, federal and state tax filings and payments, and access to 401(k) plans and benefits
• Premium ($80 base plus $8 per employee monthly): Core plus same-day direct deposits, local tax payments and filings, time tracking, workers’ compensation administration, HR support center, and 24/7 customer support
• Elite ($125 base plus $10 per employee monthly): Premium plus multiple state tax filing, project tracking, personal HR advisor, tax penalty protection up to $25,000 per year, and expert setup

QuickBooks Payroll’s dashboard contains helpful links for running payroll, paying contractors, and adding employees.
(Source: QuickBooks Payroll)

• Seamless QuickBooks integration: QuickBooks Payroll can work as a standalone product, but when purchased with QuickBooks Accounting, the payroll information flows directly to the general journal, and you can use wage-related information to run reports using QuickBooks. Others, such as Square and Paycor, offer QuickBooks integration.
• Payroll and tax processing: Like Gusto and Paycor, QuickBooks Payroll can process payroll automatically. It comes with unlimited pay runs, multiple pay rates, and payroll tax payment/filing services, but only the highest plan will remit and file local taxes for you. It lacks the pay card option offered by Paychex, ADP, Paycor, and Gusto.
• Fast direct deposits: QuickBooks Payroll is the only software in this article that provides next-day direct deposits in its starter tier. Those who subscribe to its higher plans get a same-day option. This is faster than any other Paychex competitor on our list, except for Square Payroll’s instant deposits, which has limitations.
• Tax accuracy guarantee and tax penalty protection: Unlike Paychex and the other providers in this guide, QuickBooks Payroll’s Elite plan will pay tax penalties―to a maximum of $25,000 per year―arising from tax errors and filing mistakes that either you or its representatives make. All other plans include a standard tax penalty coverage that pays penalties due to its tax filing mistakes.

While Paychex is an excellent service for most types of businesses, some may not find it the best for their particular situation. Also, many customers are drawn in by the discounted fees and receive a shock in the second year when the fees go up. This is for custom quotes and plans other than the most basic Paychex Flex.

To choose the right payroll provider, consider several factors:

• What is your budget?
• Where are you located? Some payroll services don’t work with local taxes or don’t provide benefits in certain states.
• How big is your company? Some payroll services have a five-employee minimum.
• What features do you need? Consider time tracking, integrations, tax filing, and more.
• Do you want HR tools as well as payroll?

Next, do your research not only through articles like this one but also with the Better Business Bureau (BBB) and by calling the payroll provider and getting a full demo. If they offer a free trial, use it to explore the tools and see how intuitive they are for you.

Sometimes, doing your own payroll makes sense, such as if you already have an HR staff or if you have a small employee base. You may also find a free payroll service to take care of calculations.

However, if you don’t have the staff, have complex payroll needs, such as multiple states or wage types, or want someone else to take responsibility for the tax calculations and filing, then outsourcing your payroll might be your best course of action.

Outsourcing your payroll has some advantages:

• Saves you time
• Calculations are done automatically
• Often, taxes are filed and paid for you
• Most payroll services include compliance tools
• Most payroll services have a no-fault guarantee if they miscalculate; a few have a full no-fault that will cover your errors too