ADP vs Paychex: Which Should You Choose in 2020?

When it comes to payroll, most business owners have heard about ADP Run and Paychex; they’re both established payroll processing companies that offer comprehensive payroll and HR services. ADP Run has flexible plan options that support growing companies and especially shines with businesses in multiple states and those with more than 1,000 employees. Paychex provides a dedicated customer service representative and best supports companies with less than 300 employees.

Features ADP and Paychex Have in Common

Just to reiterate, ADP and Paychex have a lot in common, so before we dive into how they differ, let’s take a look at their similarities.

Even if you know how to do payroll, ADP Run and Paychex are both great payroll services that:

• Run payroll and pay employees on a pay cycle you choose
• Pay employees using direct deposit at no additional cost
• Process and file federal, state, and local payroll taxes
• Handle year-end tax reporting (W2s and 1099s) if you pay extra
• Have plenty of add-on features you can use to customize your plan
• Offer separate HR products you can purchase as needed, i.e., insurance, performance management, talent acquisition, and compensation management
• Provide onboarding and compliance support
• Offer a professional employer organization (PEO) option
• Have a mobile app you can use to process payroll

Decide which payroll service is right for your business by answering four ADP vs Paychex quiz questions.

ADP vs Paychex: Who’s Winning at Payroll?

When to Use ADP Run as a Payroll Processing Company

ADP Run is a great payroll option for small businesses that have growth plans in place or are already in the 500+ employee range. It has eight product plans to choose from, four for employees within the 1-49 employee range, and the other four for 50+ employee companies. It performs all of the basic payroll functions and offers a robust set of HR and compliance features. If you find yourself expanding into different states, its multi-state compliance tools will be gold.

Visit ADP

When to Use Paychex as a Payroll Processing Company

If you have a small business and want both professional payroll services and excellent customer service catered to you, you’ll prefer Paychex over ADP Run. Unlike with ADP Run, you don’t need to have a large employee base to get access to a dedicated service rep, and customer service is available to help 24/7. Payroll plans are customizable and can support employers with less than 20 employees as well as those with over 100.

Visit Paychex

An In-Depth Look at ADP vs Paychex Payroll Features

Features	ADP	Paychex
*Cost for 10 employees	$3,079/ year	$3,364/ year
Pay Options	Paper checks delivered, direct deposit, pay card	Paper checks delivered, direct deposit, pay card
Health Insurance	In all 50 states; Separate from payroll	In all 50 states; Separate from payroll
Other Employee Benefits	Health insurance and retirement	Health insurance, retirement, financial wellness tools
Workers’ Comp	Pay-as-you-go plans	Pay-as-you-go plans
Payroll on Autopilot
HR Support	Background checks, onboarding, new hire support, handbooks, advising	Background checks, onboarding, new hire support, handbooks, advising
Software Integrations	Wide range of popular software	Wide range of popular software
Customer Service	24/7 phone support; can take a while to resolve issues	Dedicated service rep; 24/7 phone support; subject to multiple phone transfers
For In-Depth Reviews From Real Users	4.2 out of 5 stars ADP Run User Reviews	4.3 out of 5 stars Paychex User Reviews

*Pricing estimates are for 10 employees with biweekly payroll. However, Gusto charges monthly based on the number of active employees you have, whereas ADP and Paychex price by payroll run. Therefore, your actual price with ADP and Paychex may change from month to month.

ADP vs Paychex: Pricing

You’ll have to call a sales representative to get a quote for both ADP and Paychex. There’s no pricing on their websites.

Also, keep in mind that ADP and Paychex charge per pay period. This is important if you pay people more than twice a month because you will pay extra for each separate payroll run, such as a year-end bonus run or weekly payroll. Year-end tax forms are also an additional cost aside from regular payroll processing charges, and there’s a $200 setup fee that the reps we spoke to offered to waive.

Because these providers create custom quotes, they are more likely to offer discounts. The quotes we received (both discounted and undiscounted) are below. Please note that discounts are volatile, and any offers you receive may vary from ours.

ADP vs Paychex: Sample Pricing

ADP Run Product Plans (1-49 employees)

ADP Run Product Plans (50+ employees)

Paychex Product Plans

Both ADP and Paychex have tons of add-ons you can purchase to customize your payroll package. There’s time and attendance, advanced HR, benefits, check signing, and so on.

Bottom Line

Comparing ADP vs Paychex is challenging, because they offer most of the same products. We recommend you choose the best payroll solution based on both your current and expected future needs. ADP supports large growth plans, for instance, if you own a startup and are planning to expand into multiple states. Although, if you’re planning to stay under 300 employees, Paychex will give you a more personalized experience.