Paylocity

Paylocity has established itself as a strong contender in the mid-market HR and payroll space, and our evaluation confirms it delivers a modern, comprehensive platform that genuinely competes with legacy providers like ADP and Paychex while offering a significantly better user experience. The payroll engine is rock-solid, handling complex tax scenarios, multi-state payroll, and compliance requirements with the accuracy that US businesses demand. Where Paylocity differentiates from competitors is in the breadth and quality of its unified platform. Rather than bolting on acquired products with inconsistent interfaces (a common criticism of ADP and Paychex), Paylocity provides a cohesive experience across payroll, HR management, time and attendance, benefits administration, recruiting, and learning management. The employee self-service portal and mobile app are particularly well-designed, reducing HR administrative burden by empowering employees to handle their own PTO requests, benefits enrollment, and personal information updates. The Community feature, which adds social-media-style communication and recognition tools, is unique in the category and helps with employee engagement, though some organizations may find it unnecessary. Reporting and analytics capabilities are robust, giving HR and finance teams the data they need for workforce planning. Pricing is the main consideration. Paylocity uses custom, quote-based pricing that is not publicly disclosed, and it is positioned as a premium product. Based on industry reports, expect a base platform fee plus per-employee-per-month costs that typically range from $18-25 per employee per month for the full suite, with implementation fees on top. This is competitive for the mid-market segment but notably more expensive than SMB-focused alternatives like Gusto or Rippling. Implementation can take 8-12 weeks for full deployment, which requires planning and internal resources. The platform is US-focused with no global payroll capabilities, which is a significant limitation for internationally distributed companies. We recommend Paylocity for US-based mid-market companies with 100-5,000 employees that want a comprehensive, modern HR and payroll platform and are willing to invest in a premium solution. For smaller companies or those with international needs, alternatives like Gusto or Deel are better fits.