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Paylocity vs ADP: Payroll and HR Platforms Compared

Both run payroll, taxes and HR, but they slice the market differently. ADP splits its payroll products at 50 employees, with RUN Powered by ADP for businesses of 1 to 49 people and ADP Workforce Now for 50 to 1,000 and more. Paylocity calls 1 to 99 employees small business and brings payroll, HR, finance and IT tools together. Choose ADP for a wider range of products, PEO included, and Paylocity for a single platform with strong built-in payroll checks.

Payroll is one switch you don't want to make twice. I read Paylocity's payroll and who we serve pages and ADP's RUN, Workforce Now and about pages to compare what each offers a growing business.

Paylocity and ADP side by side

PaylocityADP
Small business means1 to 99 employees1 to 49 employees
Larger companiesMidsize 100 to 499, enterprise 500+Workforce Now for 50 to 1,000+
Main productsHR, Payroll, Finance and IT on one platformRUN, Workforce Now, Lyric HCM and Global Payroll
Pre-payday checksPayroll Readiness Dashboard and 40+ built-in auditsNot detailed on the pages I read
Add-onsExpense management, on-demand pay, tax and garnishment servicesTime, talent, benefits, insurance, compliance services
Outsourcing optionNot mentioned on the pages I readADP TotalSource PEO and HR outsourcing
How to get a quoteRequest a demoGet a quote online or from sales

The size labels don't match

Here's a detail that trips people up when they compare the two. ADP's payroll menu draws the line at 50: Small Business Payroll is for 1 to 49 employees, and Midsized to Enterprise Payroll is for 50 to 1,000 and more. Paylocity's who we serve page uses different bands: small business is 1 to 99 employees, midsize is 100 to 499 and enterprise is 500 and above.

So a 70-person company is a midsized client to ADP, usually on Workforce Now, but a small business to Paylocity. When you request quotes, give your exact headcount and expected growth, or you'll be compared against the wrong product.

What Paylocity offers

Paylocity's payroll page focuses on catching mistakes before payday. Its Payroll Readiness Dashboard highlights critical tasks before processing day, and more than 40 built-in audits flag issues such as unexpected pay spikes or missing deductions. Hours and labour allocations flow in from its Time and Labor product, prorated or retro pay adjustments are flagged automatically, and tax geolocation checks that each employee pays the right taxes for their location. Add-ons include AI-powered expense management, on-demand pay, tax services, garnishment managed services and global payroll.

What ADP offers

ADP's strength is breadth. Beyond RUN and Workforce Now, its products include ADP TotalSource, a professional employer organisation, Lyric HCM, SmartCompliance, Wisely and Global Payroll. Services span time and attendance, talent, benefits and insurance, retirement plans, workers' compensation and compliance areas such as payroll taxes, wage garnishment and business tax credits, plus integrations with other HR systems and ERPs.

Questions to ask before you choose

  1. How many employees do you have now, and in two years? Match it to each provider's bands.
  2. Do you want to outsource HR entirely? ADP TotalSource is a PEO option.
  3. Are payroll errors your biggest worry? Paylocity's 40+ audits target them.
  4. Do you pay staff in other countries? Both list global payroll.
  5. Do you want HR, finance and IT tools in the same system? Paylocity covers all four areas.

For a wider shortlist, see my roundups of payroll software for small businesses and HR software for small businesses.

My advice on Paylocity or ADP

If you're a small business under 50 people wanting a familiar name and the option of outsourcing HR later, ADP's RUN is a sensible start. If you're between 50 and a few hundred employees and payroll accuracy keeps you up at night, put Paylocity on the shortlist for its built-in audits and single platform. Ask both for a demo using your own payroll scenarios, including bonuses and multi-state staff, before you sign.

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Do you make payroll or HR software? Tool makers can ask to be considered for a featured place in comparisons like this one.

Frequently asked questions

What size business is ADP RUN for?

ADP lists RUN Powered by ADP under Small Business Payroll for businesses with 1 to 49 employees.

What does Paylocity count as a small business?

Paylocity's who we serve page lists small business as 1 to 99 employees, midsize as 100 to 499 and enterprise as 500 and above.

Does ADP offer a PEO?

Yes. ADP TotalSource is listed among ADP's products, alongside HR outsourcing services.

How does Paylocity catch payroll errors?

Paylocity says its Payroll Readiness Dashboard and more than 40 built-in audits flag issues like unexpected pay spikes or missing deductions before payroll is finalised.

Do Paylocity and ADP handle payroll taxes?

Yes. Paylocity offers tax services and tax geolocation, and ADP lists payroll taxes among its compliance services.

Published and maintained by the Lilach Bullock team, covering marketing, AI and business growth.
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