The 6 Best ADP Competitors

ADP is the largest payroll processing company in North America with more than 170,000 employees and over $15 billion of annual revenue. It competes against six other large companies that also process payrolls including Paychex, Paycor, Aon Hewitt Services Group PLC, Cognizant Technology Solutions Corporation, and Oracle Corp.

The US market for human resources management (HRM) has been a lucrative one for decades but it’s now experiencing some serious competition from emerging technology organizations that have developed better ways to monitor compliance and automate employee data collection. One such competitor is American Depository Receipt Company plc or ADR which provides international stock trading services through its subsidiary London Stock Exchange Group Plc.

ADP is one of the greatest options for companies looking to grow and recruit more people in the near future. On top of its full-service payroll and tax services, it includes sophisticated HR tools including new employee onboarding and background checks. However, since it costs additional payroll runs and year-end reporting, ADP is not suited for small firms on a limited monthly budget. If you don’t want extensive HR functions or just want to save money, a top ADP rival may be a better fit for your company.

• Paychex Payroll is the best option for small companies looking to expand.
• Inova Payroll is a company that specializes in payroll processing.: For small company owners who wish to tailor their payroll arrangements, Inova Payroll is the best option.
• Gusto: Best for businesses with up to 100 workers seeking a low-cost, full-service payroll solution with free year-end reports.
• Payroll in QuickBooks is the best alternative for small company QuickBooks customers that require a low-cost yet widely used payroll and accounting solution to pay their workers.
• Zenefits is best for businesses in highly regulated sectors that need excellent HR assistance.
• Rippling: Best for firms that depend significantly on technology and need an integrated HR, payroll, and information technology management system (IT).

How Did We Pick the Top 6 ADP Alternatives?

We looked at hundreds of payroll systems to see how they stacked up against ADP. Then, using the criteria below, we scored their greatest features for administering payroll and HR services that are most crucial to small companies. Then, to assist you in deciding which ADP replacement is ideal for your company, we identified the top six software that is most comparable to ADP but superior in certain aspects.

Paychex is the finest ADP replacement in terms of functionality and client satisfaction. The more aspects you compare as you go down the list of our best options, the more disparity you’ll see.

30% of the overall score

Automatic pay runs, tax filing, and the option to pay contractors and workers were all features we searched for. We also looked at things like if they provide a live check option and whether they offer a penalty-free guarantee. Paychex received the greatest grade in this category because its features are the most similar to ADP, with the exception of free year-end reporting vs. ADP’s premium alternatives.

25% of the overall score

At the very least, the finest payroll software offers HR capabilities like onboarding, self-service portals, and employee benefits. We also preferred businesses that have legal compliance advisers on staff. Paychex and Inova both received good marks in this category.

15% of the overall score

Payroll software must be simple to use. We examined customer service and useful features (such as program integrations and file exports), as well as user feedback on the learning curve and day-to-day operations. Paychex tied for first place in terms of ease of use with QuickBooks Payroll; it offers the greatest assistance but, like ADP, has a steep learning curve. Because their platforms are smaller and simpler to understand, Gusto and Zenefits are close behind.

15% of the overall score

We looked at their various plans and if they provide customizable pricing, as well as the price per employee and setup expenses. We checked for free trials as well. In this area, Paychex and Inova are more closely connected with ADP. When it comes to cost, Gusto is the most different from ADP, which is beneficial if you value affordability and a free trial.

10% of the overall score

Software reviews are rated from one to five stars and represent comments from genuine users. We looked at internet user ratings, including those from our rivals, and decided that any choice with a rating of four stars or above is the best. Additionally, software with 1,000 or more third-party evaluations is recommended. All of the apps we rated received high marks in the popularity category.

5% of the overall score

Aside from the number of payroll reports, we looked at whether they were adjustable or whether you could construct bespoke reports to meet your unique requirements. Paychex and Inova are more competitive in this area, providing a huge variety of reports and allowing customers to create their own from scratch, comparable to ADP.

Paychex

PROS

• Two-day direct deposits are available.
• Options for a flexible strategy
• Reporting on new hires
• Customer service is available 24 hours a day, 7 days

CONS

• For pricing, please contact sales; fees may change from year to year.
• Only the premium plan offers garnishment payment services.
• Integration with small business software is limited.
• Paychex Go’s base package does not include a dedicated expert.

Total Points 4.72 OUT OF 5

Paychex, like ADP, is a full-featured payroll system with multiple packages for small to large enterprises, including solopreneurs. There are no plans for solopreneurs or self-employed people in any of the applications on this list.

Paychex can manage your payroll and taxes, as well as onboarding and workers’ compensation, from anywhere. With the exception of Paychex Go, each plan will assign you a single dedicated professional to handle your payroll and tax needs. All customers have access to client assistance 24 hours a day, seven days a week. It’s excellent for firms that want to grow operations and hire more people, with a rating of 4.72 out of 5 stars. You may talk to a member of the sales team about tailoring a package to your specific requirements.

Payroll functions, HR tools, reporting capabilities, and user evaluations were also given high marks. Paychex is said to be straightforward to set up, user-friendly, and convenient to use by many reviews. The absence of a free trial and restricted integration options with the most popular small and midsize company (SMB) software (such as When I Work, QuickBooks Time, and Homebase) lost this supplier substantial points.

Pricing

Paychex provides three full-service payroll options: Paychex Go ($39 per month + $5 per employee), Paychex Flex Select (custom pricing), and Paychex Flex Enterprise (custom priced).

Paychex’s Unique Selling Points

• Paychex provides alternatives for reviewing, editing, and submitting payroll from desktop PCs and mobile devices (for iOS and Android). Payroll may be started on a smartphone or tablet and then resumed on a computer, and vice versa. Paychex, unlike Gusto and Zenefits, Paychex, and ADP, can scale with your company, offering you effective payroll processing capabilities whether you have 10 or 500 workers.
• Payroll features that are simple to use: Its web capabilities are meant to make it easier to pay workers and contractors. You may even schedule your paycheck to run on a regular basis. It also takes care of your payroll tax computations, payments, and filings (federal, state, and most local taxes). Pay attention to the fact that QuickBooks Payroll only deals with federal and state payroll taxes. Paychex also delivers automated W-2s and 1099s, while ADP requires you to pay extra for year-end reporting.
• Employees may be paid via a variety of methods, including payment cards, direct payments, and paper checks. Paychex, like ADP, also provides check signature and stuffing. You may utilize its pay-on-demand option to support workers with their financial requirements if they seek early access to earned money before a payroll day.
• Except for Paychex and Inova Payroll, the reporting tools of the other providers in this article aren’t as powerful. Paychex provides over 60 reports that you may use for payroll and HR data analysis, in addition to customized reports.
• It includes a suite of HR products and services for new recruit onboarding, time and attendance, employee benefits, workers’ compensation, garnishment payment services, company insurance alternatives, and hiring services, in addition to payroll. Most of the other providers in this article don’t publish to job boards, and QuickBooks Payroll and Zenefits don’t offer hiring capabilities (with the exception of Inova and Rippling, and ADP).
• Paychex offers a staff of compliance experts, HR professionals, and payroll specialists on hand to provide expert guidance on labor legislation and HR-related concerns. You also receive phone and chat help around the clock, something none of our other recommended providers in this article provide.

Inova Payroll

PROS

• Portal for self-service
• Support from a professional tax team
• Excellent client service

CONS

• There isn’t any transparency in pricing.
• The learning curve is steep.
• Third-party integration is limited.

Total Points 4.44 OUT OF 5

Although Inova Payroll is not as well-known as ADP, it provides full-service payroll and HR solutions for companies of all sizes. It organizes benefits, calculates taxes, and handles payments for both contractors and employees. Inova’s payroll team has a strong background in information technology and can tailor its software and features to match your specific requirements at an additional cost.

In addition, Inova provides full-service HR outsourcing, time and attendance, group health benefits, and retirement plan alternatives. Professional tax teams can assist in keeping track of federal, state, and municipal tax changes and resolutions. Inova Payroll, like ADP and Paychex, does not post its price online. To meet your exact requirements, you will need to request a bespoke quotation. Inova Payroll received a total of 4.44 stars out of a possible five.

Inova Payroll has gotten a lot of great comments from customers who say it provides outstanding customer service, effective payroll processing capabilities, and an easy UI. Some reviews, on the other hand, are dissatisfied with the restricted integration possibilities, particularly with third-party time clock systems.

Pricing

Inova Payroll provides a variety of pricing options. When all payroll expenses, including year-end reporting but excluding benefits and other items, were included, we were quoted $16–$17 per employee monthly. Direct deposit adds an additional $9 per employee, however it is included in our offer. Expect to pay a basic cost of roughly $24 and $1.60 each paycheck processed for weekly payroll runs.

Features

• Inova’s platform provides a more feature-rich platform when compared to Gusto, QuickBooks Payroll, and Rippling. Inova provides online solutions for time tracking, background checks, and employee benefits such as health insurance, 401(k) plans, and workers’ compensation, in addition to payroll. Human capital management (HCM) systems include application tracking, onboarding, learning management, and performance management.
• Payroll processing efficiency: The program can handle anything from basic pay runs to big multi-location payrolls. You may pay your employees through direct deposits, paper checks, or debit payment cards, much like ADP. You won’t have to worry about payroll taxes since Inova handles everything from tax forms (W-2s/1099s) to federal, state, and local tax filing (unlike QuickBooks, which doesn’t manage local payroll taxes). It also allows you to pre-process payroll so you can examine it and make any last-minute changes before submitting it.
• Inova, like Paychex, offers a variety of reporting options, including payroll summaries, work expenses, direct deposit information, general ledgers, and more. You may also generate custom reports and export them to Excel or CSV.
• HR and compliance assistance: In addition to live phone support, Inova Payroll provides “HR On-Demand” services to help you remain compliant and get expert HR guidance. This service, similar to ADP’s HR support solutions, also provides HR tools and resources including bespoke employee handbooks, job descriptions, HR forms, and a policy library.

Gusto

Best ADP Alternative for Small Businesses Looking for Low-Cost Payroll Software

PROS

• It’s easy to use
• Small company entrepreneurs can afford it.
• There are no limits to how much money you can make.

CONS

• In certain states, benefits aren’t available.
• There is no designated payroll expert.
• There aren’t enough plan alternatives to help small firms develop into enterprises.

Total Points 4.35 OUT OF 5

Gusto is the greatest option for small company owners with less than 100 workers that want monthly unlimited pay runs. The program is simple to use, with no unnecessary features. Unlike ADP, it files and pays federal, state, and local taxes, as well as automatically creates and delivers W-2s and 1099s to workers and contractors. There are a variety of price choices available, as well as free setup and migration—both ADP and Paychex charge a setup fee.

Gusto scored great grades for payroll functionality, simplicity of use, HR tools, and reporting choices, scoring 4.13 out of 5 stars. It also has a lot of great internet reviews, with reviewers praising its pricing, excellent customer service, and user-friendly layout. Gusto was unable to place higher on our list due to its lack of customized plans and specialized payroll professionals, as well as the restricted scope of its health insurance benefits. Health insurance is accessible in all states for competitors such as QuickBooks Payroll and Paychex (including ADP); however, Gusto’s health benefits are only available in 39 states.

Pricing

• The core includes full-service payroll, employee benefits, accounting and time tracking connections, and a self-service interface for $39 + $6 per employee every month. You may choose between two and four-day direct deposit options.
• Additional features include next-day direct payments, time tracking, paid time off (PTO) management, project monitoring, recruiting and onboarding, and team management capabilities in the Complete tier. It costs $39 per month + $12 per employee.
• Premium services include compliance alerts, dedicated assistance, expert guidance from HR specialists, and access to an HR resource center for $149 + $12 per employee monthly.
• Contractor-only strategy: For about $6 per worker per month, you may get full-service payroll services to manage contractor payments.

Features

• Gusto is simple to set up and use, with a straightforward interface that enables you to handle payroll in a matter of seconds. Unlike Paychex and ADP (which have rather steep learning curves), Gusto’s web capabilities may be used immediately if you have a strong understanding of how payroll works. It offers how-to manuals as well as limitless phone, email, and chat help if you need it.
• Processing and services for payroll: Process payroll as many times as you need without incurring additional expenses. It has the ability to manage multi-state payroll and tip credits, as well as automatic pay runs, which is a highly useful tool. Gusto also offers payroll tax payment and filing (federal, state, and municipal) in addition to garnishments and new hire reporting. Your employees may also view their W-2s/1099s, pay stubs, and benefits information via a self-service site (note that year-end reporting with ADP is additional).
• Gusto offers a variety of payment alternatives, including direct deposits, cheques, pay cards, and pay on demand (pay on demand is not available in Inova, QuickBooks Payroll, Zenefits, or Rippling). Depending on your plan, you may expect processing times of one to four days for direct payments.
• Payroll and basic HR functionalities are available in full: Gusto offers options for recruiting, onboarding, health benefits administration, PTO management, and easy time tracking in addition to payroll. Medical, dental, vision, retirement, flexible spending accounts (FSAs), health savings accounts (HSAs), and pay-as-you-go workers’ compensation insurance are all available.

QuickBooks Payroll

PROS

• Payroll runs indefinitely
• QuickBooks and QuickBooks Desktop are both supported.
• Direct deposits are available the same day and the following day.

CONS

• Third-party integrations are limited.
• Doesn’t take care of local taxes
• Customer service that is inconsistent in quality

Total Points 4.05 OUT OF 5

Although QuickBooks Payroll can manage most payroll operations, from onboarding to tax preparation, it does not report new employees to the state, which is something that the other systems we studied in this article do. It lets you execute automatic payroll for salaried personnel with same-day or next-day direct deposit. It also calculates, files, and pays federal and state taxes automatically, including year-end W-2s/1099s filing. Unlike ADP, QuickBooks Payroll features an internal accounting application designed exclusively for small companies called QuickBooks that interfaces smoothly with its payroll system.

QuickBooks Payroll received an excellent rating for simplicity of use, payroll functionality, and reporting capabilities, earning it a 4.05 out of 5-star rating. However, its poor results were due to its restricted employee payment alternatives and third-party software interfaces, as well as its inability to pay and submit local taxes. In terms of user evaluations, internet reviewers praised QuickBooks Payroll for its user-friendly interface, which they stated made pay processing simple for them.

Pricing

• Full-service payroll with next-day direct deposits, health benefit choices, and automatic federal and state tax calculations, payments, and filings are all included in the Core plan, which costs $45 + $4 per employee monthly.
• Premium tier: For $75 per month + $8 per employee, you receive all of the Core features plus workers’ compensation administration, time tracking, and same-day direct transfers.
• Elite option: This plan, which costs $125 per employee + $10 per month, includes extra benefits such as 24/7 assistance, tax penalty protection, and access to a personal HR expert.

Features

• The program offers an accessible interface that allows you to set up and operate payroll in a few simple clicks. It doesn’t have a difficult interface, and if you have any queries about its functions, QuickBooks Payroll includes how-to articles to help you understand them. In addition, unlike Paychex and ADP, this program has no learning curve.
• Payroll processing efficiency: Set payroll to run automatically so you can concentrate on business-building tasks. You can pay both workers and contractors effectively with its full-service payroll, albeit you must manage local payroll tax payments and filings yourself. All of the companies we looked at in this article, as well as ADP, handle federal, state, and local payroll taxes.
• Quick direct deposits: The only program in this post that enables you to pay workers rapidly is QuickBooks Payroll. In addition to next-day direct deposits, it also provides same-day direct deposits if you subscribe to the Premium or Elite tiers.
• Its integrated connectivity with QuickBooks enables easy data transfers across Intuit QuickBooks products, despite the fact that it doesn’t interact with a lot of third-party applications. This implies that your payroll data may flow straight into the general ledger, and you can utilize wage-related data in QuickBooks for analytics and other reports.
• QuickBooks Payroll features an easy-to-follow setup wizard and implementation assistance for new customers to help them get the system up and running. In addition, you’ll have access to payroll professionals who can be reached by phone or chat. You receive an HR specialist who can give expert guidance if you subscribe to the top tier. Paychex and ADP, on the other hand, are good options if you require a specialized payroll professional.

Zenefits

PROS

• Simple to use
• There are no limits to how much money you can make.
• Options for robust integration

CONS

• Payroll is an extra expense.
• Expert HR and payroll advice is an added fee.
• The level of customer service varies.

Total Points 4.04 OUT OF 5

Zenefits’ end-to-end personnel management system, which simplifies and automates HR, payroll, and benefits administration, has a 4.04 out of 5-star rating and is excellent for organizations in highly regulated sectors. It provides limitless pay runs, automated federal and state tax filing, and new hire state filing as an add-on (unlike ADP and most of the products in this list, which includes payroll as a basic product). Your workers will be able to retrieve their pay stubs via a web interface when you pay them by direct deposit.

Its seamless interaction with the payroll system is especially advantageous for businesses with hourly employees. If you require time tracking software, all of its main products include a time and attendance solution at no additional charge—this is a distinct product under ADP.

Despite the fact that it has numerous levels, the absence of customized plans and a free trial led to its poor price scores. In terms of user evaluations, several people stated Zenefits is easy to use, but others felt the customer care isn’t up to par.

Pricing

• Plan for the essentials: This service covers time tracking, scheduling, and essential HR capabilities for $10 per employee every month (such as hiring and employee management). You’ll also get access to mobile applications and third-party software connections (for iOS and Android devices).
• Growth tier: This plan includes all of the features of the Essential plan, as well as tools for remuneration and performance management. It costs $18 per month per employee.
• Zen option: For $27 per employee per month, you receive premium services including employee engagement surveys and team communication tools.
• Payroll add-on: To use Zenefits’ pay processing features, you must pay an extra $6 per employee, each month.
• Other add-on options include Zenefits’ advising services, which cost $10 per employee per month, and benefits administration via your own broker, which costs $5 per employee per month.

Features

• Feature-inclusive: While ADP, Paychex, and Inova Payroll all provide a variety of HR solutions, Zenefits’ platform is more comprehensive, allowing you to manage the whole employee lifecycle—from recruitment to retirement. In addition to payroll, its “Zenefits People Hub” provides recruiting, onboarding, time tracking, benefits, salary planning, performance evaluations, employee information management, engagement surveys, and communication capabilities.
• Integrated payroll: Employee data from Zenefits’ other products, such as real work hours, PTO details, and benefits information, is immediately synced into payroll.
• Zenefits provides all the critical tools you need to execute payroll and payroll taxes effectively, from employee and contractor payments to tip reporting and wage garnishments. It also offers dynamic pay stubs (which you may view through its mobile applications) where you can add notes in case of salary fluctuations or extraordinary payments (none of the providers in this guide, including ADP, offer this feature).
• Zenefits can link to popular applicant tracking, time and attendance, accounting, productivity, legal, and learning tools, unlike QuickBooks Payroll. Greenhouse, JazzHR, Deputy, QuickBooks, Xero, Lessonly, Slack, and Asana are some of its integration partners.

Rippling

PROS

• Taxes are collected at the federal, state, and municipal levels.
• In comparison to ADP, pricing is more straightforward.
• Separate, robust products may be obtained as required.

CONS

• Payment choices are limited.
• Prior to purchasing any additional product, the company’s fundamental Employee Management plan must be bought.
• Extra charges apply for live phone help.

Total Points 3.55 OUT OF 5

Rippling’s payroll solution, like Zenefits’, is an add-on to its HR platform. It has a comprehensive payroll feature set, including automated tax computations and filing, as well as direct deposit payment choices, in addition to IT and HR administration capabilities. You can also print physical checks, but unlike ADP, Paychex, or Gusto, there is no payroll card or on-demand pay option. It does, however, automatically integrate your HR data with payroll, which may save you time.

Rippling has a 3.55 out of 5-star rating. You may use it to monitor PTO and pay your workers (including contractors) who work anywhere on the planet. It also features adjustable settings and pre-built reporting templates. Although there is no free live phone help like ADP, many customers find Rippling’s live chat, in-app, and email assistance to be quite responsive. It also garnered many excellent internet reviews, with users praising its user-friendliness, extensive features, and third-party software integrations.

Pricing

• Before you can access its other products, you must first acquire its Employee Management module ($10 per employee monthly).
• Payroll add-on: Unlock Rippling’s pay processing features for $8 per employee each month.
• Other optional services include applicant tracking ($6 per employee per month), employee benefits ($6 per employee per month), HSA and FSA benefits ($6 per employee per month), HR help desk ($100 per month), device management ($8 per employee per month), and app management ($8 per employee per month).

Features

• Rippling features an integrated HR platform, similar to Zenefits, in which all of its products seamlessly link with one another. This saves time since you don’t have to enter employee data twice to gather payroll-related information (such as salary adjustments, timesheet data, and benefits).
• Full HR suite with comprehensive employee management, benefits administration, time and attendance, and application tracking: You receive a full HR suite with robust employee management, benefits administration, time and attendance, and applicant tracking. It also features automation for onboarding and offboarding, as well as mobile applications for iOS and Android devices and IT administration tools (note that none of the software in this list, including ADP, have this feature).
• Rippling’s full-service payroll allows you to pay workers with just a few clicks and gives your employees quick access to online pay stubs and tax forms through its mobile applications. You won’t have to worry about payroll taxes since it calculates and submits federal, state, and local taxes for you automatically. Rippling’s pay processing capabilities are a little more robust than rivals like Gusto and Zenefits since, like ADP, it can manage worldwide payroll.
• Robust integrations: You can link Rippling to over 400 third-party systems, including accounting, cost management, recruitment, training and onboarding, and office management software, among others, using an application programming interface (API). In contrast to Rippling, ADP and the other providers in this post do not interface with as many third-party systems.
• Dedicated support: While calling their HR help hotline costs extra, you receive one-on-one assistance from experienced HR specialists. Rippling also offers real-time compliance updates to help you stay on top of labor laws.

Conclusion

ADP is a terrific payroll provider, but depending on your needs, there are a number of other outstanding solutions to consider. All of ADP’s payroll rivals on this list provide services such as paycheck and direct deposit, onboarding and employee self-service, and tax and benefit computations. Some cater mainly to small enterprises, while others are more suitable for a wide variety of sizes. HR assistance is offered in most solutions, however, it is restricted to the cheapest ones.

Overall, we found Paychex to be the top ADP rival for payroll services, with the features that small companies want, such as two-day direct deposit and reliable payroll assistance available 24 hours a day, seven days a week. In terms of service offerings, it’s pretty comparable to ADP, but it includes extra employee perks you may wish to give, as well as a unique plan for solopreneurs.

Watch This Video-

Frequently Asked Questions

Why is Paychex better than ADP?

Paychex offers a larger workforce, more job opportunities, and the ability to see your direct deposit. Also, ADP is not as trusted because of their many lawsuits against them.