April 19, 2024

Paycom vs ADP: 2023 payroll software comparison

6 min read

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The ADP and Paycom logos.
Image: Rebecca Olason/TechRepublic

Payroll and HR software solutions are designed to make it easier for companies to manage their HR functions by automating tasks, creating data-driven reports, organizing employee information and offering better visibility. Paycom and ADP are two of the leading HR and payroll software options on the market, each offering a unique set of tools and workflows to make payroll management easier.

SEE: Payroll processing checklist (TechRepublic Premium)

Both solutions provide a suite of tools for companies to manage not only their payroll but also greater HR functions. To help you make an informed decision about which software is more suited to your business, this comparison guide takes a closer look at Paycom vs. ADP in the areas of features, pricing and ideal use cases.

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What is Paycom?

The Paycom logo.
Image: Paycom

Paycom is a cloud-based application that offers a variety of modules for work related to employee time management, talent management, talent acquisition, payroll, tax compliance and more. Paycom can be used by companies of all sizes; however, its competitive advantage is that it offers several enterprise-level tools. Paycom aims to provide a seamless user experience through an all-in-one package.

What is ADP?

The ADP logo.
Image: ADP

ADP is a popular HR software option with several features that span across tax compliance, services, employee attendance, talent management and payroll. With a customer base of over a million users across the globe, ADP is used by businesses of all sizes — from small businesses to enterprises. It also offers a variety of integrations with third-party applications, including other HR systems and ERPs.

Paycom vs. ADP: Feature comparison table

Paycom ADP
Employee benefits Yes Yes
Customer support Assigned specialist 24/7 phone and online customer support
Mobile app Yes Yes
Third-party integrations Limited Numerous third-party integrations
Employee self-service Yes Yes
Prepaid debit card Yes No
Pricing Custom Custom

Head-to-head comparison: Paycom vs. ADP

Payroll advanced features

Paycom’s payroll features are more suited to medium to large-sized companies, while ADP’s payroll tools are better for small to medium-sized companies. Not only does Paycom offer more advanced payroll features, but it also has an easier to use interface.

SEE: Top payroll processing services for small businesses (TechRepublic)

Both solutions offer employee self-service tools so employees don’t have to go through their manager for everything, such as viewing their personal payroll information. Paycom’s self-service is more advanced, however, offering more hands-on functionality to users.

Talent and employee management

While ADP offers separate modules and packages for talent and employee management, Paycom offers a centralized system for the entire employee journey, from applicant tracking to onboarding. The talent management features of Paycom offer more automation and customization, which is typically appreciated by larger enterprises.

Time tracking

ADP and Paycom offer various time management tools, including employee attendance tracking. Employees can clock in and clock out through the app, a personal computer or specialized hardware. Time tracking tools for Paycom and ADP both auto-sync with payroll calculations and other employee data. Both solutions also offer HR analytics tools and reporting features for employee time tracking.

Mobile app

Having a mobile app is a must for HR and payroll solutions. Both Paycom and ADP are available on Android and iOS apps, which can be used for viewing paychecks, updating information and other on-the-go tasks.

SEE: Mobile device security policy (TechRepublic Premium)

Both apps present strong user interfaces and features in this area. Most basic HR and payroll functions are available through the vendors’ respective apps; however, certain advanced features for each can only be accessed via computer.

Pricing

ADP is available in four packages: Essential, Enhanced, Complete and HR Pro. Pricing information for ADP is not public; prospective buyers will have to contact them for a quote based on specific business needs and demographics, such as the number of employees.

On the other hand, Paycom is available in a single, all-in-one package. The company customizes pricing for that package based on the unique business requirements of each client.

Pros and cons of Paycom and ADP

Paycom

Paycom is a strong payroll and HR management solution for many buyers, but it does have its drawbacks. Take a closer look at Paycom’s pros and cons here.

Pros

  • Comprehensive payroll features.
  • Intuitive interface.
  • Advanced customization options.

Cons

  • Limited integrations.
  • Steep learning curve for smaller businesses.

ADP

ADP has a lot to offer for payroll management and related HR tasks, but it might not be the right solution for your business. Consider ADP’s key pros and cons below.

Pros

  • 24/7 customer support.
  • Simple to use.
  • Numerous third-party integrations.

Cons

  • Limited automation and enterprise-level tools.
  • Advanced HR functions require top-tier packages.
  • No prepaid debit card facility.

How to choose between Paycom and ADP

Paycom and ADP are top-tier HR and payroll solutions, each offering a variety of features for businesses of all sizes and backgrounds. When choosing between two great software solutions, consider the price and differentiating features that your business needs.

Unfortunately, neither of these solutions openly advertise the cost of investment, but according to some user reviews, Paycom is more expensive. Regardless of cost, both solutions rate high in user experience and customer support. While ADP offers 24/7 support, Paycom provides a dedicated specialist to each of its customers.

SEE: Hiring kit: Human resources specialist (TechRepublic Premium)

If you are a large enterprise or need a high level of customization from your payroll software, Paycom is more suitable for you. In other words, if you need to run payroll for a large number of employees, Paycom offers better functionality for that to run smoothly. However, if you want something with a lesser learning curve to streamline your HR and payroll functions, ADP is likely a better option.

You can’t go wrong with either of these excellent solutions, so it’s really up to your team to identify what you need most and how each of these products address those needs.

Read next: The best payroll software for your small business (TechRepublic)

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Source link The competition for payroll software for small and medium businesses is growing stronger day by day, and it is becoming increasingly difficult to choose the right option. To help you make the right decision, we compare two major competitors: Paycom and ADP.

One of the most important differences between the two platforms is the cost. Paycom’s pricing is based on a monthly fee based on the number of employees, while ADP charges a one-time fee, as well as a per-employee fee. Furthermore, Paycom also has a free trial, while ADP does not. Additionally, while Paycom offers a free setup and unlimited support, ADP requires a fee to setup and fees if user support is needed.

When it comes to features, both providers have comprehensive solutions for payroll processing, but there are some differences. Paycom provides a comprehensive suite of features for payroll processing, which includes the ability to manage multiple companies and locations, pay employees via direct deposits, and tax filing. In contrast, ADP’s solutions are more basic, and do not include all of the features of Paycom, such as multiple company management and state and local tax filing.

When it comes to user experience, Paycom has a modern and intuitive user interface, while ADP’s is more dated. Additionally, Paycom’s support is more comprehensive and responsive than ADP’s.

At present, ADP is the more established provider, with a long-standing history in the payroll processing industry, while Paycom is relatively new. Despite this, Paycom has been growing in popularity because of its competitive pricing and comprehensive features.

Based on the comparison, it is clear that Paycom is the better option for small and medium businesses in terms of value, features, and user experience. Thus, it is likely that Paycom will continue to be a major competitor in the payroll processing software market in 2023.