Paylocity Payroll Review 2021: Pros, Cons, Alternatives


    The cloud-based all-in-one platform for payroll and human resources from Paylocity is characterized by scalable services, hundreds of app integrations and a solid availability of customer service. Its payroll features assist business owners with paying employees, filing and paying taxes, reimbursing expenses, and more. It’s best for medium and large businesses, but also serves small businesses. One downside: the prices are based on offers and are only available if you are planning a demo.

    Paylocity’s cost structure includes a base rate and a fee per transaction, but the actual amounts are determined on a case-by-case basis.

    Yes, in all 50 states, Puerto Rico, the Virgin Islands, and Guam. The software processes:

    • Form 940 federal unemployment reports and Form 941 quarterly reports.

    • Federal and state income tax returns.

    • State and local withholding tax returns.

    • State and local annual voting.

    Ability to manage employee benefits

    Yes. Paylocity integrates pension plan and benefit information with multiple providers and offers benefits management services.

    Employee access to the portal

    Yes. Employees can clock in and clock out in the Paylocity app, request free time, view balances, view schedules and much more.

    Yes, phone support is available from 6:00 a.m. to 7:30 p.m. Central.

    How does Paylocity work?

    Paylocity speeds up payroll processing by automating certain processes. For example, you can automatically retrieve approved expenses and add reimbursements to an employee’s next paycheck, or automatically push 401 (k) information, retirement plans, or benefit plan files to specific providers via app integrations. It also offers flexible payment options, including same-day transfers and the ability for employees to access part of their paychecks before payday.

    Employees can use their Paylocity self-service portals to complete various tasks, including submitting expense reimbursements, applying for vacation, registering benefits or viewing existing insurance coverage.

    You can also generate reports on Paylocity to help you make informed decisions about your business. For example, running a labor cost report on the platform could highlight overpending or high cost centers. Other reports can provide insights into headcount, retention, and sales.

    How much does Paylocity cost?

    Paylocity’s pricing is offer-based. The cost depends on the size of your business, the frequency of payrolls, and the number of paylocity services you use. When you request a demo, the company will send you an estimate.

    Benefits of Paylocity

    Scalable services, including HR and performance management

    Paylocity’s payroll services can handle greater complexity than some systems. That makes it more scalable – and is particularly suitable for medium-sized and large companies with complicated requirements or large payrolls. For example, for garnishment orders, you can email them to a dedicated team that will manage the wage garnishment process, including communicating with the relevant authorities, setting up the garnishment, keeping records, making payments, and complying with state and federal Laws.

    In addition to payroll, Paylocity also offers other services that can help with time tracking, hiring, induction, personnel development, performance administration, compensation management, and performance management. In 2019, a social networking platform for companies called Community was added, where employees and managers can share posts, post comments and celebrate employee milestones such as work anniversaries or birthdays.

    Access to hundreds of integrations

    Paylocity’s robust integration ecosystem offers more choices when it comes to payroll add-ons and service providers. More than 300 companies integrate into Paylocity, including over 100 companies for old-age provision. Other payroll services in the market have a smaller selection, have partnerships with a single provider, or do not offer pension integration.

    Live customer service with high availability

    Paylocity’s live support team is available beyond normal business hours and account managers are available 12 hours a day on weekdays. For comparison, gusto, a world-class HR and payroll product designed for businesses with 100 or fewer employees, offers seven or eight hours of customer support on weekdays, depending on your subscription plan. While other payroll products – including the QuickBooks Payroll, a payroll product for businesses with up to 50 employees – requiring employers to file a ticket and wait for a call back, Paylocity says 9 out of 10 calls are answered within 20 seconds.

    Disadvantages of Paylocity

    Lack of transparency

    Paylocity does not publish pricing information on its website; You need to schedule a demo with a Paylocity representative for pricing information. While quotation-based pricing is not uncommon for mid- and large-sized business personnel and payroll products, it can make the purchasing process more tedious.

    Getting product details can also be difficult without a sales meeting. You also have to register for the Paylocity product training. And unlike some payroll products, Paylocity doesn’t offer a free trial.

    Other HR and payroll options

    Paycom: Also good for larger companies

    Similar to Paylocity, Paycom is an all-in-one HR and payroll platform with extensive automation and reporting functions. These features make managing a large workforce easier by reducing the need for data entry and other routine tasks.

    With Paycom’s Payroll product, you can also delegate certain steps to other users and adjust internal checklists for closing payroll, for example to achieve greater accuracy. Paycom’s customer service, which can be reached by phone and email, is also rated as good. The pricing is based on offers.

    Paychex: A solid option for small or medium-sized businesses

    Paylocity provides HR and payroll services, but does not provide the same level of support as a PEO or professional employers’ organization. A PEO is an outsourcing company that acts as a registered employer for tax purposes, negotiating with vendors and managing benefits on your behalf. Paylocity and other HR and payroll products, on the other hand, act as third-party intermediaries with service providers. PEOs are generally more expensive than working with third parties, but they generally have a dedicated service team and more extensive human resource management. The additional support can be worthwhile for small and medium-sized companies.

    If you’re interested in a PEO and payroll product, consider Paychex. It offers payroll through its cloud based Paychex Flex Products and as a PEO can manage certain HR functions including payroll, benefits and training. Paychex also allows customers to cancel the service at any time free of charge. Paychex Flex products start at $ 59 per month plus $ 4 per person; PEO services are offer-based.


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