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If you’re in the market for a payroll provider, Paycom and Paylocity may be on your radar. Both companies offer a variety of tools that can help you manage payroll and benefits, comply with tax laws, recruit top talent and more. So, how do you know which is right for your unique business? Our Paycom vs. Paylocity comparison can help you make the most informed decision and set your venture up for success.
Paycom Vs. Paylocity: At a Glance
Paycom is a highly customizable, full-service human capital management (HCM) system with a variety of payroll, human resources (HR) and talent management features. It’s an all-in-one solution with automations that can streamline your processes and help you become more efficient.
Paylocity is also a comprehensive software that stands out for its employee experience and performance management features. In addition, it seamlessly integrates with many popular tools and technologies you may already be using.
Paycom
Benefits administration
Yes
Time tracking
Yes
Mobile app
Yes
Yes
Yes
Yes
Why We Picked It
Paycom is a robust payroll solution known for Beti, a mobile and desktop app employees may use to verify their paychecks and manage their paid time off (PTO), benefits and expenses. The app can also allow employees to access their earned wages if they need them between paydays.
In addition, there’s a built-in learning management system (LMS) with premade courses and the ability to create your own. This is a huge plus if you’d prefer to remain compliant and prioritize employee training and development. Paycom also offers a tax credit service, making it a breeze to pinpoint opportunities for tax credits and, hopefully, reduce your tax burden.
Learn more: Read our Paycom review.
Pros & Cons
- Beti, an employee-driven payroll experience
- Tax credits service
- Built-in LMS tool
- Unclear pricing
- Can be too complex for startups and small businesses
- Limited integrations
Paylocity
Benefits administration
Yes
Time tracking
Yes
Mobile app
Yes
On Paylocity's Website
Yes
Yes
Yes
Why We Picked It
Paylocity’s platform supports HR, payroll, benefits administration and more. Its plethora of employee engagement features are designed to keep employees engaged and motivated. The Community hub, which promotes collaboration, allows employees to publicly recognize hard work through Impression Badges that say things, such as “Rockstar.”
With the survey builder, you can constantly check in with your team to see how they’re doing. Paylocity also offers more than 350 built-in integrations with popular HR and business tools, such as QuickBooks, Oracle and Square. This makes it easy to streamline your processes and enhance efficiency.
Learn more: Read our Paylocity review.
Pros & Cons
- Community engagement hub
- Automated onboarding
- Many built-in integrations
- Lack of price transparency
- No job post template
- No built-in interview scheduling
Featured Partners
Advertisem*nt
1
Rippling
Benefits administration
Yes
Contractor Payments
Yes
Base Price
$35/month plus $8 PEPM
2
OnPay
Benefits administration
Yes
Contractor payments
Yes
Base monthly price
$40 per month + $6 per user
3
Paychex Flex
Benefits administration
Yes
Contractor payments
Yes
Base monthly price
$39-plus per month, depending on company size and needs (6 month free offer)
4
Gusto
Benefits administration
Yes
Contractor payments
Yes
Base monthly price
$40 per month plus $6 per user
How Paycom and Paylocity Stack Up
As you can see from the chart below, Paycom and Paylocity offer many of the same features. However, there are differences in the way they approach them. We’ll break down these differentiating factors below.
| Paycom | Paylocity | |
|---|---|---|
Pricing | Contact for quote | Contact for quote |
Payroll | Yes | Yes |
Benefits Administration | Yes | Yes |
Time Tracking | Yes | Yes |
Recruiting | Yes | Yes |
Integrations | Limited | 350+ |
Mobile app | Yes | Yes |
Learn More | — | |
Read Reviews | Read Paycom review | Read Paylocity review |
Payroll
Beti is Paycom’s employee-driven payroll experience that allows employees to manage their payroll through a mobile or desktop app. Once an employee verifies and approves their payroll, you’ll receive a notification so that you can go ahead and submit it.
Paylocity supports domestic and global payroll for employees in more than 100 counties. In addition, Paylocity’s on-demand wage access gives employees access to some of their earned wages before payday without paperwork or special permission.
Benefits Administration
Paycom automates benefits enrollment, giving employees the chance to choose their own benefits and see how they’ll impact their take-home pay. You can also pull benefits reports to make sure your benefits packages are within your budget and only eligible employees have enrolled.
Since Paylocity syncs benefits with payroll, it will automatically deduct the benefits your employees select from each paycheck. In the event an employee’s benefits change, the insurance company will receive an automatic update through electronic data interchange (EDI) transfer.
Time Tracking
Paycom’s time tracking feature comes with time clocks and tools to prevent time theft. You’ll receive time and labor data in real time so you can make the best scheduling decisions. Once you approve an employee’s time, it’ll sync to payroll automatically and eliminate the need for data entry.
Paylocity’s time and labor tools sync up with payroll as well. There are also more than 100 reports you can use to keep tabs on schedules, attendances and time off. If an employee forgets to clock in or out, Paylocity will automatically send a notification to their mobile device.
Recruiting
Paycom offers unique features, such as enhanced background checks and onboarding checklist creation. There’s also a way to verify employment eligibility directly in the platform using E-Verify.
With Paylocity, you can handle virtually every aspect of the recruiting process. It allows for dynamic job posts, a branded career page, job post syndication, candidate screening, applicant tracking and background checks through Checkr.
Integrations
Paycom’s integrations are limited, unlike Paylocity’s. Paylocity’s Marketplace offers a wide range of integrations, allowing you to enhance the software’s capabilities. You can integrate it with a variety of accounting, compensation, point of sale (POS), rewards and attendance tools.
Mobile App
Paycom’s self-service Beti tool is available as a mobile app. The app allows employees to check their pay information, including pay stubs and tax forms, and manage PTO, expenses, and benefits. Paylocity also offers an iOS and Android-compatible mobile app with similar capabilities.
Cost of Paycom vs. Paylocity
Paycom and Paylocity don’t provide pricing on their website. Instead, both companies require you to reach out to them directly and request a quote. You can work with their sales teams to zero in on your particular needs and receive a customized price, which will likely include a monthly base fee as well as a monthly per-person fee. Factors such as the size of your business, number of employees you have, your payroll schedule and your desired features will play a role in the total cost.
Customer Reviews and Reputation
On review sites Trustpilot and the Better Business Bureau, Paycom receives higher ratings and more positive reviews than Paylocity. Reviewers praise Paycom for its top-notch customer service and ease of use. The poor reviews are mostly about the provider’s steep fees and occasional bugs. Paylocity reviewers complain about a poor customer service experience and slow implementation process. Paylocity receives higher scores from users on G2 and TrustRadius than Paycom, with a 4.4 rating out of 5 and a 7.8 out of 10, respectively. Users here note that the platform is easy to use and has easy implementation. Paycom receives a 4.2 out of 5 on G2 and a 7.3 out 10 on TrustRadius. Users like its clean interface and the helpful support team.
Top Paycom and Paylocity Alternatives
If Paycom and Paylocity don’t make sense for your unique situation, you can explore these alternatives and other leading HR management system (HRMS) solutions. You can find more options on our Best HR Software list of 2024.
| Payroll | Benefits | Time tracking | Starting Price | |
|---|---|---|---|---|
Paycor | Included | Add-on | Add-on | Not disclosed |
Paychex Flex | Included | Included | Add-on | $39 per month plus $5 per employee per month |
UKG Pro | Included | Included | Add-on | Not disclosed |
Featured Partners
Advertisem*nt
1
Rippling
Benefits administration
Yes
Contractor Payments
Yes
Base Price
$35/month plus $8 PEPM
2
OnPay
Benefits administration
Yes
Contractor payments
Yes
Base monthly price
$40 per month + $6 per user
3
Paychex Flex
Benefits administration
Yes
Contractor payments
Yes
Base monthly price
$39-plus per month, depending on company size and needs (6 month free offer)
4
Gusto
Benefits administration
Yes
Contractor payments
Yes
Base monthly price
$40 per month plus $6 per user
Bottom Line
Paycom and Paylocity are two cloud-based solutions that can simplify your payroll and HR needs. While Paycom is a solid choice if you’re a larger business looking for comprehensive software with plenty of automations, Paylocity is likely your best bet if you’re looking for an all-in-one platform with a focus on employee engagement and communication.
Paycom is best for:
- Growing businesses looking for exceptional automation and an all-in-one solution that allows them to manage all their HR processes in one place
Paylocity is best for:
- Businesses of all shapes and sizes that would prefer to boost employee engagement and improve communication
Frequently Asked Questions (FAQs)
Is Paycom better than Paylocity?
Whether Paycom is better than Paylocity depends on your specific needs. If you’re seeking a highly scalable solution and prioritize automation, it may be the optimal choice.
How does Paycom differ from Paylocity?
Paycom is all about automation and stands out for Beti, an employee-driven payroll experience. Meanwhile, Paylocity excels at employee engagement via tools such as a Community hub and survey builder.
Should I switch to Paycom?
If you’re a growing business or have plans to expand soon, it may be worthwhile to switch to Paycom. This is particularly true if you want to save time and eliminate many repetitive, manual payroll and HR tasks.
