Key takeaways
- ADP and Paychex have been around for over 50 years and both offer a wide range of HR and payroll tools.
- We recommend ADP Workforce Now for fast-growing businesses looking for scalable HR solutions and international payroll.
- We recommend Paychex for small to medium-sized businesses (SMBs) needing payroll and HR services.
- Feb. 10, 2024: Robie Ann Ferrer reviewed the analysis, provided up-to-date product information, and revised the page layout for better readability and easy navigation. She also added our methodology and added comparison tables so you get the information faster.
We evaluated ADP and Paychex with your top priorities in mind. We used vendor demos, technical documentation, knowledge bases, and user reviews from customers like you to compile our research. To compare ADP vs Paychex, we also checked other factors like pricing, scalability, ease of use, and integration options. As both companies update their products, we will review our information so you always receive the best insight for your purchasing decision.
ADP vs Paychex: Which is better?
ADP and Paychex are leading providers of payroll systems and HR management software (HRMS). Each has various products to help you with essential HR processes, from onboarding to time tracking and talent management. Both even offer professional employer organization (PEO) services if you need help handling HR administrative functions, so you can focus on growing and running your company.
Further, ADP and Paychex can each adapt to your particular business needs, making the choice between them difficult. However, we found ADP a good option for companies that want scalable, flexible HR solutions and global payroll functionalities. In contrast, Paychex is better suited for running payroll and core HR functions for SMBs.
If you’re looking to switch providers and want to compare ADP versus Paychex, I’ve outlined some of their differences below. For a better comparison, I used both vendors’ payroll products for medium to large-sized businesses: ADP Workforce Now for ADP and the higher tiers of Paychex’s payroll platform, Paychex Flex.
ADP Workforce Now*
Paychex*
Pricing
Quote based on product type, employee count, subscription tier, and add-on features
Transparent pricing for Paychex Flex’s starter tier; other plans and products require a quote based on employee count and add-on features
Payroll
Basic functionality with options for PEO services, HR outsourcing, and global payroll
Basic functionality with options for PEO services
Benefits administration
Bring your own plus personalized recommendations
Bring your own plus personalized recommendations
Recruiting and onboarding
Recruiting add-on with ZipRecruiter partnership plus employee self-onboarding tools
Recruiting add-on with job board integrations plus employee self-onboarding tools
Performance and learning management
Add-on modules with dashboards and customizable tools; features over 70,000 learning programs
Add-on modules with dashboards and customizable tools; features over 300 learning programs
*Some features and services cost extra or are included in higher tiers
ADP Workforce Now: Best for fast-growing businesses looking for scalable HR solutions

For over 75 years, ADP has been providing HR solutions and services to businesses of all sizes. It has a payroll platform that includes onboarding, time tracking, benefits, talent management features, and an HR information system (HRIS). Small businesses with up to 49 employees can rely on its ADP Run product, while medium- to large-sized companies with 50 or more workers can use ADP Workforce Now.
In addition, you can outsource day-to-day HR administrative functions with its PEO product, ADP TotalSource. Global HR and payroll solutions, such as ADP Celergo and ADP GlobalView Payroll, are also available if you want to pay international employees in more than 140 countries.
Explore all the features of ADP Run and ADP Workforce Now.
Pros
- A comprehensive product line of HR and payroll solutions, including PEO.
- Global payroll covers over 140 countries.
- Flexible HR solutions that scale with your growing business.
- ADP Marketplace features more than 500 integrations.
- Multiple payment options.
- Proactive payroll error alerts.
Cons
- Pricing isn’t transparent.
- Time tracking and benefits administration available in higher tiers.
- Advanced HR tools like performance and learning management are paid add-ons.
To check out more HR software options, refer to our list of ADP Vendor Competitors & Alternatives.
Paychex: Best for SMBs needing payroll and core HR tools

Paychex has been offering payroll and HR solutions to businesses across multiple industries for over 50 years. It compares to ADP in size and complexity, but they have more focus on improving payroll processing and HR solutions for SMBs. They also offer enterprise-level software, if that’s what your company needs.
Its core payroll platform, Paychex Flex, has various tiers, comes with payroll tax payment and filing services, and basic to advanced HR functionalities for managing the entire employee life cycle. The features are scalable but Paychex lacks the global payroll tools that ADP offers. While its product line isn’t as extensive as ADP, its solid payroll features can help you pay employees in different ways—from direct deposits to pay cards and paper checks that Paychex will sign for you.
Learn more about Paychex and its features.
Pros
- Feature-rich HR and payroll platform.
- PEO services available.
- Flexible payment options.
- Integration network of over 250 third-party software.
- Access to a dedicated payroll specialist.
- Smart tools to ensure compliance and automate pay processing.
Cons
- Pricing isn’t all transparent.
- Lacks native global payroll tools.
- Hiring, time tracking, benefits, and performance review tools are paid add-ons.
ADP vs Paychex: A detailed comparison
Pricing
Both follow similar pricing matrices where they charge monthly fees based on the number of employees, subscription tier, and add-on features or products you need. However, pricing details aren’t published on their websites, except for the starter plan of Paychex’s payroll platform, Paychex Flex.
Further, the functionalities included in Paychex and ADP’s payroll solutions are slightly different. ADP will even require you to upgrade to different products depending on the size of your workforce and payroll needs. This makes it difficult to assess which vendor offers the most value for money.
ADP Workforce Now has three plans: Select, Plus, and Premium. Basic HR functions are included in all tiers, but modules for advanced HR features are also available as paid add-ons. To get pricing details, you will need to contact ADP’s sales team.
Select | Plus | Premium | |
---|---|---|---|
Monthly pricing ($/employee) | Contact sales | Contact sales | Contact sales |
Payroll and tax filing services | Included | Included | Included |
Employee database | Included | Included | Included |
Recruiting | Add-on | Add-on | Add-on |
Onboarding | Included | Included | Included |
Benefits administration | Not included | Included | Included |
Access to benefits providers | Optional add-on | Optional add-on | Optional add-on |
Time tracking* | Not included | Not included | Included |
Performance management | Add-on | Add-on | Add-on |
Learning management | Add-on | Add-on | Add-on |
Employee self-service tools | Included | Included | Included |
*Features time off accruals, staff scheduling, and mobile time collection tools
Paychex considers its Paychex Flex Select, Pro, and Enterprise plans as ideal options for medium to large-sized businesses. You have to call its sales team to request quotes for those tiers. The vendor only disclosed pricing information for Paychex Flex’s starter Essentials tier, which is priced at $39 per month plus $5 per employee.
Select | Pro | Enterprise | |
---|---|---|---|
Monthly pricing ($/employee) | Contact sales | Contact sales | Contact sales |
Payroll and tax filing services | Included | Included | Included |
Employee database | Included | Included | Included |
Recruiting | Add-on | Add-on | Add-on |
Onboarding | Included | Included | Included |
Benefits administration | Included | Included | Included |
Access to benefits providers | Optional add-on | Optional add-on | Optional add-on |
Time tracking* | Add-on | Add-on | Add-on |
Performance management | Add-on | Add-on | Add-on |
Learning management | Add-on | Add-on | Add-on |
Employee self-service tools | Included | Included | Included |
*Includes time off accruals, staff scheduling, and touchless clock-in options
It’s a tie. Here’s why. Both win in this category for different reasons. If we compare Paychex vs ADP in terms of pricing transparency, Paychex is slightly better because it provides the monthly fee of its Paychex Flex Essentials plan. This gives you an idea of how reasonably priced its services are—unlike ADP, which requires you to contact its sales team for pricing details. Plus, you don’t have to switch products if you grow your workforce to more than 50 employees as you would with ADP.
However, if we compare the features included in their payroll packages for medium to large-sized businesses, ADP provides more HR functions in its ADP Workforce Now plans. With Paychex Flex, you have to pay extra for some of those tools, such as time tracking, if you’re not on Paychex’s highest tier.
Payroll
ADP Workforce Now | Paychex | |
---|---|---|
US payroll | Across all states | Across all states |
Tax calculations, filings, and payments | Yes | Yes |
Direct deposit | Yes | Yes |
Pay cards | Yes | Yes |
Paychecks | Yes | Yes |
On-demand pay | Yes | Yes |
Global payroll | In more than 140 countries | Via partner systems |
Compliance alerts | Yes | Yes |
Voice-assisted pay runs* | No | Yes |
*A conversational artificial intelligence (AI) feature that works with voice assistant platforms (such as Siri or Google Assistant) for hands-free pay processing.
Compared to doing payroll yourself, ADP and Paychex online tools take the stress out of paying employees while helping you avoid potential compliance issues and payroll errors. Both have similar payroll functionalities, like multiple pay schedules, expert tax services, and flexible payment options. However, the global payroll support and AI tools they offer differ from each other.
ADP offers core payroll features in all of its ADP Workforce Now plans. You can run payroll directly from its dashboard, and it can even handle certified payroll reporting if you need to pay contractors who work on federally funded construction projects.
In addition to its compliance and tax expertise to handle US payroll, combining ADP Workforce Now with ADP Celergo or ADP GlobalView Payroll extends its pay processing coverage to over 140 countries. This allows you to compliantly pay international employees and handle deductions for global employee benefits.
ADP Workforce Now is also equipped with an AI tool, ADP Assist, that validates payroll information and flags potential errors for you. It even serves as a virtual assistant if you need help setting up employee reminders for timesheet submissions and other HR tasks.

Paychex’s flagship offering is the online payroll service, Paychex Flex. It comes with the standard pay processing tools that SMBs need, including access to a single platform with multiple options to input and view payroll. This is unlike ADP, which has separate payroll platforms for small businesses, medium to large-sized companies, and global pay processing.
While ADP also offers AI tools to further streamline payroll processes, Paychex takes it a step further with its Voice Assist solution. This provides a secure hands-free way to process payroll by integrating with Google Assistant-enabled devices. It comes with security features, such as a secure voice PIN and voice match technology, to ensure that only your payroll administrator has access to this solution.

ADP Workforce Now. Here’s why. Both may have similar payroll functionalities that can simplify processes, but ADP provides more flexibility in paying workers. Adding its global payroll products such as ADP Celergo to ADP Workforce Now allows you to process employee payments in more than 140 countries.
In contrast, Paychex doesn’t have a native global payroll tool. While it offers international payroll services, this is provided via partner global payroll systems.
Benefits administration
ADP Workforce Now | Paychex | |
---|---|---|
Native benefits software | Yes | Yes |
Data transfers via electronic data interchange (EDI) | Yes | Yes |
Third-party broker support | Yes | Yes |
Financial wellness | Yes | Yes |
Compliance | Yes | Yes |
Mobile app access | Yes | Yes |
Paychex and ADP offer access to standard employee benefits, including financial wellness tools. Both integrate with leading insurance carriers and support EDI data transfers, making it easy for you to handle benefits data and communicate changes to carriers. However, they have slightly different approaches to offering and managing employee benefits.
While ADP offers direct connections to carriers, this is optional. You are free to bring your own broker, integrate the carrier’s benefits administration software with ADP Workforce Now, and then manage benefits data and employee enrollments via ADP’s benefits module. However, you need to subscribe to ADP Workforce Now’s higher tiers to access this module.
If you want to offer a financial wellness program, Wisely by ADP comes with tracking tools to help your employees understand and improve their spending habits. They can also choose to move a portion of their paycheck each pay period to an online “savings envelope” that’s only accessible through the Wisely by ADP app.
Are you thinking of adding employee financial wellness to your company’s benefits? Here’s a primer on Employee Financial Wellness: Programs & Benefits
Paychex lets you use your own broker like ADP or sign up with one of its partner carriers. If you’re looking for retirement plans, Paychex offers flexible 401(k) options and retirement planning services. Unlike ADP, you have to manage employee enrollments and benefits data through a separate Paychex product—a benefits software, Flock.
However, Paychex’s financial wellness program is slightly more robust than ADP’s. Available via its partner system, FinFit, your employees can get personalized financial assessments, avail of short-term loans for emergencies, and access financial wellness learning sessions online.
If you think you’re missing out on lesser-known benefits that make employees’ lives easier, check out this Employee Benefits Guide: Types of Benefits to Offer.
It’s a tie. Here’s why. After comparing ADP versus Paychex for benefits administration, I found that both offer similar benefits options and benefits administration tools. Choosing one over the other depends on your preference and your company’s needs.
Although, if you already have benefits plans and brokers that you’re happy with, we recommend ADP. But while it has partner carriers you can connect with, ADP’s network isn’t as extensive as Paychex’s (31 vs 99 partner benefits solutions). Moreover, Paychex is a good option if you use financial wellness programs to help improve employee retention.
Recruiting and onboarding
ADP Workforce Now | Paychex | |
---|---|---|
Job postings | Via ZipRecruiter | Via job board integrations |
Native applicant tracking | Yes | Yes |
Career site | Yes | No |
Employee self-onboarding | Yes | Yes |
Document management | Yes | Add-on |
New hire reporting | Yes | Yes |
Employee database | Yes | Yes |
Recruiting functionalities are add-on solutions to ADP Workforce Now and Paychex Flex. Both also don’t have native job posting tools but rely on partner systems to post open roles on various job boards. Onboarding, on the other hand, is a standard feature for both platforms.
With ZipRecruiter embedded into ADP Workforce Now, you can post jobs to over 25,000 job boards. This is also valuable if you use social recruiting to find qualified candidates as ADP’s integration with ZipRecruiter lets you share job postings on social media platforms. Plus, you even get a mobile career site for candidates—a feature that Paychex lacks.
When it comes to onboarding, ADP Workforce Now is equipped with fillable forms, an electronic signature tool, and configurable workflows to fit different employee classifications. With ADP, you also get to enjoy some of the key benefits of HRIS tools, such as access to a global employee database with unlimited storage and search functionalities for digital record keeping.

Paychex also has recruiting functionalities, but posting jobs isn’t as seamless as ADP Workforce Now. It relies on its partner job boards to share your open jobs online. However, this costs extra with Paychex. Additionally, you also have to pay for document management functionalities if you want a centralized repository for company forms, policies, staff documents, and employee certifications.
After a candidate has been hired in the system, all applicable data from Paychex’s applicant tracking module will flow into its onboarding software. You can track workflows and assign onboarding tasks to new hires so they can submit documents, input personal and bank information, review policies, and electronically sign forms.

ADP Workforce Now. Here’s why. You get more hiring functionalities and a wider job posting reach with ADP given its partnership with ZipRecruiter. While both ADP and Paychex have onboarding tools, ADP Workforce Now offers document management features in all plans. This is unlike Paychex, which charges extra for it.
Performance and learning management
ADP Workforce Now | Paychex | |
---|---|---|
Customizable review templates | Yes | Yes |
Performance tracking | Yes | Yes |
Continuous feedback | Yes | Yes |
Catalog of compliance, development, and DEI training courses | Over 70,000 courses | More than 300 courses |
Course assignment tracking | Yes | Yes |
Performance reviews and learning management are add-on tools you can get for ADP Workforce Now or Paychex Flex. Both modules have similar features, allowing you to customize forms and track performance ratings or training course progress with ease.
With ADP Workforce Now’s talent management solutions, you can manage performance reviews, track compensation, and do succession planning. It also supports multi-rater feedback and can help you track performance goals. What differentiates it from Paychex are the market insights you can get to plan performance increases, bonus payouts, and more. ADP’s learning management solution also has an extensive library of training sessions to help keep you compliant, promote diversity in the workplace, and improve employee skills.
Paychex’s performance management features are less robust than ADP’s but can handle customizable forms and continuous feedback. If you need to create and manage training courses, Paychex has a native learning management system for designing, assigning, and tracking learning sessions. Similar to ADP, it has a library of training courses, but the options are more limited compared to ADP.
ADP Workforce Now. Here’s why. ADP offers a more robust toolset if you want to track employee performance, assess skills gaps to develop workers, and reward high-performing employees with performance-based pay increases or bonuses. Further, you get a larger library of compliance and development training with ADP, as Paychex only has 300+ courses compared to ADP’s more than 70,000 training programs.
ADP vs Paychex: Ready to choose?
Comparing ADP vs Paychex can be difficult because both platforms have a lot of similar features and services. As you evaluate the two, use your own business needs as a litmus test. Large companies that need less support and already have a dedicated payroll specialist/HR staff may find that ADP meets their needs. Small businesses looking for an online solution with dedicated payroll support might want to consider Paychex for easier pay processing.
If neither software meets your company’s HR needs, explore other solutions through our payroll software and HR software guides.