Paycom vs ADP Run: Who’s Best for HR and Payroll

Paycom is the latest entry into HR and payroll software, but does it have what it takes to compete with industry leader ADP? We dive deep on this question.

The “paycom vs adp reddit” is a question that has been asked before. The Paycom and ADP both have their pros and cons. It’s important to weigh the benefits of each company.

Two prominent HR payroll software options are Paycom and ADP Run. They both provide onboarding, recruitment, benefits, and background checks in addition to standard payroll and HR services. Both cater to small, medium, and big firms, but their substantial features shine brightest for businesses that can use them now or in the near future. Although the two have certain similarities, there are significant variances in characteristics that may make one a better choice for you.

• Paycom: Best for new businesses with >50 employees that want to set up multiple HR services under one system
• ADP Run is best for growing businesses that need flexible pricing and a PEO alternative.

Consider an alternate supplier that caters more to small companies if you don’t want all of the bells and whistles that Paycom and ADP Run give and are more concerned with pricing and basic payroll and HR capabilities.

• Gusto: Best for small firms with less than 100 workers looking for a cost-effective and rapid solution to administer payroll and onboard new hires.

The Reasons for Our Paycom vs. ADP Run Recommendations

We suggest Paycom to new companies since you won’t gain the full benefit of the system until you employ all of the functions it has. Established firms are more hesitant to switch providers since they are already utilizing other systems (time tracking, recruitment, payroll, etc.). Third-party integrations would be critical, since Paycom isn’t very good in this area.

Pros and Cons of Paycom

Pros and Cons of ADP Run

For expanding organizations, we choose ADP Run because it provides straightforward product plans that increase in features and tools, making it simple to upgrade when you’re ready. It also has a professional employer organization (PEO), which enables you to outsource many of your HR functions, qualify for large-group employee benefits, and stay compliant with laws and regulations (Paycom doesn’t). This is a terrific choice if your company is rapidly expanding but you aren’t ready, financially or otherwise, to bring HR in-house.

How Did We Compare Paycom vs. ADP Run?

To compare ADP Run and Paycom, we looked at their payroll solutions and services to see which sorts of businesses they deal with the most. In a nutshell, we looked at:

• Pricing: We value clarity in pricing so that you can make informed choices, however premium services and plans often require you to book a demo to learn more about pricing. We expected setup costs from HR Payroll companies like these two.
• Automatic payroll runs, payroll tax filing, 1099 form preparation, manual check capabilities, two-day direct payments, and employee and contractor payroll services with a penalty-free guarantee are favored Features of Payroll.
• Ease of use: A supplier should be simple to use and straightforward, with a platform that can be customized. It’s also advantageous if it connects effortlessly with popular third-party applications (such as QuickBooks, Homebase, When I Work, and QuickBooks Time (previously TSheets)). Free installation, how-to instructions, live phone help, and speedy resolution of customer difficulties are highly valued.
• HR features: A supplier should offer consumers with access to an expert for any compliance-related guidance. New hire state reporting, online onboarding, and a self-service portal should all be included in a platform. Employee perks such as health insurance and workers’ compensation are also critical for companies that need HR assistance.
• Popularity: We totaled the ratings from genuine user evaluations on famous third-party sites such as G2, Capterra, and Software Advice. Here, the company with a 4-star average and 1,000+ reviews is scored higher.
• Reporting: In addition to basic reports, suppliers that provide configurable alternatives and those that are embedded into their payroll system get bonus points.

Overview of Paycom vs. ADP

If you’re thinking about moving payroll providers, see our guide on switching payroll systems for some expert advice.

Paycom and ADP Run Shared Features

• Payroll as a service
• Taxes are filed and paid at the federal, state, and municipal levels.
• End-of-year tax returns (W-2s and 1099s)
• Capabilities for direct deposit and manual checks
• Management of PTO
• Management of benefits, particularly health insurance
• Reporting on new hires
• Employee registration and accounts may be done online.
• Manage garnishments and deductions.
• Tools for acquiring talent (job postings and background checks) and managing talent (training)
• Analytics and reports

Takeaway: ADP is the payroll option for you if you have a growing business with evolving HR and payroll demands in the near future. HR assistance, employee benefit choices, foreign payroll and PEO options, and many third-party integration partners are all included.

Paycom is the appropriate solution whether you’re a new business or want to consolidate all HR and payroll services into one system. It comes with a comprehensive set of integrated tools that make the service well worth the investment. You’ll also receive a personal expert to help you set up and manage each function.

ADP Run Pricing vs. Paycom

Paycom’s price isn’t public, and neither are ADP Run’s equivalent plans. For $59 per month Plus $4 per person, you can purchase ADP’s simplest payroll solution, Essential Payroll, which you can administer in-house.

You must request a demo to discuss your requirements in order to get Paycom pricing. After that, you’ll get a quotation that’s tailored to your needs. It’s also impossible to judge the precise features in its lowest cheap bundle since it doesn’t have tiers.

Meanwhile, ADP Run provides four different options depending on the size and needs of the company: Essential Payroll, Enhanced Payroll, Complete Payroll, and HR Pro (all customized). Even if you don’t know the cost straight immediately, the features and tools offered with each plan are clear, so you can figure out which package is ideal for you.

We analyzed the two options since we needed to figure out which is ideal for small company owners:

• Paycom price (for 25 employees): $148 base fee, $4.54 delivery fee, plus $10.71 per employee each month, totaling $317.98. It also includes a $1,128.53 startup charge and extra expenses for other functions like W-2 filing.
• ADP Run cost (for a team of 25 people): Payroll: $59 per month + $4 per employee, for a total of $103 per month. There is an initial setup charge for more premium plans, but the salesman waived it in our quotation; total cost per biweekly paycheck was $155. Add-ons such as time and attendance come at an extra fee.

Even when you include in the initial setup charge, ADP is less expensive than Paycom for the same number of workers, according to the rates provided. In addition, the Essential and Enhanced plans include access to advisory services such as the small company marketing toolbox, as well as legal aid as needed.

ADP Workforce Now is a solution for your rising payroll and sophisticated HR needs if you want to develop your company not only in the United States, but in several nations. Payroll Essentials, HR Plus, Hiring Advantage, and Performance Plus are the four plan alternatives available. Furthermore, since ADP is present in 140 countries, it will be able to assist you with localized international experience if necessary.

Features of Payroll

Payroll and tax administration functions are identical in ADP Run and Paycom. Employees may access their pay stubs, deductions, pay history, and other information via a self-service site. ADP, on the other hand, offers a wider range of payroll services.

ADP Run Features of Payroll

ADP enables you to conduct payroll over the phone in addition to performing it online or using a mobile app. Employees may also choose to get paid through a pay card called Wisely® Pay. It also offers anti-paycheck fraud protection and supports a variety of occupations, pay rates, and pay schedules that are appropriate for a variety of sectors, including education, nonprofits, and construction.

ADP offers various critical tracking activities, including recording billable hours for professional services, monitoring paid or volunteer work, and tracking resources against specific grants, which is particularly useful for educational budget forecasting. It also enables managers in the restaurant, industrial, retail, and healthcare industries to develop and monitor shift plan allocations in order to avoid staffing shortages. The POS system of a restaurant or retail business may also integrate with ADP to precisely track time worked and handle restaurant tips.

ADP does more than just handle your payroll taxes.

• Withholds and pays union dues from the earnings of construction workers.
• For tax reasons, documents tipped earnings.
• Form 8027 is filed.
• Examines the possibility of a tax break with the employment opportunity tax credit (WOTC)
• Runs reports for restaurants, such as tip allocation.
• Unemployment insurance is handled by the state (SUI)
• Unique court-ordered salary garnishments are deducted.

Paycom’s Features of Payroll

You may completely design your payroll layout with Paycom’s Grid tool. It also has a single-database solution that syncs system-wide instantly, reducing re-entry and mistakes. Aside from that, it provides Paycom Pay, which enables you to use a Paycom bank account to issue live checks, which may help you save money on bank fees and minimize general ledger transactions. The supplier allows users to upload or send photographs of receipts for reimbursement and automated expense parsing for cost management. You may also tailor your spending accounts, categories, and rules to meet the requirements of your company.

Employee Benefits and HR Features

With Paycom and ADP Run, you can take advantage of Reporting on new hires and online onboarding for new employees. Both providers also offer access to expert professionals for any HR or payroll compliance advice.

Despite having identical HR features, Paycom outperforms ADP in several areas, such as recruiting, personnel management, and HR management.

HR and Benefits Features at Paycom

Paycom has a number of unique talent acquisition capabilities, including:

• Tracking of applicants
• Improved background checks
• Verification of employees (E-Verify)
• Performance and position management, as well as pay planning, are tools aimed to retain top talent while limiting employee salary.

Paycom’s learning management system (LMS) tailors training to your company’s specific requirements and objectives. It enables HR managers to assign any number of employees to complete mobile-friendly training and development opportunities, including certifications relevant to workers in many areas such as education.

Paycom offers its own calendar and time management tool for tracking time and attendance. With Paycom’s geotracking, biometric time clocks, and secure, online timecards, managers can check their employees’ calendars, regulate and predict labor, and prevent time fraud and “buddy punching.” These characteristics are particularly beneficial to people in the healthcare, manufacturing, and restaurant sectors.

When it comes to federal and state employment rules, Paycom is highly conscientious. As a result, it maintains a database with comprehensive and correct personnel information and keeps track of legislative changes to avoid the danger of audit and fines. It also provides reports that comply with the Equal Employment Opportunity Commission (EEOC), the Fair Labor Standards Act (FLSA), the Family and Medical Leave Act (FMLA), the Affordable Care Act (ACA), and other regulations.

Features of ADP Run HR and Employee Benefits

As an add-on to its premium programs, ADP Run enables your organization to obtain small group health insurance, pay-as-you-go workers’ compensation policies, and retirement plans. Your workers may also take advantage of brand-name product and merchant discounts. If you wish to concentrate on your company’s growth and obtain additional assistance, you may want to choose ADP’s HR outsourcing services or becoming a partner as a professional employer organization (PEO).

ADP will act as an extension of your HR department, handling recruiting, engagement, employee concerns, payroll, benefits, compensation, talent, compliance, and more if you opt to utilize their outsourced PEO services. Furthermore, as a PEO, your organization will have more benefit alternatives (health, dental, vision, life insurance, retirement plans). Due to good expert guidance on how to manage payroll, HR, benefits, and compliance, it may also greatly minimize employer risks and legal liabilities, as well as enhance business operations.

Check out our ADP Totalsource review to discover more about ADP’s PEO.

Integrations, Customer Support, and Ease of Use

The majority of ADP Run and Paycom customers said both programs are simple to use and navigate. Paycom offers its customers phone assistance as well as a dedicated payroll consultant. For medium-sized and business companies, free on-site training for you and your workers is also offered. ADP, on the other hand, offers phone and email help for both payroll and HR services 24 hours a day, seven days a week. For any troubleshooting or advice requirements, it provides you with a staff of qualified payroll and tax specialists.

ADP offers a larger range of third-party software connectors than Paycom. ADP can link with third-party accounting, time tracking, POS, ERPs, learning, recruitment, and onboarding systems, unlike Paycom, which only offers in-house time tracking, benefits, and HR administration applications.

• Wave, Xero, QuickBooks, Workday, Sage Intacct, Oracle, QuickBooks Time, Homebase, ZipRecruiter, Jobvite, Grovo, Litmos, Flock, Employee Navigator, PayActiv, LifeMart, Slack, MS Teams, Clover, Revel, Toast, and others are just a few of the ADP connections.

User Reviews are conducted by Paycom and ADP.

• Paycom received 4.2 and 4.4 stars on third-party review sites G2 and Capterra, respectively. Paycom’s main characteristics, according to reviewers, are its simplicity of use, intuitive UI, and hands-on client service. Meanwhile, some users have reported login issues and software difficulties. It is more costly than other suppliers, according to others.
• ADP Run has received 4.1 and 4.4 stars in reviews on G2 and Capterra, respectively. ADP Run is simple to set up and navigate for users. Some people enjoy how it correctly monitors time and how its mobile app enables them to access their pay stubs without any issues. Customer service, on the other hand, has garnered conflicting reviews, with some consumers claiming that the company’s support crew isn’t prompt enough, while others claiming that they received excellent assistance.

Check out our buyers’ guide to the finest payroll services for more information on our other top picks.

Conclusion

Because there are so many possibilities, selecting the best payroll system is difficult. When picking between Paycom and ADP Run, consider the number of workers you have (and want to have in the future) as well as the extra services you’ll need for recruiting, talent management, HR assistance, and benefits administration.

Consider Paycom if you want to concentrate on acquiring and keeping the greatest employees while being compliant with federal tax and employment rules and regulations.

However, if you want to develop your company not only in the United States but also internationally, ADP Run is the way to go. It not only offers tiered plans, but you can also outsource its payroll and HR services or become a PEO partner to get access to additional advantages while focusing on the most lucrative areas of your organization.

Visit ADP

Paycom is a company that provides payroll services. Paycom has been around since the 1980s, and it’s one of the most popular companies in this field. ADP on the other hand, was founded in 1983 and is one of the largest providers of HR and payroll services in North America. Reference: paycom pros and cons.

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