HR Software Showdown: Paylocity vs. PayChex

Having dedicated payroll software can help relieve a lot of headaches and save a lot of time. When implemented correctly, it can automate payroll, improve benefits admin, and enable optimization through data-driven insights. 

But with so many options out there, how do you know which one is right for your business? Here, we’ll outline two of the top online payroll services—Paylocity and Paychex. Hopefully, you come away with an idea of which one is ideal for your business and find a partner who can help you implement your software properly and effectively. 

Paylocity: Features and Benefits

Paylocity’s numerous features within the system provide HR teams with flexible solutions to help you tackle your biggest HR and payroll challenges so you can focus on the future. Its essential HR features encompass robust processing and comprehensive tools, facilitating seamless operations for businesses of all sizes. Organizations can leverage Paylocity’s data and empower their business with data-driven insights to enable strategic workforce optimization and efficient resource allocation. Employee benefits admin is streamlined with a user-friendly platform that boosts communication, simplifies processes, and ensures compliance with evolving regulations.

Paylocity’s mobile payroll app makes it easy for HR teams to view paychecks and stay in touch with coworkers. Employees can also leverage the app, clock in and out, request time off, and view balances, as well as access important info like current and past checks, tax forms, schedules, and timesheets, at any time.

One of the final key features of Paylocity is its ease of integration. Paylocity’s developer-friendly APIs connect its software to any system, making it easy to access data from Paylocity within other systems or connect other services and providers. Paylocity has loads of API integrations, so you can seamlessly integrate data no matter what. Some of the most common ones are Salesforce, QuickBooks, Oracle NetSuite, and Hubspot—but there are 300 more to choose from. Its system can be your central hub, maximizing accuracy, increasing automation and efficiency, and driving action across the organization.

Paylocity and PREDICTIVEHR 

When you tap into PREDICTIVEHR’s Paylocity expertise we’ll work to ensure the implementation is done correctly and tailor the configuration to match your business needs. To ensure you’re up and running quickly and efficiently we offer onboarding assistance for a smooth launch. And once it’s all working as it should be, we can stick around for however long you need providing managed services to ensure everything runs smoothly.

Paychex: Features and Benefits

Paychex is a comprehensive HR and payroll outsourcing solution that streamlines key business processes. It handles payroll processing by automating wage calculations, deductions, and tax obligations, with flexible payment options and schedules. The platform also ensures tax compliance by handling payroll tax calculations and year-end reporting. Paychex can help reduce HR admin tasks by allowing employees to access pay stubs, and tax documents, and to update personal details.

Paychex offers time and attendance tracking, ensuring accurate pay calculations and overtime management. HR teams can leverage this software for benefits administration—helping employees with health insurance and retirement plans and offering reporting and analytics for data-driven decisions and compliance reporting. 


There are some notable benefits when using Paychex.

  • Time and Cost Savings: The software automates payroll and compliance tasks, reducing the time and resources needed for these functions. So HR teams have more time to focus on strategic initiatives.
  • Compliance Assurance: Paychex’s expertise in payroll and tax compliance helps businesses avoid costly errors and penalties. 
  • Scalability: Paychex caters to businesses of all sizes, from startups to large enterprises, and its solutions grow with your company’s needs.
  • Employee Self-Service: Employees can access their information and perform tasks independently, reducing HR’s administrative workload.
  • Robust Reporting: Access to detailed reporting and analytics helps businesses make data-driven decisions and stay informed about their payroll and HR operations.

A key feature of Paychex is Paychex Flex, a cloud-based platform integrating payroll, HR, and benefits administration. This easy, online payroll service automates payroll processing for organizations while integrating employee data with HR and benefits for easier management. Plus, with the Paychex Flex app, you can access important payroll information at a glance and process payroll from anywhere,

Comparison: Paylocity vs. Paychex

Take a look at how Paylocity and Paychex compare to one another. Keep in mind that this is a general comparison and the specifics of each criterion could change depending on what plan you’ve chosen. 

Criteria Paylocity Paychex
Pricing Structure Customized pricing based on company size and requirements. Typically, priced per employee per month. Customized pricing tailored to company needs and size, including per-employee and per-payroll fees.
Ease of Use and user interface (UI) User-friendly interface with modern design and mobile accessibility. Highly intuitive for employees and administrators. Has Paychex Flex, a cloud-based platform with an intuitive, customizable, and mobile-friendly interface.
Key Features Offers employee self-service, time tracking, benefits administration, and more. And the suite can be tailored with add-ons. Provides comprehensive HR and payroll features, including self-service, time tracking, benefits administration, and various add-on options.
Integration Capabilities Integrates with various third-party systems and applications, offering RESTful APIs for seamless connections. Offers integration with popular accounting and HR systems, with a focus on API connectivity.
Customer Support and Training Provides phone and email support, extensive online resources, webinars, and training programs for users. Offers phone and chat support, online resources, and personalized training.
Customization and Scalability Highly customizable with scalable features to fit diverse business needs. Add-ons are available. Flexible and scalable solutions to accommodate businesses of all sizes. Customization options are offered.
Compliance and Security Features Focuses on compliance with various regulations, including tax and labor laws. Strong emphasis on data security with robust measures in place. Committed to compliance and security, with a comprehensive approach to address payroll, HR, and tax compliance, along with data protection.

Paylocity or Paychex? You Now Have the Information You Need to Decide!

While Paylociry and Paychex share a lot of the same features and benefits, choosing the right one for your organization comes down to your unique business requirements and priorities. Determine your API integration needs, compliance requirements, budgetary restrictions, and scalability needs, and then see which platform ticks all the boxes. 

That being said, Paychex offers solutions built for small to medium-sized businesses while Paylocity is known for its scalability and flexibility, making it an excellent choice for mid-sized and large organizations with complex payroll and HR needs. 

Why Consider Paylocity with PREDICTIVEHR?

If you’re looking for help implementing Paylocity, turn to PREDICTIVEHR. Leveraging our expertise you unlock increased speed to implementation and deployment, access to customized dashboards across all workforce data, and tailored offerings to solve complex HR requirements including data extraction and implementation.

You even get a personal representative who’s in your corner advocating on your behalf to ensure there’s a clear transfer of knowledge so you can get the most out of your investment. When you partner with PREDICTIVEHR, you can rest assured that you’re getting the most from your Paylocity instance.


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