The Paylocity quick read
- You have 50+ employees or are scaling there
- You have or are building an HR function
- Employee engagement, recruiting, and reporting matter
- You're a very small business
- Price transparency is your top priority
- You only need basic payroll
| Best fit | Midsize businesses (50+ employees) |
|---|---|
| Weakest fit | Microbusinesses and 1–10 employee teams |
| Starting price | Quote-based — contact sales for pricing |
| Pricing transparency | Limited — quote-based, expect a sales conversation |
| Payroll tax support | Good — federal, state, and local filings included |
| Contractor support | Good — 1099 payments and year-end filings |
| W-2 support | Full-service, included in paid plans |
| Multi-state support | Strong — handles employees across U.S. states |
| Benefits | Strong — broker-supported health, 401(k), HSA/FSA, workers' comp |
| HR tools | Strong — onboarding, HRIS, performance, and handbook tools |
| Accounting integrations | QuickBooks Online, Xero, and common partners |
| Setup difficulty | Best with assisted setup |
| Support quality | Strong — phone, chat, and email; priority on higher plans |
| Overall rating | 8.2 / 10 |
A CPA's take on Paylocity
As a CPA and business owner, I care less about whether payroll software has the longest feature list and more about whether it helps a business owner avoid expensive payroll mistakes. The right payroll provider should make tax payments, filings, employee onboarding, contractor payments, and year-end forms feel routine — because payroll is one area where small mistakes can create real compliance problems.
Depth across HR, payroll, engagement, and analytics — a real HCM rather than just payroll software.
Pricing is quote-based and modular. Stress-test the total cost (including implementation) before signing.
Midsize businesses ready for full HCM — not micro-businesses just running payroll.
Smaller businesses should compare Gusto, OnPay, or QuickBooks Payroll first. Larger ones should compare ADP Workforce Now, Paycor, Paycom, and iSolved.
A 30-second decision
- You need a full HCM platform
- You have 50+ employees and HR complexity
- Employee engagement and analytics matter
- You're a small business that just needs payroll
- You want published pricing
- You don't have HR resources to implement and maintain HCM
Who Paylocity is best for
- Midsize businesses (50+ employees)
- Companies with an HR team or HR-focused owner
- Multi-state employers wanting advanced reporting
- Microbusinesses and 1–10 employee teams
- Price-sensitive buyers
- Owners who want transparent self-serve pricing
Paylocity pricing
Payroll pricing changes frequently. Always confirm current pricing on the provider’s site before signing up.
Paylocity pricing is quote-based and modular. Ask about implementation fees, module costs, per-employee payroll fees, contract length, and what counts as an add-on.
- Payroll
- HR
- Benefits administration
- Time and labor
- Performance, recruiting, learning (modular)
- Modular pricing — recruiting, learning, and surveys are usually separate add-ons.
- Implementation fees are common — ask for the total first-year cost.
See current Paylocity plans and offers.
Feature scorecard
Payroll features
- Unlimited payroll runs
- Direct deposit
- Multiple pay schedules
- Bonus, off-cycle, and reimbursement runs
- Employee self-service portal
- Federal, state, and local payroll tax calculation
- Automatic deposits and filings
- Quarterly and annual filings
- Tax-notice support
- 1099 contractor payments
- Year-end 1099-NEC filings
- Multi-state payroll supported
- Remote-employee tax setup
- W-2 generation and filing
- 1099 generation and filing
- Employee/contractor year-end form access
HR, benefits, and compliance tools
- Employee records and HRIS
- Onboarding workflows
- PTO tracking
- Performance and recruiting tools (on relevant tiers)
- Employee handbook templates
- Health, dental, and vision (broker-supported)
- 401(k) and retirement
- HSA / FSA
- Workers' comp
- Commuter and ancillary benefits
- New-hire reporting
- Federal, state, and local payroll tax filings
- W-2 and 1099 year-end filings
- Tax-notice support
Ease of use and setup
- Modern web interface
- Self-serve employee onboarding where available
- Mobile experience for employees
- EIN
- State payroll tax account numbers
- State unemployment account numbers
- Employee information (I-9, W-4)
- Contractor information (W-9)
- Prior payroll history
- Bank account for funding
- Pay schedule
- Benefits information (if any)
- Workers' comp details (if any)
- Accounting software login
- PTO policy
- Existing payroll provider info (if switching)
Integrations
- QuickBooks Online
- Xero
- When I Work
- Homebase
- Deputy
- Available through provider or partner networks
- Common SSO and HRIS connectors where applicable
PayrollSignal take: Integrations matter because payroll is rarely isolated. If your payroll system doesn’t talk cleanly to your accounting software, time tracking, or benefits tools, you may end up spending more time fixing payroll than running it.
Customer support
| Support feature | Available | Notes |
|---|---|---|
| Phone support | Yes | Dedicated rep at higher tiers |
| Chat support | Yes | In-app chat |
| Email support | Yes | Available across plans |
| 24/7 support | Depends | Varies by plan / module |
| Dedicated representative | Yes | Common at midmarket+ tiers |
| HR advisor access | Yes | Included on HR-focused plans |
| Tax-notice support | Yes | Included with full-service payroll |
| Setup support | Yes | Assisted onboarding standard |
Payroll support matters more than ordinary software support because payroll problems often have deadlines attached. A login issue is annoying. A missed payroll tax deadline can be expensive.
Paylocity pros and cons
- Full HCM
- Strong reporting and analytics
- Employee engagement tools
- Scales into midmarket
- Quote-based, modular pricing
- Implementation can be heavier
- Overkill for small businesses
- Module sprawl can drive cost
Which businesses should use Paylocity?
Overkill — use Gusto, OnPay, or QuickBooks Payroll.
Possible if HR is a priority; otherwise compare smaller-business tools first.
Paylocity's sweet spot.
Strong multi-state and reporting.
Benefits administration is a strength.
Works at lower-end enterprise; Workday and Paycom compete here.
PayrollSignal Fit Meter
Watch-outs before you buy
- Get implementation fees in writing.
- Confirm which modules are included vs. add-on.
- Stress-test cost as you grow.
Best alternatives to Paylocity
Comparable HCM offering.
Paylocity often wins on engagement and analytics depth.
Best for: Similar SMB-to-midmarket HCM buyers
Strong employee self-service.
Paylocity tends to be more flexible at the smaller end of midmarket.
Best for: Single-database HCM at midsize+
Massive ecosystem.
Paylocity often feels more modern and employee-friendly.
Best for: Brand-name midmarket HCM
Not sure if Paylocity is right for you?
Payroll companies can look similar on the surface, but the best choice depends on your employees, contractors, states, benefits needs, HR support, accounting software, and growth plans. Take the free PayrollSignal quiz and get a recommendation built for your business.
How we reviewed this provider
We review payroll providers based on small business fit, not just feature count. A provider can have many features and still be the wrong choice for a very small business if it’s too expensive, too complex, or unclear about pricing.
| Category | Weight |
|---|---|
| Payroll functionality | 20% |
| Payroll tax & compliance support | 20% |
| Pricing & transparency | 15% |
| Ease of use | 15% |
| HR, onboarding & benefits | 10% |
| Integrations | 10% |
| Customer support | 5% |
| Scalability | 5% |
Our ratings are intended to help small business owners choose payroll software based on fit. A lower-rated provider may still be the better choice for a specific business if its pricing, integrations, service model, or HR features better match that business’s needs.
Paylocity FAQs
The bottom line
Paylocity is a strong HCM for midsize employers. PayrollSignal recommends it when you genuinely need HCM — not when basic payroll software would do.
If you already know Paylocity fits your needs, you can check current pricing below. If you’re still comparing options, take the free PayrollSignal quiz first.