Yes, Paylocity takes data security very seriously. It employs multiple safeguards to protect client and employee information, including: 256-bit SSL encryption for data transmission Regular third-party security audits Redundant, geographically dispersed data centers Role-based data access restrictions Paylocity's information security program is AICPA SOC 1 Type 2 and SOC 2 Type 2 certified.

Paylocity Review: Pros, Cons, Features & Pricing

Q: Is there a mobile app for Paylocity?

Yes, Paylocity offers a mobile app for iOS and Android devices. Employees can use the app to access their pay stubs, request time off, clock in and out, and update personal information. HR administrators and managers can also perform key functions like approving time off requests and viewing team schedules while on the go.

Q: Is Paylocity HIPAA compliant?

Yes, Paylocity is HIPAA compliant. It signs Business Associate Agreements (BAAs) and follows the HIPAA Privacy, Security, and Breach Notification Rules to safeguard protected health information (PHI). Paylocity continuously monitors its systems and performs annual HIPAA risk assessments.

Q: Is Paylocity SOC 2 compliant?

Yes, Paylocity is SOC 2 Type 2 compliant. This means an independent CPA firm has verified that Paylocity has proper controls for security, availability, processing integrity, confidentiality, and privacy. The SOC 2 Type 2 audit is conducted annually.

Q: Is Paylocity FedRAMP certified?

No, Paylocity is currently not FedRAMP certified. FedRAMP certification involves strict, costly, and time-consuming security assessments and continuous monitoring to meet federal standards. Many companies, including Paylocity, may choose not to pursue this certification unless they have a significant number of federal clients requiring compliance.

Q: Is Paylocity GDPR compliant?

Yes, Paylocity is committed to GDPR compliance. For customers with employees in the European Union, Paylocity adheres to GDPR requirements around data privacy, security, and individual rights. It has updated its data processing agreements and privacy policies to align with GDPR.

Q: How does Paylocity handle data backups?

Paylocity performs daily backups of customer data to ensure it can be recovered in the event of an incident. Backup files are encrypted and stored in secure offsite data centers. Paylocity regularly tests its disaster recovery processes to verify data can be restored within a defined recovery time.

Paylocity is a payroll software built for mid-sized businesses that need payroll, HR, time tracking, and employee engagement tools all in one platform. I'd mainly consider it if you want more modern employee self-service and stronger engagement features than ADP Workforce Now, without the heavy implementation overhead that typically comes with enterprise-grade systems.

Paylocity Evaluation Summary

Paylocity automates payroll processing, tax filing, and employee payment management.

Customer Rating

4.3 /5

Pricing

Pricing upon request
Free demo available

Why Trust Our Software Reviews

Paylocity Overview

pros

Paylocity automates payroll processes to save time and reduce manual work for HR and payroll teams.
Employees can access their payroll and benefits information, update personal details, and request time off in an employee self-service portal.
In addition to software, the company has a team of dedicated reps to support your payroll, tax, and garnishment processes.

cons

Some end users report that implementation can take longer than expected and require significant time and resources.
A few customers have experienced slower response times or difficulty reaching support when needed.
The platform offers many features that can take time to learn and adopt fully.

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How We Test & Score Our Tools

We’ve spent years building, refining, and improving our software testing and scoring system. The rubric is designed to capture the nuances of software selection and what makes a tool effective, focusing on critical aspects of the decision-making process.

Below, you can see exactly how our testing and scoring works across seven criteria. It allows us to provide an unbiased evaluation of the software based on core functionality, standout features, ease of use, onboarding, customer support, integrations, customer reviews, and value for money.

Core Functionality (25% of final score)

The starting point of our evaluation is always the core functionality of the tool. Does it have the basic features and functions that a user would expect to see? Are any of those core features locked to higher-tiered pricing plans? At its core, we expect a tool to stand up against the baseline capabilities of its competitors.

Standout Features (25% of final score)

Next, we evaluate uncommon standout features that go above and beyond the core functionality typically found in tools of its kind. A high score reflects specialized or unique features that make the product faster, more efficient, or offer additional value to the user.

We also evaluate how easy it is to integrate with other tools typically found in the tech stack to expand the functionality and utility of the software. Tools offering plentiful native integrations, 3rd party connections, and API access to build custom integrations score best.

Ease of Use (10% of final score)

We consider how quick and easy it is to execute the tasks defined in the core functionality using the tool. High scoring software is well designed, intuitive to use, offers mobile apps, provides templates, and makes relatively complex tasks seem simple.

Onboarding (10% of final score)

We know how important rapid team adoption is for a new platform, so we evaluate how easy it is to learn and use a tool with minimal training. We evaluate how quickly a team member can get set up and start using the tool with no experience. High scoring solutions indicate little or no support is required.

Customer Support (10% of final score)

We review how quick and easy it is to get unstuck and find help by phone, live chat, or knowledge base. Tools and companies that provide real-time support score best, while chatbots score worst.

Customer Reviews (10% of final score)

Beyond our own testing and evaluation, we consider the net promoter score from current and past customers. We review their likelihood, given the option, to choose the tool again for the core functionality. A high scoring software reflects a high net promoter score from current or past customers.

Value for Money (10% of final score)

Lastly, in consideration of all the other criteria, we review the average price of entry level plans against the core features and consider the value of the other evaluation criteria. Software that delivers more, for less, will score higher.

Core Features

Tax filing and compliance: Paylocity automates tax calculations, withholdings, and filings at the federal, state, and local levels. It stays current with changing tax laws to ensure compliance.

Direct deposit: Paylocity allows employees’ paychecks to be deposited directly into their bank accounts. It supports multiple direct deposit accounts per employee for flexibility.

Payroll reporting: Paylocity’s standard and customizable payroll reports provide insights into labor costs and tax liabilities. Reports can be scheduled, exported, and shared with stakeholders.

Time and attendance: Paylocity's time tracking tools allow employees to clock in and out, request time off, and submit timesheets. Managers can review and approve timesheets before running payroll.

Garnishment management: Paylocity can handle wage garnishments such as child support and tax levies. It calculates applicable amounts and makes payments on the employer's behalf.

Employee self-service: Workers can view pay stubs, update direct deposit info, and access tax forms through the self-service portal. This reduces administrative tasks for HR.

screenshot - Paylocity Review: Pros, Cons, Features & Pricing — Paylocity automates tax calculations, filings, and compliance management.

Ease of Use

I find Paylocity to be intuitive and easy to navigate compared to many other payroll systems. The interface is modern and uncluttered and core functions like running payroll, adding new hires, and generating reports can be completed in just a few clicks.

Integrations

Paylocity integrates with: QuickBooks, Xero, Sage Intacct, Oracle NetSuite, SAP Concur, Salesforce, BambooHR, UltiPro, iCIMS, and Jobvite.

Paylocity also offers an API for custom integrations and data sharing. The Paylocity Marketplace has pre-built connectors to hundreds of third-party apps for HR, finance, and benefits.

New Product Updates from Paylocity

September 20 2026

Paylocity Expands Expense and Purchase Request Tools

Paylocity lets employees import eligible card transactions and receipts into expense reports, with rules or AI assistance for categorization. It also simplifies purchase request setup and approval workflows. Highlights include:

Connected Personal Cards: Imports eligible transactions into expense reports.
Receipt Matching: Helps match receipts with imported transactions.
Smart Categorization: Uses configured rules or AI assistance to categorize expenses.
Purchase Request Setup: Simplifies how purchasing workflows are configured.
Approval List: Makes pending purchase requests easier to review and manage.