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 Payroll Review For 2024

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By Faye Wai on Jul 22, 2024

Paylocity offers an affordable, efficient payroll solution for small and medium-sized businesses with reliable tax compliance and employee self-service features.

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In this review, I'm going to share my analysis and evaluation from hands-on experience with Paylocity, a popular cloud-based payroll and HR software solution for small and mid-sized businesses. But first, if you're just beginning your search for the best payroll software, check out my picks of the top payroll solutions on the market.

You probably already know Paylocity is among the most widely used payroll platforms available, but you need to better understand what's good—and not so good—about it. This in-depth Paylocity review will walk you through the pros and cons, features, and functionality, to help guide you to better understand its capabilities and suitability for your specific business needs and scenario.

paylocity payroll review screenshot — *Paylocity automates payroll processing, tax filing, and employee payment management.*

Summary: Paylocity

Paylocity is a cloud-based payroll software and human resource information (HRIS) system. HR professionals, payroll administrators, and finance teams use Paylocity to manage core HR tasks and the complete employee lifecycle, from recruiting and onboarding to retirement. It supports businesses with payroll and benefits management, talent management and retention, and other human resources processes.

Paylocity addresses common pain points in HR functions, like manual data entry, maintaining compliance, and effectively driving employee engagement. Its features span from automated payroll to self-service portals for employees and managers, integrated benefits administration, and reporting and analytics capabilities.

Paylocity Pros

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

Paylocity Cons

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

Paylocity Expert Opinion

I would say that Paylocity offers a solid, full-featured payroll solution that suits the needs of most small to mid-sized businesses. Its modern, intuitive interface and efficient employee self-service tools make it stand out compared to legacy providers like ADP. The platform handles core payroll functions, including direct deposit, garnishments, payroll taxes, year-end reporting, and a mobile app for added convenience.

Expanding organizations seeking solid payroll capabilities combined with an HRIS system, applicant tracking and onboarding, and benefits administration in one solution should consider Paylocity. Integrations also allow connecting payroll data with other business management systems, and the online help center provides ample resources to solve common questions and queries.

Paylocity does not provide transparent pricing, making cost comparisons challenging. Interested companies must contact sales to determine budget suitability. The platform may also lack some of the advanced features that large enterprises require.

Why Trust Our Software Reviews

We've been testing and reviewing HR software since 2019. As HR experts ourselves, we know how critical and difficult it is to make the right decision when selecting software.

We invest in deep research to help our audience make better software purchasing decisions. We've tested more than 2,000 tools for different HR management use cases and written over 1,000 comprehensive software reviews. Learn how we stay transparent & our software review methodology.

Are You A Good Fit For Paylocity?

Who Would Be a Good Fit for Paylocity?

Paylocity is best suited for mid-sized companies with 50-2,500 employees that want an HR and payroll solution in one. Its features for recruitment, onboarding, benefits administration, timekeeping & attendance, and performance management make it an excellent choice for companies looking to centralize their HR processes. Paylocity's focus on user-friendly technology and strong customer support make it a good fit for companies that value ease of use and dedicated service.

Who Would Be a Bad Fit for Paylocity?

Paylocity may not be the best fit for small businesses under 50 employees, as they may find the feature set too excessive for their needs. The pricing model also requires a minimum number of employees, making it cost-prohibitive for small company sizes.

On the other end, large enterprises with over 2,500 employees may require more complex and customizable HR systems that Paylocity does not provide in its regular package. Companies with large global presence may also find Paylocity inadequate as it primarily serves U.S.-based businesses.

Best Use Cases for Paylocity

Small businesses: Paylocity offers an affordable and scalable solution for companies with around 50 employees and requires standard payroll needs.
Retail: The software’s scheduling and time-tracking features are ideal for shift-based workforces in retail stores or restaurants.
Nonprofits: Paylocity best suits nonprofits by providing tools to streamline HR tasks and improve employee engagement.
Healthcare: Paylocity supports healthcare organizations with compliance and workforce management solutions.
Real Estate: Paylocity aids real estate businesses with scalable payroll and HR processes.
Full HR suite: Paylocity’s integrated modules for payroll, benefits, timecards, and more benefit companies needing an all-in-one HR solution.

Worst Use Cases for Paylocity

Enterprise companies: Paylocity might lack the advanced features and configurations that large organizations with 1,000 employees need.
Global payroll: Paylocity currently only supports US and Canada payroll, so multinational corporations need a more global solution.
Union contracts: Companies with unionized workforces and complex collective bargaining agreements require more specialized labor management functionality.
Manufacturing: Paylocity’s time-tracking might be too basic for manufacturers with complex timesheet calculations based on multiple pay rates, job codes, and cost centers.
Accounting firms: CPAs specializing in complex payroll and tax scenarios for clients need more sophisticated reporting and general ledger integration.
Decentralized payroll: Organizations that give managers or field offices control over their payroll may not have enough flexibility with Paylocity's centralized model.

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Paylocity Evaluation Summary

Core Functionality: ⭐⭐⭐⭐
Standout Features: ⭐⭐⭐⭐
Ease of Use: ⭐⭐⭐⭐
Onboarding: ⭐⭐⭐⭐
Customer Support: ⭐⭐⭐⭐
Integrations: ⭐⭐⭐
Customer Reviews: ⭐⭐⭐⭐
Value for Money: ⭐⭐⭐⭐

Review Methodology

We're a team of software experts who obsess about the features and functionality of different platforms. We know how critical—yet difficult and confusing—software selection can be. We test and score software to find the best solutions, whatever the use case may be.

Using our objective, data driven testing methodology, we've tested 300+ software. We dedicate ourselves to being objective in fully and fairly testing software, to get beyond the marketing fluff and truly understand the platform.

We've developed robust testing scenarios to use the software in the same way you will. We leverage our own first-hand, practical experience of the tools, complemented by interviews with users, experts, and software vendors.

How We Test & Score Payroll Software

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

Below, you can see exactly how our testing and scoring works across eight 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 scoring)

For payroll software, the core functionality we test and evaluate are:

Onboarding: Ability to quickly set up employee records, payroll information, and benefits enrollment.
Payroll Processing: Accurately calculate and process payroll including taxes and deductions.
Direct Deposit: Initiate direct deposit payments to employee bank accounts.
Tax Filing: Generate and file federal, state, and local payroll tax forms.
Reporting: Provide detailed payroll reports for analysis and record-keeping.
Self-Service: Allow employees to access their pay stubs and update personal information.

Standout Features (20% of final scoring)

We evaluate uncommon, standout features that go above and beyond the core functionality defined and typically found in payroll software. A high score reflects specialized or unique features that make the product faster, more efficient, or offer additional value to the user.

Ease of Use (15% of final scoring)

We consider how quick and easy it is to execute the tasks defined in the core functionality using the payroll software. 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 scoring)

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

Customer Support (10% of final scoring)

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

Integrations (10% of final scoring)

We 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. Payroll software offering plentiful native integrations, 3rd party connections, and API access to build custom integrations score best.

Customer Reviews (10% of final scoring)

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 payroll software 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 scoring)

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.

Through this comprehensive approach, focusing on core functionalities, standout features, usability, onboarding, customer support, value, and customer reviews, I aim to identify payroll software that not only meet but exceed expectations, ensuring teams have the tools they need to succeed.

Paylocity Review

Core Payroll Functionality

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.

paylocity tax filing and compliance screenshot — *Paylocity automates tax calculations, filings, and compliance management.*

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.

On-demand payment: Paylocity offers an on-demand pay option that allows employees to access earned wages before the regular payday. This can improve financial well-being and job satisfaction.

Expense management: Paylocity allows employees to submit expense reports and upload receipts through its mobile app.

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.

Onboarding

Paylocity provides a smooth onboarding experience for new users. The implementation process is well-structured with a dedicated account manager to guide you through each step. Virtual training sessions are offered to orient administrators to the system, and on-demand courses, job aids, and simulations are available to build proficiency over time.

Customer Support

Paylocity offers multiple ways for users to get help including email support, live chat, and an online community to collaborate with other users. Enhancements and significant product updates are often based on customer feedback collected through focus groups and surveys.

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.

Value for Money

Paylocity’s pricing is not made public on their website, meaning potential customers need to contact sales for a quote. However, I’d say it’s about average pricing for payroll software that provides workflow automation, expense management, tax filings, and flexible on-demand payment options.

Paylocity offers a good balance between features and pricing, making it a solid option for companies looking for reliable payroll solutions without breaking the bank. It’s also nice that you can choose to purchase the HRIS system and Payroll platform as separate or combined products.

Product Specifications

Feature	Paylocity
Direct deposit	✅
Employee self-service	✅
Mobile app	✅
Tax filing	✅
Time tracking	✅
Payroll reports	✅
Garnishment management	✅
Benefits administration	✅
Onboarding	✅
Compliance management	✅
PTO management	✅
Integration with accounting software	✅
Customizable reporting	✅
Multi-state payroll	✅
Automatic pay runs	✅
Wage garnishment processing	✅
ACA compliance	✅
Employee scheduling	✅
401(k) tracking	✅
Expense management	✅
Custom workflows	✅
Payroll card options	❌
International payroll	❌
Tips management	❌
Job costing	❌

Paylocity Alternatives

If you're looking for alternative payroll options to Paylocity, here are a few worth checking out:

ADP: ADP offers extensive payroll, HR, and tax services, and scalability for businesses of all sizes.
Paychex: Paychex is a user-friendly platform that provides payroll, HR, and benefits services for small to medium-sized businesses.
Gusto: Gusto is a fast-growing payroll and benefits platform with an intuitive interface and affordability for small businesses.
Workday: Workday is a cloud-based HCM suite with powerful payroll, HR, and finance features and advanced analytics.

Paylocity Frequently Asked Questions

Paylocity is a cloud-based payroll and human capital management (HCM) software for mid-sized organizations across various industries. It offers tools for payroll processing, core HR functions, time & attendance, recruiting, onboarding, learning management, and more.

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.

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.

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.

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.

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.

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.

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 Company Overview & History

Paylocity is a cloud-based payroll and human capital management (HCM) software for medium-sized organizations. The company was founded in 1997 and is headquartered in Schaumburg, Illinois.

Paylocity provides software solutions to automate payroll, benefits, talent, and workforce management for clients in various industries. As of 2023, Paylocity had 4,150 employees and served over 33,850 customers. The company has been recognized as a top workplace and has received numerous awards.

Paylocity Major Milestones

1997: Founded
2014: Completed initial public offering, raising $120 million
2018: Acquired BeneFLEX HR Resources
2020: Acquired VidGrid and Samepage
2021: Moved into new corporate headquarters in Schaumburg, Illinois

Visit Paylocity's Website

Want to learn more about Paylocity? Check out their site for additional information.

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Pricing upon request

Trial:

Free demo available

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