8 ADP Payroll Alternatives

Payroll services comparison chart

This chart provides a quick, at-a-glance comparison of eight excellent alternatives to ADP Payroll.

Understanding ADP’s position in the market

ADP remains one of the largest payroll providers globally, serving over 1 million clients worldwide. The company processes payroll for approximately one in six U.S. workers, demonstrating its significant market presence. ADP offers four main service tiers: 

• RUN (for businesses with fewer than 50 employees)
• Workforce Now (50-999 employees)
• Vantage HCM (1,000+ employees)
• GlobalView (for multinational corporations)

While ADP’s comprehensive features include automated tax filing, benefits administration, time and attendance tracking and HR management tools, its pricing structure can be complex. You’ll require a quote for payroll services, and additional services like garnishment processing, year-end W-2s and multiple state tax filings often incur extra charges. This pricing model, combined with long-term contracts and setup fees, drives many small businesses to explore payroll companies that offer more transparent pricing.

Top ADP alternatives for small businesses

1. Gusto: Best overall ADP alternative

Gusto has emerged as a leading choice for small to medium-sized businesses seeking comprehensive payroll and HR solutions without ADP’s complexity. Gusto combines user-friendly design with robust functionality, processing payroll for more than 400,000 businesses nationwide with ease.

>> Read our Gusto review

Key features include:

• Automated payroll processing with same-day direct deposit
• Full-service payroll tax filing and compliance in all 50 states
• Employee benefits administration including health insurance, 401(k) and FSA/HSA
• Time tracking and PTO management
• Employee onboarding with digital I-9 and W-4 forms

Gusto’s transparent pricing starts at $49 per month plus $6 per employee for the Simple plan, with no hidden fees for W-2s or multi-state tax filing. The platform earned particularly high marks for customer support, offering phone, email and chat assistance even on the basic plan.

2. OnPay: Best value for money

OnPay stands out among ADP alternatives for its straightforward, all-inclusive pricing model. At $49 per month plus $6 per employee, OnPay includes features that many competitors charge extra for, making it an exceptional value for cost-conscious small businesses.

>> Read our OnPay Review

Notable inclusions:

• Unlimited payroll runs at no additional cost
• Multi-state payroll tax filing included
• W-2 and 1099 preparation with no per-form fees
• Employee self-service portal with mobile app
• Built-in workers’ compensation pay-as-you-go options

OnPay’s simplicity is particularly appealing to entrepreneurs who want a straightforward payroll platform that gets the job done without a complicated setup or workflow.

3. Paychex Flex: Best for growing businesses

Paychex Flex offers scalable solutions that can grow alongside your business, making it an ideal ADP alternative for companies anticipating expansion. With nearly 800,000 clients, Paychex provides the infrastructure and expertise comparable to ADP but with more flexible pricing options.

>> Read our Paychex Flex review

Paychex Flex advantages include:

• Modular pricing allowing businesses to add services as needed
• 24/7 customer support with dedicated representatives
• Comprehensive compliance assistance including COBRA and ACA reporting
• Integration with over 200 third-party applications
• Industry-specific solutions for restaurants, construction and nonprofits

4. QuickBooks Payroll: Best for QuickBooks users

For the millions of businesses already using QuickBooks for accounting, QuickBooks Payroll provides seamless integration that eliminates duplicate data entry and reduces errors. The platform automatically syncs payroll data with your general ledger, simplifying financial reporting and tax preparation.

>> Read our QuickBooks Payroll review

QuickBooks Payroll offers three tiers:

• Core ($50 per month + $6.50 per employee): Automated payroll and tax filing
• Premium ($88 per month + $10 per employee): Same-day direct deposit and HR support
• Elite ($134 per month + $12 per employee): Tax penalty protection and white-glove setup

At the time of writing, QuickBooks offered a 50% discount for the first three months of service, as well. You can also bundle payroll with QuickBooks accounting software if you’re in need of a complete accounting and payroll platform. 

The U.S. Bureau of Labor Statistics reports that employer costs for employee compensation averaged $44.40 per hour worked in September 2024, with benefits accounting for 29.6 percent of total compensation costs. QuickBooks Payroll helps businesses track these costs accurately through its integrated reporting features.

5. Rippling: Best for tech-forward companies

Rippling distinguishes itself by combining payroll, HR and IT management into a single platform, making it particularly attractive for technology companies and businesses with distributed workforces. The platform’s automation capabilities extend beyond traditional payroll functions to include device management, software provisioning and security compliance.

>> Read our Rippling Payroll review

Rippling’s unified approach offers:

• Global payroll capabilities in over 185 countries
• Automated employee onboarding including computer and software setup
• Advanced workflow automation with conditional logic
• Real-time org charts and headcount planning tools
• Built-in applicant tracking system (ATS)

6. Justworks: Best PEO alternative to ADP

Justworks operates as a Professional Employer Organization (PEO), co-employing your staff to provide access to large-group benefits and compliance support typically reserved for larger companies. This model particularly benefits startups and small businesses competing for talent against larger organizations.

>> Read our Justworks review

Through its PEO model, Justworks provides:

• Access to Fortune 500-level health insurance plans
• Compliance support for multi-state employers
• Workers’ compensation insurance administration
• 24/7 HR consulting and support
• Employment practices liability insurance (EPLI)

7. isolved: Best for mid-market companies

isolved targets mid-market organizations with 50 to 1,000 employees, offering sophisticated Human Capital Management (HCM) capabilities that rival enterprise solutions. The platform’s predictive analytics and machine learning features help businesses make data-driven decisions about their workforce.

>> Read our isolved Payroll review

isolved’s comprehensive suite includes:

• Predictive people analytics with turnover risk scoring
• Talent acquisition and performance management
• Learning management system (LMS) integration
• Workforce planning and budgeting tools
• Employee engagement surveys and pulse checks

8. TriNet: Best for industry-specific needs

TriNet specializes in providing PEO services tailored to specific industries, including technology, life sciences, nonprofits and professional services. This industry focus allows TriNet to offer specialized compliance support and benefits packages aligned with sector-specific needs.

>> Read our TriNet Payroll review

TriNet’s industry expertise includes:

• Equity compensation administration for tech startups
• Clinical trial insurance for life sciences companies
• Grant management support for nonprofits
• Professional liability coverage for service firms
• Industry-specific benchmarking data and insights

Key factors when choosing payroll companies like ADP

Selecting the right payroll solution requires careful evaluation of your business’s specific needs and growth trajectory. Consider these critical factors when evaluating ADP alternatives:

Total cost of ownership

Beyond monthly fees, examine the complete cost structure including setup fees, year-end tax form charges and fees for additional payroll runs. According to SCORE’s 2024 small business data, 82 percent of small businesses fail due to cash flow problems, making predictable payroll costs essential. 

Compliance and tax management

The IRS assessed over $7 billion in estimated tax penalties in fiscal year 2023, highlighting the importance of accurate tax filing and compliance. Ensure your chosen provider offers comprehensive tax filing services, stays current with changing regulations and provides penalty protection or assistance if errors occur.

Integration capabilities

Modern businesses use an average of 342 software applications, according to 2024 data from Productiv’s SaaS Management Index. Your payroll solution should integrate seamlessly with your existing accounting software, time tracking systems and HR tools to avoid manual data entry and reduce errors.

Scalability and flexibility

Choose a platform that can accommodate your business’s growth without requiring a complete system migration. Look for providers offering modular pricing and features you can add as needed, rather than forcing you into a higher tier for a single additional feature.

Customer support quality

Payroll issues require immediate resolution to maintain employee satisfaction and compliance. Evaluate each provider’s support channels, availability hours and response times. Many ADP alternatives offer superior customer service with dedicated account representatives and faster response times than larger providers.

Making the transition from ADP

If you’re currently using ADP and considering a switch, proper planning ensures a smooth transition without payroll disruptions. Here’s a strategic approach to changing providers:

Timing your transition

The optimal time to switch payroll providers is at the beginning of a quarter, particularly Q1, to simplify tax reporting and reduce the risk of errors. This timing allows for clean breaks in tax calculations and makes year-end reporting more straightforward.

Data migration essentials

Compile the following information before initiating your switch:

• Year-to-date payroll reports for all employees
• Current employee data including tax withholdings and deduction elections
• Historical payroll records (typically three years)
• Banking information for direct deposits
• Benefits enrollment data and contribution amounts

Parallel processing period

Consider running parallel payrolls for at least one pay period to verify accuracy before fully transitioning. While this requires extra effort, it provides confidence that your new system calculates taxes, deductions and net pay correctly.