Paylocity VS Paychex

Paylocity VS Paychex – Explained: The Difference Between Two Payroll Software

Human Resource or HR works include salary distribution and finding the best software to distribute employees’ salary. Among the list, two of the most known are Paylocity and Paychex. Both have individual advantages but both also has individual issues. Comparisons ranging from the ease of use of the platform up to the excellence of the software in returning accurate results are brought up. Companies with employees being paid on a regular basis, monthly or bi-monthly need an application for payroll efficiency.

Similar Features

Every software developer thinks of convenience among target users before working on a certain project. Specific to workplace scenarios would be ease of use of payroll services. To name two of the most used platforms to date, Paylocity and Paychex have similarities and differences which is based on its usability and convenience. Here are some of the most notable similarities the two applications have.

Payroll Services

Paychex live by the tagline “All-in-one payroll and HR” and it does just that. Time tracking and attendance concerns may be viewed by the concerned employee and team leader at any time there is a need to do so. Thus, payroll computation is no longer taxing and difficult as it has an automatic system which makes the tracking quick and almost perfect,

Paylocity, on the other hand, also offers similar capability with its “HR + Payroll Software built for you, loved by employees” approach. Everything in the platform is automated and in one click, details needed by anyone who has access can be checked. Anything that the employees would like to see about their personal attendance and pay may be viewed in the app’s pages.

Tax Filing Assistance

Compliance to the Tax Mandates is normally a big deal especially when the date to regular filing of taxes comes near. Paychex makes this issue easily resolved with the tax calculator available for use of the HR or Workforce Team. The tool enables the calculation and application of necessary tax increments easy and without a glitch. To think that most tax collections are accurate, there will be no need for a tax refund. Thanks to this tool, this difficulty is no longer a problem.

The same goes with Paylocity. The help needed by employees and HR is readily available. Understanding the raw and calculated date is not a hindrance that would keep the HR Manager and staff stuck in manually solving income taxes or any other kind of tax, at any rate. The software has the service of tax calculation so whatever is the income for a certain pay period can be easily deductible of the right amount.

Workforce Management

Productivity and timekeeping issues among HR Team are normally difficult to track but thanks Payroll software like Paylocity or Paychex, workforce monitoring is now seamless. Paylocity has automated clock in and clock out procedure, which the employees find manageable and easy to use. The details are then directly headed to the central server. This makes consolidation of data quick and hassle-free.

Paychex boasts about its timekeeping technology which enables the HR to access timecard of every employee, and eventually computing the accumulated income for a certain payout schedule. Accurate and timely posting of time record is what every employer and employee would ideally look for in a payroll service. What keeps it apart from Paylocity is the advanced technology which stores attendance details and timekeeping points.

Employee Onboarding Process

Scheduling and attendance sheets are done online and everything is automated. This is Paylocity’s solution to strenuous timesheets which can be erroneous when manually done. It has a database which takes care of workforce schedules to ensure every hour shift gets covered, and without a glitch. Time collection can be stressful to a T, especially if the company has the conventional timeclocks for collection every end of a pay period. This is what Paylocity has attempted to resolve and the software was actually successful. Onboarding new users is also swift and comprehensive.

Paychex is compliant to making the employees understand how the application works. It comes with a guide from salary benchmarks to 24/7 customer service solutions. Learning the ins and outs of the software is a no-brainer, considering the user-friendly interface the product has been made of. It even has a job description creator for viewing and all-time reference.

Software Differences

Since this two software have been made by two different developers, both naturally have individual differences. From the client supported to the compatible devices these apps can be opened, from the support available to the company size the platform can handle, they are not similar in all aspects. Here are some of the most notable differences. There may be a few unavailable items off the payroll service checklist in one, but it is normally equated with another ideal feature in exchange.

Existing Subscriptions

Big and small companies alike love to use an application. Software owners would also love closing subscription from big names or famous companies. The more deals a software closes, the bigger audience it is likely to reach. Testimonials and bandwagon among companies also works a big deal.

Paychex has been supporting companies like ESET North America, WXXI Public Media and Sheridan Medical Group. On the other hand, Paylocity has no disclosed subscriptions yet. Either they are huge in Non-Disclosure Agreement or they are into small-scale businesses.


The price for Paylocity starts from $2-$4 but that is counted per employee and it is on a monthly basis. This already comes with all features such as integrated payroll pay and labour management. Document templates are also available and all these details are accessible via the employee’s portal. This is actually a self-service platform so there is no need for intricate analysis in terms of navigating around it.

Paychex pricing is dependent on the services needed and it is available upon request. Taxation, analytics and reporting, background check and employee tracking is available when needed. These features are way smarter than any other platform. This is why this is more used by bigger companies, especially those that has 50 or more employees. This is quite a big span to monitor and manually doing it would be impossible. With the software, this is all automated.

Compatible Devices

Paylocity works with Windows, Android, Mac or iPhone or iPad, and web-based devices. This is almost accessible to any mobile units although this is inaccessible to Linux operating systems. Windows Mobile is also not compatible with this application. So, any user of the aforementioned gadgets may get a view of the payroll services offered. Although this is ideal for those employees who checks payroll services even while on the road, this has limited information upload capabilities to show compared to Paychex.

Linux, Windows, Mac and web-based devices can access Paychex. That means it only works with high-storage units. Android Phones, iPhone and iPad may be unable to have an expansive view of the application, considering the heavy data the platform can possibly show. Meaning, when an employee is transit, this is likely unavailable. Although the setup of the software may vary per company as there is also variety of pricing. Anything the HR need may be picked and clicked upon subscription.