Payroll Provider Comparison: Choosing the Right Platform

The payroll provider you choose affects employee experience, administrative burden, compliance risk, and cost. With dozens of options from simple processors to full HR platforms, finding the right fit requires understanding your specific needs. This guide compares the major options and helps you choose.

Last Updated: January 2026|12 min read

There's no single "best" payroll provider—the right choice depends on your company size, states, benefits complexity, and integration needs. A 15-person company in one state has very different requirements than a 150-person company across 20 states.

This comparison covers the major providers, their strengths and weaknesses, and how to evaluate them for your situation.

Provider Profiles

Gusto

  • Best for: Small to mid-size companies (5-100 employees) wanting simplicity
  • Strengths: Excellent user experience, easy setup, good benefits options
  • Weaknesses: Less robust at scale, limited international, basic HR tools
  • Pricing: Starting ~$40/month + $6/employee
  • Integrations: Strong QuickBooks, Xero, basic others

Rippling

  • Best for: Tech-forward companies wanting HR platform + payroll
  • Strengths: Modern platform, strong HR integration, good automation
  • Weaknesses: Can be complex, higher price point, sales-heavy
  • Pricing: Starting ~$8/employee/month + modules
  • Integrations: Extensive via API, strong tech ecosystem

ADP

  • Best for: Larger companies (100+) needing full-service
  • Strengths: Market leader, comprehensive features, strong compliance
  • Weaknesses: Can be clunky, pricing opaque, may feel enterprise-heavy
  • Pricing: Custom quotes, typically higher
  • Integrations: Extensive but varies by product tier

Paychex

  • Best for: Companies wanting local service with national capabilities
  • Strengths: Wide range of plans, local service network, PEO option
  • Weaknesses: Product complexity, variable service quality
  • Pricing: Varies widely by product
  • Integrations: Good range of accounting and HR tools

Justworks

  • Best for: Companies wanting PEO model (bundled HR/benefits)
  • Strengths: Simple pricing, good benefits access, compliance handled
  • Weaknesses: PEO model not for everyone, less flexibility
  • Pricing: $59/employee/month (Basic) including payroll + HR
  • Integrations: Limited compared to standalone payroll

Paylocity

  • Best for: Mid-market companies (50-500) wanting HR + payroll
  • Strengths: Strong mid-market focus, good HR tools, community features
  • Weaknesses: May be overkill for smaller companies
  • Pricing: Custom quotes
  • Integrations: Good accounting and HR integrations

Feature Comparison

Core Payroll

All major providers handle basic payroll well:

  • Pay calculation and processing
  • Tax withholding and deposits
  • Direct deposit
  • Pay stubs and W-2s
  • Multi-state support

Where They Differ

User Experience: Gusto and Rippling lead; ADP/Paychex more dated

HR Integration: Rippling and Paylocity strongest; Gusto basic

Benefits: Justworks and Gusto have strong benefits; ADP/Paychex vary

International: Limited for most; use Deel/Remote for international

Scalability: ADP and Paychex handle largest; Gusto tops out earlier

Don't Over-Buy

A 25-person company doesn't need ADP's enterprise platform. Conversely, a 200-person company will outgrow Gusto. Choose a provider that fits your current size with room to grow—but don't pay for features you won't use for years.

Selection Criteria

Must-Haves

  • Multi-state capability: Can handle all states where you have employees
  • Accounting integration: Syncs with your accounting software
  • Tax filing: Handles all payroll tax filings automatically
  • Employee self-service: Employees can access pay stubs, W-2s, update info

Nice-to-Haves

  • Benefits administration: If you want bundled benefits management
  • Time tracking: If you have hourly employees
  • HR features: Onboarding, PTO tracking, document management
  • Mobile app: For employees and administrators

Deal-Breakers

  • Poor integration: Doesn't work with your accounting software
  • Missing states: Can't handle states where you have employees
  • Poor support: Can't get help when you need it
  • Hidden costs: Pricing that escalates unpredictably

Understanding Pricing

Pricing Models

  • Base + per employee: Monthly base fee plus per-employee charge (most common)
  • Per employee only: Flat rate per employee, no base (Rippling model)
  • PEO model: Percentage of payroll or bundled fee (Justworks)
  • Custom/enterprise: Negotiated pricing (ADP, Paychex larger plans)

Hidden Costs to Watch

  • Setup fees: One-time implementation charges
  • Year-end fees: Extra charges for W-2 processing
  • Add-on modules: Time tracking, HR features at extra cost
  • Support tiers: Better support may cost more
  • State fees: Some charge per state with employees

Sample Monthly Cost Comparison (50 Employees)

Gusto: ~$40 base + $6 × 50 = ~$340/month

Rippling: ~$8 × 50 = ~$400/month (varies by modules)

Justworks: ~$59 × 50 = ~$2,950/month (includes HR/benefits)

ADP/Paychex: Custom—typically $15-$25/employee = $750-$1,250/month

Implementation Considerations

Timeline

  • Simple setup (Gusto, Rippling): 1-2 weeks
  • Mid-complexity (Paylocity): 2-4 weeks
  • Enterprise (ADP, Paychex): 4-8 weeks

Data Migration

  • Employee data: Names, addresses, tax info, pay rates
  • YTD earnings: Year-to-date wages and tax withholdings
  • Benefits: Current deductions and enrollments
  • Historical data: Past pay stubs, W-2s (if needed)

Best Time to Switch

  • Ideal: Beginning of year (clean YTD start)
  • Good: Beginning of quarter
  • Avoid: Mid-quarter if possible (YTD complexity)

Run Parallel First

Before fully switching, run at least one parallel payroll—process through both old and new system to verify the new system calculates correctly. This catches issues before they affect employees.

Our Recommendations

By Company Size

  • 5-25 employees: Gusto (simplicity) or Rippling (if you want HR platform)
  • 25-75 employees: Gusto, Rippling, or Justworks (if PEO model appeals)
  • 75-200 employees: Rippling, Paylocity, or smaller ADP/Paychex plans
  • 200+ employees: ADP, Paychex, or enterprise-tier Rippling/Paylocity

By Need

  • Simplicity first: Gusto
  • HR platform: Rippling
  • Benefits focus: Justworks or Gusto
  • Complex enterprise: ADP
  • International: Deel or Remote (+ domestic provider)

Need Help Selecting a Payroll Provider?

Eagle Rock CFO helps companies evaluate and implement payroll solutions: requirements gathering, vendor comparison, implementation support, and ongoing integration. Let us help you find the right fit.

Schedule a Consultation