Choosing a payroll provider is an important decision for any business. The payroll provider you choose will have a direct impact on your ability to manage your finances, meet your tax obligations, and pay your employees on time. There are a lot of factors to consider when choosing a payroll provider, and price is just one of them. In this article, we'll compare Paychex and Paylocity, two of the most popular payroll providers, on a variety of factors including features, customer service, and pricing.

Features

When it comes to features, Paychex and Paylocity offer a lot of the same things. Both providers allow you to run payroll online, pay your employees via direct deposit, and file your taxes electronically. They also both offer time and attendance tracking, employee self-service portals, and support for multiple payroll frequencies. However, there are a few key differences between the two providers.

Paychex offers a more comprehensive suite of HR services than Paylocity. If you're looking for help with things like benefits administration or performance management, Paychex is a better option. Paychex also offers a few features that Paylocity doesn't, including support for tips and commissions and the ability to print checks. However, Paylocity offers a few features that Paychex doesn't, including the ability to track vacation and sick time and support for payroll deductions.

Customer Service

Customer service is important in any business, but it's especially important when it comes to payroll. After all, your payroll provider is responsible for ensuring that your employees get paid on time and that your taxes are filed correctly. If something goes wrong, you need to be able to reach customer service quickly and get help resolving the issue. Unfortunately, both Paychex and Paylocity have mixed reviews when it comes to customer service.

Paychex has been in business for over 40 years, and it shows in their customer service. Paychex offers 24/7 customer support, and you can reach them by phone, email, or live chat. They also have an extensive knowledge base and online resources that can help you resolve issues on your own. However, some customers find Paychex's customer service to be slow and unresponsive.

Paylocity also offers 24/7 customer support, but their customer service is not as highly rated as Paychex's. Paylocity's customer service is available by phone, email, and live chat, but some customers find the representatives to be un knowledgeable and unhelpful. Paylocity does have an extensive online knowledge base that can be helpful, but it's not always easy to find the answers you're looking for.

Pricing

Pricing is always a important consideration when choosing a payroll provider. Paychex and Paylocity both offer a variety of pricing plans, and the price you'll pay will depend on the features you need and the number of employees you have. Paychex's plans start at $39 per month, while Paylocity's start at $45 per month. However, Paychex's plans are all-inclusive, while Paylocity's plans have a la carte pricing for some features.

Both Paychex and Paylocity offer discounts for businesses that sign up for annual billing. Paychex offers a 5% discount, while Paylocity offers a 10% discount. Paychex also offers a discount for businesses that have multiple employees on their payroll. The more employees you have, the higher the discount you'll receive. Paylocity does not offer any discounts for businesses with multiple employees.