Paylocity vs Paychex
A head-to-head comparison to help you pick the right tool
Last updated: April 30, 2026
Paylocity
Paylocity is a modern HR and payroll platform designed for mid-market businesses. It combines payroll processing with employee engagement tools, learning management, and workforce analytics. Paylocity stands out for its strong mobile experience and focus on building connected, engaged workplaces.
Paychex
Paychex is a comprehensive payroll and HR services provider with decades of experience serving businesses of all sizes. It offers payroll processing, tax compliance, benefits administration, and HR support through both software and managed services. Paychex is a reliable choice for businesses that want a proven, full-service payroll partner.
Pros
- ✓Strong employee engagement and communication tools
- ✓Excellent mobile app for both managers and employees
- ✓Modern UI with good user adoption rates
- ✓Robust payroll with strong compliance features
Cons
- ✗Pricing requires a sales call and is not published online
- ✗Implementation can be complex for larger organizations
- ✗Some advanced features require additional modules at extra cost
Pros
- ✓Highly reliable payroll processing with strong compliance track record
- ✓Scalable from small businesses to large enterprises
- ✓Dedicated HR advisors available for guidance
- ✓Strong time and attendance integrations
Cons
- ✗Interface feels dated compared to modern HR tools
- ✗Customer support can be slow to resolve complex issues
- ✗Pricing can be opaque with various add-on fees
Paylocity vs Paychex: Side by Side
| Factor | Paylocity | Paychex |
|---|---|---|
| User Rating | N/A | N/A |
| Category | HR Software | Payroll Software |
| Pricing Model | Paid | Paid |
| Starting Price | Custom pricing | $39/mo + $5/employee |
| Best For | Mid-market businesses with 20-1000 employees | Small to large businesses needing reliable payroll |
| Our Pick | — | — |
Paylocity Features
- ✓Payroll
- ✓benefits
- ✓talent management
- ✓workforce management
- ✓analytics
- ✓employee self-service
Paychex Features
- ✓Payroll processing
- ✓tax filing
- ✓benefits
- ✓HR administration
- ✓time tracking
Pricing Comparison
Our Take
Choose Paylocity if mid-market businesses with 20-1000 employees. Choose Paychex if small to large businesses needing reliable payroll.
Best For
Mid-market businesses with 20-1000 employees
Best For
Small to large businesses needing reliable payroll
Also Consider
If neither Paylocity nor Paychex is the right fit, Justworks is worth evaluating.
Justworks
Small businesses wanting Fortune 500 benefits
From $59/employee/mo
Frequently Asked Questions
What is the difference between Paylocity and Paychex?
Paylocity is best for mid-market businesses with 20-1000 employees. Paychex is best for small to large businesses needing reliable payroll.
Which is better, Paylocity or Paychex?
Choose Paylocity if mid-market businesses with 20-1000 employees. Choose Paychex if small to large businesses needing reliable payroll.
How much does Paylocity cost?
Paylocity starts at Custom pricing. Pricing model: Paid.
How much does Paychex cost?
Paychex starts at $39/mo + $5/employee. Pricing model: Paid.
Who should use Paylocity?
Mid-market businesses with 20-1000 employees
Who should use Paychex?
Small to large businesses needing reliable payroll