Paylocity vs Wave
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.
Wave
Wave is a free accounting and invoicing platform designed for small businesses, freelancers, and solopreneurs. It offers genuinely free accounting, invoicing, and receipt scanning with no subscription fee. Wave makes money through payment processing and payroll add-ons. It is one of the best free accounting tools available for very small businesses with simple needs.
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
- ✓Genuinely free accounting and invoicing — no subscription required
- ✓Clean and easy to use interface
- ✓Good enough for most very small businesses and freelancers
- ✓Receipt scanning and bank connections included free
Cons
- ✗Limited features compared to paid alternatives
- ✗Customer support is minimal on the free plan
- ✗Not suitable for growing businesses with complex needs
- ✗Payroll and payment processing add-ons can add up in cost
Paylocity vs Wave: Side by Side
| Factor | Paylocity | Wave |
|---|---|---|
| User Rating | N/A | N/A |
| Category | HR Software | Accounting Software |
| Pricing Model | Paid | Freemium |
| Starting Price | Custom pricing | Free |
| Best For | Mid-market businesses with 20-1000 employees | Solopreneurs and very small businesses wanting free accounting and invoicing software |
| Our Pick | — | — |
Paylocity Features
- ✓Payroll
- ✓benefits
- ✓talent management
- ✓workforce management
- ✓analytics
- ✓employee self-service
Wave Features
- ✓Free accounting
- ✓invoicing
- ✓receipt scanning
- ✓bank connections
- ✓financial reporting
- ✓payments processing
- ✓payroll add-on
- ✓mobile app
Pricing Comparison
Our Take
Choose Paylocity if mid-market businesses with 20-1000 employees. Choose Wave if solopreneurs and very small businesses wanting free accounting and invoicing software.
Best For
Mid-market businesses with 20-1000 employees
Best For
Solopreneurs and very small businesses wanting free accounting and invoicing software
Also Consider
If neither Paylocity nor Wave 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 Wave?
Paylocity is best for mid-market businesses with 20-1000 employees. Wave is best for solopreneurs and very small businesses wanting free accounting and invoicing software.
Which is better, Paylocity or Wave?
Choose Paylocity if mid-market businesses with 20-1000 employees. Choose Wave if solopreneurs and very small businesses wanting free accounting and invoicing software.
How much does Paylocity cost?
Paylocity starts at Custom pricing. Pricing model: Paid.
How much does Wave cost?
Wave starts at Free. Pricing model: Freemium.
Who should use Paylocity?
Mid-market businesses with 20-1000 employees
Who should use Wave?
Solopreneurs and very small businesses wanting free accounting and invoicing software