When it comes to payroll processing, two of the most popular names in the space are Paycom and ADP. Both companies offer a suite of tools to help businesses manage their payroll, tax compliance and employee onboarding and offboarding. So, how do these two companies compare? And which one is the best fit for your business?
In this article, we’ll take a look at the key features offered by Paycom and ADP. We’ll also compare and contrast the two companies side by side to help you make a more informed decision about which payroll provider is right for your business.
Paycom vs. ADP RUN: At a Glance
Both Paycom and ADP offer a wide array of services to assist businesses with their payroll, from employee onboarding and offboarding to tax compliance. However, there are some key differences between the two companies.
Paycom offers a higher degree of customization when it comes to your company’s payroll setup. ADP, on the other hand, offers a more standardized approach that may be easier to use for businesses with less complex payroll needs. Paycom’s software is designed to be used by businesses of all sizes, while ADP RUN is specifically tailored for small to midsize businesses (SMBs).
Paycom also offers a self-service portal for employees, allowing them to view and update their own payroll information. ADP offers this, too, but Paycom takes it a step further by allowing employees to approve their own payroll.
How the Services Stack Up
Paycom | ADP RUN | |
---|---|---|
Prices Start At
|
Custom
|
Custom
|
Best For
|
Larger businesses
|
Small and medium businesses
|
Contractor Payments
|
Yes
|
Yes
|
Prepaid Debit Card
|
No
|
Yes
|
Mobile App
|
Yes
|
Yes
|
Employee Self-Service
|
Yes
|
Yes
|
Benefits Administration
|
Yes
|
Yes
|
Both Paycom and ADP require you to speak with their sales team for a custom quote. This way, the providers can price your payroll service based on the unique needs of your business, such as the number of employees, the number of contractors and your specific industry.
With its advanced customization features and scalability, Paycom is ideal for larger businesses that need a comprehensive payroll solution. ADP RUN is a great choice for small and medium businesses, as it offers a high degree of automation and an easy-to-use platform. Both allow for contractor payments, and ADP RUN has prepaid debit cards, though Paycom doesn’t.
Paycom and ADP RUN have mobile apps to allow employees to access and manage their payroll information. Additionally, both services have employee self-service portals and offer benefits administration. Paycom takes things a step further by allowing employees to verify and approve their paychecks ahead of time to help mitigate mistakes.
What To Look For in a Payroll Service Provider
When narrowing down your options for a payroll service provider, it’s important to consider your business’s specific needs. Here are some factors to keep in mind:
- Pricing structure: How much will you be charged per employee, and are there any additional fees? Does onboarding cost extra? How about advanced features? Is there a range of plans to suit your business as it scales?
- Automation: What features does the provider offer to automate payroll processes?
- Payment options: Does the provider offer direct deposit, paper checks or both? How about a prepaid debit card? Can employees get paid on demand? Are there any additional fees for these services?
- Tax compliance: Will the provider handle federal, state and local taxes on your behalf? Is this automated?
- Employee self-service: Can employees access their payroll information online? What types of things can they do online?
- Benefits administration: Can the provider administer employee benefits such as health insurance and retirement plans?
- Reporting and analytics: What kind of reporting and data analysis does the provider offer?
- Customer support: What kind of customer support does the provider offer, and how is it accessible (e.g., phone, email, live chat)?
- Mobile access: Does the provider offer a mobile app?
- Discounts: Does the provider offer employees discounts?
Bottom Line
If you manage payroll for a sizable company, Paycom is an excellent choice due to its sophisticated customization capabilities and ability to grow with your business. If you have a small or medium business, ADP RUN is a good option because it is highly automated and straightforward to use. Both rate high on our list of best payroll software and best payroll services.
Frequently Asked Questions (FAQs)
What is RUN in ADP?
ADP RUN is a payroll, HR and benefits administration software for startups and small businesses of one to 49 employees.
Do I need payroll software?
No, you don’t need payroll software to process payroll. You can do it manually with a calculator, pencil and paper. However, payroll software can automate many of the tasks involved in payroll, such as tax compliance and direct deposit and make the process easier.
How often do I run payroll?
This will depend on your business and the frequency with which you pay your employees. Some businesses run payroll on a weekly basis, while others do so biweekly or monthly.
How do I calculate payroll taxes?
Calculating payroll taxes can be a complex process, as there are federal, state and local taxes to consider. Payroll software can automate this process, or you can use a payroll service. You can also calculate taxes manually, but this is not recommended as it is easy to make mistakes.