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7 Top ADP Competitors & Alternatives In 2024

Small Business Writer,  Staff Reviewer

Updated: Mar 27, 2024, 8:11pm

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

ADP is one of the top payroll services for small and medium-sized businesses (SMBs). ADP Run is designed specifically for businesses with up to 49 employees. If you are looking for a payroll system for your business, you must have come across many ADP competitors. However, not all software is the same, even if they provide similar features. Each one has one or two offerings that make it stand out. In this article, we will discuss seven ADP alternatives so that you can choose a payroll system that meets your business needs the best.

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Top ADP Competitors & Alternatives

  • OnPay: Best payroll solution for hourly and contract employees
  • QuickBooks: Best for integrating with QuickBooks apps
  • Gusto: Best for customized payroll solution
  • Paychex Flex: Best for most scalable payroll solution
  • Square: Best for most affordable payroll system
  • TriNet Zenefits: Best for businesses in highly regulated industries
  • Wave: Best for new businesses

Why You Can Trust Forbes Advisor Small Business

The Forbes Advisor Small Business team is committed to bringing you unbiased rankings and information with full editorial independence. We use product data, strategic methodologies and expert insights to inform all of our content and guide you in making the best decisions for your business journey.

Using a detailed methodology, we reviewed 17 payroll services to help you find the seven best ADP competitors and alternatives for your business. Our ratings consider factors that included actual user reviews on third-party sites, essential features offered by each payroll service, pricing and overall review by our experts. All ratings are determined solely by our editorial team.


Best Payroll Solution for Hourly and Contract Employees

OnPay

OnPay
4.5
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Pricing From

$40 per month

plus $6 per employee, per month

Benefits Administration

Employee liability compensation, retirement benefits, business insurance, paid time off (PTO) and transportation benefits

Tax Filing

Automated

OnPay
Learn More Arrow

On OnPay's Website

$40 per month

plus $6 per employee, per month

Employee liability compensation, retirement benefits, business insurance, paid time off (PTO) and transportation benefits

Automated

Editor's Take

OnPay is an affordable option for running payroll when the number of workers you pay keeps changing every month. OnPay payroll is not fully automated. You need to approve some of the screens every month before you can run the payroll. Usually, this would be problematic for businesses because they want their payroll system to run automatically every month.

However, this is a boon in disguise if the majority of your employees are on contract or get paid hourly. You can review what you are paying each of them against the terms and conditions agreed upon.

For those months when the number of workers increases, you don’t need to shift to a higher payment tier; you just pay for the extra workers. OnPay doesn’t have multiple pricing tiers. OnPay also includes a full set of customizable HR tools that you can use to streamline paperwork associated with hiring, onboarding and managing each new hire.

Who should use it:

If you are driving growth through temporary workers, whose number keeps changing from one month to another, OnPay is the best solution for you.

Read more:

Read our full OnPay review.

Pros & Cons
  • Very easy to set up
  • Manage payroll for full-time as well as contract workers
  • Approve payments manually before running payroll
  • Extensive HR tools
  • No free trial
  • No time tracking feature

Best for Integrating With QuickBooks Apps

QuickBooks

QuickBooks
4.5
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Pricing

Starts from $45 per month ($22.50 for first three months during current promotion)

plus $5 per employee

Benefits administration

Yes

Tax filing

Automatic

Local tax filing not available in Core plan

QuickBooks
Learn More Arrow

Read Forbes' Review

Starts from $45 per month ($22.50 for first three months during current promotion)

plus $5 per employee

Yes

Automatic

Local tax filing not available in Core plan

Editor's Take

Approximately 29 million small businesses in the U.S. use QuickBooks accounting software and other apps from Intuit. QuickBooks payroll offers native integration with all these software. If you are already using QuickBooks applications, it makes sense to integrate and use QuickBooks payroll.

QuickBooks has a built-in accounting program specifically for small businesses, which ADP Run―ADP Payroll for small businesses up to 49 employees―does not have.

If you sign up for its premium plan, QuickBooks Payroll also offers you next-day or same-day direct deposits. However, QuickBooks doesn’t report new hires to the state automatically, which is a feature available in ADP.

Who should use it:

QuickBooks Payroll is ideal for SMBs that are already using QuickBooks Accounting and other software.

Read more:

Read our full QuickBooks Payroll review.

Pros & Cons
  • Unlimited pay runs
  • Native integration with are there QuickBooks apps
  • Same-day and next-day direct deposits
  • Core plan doesn’t include local tax filings
  • No special contractor plan
  • Basic HR features

Best for Customized Payroll Solution

Gusto

Gusto
4.4
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Pricing from

$40 per month

plus $6 per person paid

Benefits administration

Health and wellness, retirement, housing, transportation and custom benefits

Tax filing

Automated

Gusto
Learn More Arrow

On Gusto's Website

$40 per month

plus $6 per person paid

Health and wellness, retirement, housing, transportation and custom benefits

Automated

Editor's Take

Gusto is a full-feature payroll system built for startups and small businesses. It is our pick for the most customizable payroll solution because it has multiple options that are usually unavailable in other payroll systems, including ADP.

Here are some off-the-shelf customizations available:

  • Run your payroll system in fully automated or manual modes
  • Provide two-day or four-day direct deposit
  • Set a salary or hourly wage in the employee profile
  • Run payroll on a predetermined date every month, and Gusto allows you unlimited payroll runs a month
  • You can make an employee or an external entity administer the Gastro payroll
  • Employees have the option of opening a regular checking account and setting up their paychecks to save a fixed amount every month
  • You can manage employee health benefits from Gusto, depending upon their unique needs

Gusto can be the right customized solution if you are a small business. However, if you are a larger business or an enterprise, ADP would be better for you.

ADP provides payroll and HR services for organizations of all sizes. It also supports benefits administration in a self-service platform for employees.

Who should use it:

Gusto is the perfect solution for small businesses looking to automate and streamline business processes as they grow.

Read more:

Read our full Gusto review.

Pros & Cons
  • Run employee as well as contractor payroll.
  • Free checking account and high-yield savings account with advance for employees
  • Per-person pricing can be expensive
  • No time tracking told included with flex subscription
  • No accounting or billing

Best for Most Scalable Payroll Solution

Paychex Flex

Paychex Flex
4.2
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Pricing

Must contact for a quote

Benefits administration

Health and life insurance, retirement, flexible spending account and accident and disability benefits

Tax filing

Yes

for a fee

Paychex Flex
Learn More Arrow

On Paychex's Website

Must contact for a quote

Health and life insurance, retirement, flexible spending account and accident and disability benefits

Yes

for a fee

Editor's Take

Paychex Flex is a stripped-down version of Paychex, a human resources (HR) and payroll solution for businesses of all sizes. When you sign up for Paychex, you are confident that as you grow, you can move to a higher-pricing tier and continue using the same platform.

In Paychex, you can run payroll for employees as well as contractors through direct deposit or printed checks. Both employees and contractors have access to a self-service portal where they can view pay stubs and tax forms on their own.

You can integrate Paychex Time, an additional service to enable your employees to track time, attendance and mileage. You can import these data into your payroll system and run payroll accordingly. The only drawback is that it isn’t included with Flex, so you may need to pay an additional fee. Paychex Flex administers garnishments without any additional fee.

Who should use it:

If you are a solopreneur or a small business looking for a simple payroll solution right now but might need a more robust system as your business grows, Paychex Flex is ideal for you. As you grow, you can opt for its Pro or Select pricing.

Read more:

Read our full Paychex flex review.

Pros & Cons
  • All-in-one payroll plan for businesses employing one to 1,000 people
  • Garnishment payment service included
  • Mobile app to run payrolls from anywhere
  • Need to talk to a sales representative to figure out pricing

Best for Most Affordable Payroll System

Square

Square
4.1
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Pricing

Starts at $5 per month

per person

Benefits administration

Yes

Tax filing

Automated local, federal and state filings

Square
Learn More Arrow

Read Forbes' Review

Starts at $5 per month

per person

Yes

Automated local, federal and state filings

Editor's Take

Square Payroll is one of the most affordable payroll systems around. If you pay only contractors, there is no monthly subscription fee. You only pay for the number of employees or contractors per month. Also, there are no fees for running payroll more than once.

At this affordable pricing. Square payroll includes benefits administration, time tracking, shift scheduling, overtime calculations and custom reporting for all the plans.

If you are already using other Square products like its POS, you have access to Square dashboard to integrate all tools natively.

Who should use it:

If you are a solopreneur or a small business that employs mostly contractors or needs to make off-cycle payments, Square Payroll is the most affordable option for you.

Read more:

Read our full Square review.

Pros & Cons
  • No monthly subscription fee if you pay only contractors
  • Unlimited pay runs per month
  • Built-in time tracking
  • Only for businesses that file Form 941 or Form 944
  • No demo available

Best for Businesses in Highly Regulated Industries

TriNet Zenefits

TriNet Zenefits
4.1
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Pricing

Starts from $8 per month

per employee

Benefits administration

Yes

Tax filing

Automatic

TriNet Zenefits
Learn More Arrow

On TriNet's Website

Starts from $8 per month

per employee

Yes

Automatic

Editor's Take

TriNet Zenefits started out as an employee benefits and insurance employee management platform. So, it has a robust platform for managing the entire employee life cycle from hiring and onboarding to retirement.

TriNet Zenefits offers a wide range of HR solutions like hiring, onboarding, benefits administration, compensation planning, performance reviews, compliance support and business communications. You might find these solutions in other payroll apps like ADP but they would not be as robust or compliant.

Time tracking and scheduling, which is an add-on feature for ADP, is built into TriNet Zenefits, which makes payroll calculation easier, especially for hourly workers.

Who should use it:

If you operate in a highly regulated industry that needs a wide range of compliances, TriNet Zenefits is ideal for you.

Learn More: Read our full Zenefits review.

Pros & Cons
  • Unlimited pay runs
  • Automatic integration with other HR tools
  • Robust compliance tools
  • Minimum five employees
  • No dedicated payroll specialist for support

Best for New Businesses

Wave

Wave
3.9
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Pricing

Starts at $20 per month

plus $6 per employee

Benefits administration

No

Tax filing

Automatic

Wave
Learn More Arrow

Read Forbes' Review

Starts at $20 per month

plus $6 per employee

No

Automatic

Editor's Take

Wave Payroll fits the needs of new businesses, especially freelancers, contractors and microbusinesses perfectly due to its user-friendliness and affordability.

Wave offers tax payments and filings in 14 U.S. states: Arizona, California, Florida, Georgia, Illinois, Indiana, Minnesota, New York, North Carolina, Tennessee, Texas, Virginia, Washington and Wisconsin. In these states, the price is $35 per month plus $6 per active employee or contractor paid per month.

For all the other US states as well as Canada, the price is $20 per month plus $6 per active employee and contractor paid per month.

In contrast, ADP pricing is ambiguous and depends upon employee paid, frequency of use and the features you need. This makes price estimation very difficult, a challenging situation for new businesses looking to optimize expenses.

Who should use it:

Wave Payroll is ideal for U.S.- or Canada-based solopreneurs and microbusinesses who have just started out. This implies they invoice their clients frequently and their team consists mostly of freelancers and contract employees.

Read more:

Read our full Wave Payroll review.

Pros & Cons
  • Free invoicing and accounting platform included
  • Very easy even for first-time users
  • Self-service employee portal
  • No benefits administration
  • Automatic payroll available only in 14 U.S. states

Forbes Advisor Ratings

Company Forbes Advisor Rating Pricing Benefits administration Tax Filing LEARN MORE
OnPay 4.5 4.5-removebg-preview-1 $40 per month plus $6 per employee, per month Employee liability compensation, retirement benefits, business insurance, paid time off (PTO) and transportation benefits Automated Learn More On Onpay's Website
QuickBooks 4.5 4.5-removebg-preview-1 Starts from $45 per month ($22.50 for first three months during current promotion), plus $5 per employee Yes Automatic; Local tax filing not available in Core plan Learn More Read Forbes' Review
Gusto 4.4 4.5-removebg-preview-1 $40 per month plus $6 per person paid Health and wellness, retirement, housing, transportation and custom benefits Automated Learn More On Gusto's Website
Paychex Flex 4.2 4.0 star Must contact for a quote Health and life insurance, retirement, flexible spending account and accident and disability benefits Yes , for a fee Learn More On Paychex's Website
Square 4.1 4.0 star Starts at $5 per month, per person Yes Automated local, federal and state filings Learn More Read Forbes' Review
TriNet Zenefits 4.1 4.0 star Starts from $8 per month, per employee Yes Automatic Learn More On TriNet's Website
Wave 3.9 4.0 star Starts at $20 per month, plus $6 per employee No Automatic Learn More Read Forbes' Review

How To Choose a Payroll System

When choosing a payroll system for your business you first need to evaluate your payroll needs. To evaluate your payroll needs these are the factors you need to consider:

  • Number of employees
  • Types of employees―permanent, temp, hourly, contract
  • Mode of payment―check, online platforms like Stripe or PayPal
  • Frequency of running payroll
  • Geographic distribution of employees
  • Local payroll laws
  • Deductions and employee benefits
  • Your budget

Once you have these essential questions answered, shortlist the payroll systems that meet your requirement and then make a final choice. All payroll applications offer some basic features but you need to carefully consider the additional features in each of them.

Ideally, you should go with a system where you need minimum external integrations for payroll calculations.

Your payroll system should have these essential features:

  • Unlimited payroll runs
  • Direct deposit payments
  • Payroll tax filing
  • Employee self-service and self-onboarding
  • Seamless integration with accounting software
  • Basic payroll reporting
  • Automatic compliance updates

Methodology

This list of top ADP competitors has been compiled by analyzing weighted 17 payroll systems. We then scored these contenders across four categories using 15 different metrics that were weighted to favor features that small business owners find valuable in a payroll service.

Here are some of the categories we used to rank the providers that made the top of the list.

Pricing – 15%

For pricing, we considered whether a service offers a free trial as well as the affordability of its lowest and highest price tiers. Additionally, companies that offered transparent pricing fared better in our rankings than those that required prospective customers to fill out a lead capture form or make a call to a sales department. This accounted for 15% of our weighted scoring.

Features – 35%

The general features we considered included self-serve employee portal, HR library, new hire reporting, ledger reporting, analytics and third-party integrations. Our review found that a majority of payroll services offer an employee portal but very few offer a well-rounded ledger report. We also concluded that many providers rely on third-party integrations to handle this aspect of payroll, which we factored into our rankings. We weighted features at 35% of our total score.

Third-party Reviews – 15%

We considered reviews and ratings provided by real users of these payroll services on popular third-party sites, such as Capterra and G2. We focused on reviews left for these providers that were at least 3.5 or higher out of 5 to gauge the most honest opinions of each platform. These accounted for 15% of the total score.

Expert Analysis – 35%

While considering all the above criteria, we also compared the tools on the basis of value provided, popularity and ease of use. We also scrutinized the features offered by each payroll service, looking for any stand-out offerings. This final analysis made up 35% of the total score.


Bottom Line

The top ADP competitors offer high-quality solutions at competitive prices. If you’re not sure which to choose, consider the overall best ADP alternatives, such as OnPay or QuickBooks, which both offer robust features for small business needs. Those on a budget will find Square to be the best option with its very competitively priced plans and user-friendly features.

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Frequently Asked Questions (FAQs)

Who is better than ADP?

These payroll systems are better than ADP―Gusto for customizable solutions, Square for most affordable, Paychex for most scalable, OnPay for working with hourly and contract employees, Wave for new businesses, TriNet for heavily regulated industries and QuickBooks for best QuickBooks integration.

Does ADP integrate with Salesforce?

ADP integrates with Salesforce via CIC’s Salesforce Connector for ADP Workforce Now. This helps you in importing commission-based payroll data seamlessly into ADP.

Which is the best payroll system?

Depending on your business needs, you can choose from these top payroll systems in the market: Gusto, OnPay, ADP, Paychex Flex, Justworks, TriNet, Wave, Paycor and Deluxe. You can read more about all of them in our research-based article on Best Payroll Systems.

What features should a payroll service for small businesses have?

The features you want in a payroll service for your small business include one that is simple to set up, provides payroll processing and management, makes it possible to do tax filing, creates detailed payroll reports, offers direct deposit to your employees, allows employees to make certain changes as needed, and offers quality customer support.

What are the benefits of payroll software?

Payroll software can save you time and money by automating tax filing, direct deposit and employee self-service. It can also help you manage your payroll, HR, benefits and talent from a single platform.

When should you outsource payroll?

Processing payroll is time-consuming. Outsourcing payroll will help free up time to focus on your company. If you do not want to outsource payroll, consider using software to process your employees’ payments and taxes.


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