The top ADP competitors and alternatives in 2024

While ADP is a popular payroll and HR platform, you may be looking for ADP alternatives that cost less, are easier to use, have better customer service, or don’t charge extra for every bell and whistle.

No matter what your reasons for switching, we’ve put together a handy guide to compare the top ADP competitors, to help you make the right choice for your growing business.

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Published May 13, 2024
by Gusto Editors

FAQs

The best ADP competitors vary depending on the needs of your business. Some payroll is straightforward with salaried employees all living in the same state. Some businesses have more complex needs including employees in multiple states, hourly employees, international contractors, time tracking and scheduling needs, and more. 

Most companies like ADP should offer federal, state, and local tax filing and payments along with 1099s and W-2s. Fast direct deposit times as well as unlimited and off-cycle payroll runs give you increased flexibility. Paid time off and vacation tracking should also be included with most basic plans. But the best payroll system for your small business will offer a fully integrated solution to seamlessly manage payroll, HR, benefits, and performance all in one place.

Lots of businesses are looking for alternatives to ADP because of its higher-than-average cost. There are a wide range of options to switch to, but they also have a wide range of prices depending on how powerful a tool you need. Many tools built for smaller businesses tend to include only the most basic functionality in order to keep prices low. Some more robust tools are simply too expensive for startups and very small businesses to afford. But there are affordable, yet robust options targeted specifically for businesses with fewer than 50 employees. Generally speaking, you can expect to pay around $40 a month plus $6 per employee per month.

The best way to choose is to think about the specific reason you want to switch. If you’re looking for an easier way to pay international employees or contractors, you’ll want a platform like Gusto or Remote. If you’re looking for a highly scalable solution with better customer service than ADP, Paychex could be a good fit. If you’re looking to save money but don’t need a full HR suite, you can find a more budget-friendly option like OnPay or even Payroll4free if your business is small enough. 

Switching shouldn’t be hard, but it does require a bit of planning. Start by selecting your new provider and determining the transition date, ideally at the beginning of a fiscal quarter or year for simplicity. You should notify both ADP and your new provider about your switch and request any necessary data transfers. Ensure all employee information, such as tax details and pay rates, is accurately transferred to the new system. Finally, conduct a test payroll run and provide training for your staff on the new system to ensure a smooth transition.

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