ADP vs Paychex – Payroll Processing Providers Compared

Kelly Zawalski's Profile

ADP vs Paychex

We are a 75 person private Company looking to transition from an independent payroll service provider to a SAS 70 Type II provider this year. We are in the process of evaluating ADP vs. paychex, but are open to considering other providers, as well. Top priorities are payroll processing, customized reporting and time and attendance.  Eventually, we will look to adopt HRIS capabilities with the selected provider. 

Initial assessment of ADP vs Paychex is: ADP is an industry leader with scale, intuitive web interface, integrated reporting suite, so-so performance evaluation automation capabilities with base level HR functionality, and team-based support model.   Assessment of Paychex is: dedicated customer support representative, new integrated OneSource interface is getting closer to ADP look/feel but is integration of multiple products. (Not sure if this impacts quality of service/reporting capabilities.)  

For those of you with experience with one or both of these providers, I would appreciate your input on the following:

ADP Team Support model vs. Paychex dedicated rep model; the current service level with our existing provider is excellent so this is important for us

Experiences, good or bad, with new Paychex OneSource product

Cross-module reporting capabilities with Paychex One Source (i..e. Time/Job Costing detail combined with Payroll data)

Other SAS 70 Type II providers that we should consider
 

Editor's Note:  For more comments about ADP, Paychex and other payroll processors, scroll down and/or visit our ADP reviews page for more.

Answers

Member's Profile

I've done some similar analysis, though not specifically with ADP and Paychex. One firm to consider is Paylocity. They are the new generation, web-server based systems and services.
Good luck!
-Dave

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Member's Profile

In addition to the excellent insights from the community on this page, take a look at this free resource here on Proformative titled:

"PayChex vs ADP Info"

http://www.proformative.com/resources/paychex-vs-adp-info

Enjoy!

Best... Sarah

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Proformative Advisor
Member's Profile

I agree, we switched to paylocity last year. While ADP definitely has some of the best bells and whistles, Paylocity has a good portion of them as well. The ones that ADP has vs Paylocity weren't worth the 2x cost of ADP vs Paylocity.

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I am VP Finance and HR for a multi state operation with 850 associates. Currently with ADP Payexpert and evaluating Paylocity now and with not much time left to complete the analysis. Problems in ADP are allowing HR managers at locations to access data in a Read Only manner for only their location and current without HRB for benefits management(but considering adding it if we stay with ADP). Any thoughts?

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We have some very specific experience with Paylocity and multi location. We were happy with them until we have had issues with payroll tax filings in the US Virgin Islands. They have not been able to do what we need. Other than that, they have been fine.

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ADP's reporting capabilities and access to "your" data is difficult if not impossible. We're slightly larger user of ADP products and are looking at Ultipro and Kronos. ADP is not an integrated platform its a mainframe system with limitations

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Are you on ADP current platform? We were on their legacy platform until a year ago. We looked at Ultipro and Workday but decided to upgrade to ADP's Workforce solution. We are using them for payroll, HRIS, and time keeping software. We now have a better reporting system then their older reportsmith reportwriter giving me access to all data on the fly. We got assigned to a different service team with the new software and our service has dramatically improved. And it was much less expensive than the other 2 options

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we already use the workforce solution and our experience is that if you like their standard reports its fine but anything else is almost impossible to get without getting their programmers or even a third party programmer involved.

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I have extensive experience with ADP and some experience with Paychex. I prefer the service levels provided by Paychex over ADP. Both companies accurately served my basic needs of providing weekly/bi-weekly/semi-monthly payrolls. They also both did a good job of taking care of tax reporting.

The biggest complaint I have about ADP is with access to "My" data. If you want to get data in any format that is different from a canned report, you will have to pay for it. There is no reason companies should be forced to pay for ADP to develop a report when simple access to the database would work just as well.

My other big issue is with the service levels at ADP. Typically, you will be assigned to a service team. They do a good job of selling companies on the benefits of having a team that can help you, but, in reality, the assistance is limited and when you are under the gun with an immediate need, you are very likely to be disappointed. I found Paychex to be very responsive and willing to help me with the business needs that arose.

Having said all of this, ADP is very good for extremely large companies that have multi-state needs. I ran a 75 person company, (obviously not a large company), with locations in 11 states and had no issues with regard to tax reporting, which can get very complex when you have to file quarterly returns. Unfortunately, my business was in Las Vegas and I had to work with people in San Francisco. Not convenient. I can not speak to Paychex's capabilities in this arena as my experience with Paychex was in a single state operation.

An earlier posting recommended you look at Paylocity. I offer that you should take that a step further and look at a few of the local/regional payroll companies out there, especially if you are a single location business and do not anticipate crossing multiple state lines. If you are comfortable the smaller company can handle your tax reporting requirements, then you will very likely find that their customer service will be very high because they know that is the one area they can compete with ADP on and win every time.

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Great point about local providers. One thing about the big guys is that their service level is much (and I mean a lot) lower. I got very frustrated with ADP a few years back with their customer support. It got better after being a very squeaky wheel, but always nicer not to have to complain in the first place.

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