The Top 6 Paychex Competitors and Alternatives for 2023

Gusto: Best overall Paychex competitor

Gusto, an all-in-one payroll, benefits and HR platform, is a formidable competitor to Paychex, delivering an array of services tailored to small and medium-sized businesses. With its rapid growth, Gusto has emerged as a go-to choice for companies seeking a user-friendly and cost-effective payroll solution. This is despite the fact it is a relatively new player in the payroll and human-capital services market compared to Paychex’s 50-year legacy.

Offering automated payroll processing, time tracking and digital onboarding, Gusto also handles federal, state and local tax filing and payments. Additionally, W-2s and 1099s are automatically generated and sent to employees and contractors at no extra charge, with free setup and migration for new users.

Figure A

While Paychex excels in providing professional employer organization benefits, Gusto collaborates with brokers for employee benefits, making it more suitable for small businesses with minimal HR needs.

Key features of Gusto 

• Highly customizable options.
• Full-service payroll migration and account setup.
• Comprehensive multi-state payroll, including W-2s and 1099s.
• Exclusive contractor-only plan.
• Employee Portal with lifetime access to pay stubs, W-2s, hours worked, etc.
• Integration with QuickBooks, Xero, FreshBooks, Clover, Shopify and more.

Use cases 

• Contractor and employee payroll management for small businesses.
• Payroll management for startups and small businesses with unlimited pay runs at no extra cost.
• Customizable services to fit unique requirements.
• Benefits administration, including health, wellness, retirement, transportation, housing and custom benefits.

Pricing 

Gusto provides three affordable plans:

• The Simple plan at $40 per month plus $6 per month per employee.
• The Plus plan costs $60 per month plus $9 per month per employee.
• A Premium pricing plan is available upon request.

Feature graph 

QuickBooks: Best direct deposit payroll solution

QuickBooks, a well-known accounting software company, has expanded its offerings to include payroll processing capabilities. Targeted primarily at small and medium-sized businesses, QuickBooks integrates payroll with its comprehensive accounting features. This all-in-one solution allows users to manage their finances, payroll and taxes in one platform, simplifying their business operations.

The QuickBooks direct deposit payroll feature allows companies to pay employees, contractors or vendors electronically. You can choose to process same-day or next-day direct deposits with QuickBooks Online.

Figure B

Key features of QuickBooks 

• Payroll direct deposits.
• Accounting and payroll integration.
• Automated payroll processing.
• Time tracking and billable hours management.
• Tax filing and payments for federal, state and local taxes.
• Customizable invoicing and expense tracking.
• Employee and contractor payment options.
• Integration with popular apps like TSheets, Shopify and more.

Use cases 

• Small businesses and startups seeking an integrated accounting and payroll solution.
• Businesses looking to streamline their finance and payroll management processes.
• Business users who require customizable invoicing and expense tracking features.
• Organizations needing a scalable solution that grows with their business.

Pricing 

QuickBooks offers several pricing tiers depending on the specific needs of the business:

• Starting with the Simple Start plan at $15 per month.
• The Essentials plan costs $27.50 per month.
• The Plus plan costs $42.50 per month.
• The Advanced plan costs $100 per month.

Payroll services can be added to any plan, with prices starting at $22.50 per month plus $5 per employee per month.

Feature graph

Justworks: Best for PEOs

Justworks is a platform designed to help businesses manage payroll, HR, benefits and compliance all in one place. With its focus on simplicity and transparency, Justworks aims to provide growing businesses with a streamlined solution that combines essential tools and features.

The application is best for PEOs due to its comprehensive service offering, expertise in compliance and competitive pricing. It’s wide range of HR, payroll, benefits administration and compliance support services make it a one-stop solution for businesses looking to manage their HR responsibilities.

Figure C

Key features of Justworks 

• Full-service payroll processing.
• Direct deposit and check payment options.
• Benefits administration, including health insurance, retirement and commuter benefits.
• HR tools for managing policies, time off and employee documentation.
• Compliance support, including tax filings and reporting.
• Onboarding and employee self-service portal.
• Integration with popular accounting software.

Use cases 

• Small to medium-sized businesses looking for a comprehensive payroll and HR solution.
• Businesses that require help navigating complex compliance and HR regulations.
• Organizations seeking a platform that simplifies benefits administration.

Pricing 

Justworks offers pricing based on the number of employees and the selected plan:

• Basic plan starts at $59 per employee per month.
• Plus plan starts at $99 per employee per month.

Pricing per employee decreases as the number of employees increases.

Feature graph 

Rippling: Best for unified HR, IT and finance business functions

Rippling is a cloud-based platform designed to help businesses manage payroll, HR, benefits and IT in a single system. The platform aims to simplify and automate various processes, allowing companies to focus on their core business operations.

Figure D

Key features 

• Payroll processing and tax filing.
• Direct deposit and check payment options.
• Benefits administration, including health insurance, retirement plans and more.
• HR tools for managing time off, employee documentation and compliance.
• IT management features, such as device provisioning and software deployment.
• Onboarding and offboarding automation.
• Integration with various business apps and accounting software.

Use cases 

• Small to medium-sized businesses seeking a unified payroll and HR solution.
• Organizations looking to streamline HR and IT management processes.
• Companies requiring a platform that automates onboarding and offboarding.

Pricing 

Pricing starts at $8 per user per month. Rippling offers customized pricing based on the specific needs and size of the business. For detailed pricing information, businesses are advised to contact Rippling directly for a personalized quote.

Feature graph 

ADP: Best for complex business models

ADP is a global provider of payroll and HR solutions, offering a wide range of services to help businesses manage their workforce. With a focus on flexibility and scalability, ADP is designed to adapt to the changing needs of organizations of all sizes.

Figure E

Key features of ADP 

• Payroll processing and tax filing.
• Direct deposit and check payment options.
• Time and attendance tracking.
• Benefits administration, including health insurance and retirement plans.
• HR tools for managing policies, time off and employee documentation.
• Compliance support, including tax filings and reporting.
• Onboarding and employee self-service portal.
• Integration with popular accounting software.

Use cases 

• Small, medium and large businesses seeking a comprehensive payroll and HR solution.
• Organizations looking to simplify and automate workforce management processes.
• Companies requiring a scalable platform that grows with their business.

Pricing

ADP offers customized pricing based on the specific needs and size of the business. Businesses are advised to contact ADP directly for a personalized quote.

Feature graph 

BambooHR: Best HR tool for ease of use

BambooHR is a cloud-based HR software designed to help small and medium-sized businesses manage various HR tasks, such as employee onboarding, time-off tracking and performance management. The vendor also has a Payroll, Time and Benefits feature that includes time tracking, PTO and benefits administration for a comprehensive solution.

Figure F

Key Features of BambooHR 

• Employee database and records management.
• Time-off tracking and approvals.
• Performance management and goal tracking.
• Onboarding and offboarding automation.
• Applicant tracking system for hiring.
• Employee self-service portal.
• Integration with various payroll providers and business apps.

Use Cases 

• Small and medium-sized businesses looking for a user-friendly HR management solution.
• Organizations seeking a platform to streamline hiring, onboarding and performance management.
• Companies that require integration with various payroll providers for a complete HR and payroll solution.

Pricing 

BambooHR offers two main pricing plans: Essentials and Advantage. For detailed pricing information, businesses are advised to contact BambooHR directly for a personalized quote.

Feature graph