Paylocity Review

ByObeydul Haque Reading Time: 7 minutes

Founded in 1997, Paylocity has grown into a leading provider of payroll and HR solutions, serving over 36,000 clients as of 2025. Headquartered in Schaumburg, Illinois, the company emphasizes innovation, offering tools that integrate payroll, HR, time tracking, benefits administration, and talent management into a single platform. Paylocity’s cloud-based system is designed to be scalable, making it suitable for small businesses with a few employees to large enterprises with thousands.

Paylocity stands out for its user-friendly interface, mobile accessibility, and robust reporting capabilities. It also prioritizes employee engagement through features like self-service portals and social collaboration tools. However, like any software, it has its strengths and weaknesses, which we’ll explore in detail.

Key Features of Paylocity

Paylocity offers a comprehensive suite of tools to manage the employee lifecycle. Below are the core features that define its platform:

1. Payroll Processing

Paylocity’s payroll module is one of its strongest offerings. It automates payroll calculations, tax filings, and compliance with federal, state, and local regulations. Key features include:

  • Automated Tax Filing: Paylocity handles tax calculations and filings, reducing the risk of errors.
  • Direct Deposit and Pay Cards: Employees can receive payments via direct deposit or pay cards, with flexible pay schedules (weekly, bi-weekly, or monthly).
  • Garnishment Management: The system simplifies wage garnishment processes, ensuring compliance with legal requirements.
  • Payroll Analytics: Detailed reports provide insights into labor costs, overtime, and payroll trends.

2. Human Resources Management

The HR module centralizes employee data and automates administrative tasks. Features include:

  • Employee Records: A secure database for storing employee information, including personal details, job history, and performance metrics.
  • Compliance Tools: Tools to track compliance with labor laws, such as the Affordable Care Act (ACA) and Family and Medical Leave Act (FMLA).
  • Onboarding: A customizable onboarding portal streamlines new hire paperwork, training, and orientation.
  • Document Management: Electronic storage and e-signature capabilities for contracts, policies, and other documents.

3. Time and Attendance

Paylocity’s time and labor management tools help businesses track employee hours and manage schedules efficiently. Highlights include:

  • Time Tracking: Employees can clock in and out via web, mobile, or biometric devices.
  • Scheduling: Managers can create and adjust schedules, with real-time visibility into labor costs.
  • Absence Management: Tracks vacation, sick leave, and other absences, with automated approval workflows.

4. Benefits Administration

Paylocity simplifies benefits management, allowing employees to enroll and manage their plans through a self-service portal. Features include:

  • Benefits Enrollment: Online enrollment for health, dental, vision, and retirement plans.
  • Carrier Integration: Direct connections with insurance providers for seamless data exchange.
  • ACA Compliance: Tools to manage reporting requirements and avoid penalties.

5. Talent Management

Paylocity’s talent management suite supports recruitment, performance, and learning. Key components include:

  • Recruiting: Tools to post jobs, track applicants, and manage the hiring process.
  • Performance Management: Goal-setting, performance reviews, and 360-degree feedback.
  • Learning Management System (LMS): Online training courses and compliance certifications.
  • Compensation Management: Tools to design and manage salary structures and bonuses.

6. Employee Engagement

Paylocity emphasizes employee experience through features like:

  • Community Portal: A social platform for employees to share updates, recognize peers, and collaborate.
  • Surveys: Customizable surveys to gauge employee satisfaction and engagement.
  • Mobile App: A highly rated mobile app (available on iOS and Android) for payroll, time tracking, and HR tasks on the go.

7. Reporting and Analytics

Paylocity’s reporting capabilities are a standout feature, offering over 100 standard reports and customizable dashboards. Businesses can analyze data on payroll, workforce trends, turnover, and more. The Data Insights tool uses predictive analytics to identify patterns and recommend actions.

8. Integrations

Paylocity integrates with popular business tools, including:

  • Accounting Software: QuickBooks, Xero, and Sage.
  • ERP Systems: NetSuite and Microsoft Dynamics.
  • Third-Party Apps: Slack, Microsoft Teams, and LinkedIn. The platform also offers an open API for custom integrations.

Benefits of Using Paylocity

Paylocity offers several advantages that make it a compelling choice for businesses:

1. Automation and Efficiency

By automating payroll, tax filings, and HR tasks, Paylocity reduces manual work and minimizes errors. This is particularly valuable for small businesses with limited HR staff.

2. Scalability

Paylocity’s modular design allows businesses to start with basic payroll and add features like talent management or benefits administration as they grow. This scalability suits organizations at different stages of development.

3. Employee Self-Service

The self-service portal empowers employees to manage their payroll, benefits, and time-off requests independently, reducing the administrative burden on HR teams.

4. Compliance Support

Paylocity’s compliance tools help businesses navigate complex regulations, such as ACA reporting and tax laws. Regular software updates ensure the platform stays current with legal changes.

5. Data-Driven Insights

The analytics tools provide actionable insights into workforce trends, helping businesses optimize labor costs, improve retention, and make informed strategic decisions.

6. Mobile Accessibility

The mobile app is a significant advantage for employees and managers who need access to HR tools on the go. Its high user ratings (4.5+ stars on app stores) reflect its reliability and ease of use.

7. Strong Customer Support

Paylocity offers robust customer support, including phone, email, and live chat. Clients also receive a dedicated account manager, which is a rarity among HCM providers.

Pricing

Paylocity’s pricing is quote-based, meaning costs vary depending on the number of employees, modules selected, and implementation needs. While Paylocity does not publicly disclose pricing, industry estimates suggest:

  • Small Businesses (10-50 employees): $2-$6 per employee per month (PEPM), plus a base fee of $50-$150/month.
  • Mid-Sized Businesses (50-500 employees): $4-$10 PEPM, with additional costs for advanced features like talent management.
  • Enterprise Clients: Custom pricing, often with discounts for high employee counts.

Implementation fees typically range from $500 to $5,000, depending on the complexity of setup and data migration. While Paylocity’s pricing is competitive with competitors like ADP and Paychex, some users report that costs can escalate with add-ons.

For precise pricing, businesses must contact Paylocity for a customized quote. A free demo is available to explore the platform before committing.

User Experience

Paylocity’s interface is modern and intuitive, with a clean dashboard that provides quick access to key functions. The platform is web-based, requiring no software installation, and is accessible on any browser. The mobile app enhances usability, allowing employees to view pay stubs, request time off, and complete onboarding tasks from their phones.

User reviews praise the platform’s ease of use, particularly for payroll and reporting. The self-service portal is a hit among employees, who appreciate its simplicity. However, some users note that the initial setup can be time-consuming, especially for businesses migrating from legacy systems.

Customer Support and Training

Paylocity offers multiple support channels, including:

  • Phone and Email Support: Available during business hours, with extended hours for urgent issues.
  • Live Chat: For quick troubleshooting.
  • Knowledge Base: A comprehensive library of guides, FAQs, and video tutorials.
  • Dedicated Account Manager: Provides personalized assistance during onboarding and beyond.

Training options include webinars, in-person workshops, and on-demand courses through the LMS. Paylocity also hosts an annual client conference, Elevate, for networking and learning about new features.

Pros and Cons

Pros

  • Comprehensive feature set covering payroll, HR, and talent management.
  • User-friendly interface and highly rated mobile app.
  • Robust reporting and analytics tools.
  • Strong compliance support for tax and labor laws.
  • Scalable for businesses of all sizes.
  • Excellent customer support with dedicated account managers.

Cons

  • Pricing is not transparent and requires a quote.
  • Implementation can be complex and costly for some businesses.
  • Advanced features (e.g., talent management) may increase costs significantly.
  • Some users report occasional glitches in the mobile app.
  • Limited international payroll capabilities compared to competitors like ADP.

Who Is Paylocity Best For?

Paylocity is an excellent choice for:

  • Small to Mid-Sized Businesses: Companies with 10-500 employees benefit from its affordability and scalability.
  • Organizations Prioritizing Employee Engagement: The Community portal and surveys foster a collaborative culture.
  • Businesses Needing Compliance Support: Its tools simplify ACA, FMLA, and tax compliance.
  • Companies Seeking Data Insights: The analytics suite is ideal for data-driven decision-making.

However, Paylocity may not be the best fit for:

  • Very Small Businesses (1-10 employees): Basic payroll providers like Gusto may be more cost-effective.
  • International Companies: Paylocity’s focus is primarily on U.S.-based businesses, with limited global payroll support.
  • Budget-Conscious Organizations: The lack of transparent pricing and potential add-on costs may deter some.

Paylocity vs. Competitors

Paylocity vs. ADP

ADP is a larger player in the HCM market, offering more extensive global payroll capabilities. However, Paylocity is often praised for its user-friendly interface and lower costs for small to mid-sized businesses. ADP’s pricing is also quote-based, but it may be higher for enterprise clients.

Paylocity vs. Paychex

Paychex is similar to Paylocity in targeting small to mid-sized businesses. Paylocity stands out for its employee engagement tools and mobile app, while Paychex offers more robust outsourcing options for HR and payroll.

Paylocity vs. Gusto

Gusto is a popular choice for very small businesses due to its transparent pricing and simplicity. Paylocity offers more advanced features, making it better suited for growing companies with complex HR needs.

Real-World Feedback

User reviews on platforms like G2 and Capterra give Paylocity high marks, with an average rating of 4.3/5. Clients praise its ease of use, reporting capabilities, and customer support. Common complaints include the learning curve during implementation and occasional delays in customer service response times during peak periods.

A 2024 post on X highlighted Paylocity’s mobile app as a “game-changer” for remote teams, though some users noted that the app’s performance can vary depending on internet connectivity. Another X post from a small business owner praised the onboarding tools but mentioned that the setup process took longer than expected.

Conclusion

Paylocity is a powerful, versatile HCM and payroll solution that excels in automation, employee engagement, and data analytics. Its comprehensive feature set, user-friendly interface, and strong customer support make it a top choice for small to mid-sized businesses looking to streamline HR processes. While its quote-based pricing and implementation complexity may be drawbacks for some, the platform’s scalability and compliance tools add significant value.

For businesses seeking a modern, cloud-based HR solution with a focus on employee experience, Paylocity is worth considering. To determine if it’s the right fit, request a demo and compare quotes with competitors like ADP, Paychex, or Gusto. With the right configuration, Paylocity can transform HR management and drive operational efficiency.

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