When running a business, especially one that’s scaling, two of the most challenging areas to manage are payroll and human resources (HR). Mistakes in payroll can affect employee trust, while gaps in HR compliance can expose businesses to legal risks. That’s where tools like Paylocity come in — a platform designed to combine payroll, HR, and employee engagement under one roof.
In this detailed Paylocity Review 2025, I’ll break down what the platform offers, how it works, its pros and cons, pricing, and whether it’s really worth it for your business. I’ll also share insights from my own experience working with companies that adopted Paylocity and how it transformed their HR and payroll processes.
What is Paylocity?
Paylocity is an all-in-one HR and payroll software solution tailored primarily for small and mid-sized businesses but also scalable for larger organizations.
Founded in 1997, it has steadily grown into a leader in workforce management software. Unlike some payroll-only providers (like ADP Run or Gusto), Paylocity positions itself as a comprehensive HR suite that covers:
- Payroll processing
- Benefits administration
- Time & attendance tracking
- Talent management
- Employee engagement tools
- Compliance support
In other words: Paylocity isn’t just about paying employees — it’s about creating a complete HR ecosystem.
Key Features of Paylocity
Here are the features that stand out most in Paylocity (as of 2025):
1. Payroll Management
- Automated payroll runs with tax filing and compliance built-in.
- Direct deposit, pay cards, and paper check options.
- Multi-state payroll support (critical for remote teams).
- Integration with accounting software (QuickBooks, Xero, etc.).
My take: The payroll engine is very robust. I’ve seen businesses run payroll for 200+ employees seamlessly, with automatic updates for tax codes.
2. Time & Attendance
- Employees can clock in/out via web, mobile app, or physical time clocks.
- Managers can set up scheduling and track overtime.
- Seamless integration with payroll (fewer errors in calculations).
Personal insight: This feature saves HR from chasing down timesheets. For hourly workers, the app is a game-changer.
3. Benefits Administration
- Open enrollment tools with self-service options.
- Digital benefits selection for health, dental, vision, and retirement.
- Integration with insurance providers.
Example: During open enrollment season, employees can log in, compare plans, and make their selections without overwhelming HR staff.
4. Talent Management
- Applicant tracking system (ATS) for hiring.
- Onboarding tools with digital document signing.
- Learning management system (LMS) for training.
- Performance review tracking.
This allows businesses to hire, onboard, and grow talent in one system rather than juggling multiple platforms.
5. Employee Engagement
- Built-in chat and collaboration features.
- Surveys and feedback tools.
- Mobile app for employee self-service (check pay stubs, request time off).
Personal note: I’ve seen employees really appreciate the mobile app — it makes them feel empowered instead of constantly emailing HR.
6. Compliance & Reporting
- Automated tax filing.
- ACA (Affordable Care Act) compliance tools.
- EEO and other federal/state reporting.
- Custom HR reports and dashboards.
This feature gives HR leaders peace of mind — fewer worries about missing compliance deadlines.
Benefits of Using Paylocity
Here’s what I’ve found most valuable when businesses adopt Paylocity:
✅ All-in-One Platform – No need to use separate payroll, HR, and ATS software.
✅ Scalability – Works well for growing businesses that anticipate expansion.
✅ Employee Self-Service – Reduces HR workload and improves employee satisfaction.
✅ Mobile-Friendly – Paylocity’s mobile app is highly rated and intuitive.
✅ Strong Compliance Support – Helps avoid costly fines and mistakes.
✅ Automation Saves Time – Fewer manual processes = HR teams can focus on strategy.
Limitations of Paylocity
Of course, Paylocity isn’t perfect. Some challenges include:
❌ Learning Curve – The system is feature-rich, which can overwhelm new users.
❌ Cost – Paylocity pricing is higher than simpler payroll providers like Gusto or Patriot.
❌ Customization Can Be Complex – Setting up workflows may require training.
❌ Best for U.S. Companies – Global payroll isn’t Paylocity’s strong suit (unlike Deel).
Paylocity Pricing (2025)
Paylocity doesn’t publish its pricing publicly, but based on industry insights and what I’ve seen with clients, here’s a breakdown:
- Base Fee: Around $150–$200 per month (varies by company size).
- Per Employee Fee: Typically $5–$15 per employee per month.
- Add-ons like Time & Attendance or Learning Management may cost extra.
Example: A company with 50 employees might pay around $500–$800 per month.
While not the cheapest option, Paylocity is competitive given its full suite of HR features.
Paylocity vs. Competitors
| Feature | Paylocity | Gusto | ADP Workforce Now | Paychex Flex |
|---|---|---|---|---|
| Payroll | ✅ Excellent | ✅ Strong | ✅ Excellent | ✅ Strong |
| HR Suite | ✅ Full | ❌ Limited | ✅ Full | ✅ Moderate |
| ATS (Applicant Tracking) | ✅ Built-in | ❌ None | ✅ Add-on | ❌ None |
| Employee Engagement | ✅ Strong | ❌ Limited | ✅ Moderate | ❌ Limited |
| Mobile App | ✅ Excellent | ✅ Good | ✅ Good | ✅ Good |
| Global Payroll | ❌ Weak | ❌ Weak | ✅ Strong | ✅ Strong |
Who Should Use Paylocity?
Paylocity is best suited for:
- Small to mid-sized businesses (50–500 employees).
- Companies that want a full HR + payroll suite.
- Businesses prioritizing employee self-service and engagement.
- HR teams tired of juggling multiple tools.
It might not be the best fit if you’re:
- A very small startup with only a few employees (simpler tools like Gusto may be more cost-effective).
- A global company that needs multi-country payroll (consider Deel or Papaya Global).
My Experience with Paylocity
I’ve worked with a mid-sized business (around 120 employees) that switched from ADP to Paylocity. Here’s what I noticed:
- Payroll errors dropped significantly after automation.
- Employees loved the mobile app (checking pay stubs and W-2s anytime).
- HR staff saved hours during open enrollment because employees handled much of it themselves.
- The biggest struggle was the initial training — HR had to invest time learning the system.
But after 3–4 months, the HR team couldn’t imagine going back.
Final Verdict: Is Paylocity Worth It in 2025?
Yes — for most small to mid-sized businesses, Paylocity is absolutely worth it.
Click here << to sign up for Paylocity
It’s not the cheapest option, but what you get is a comprehensive HR and payroll platform that grows with your company. If you’re looking for more than just payroll, and you want to streamline HR processes, boost employee engagement, and stay compliant, Paylocity delivers.
If your business is tiny or global, you may want to explore alternatives. But if you fall into that sweet spot (50–500 employees), Paylocity is one of the most reliable and forward-thinking HR platforms in 2025.
0 Comments