Best Paychex Payroll Alternatives and Competitors 2023

The Paychex payroll service is a significant player in the small-business world. However, the platform’s complexity, opaque pricing, and hidden fees aren’t for everyone.

As a result, we’ve dug deep to unearth the best payroll software to consider when you’re looking for companies like Paychex. Our top Paychex alternative? Patriot. Another one of our favorites is Zenefits, which is perfect for people craving a user-friendly solution for both payroll and human resource needs.

Let’s discover your match made in paycheck heaven.

When shopping for the best payroll service for small businesses, you’ll hear the term “full-service payroll” mentioned plenty. This phrase refers to a payroll software program automatically filing federal, state, and sometimes local payroll taxes for you. This might include hands-free year-end tax reporting and new-hire paperwork transmittal, as well.

We’d recommend opting for full-service payroll if you can afford it. That’s because—let’s face it—most people don’t like doing taxes. However, this automated feature is often pricey. For example, Patriot Software and others often charge an additional $20 or more a month for full-service convenience. This is sometimes in addition to increased per-worker costs that can quickly add up.

Full-service on Patriot is $30/month base, while their manual tax filing plan is only $10 base (plus per-employee costs).

Patriot Software shines as an exceptionally affordable full-service payroll solution. That’s because the company offers top-notch features similar to competitors like QuickBooks Payroll but with a price tag around 3 0% lower.

The catch? You’ll only save money if you operate in one US state. Each additional state costs $12 monthly, which can add up quickly. For comparison, close adversary Gusto includes all 50 states free on every plan.

But if this geographic limitation is no issue, then Patriot Software is alluring thanks to its intuitive user interface and comprehensiveness. For example, the software gives users unlimited payroll runs, next-day pay via wire transfer, and hands-free annual W-2 and W-3 filing. These perks are in addition to a mastery of the basics, such as detailed reports, multiple hourly rates, and streamlined payroll approval in as little as three mouse clicks.

Also, the platform’s internet-based approach means you don’t need to download any software. This allows you to cut paychecks on the go from virtually anywhere in the world, provided you can connect to the world wide web. 

There are some drawbacks, though. The software program doesn’t automatically submit any paycheck deductions to government agencies and others. This means you’ll have to spend time manually sending off wage garnishments, child support payments, and more.

Plus, there’s no international support whatsoever—not even for one-time contractor payments. As a result, you’ll need to make these international payments using a different service, such as PayPal.

Doing more with less is often the name of the game for budget-conscious small businesses. If you can relate, then Zenefits’ payroll and HR combo is a smashing way to kill two birds with one stone (figuratively, of course) .

You’ll bag the whole nine yards of classic personnel administration, ranging from onboarding to 401(k) plan oversight. Plus, you’ll also score full-service payroll that’s chock-full of features comparable to standalone payroll companies, such as Gusto and Patriot Software.

Indeed, this marriage of people and paychecks isn’t unique to Zenefits. But the software makes it special via its playful, user-friendly interface that welcomes novices and professionals alike. This ease makes it particularly appealing to small-business owners who don’t have a background in HR management. Plus, this graceful approach to personnel administration makes it easier to tackle a more complex software suite down the road, perhaps as your business grows rapidly.

Keep in mind that Zenefits is only suitable if you need an HR solution. That’s because the payroll solution simply isn’t available on its own. Not to worry, though—we gave Zenefits a four out of five-star rating, so it’s certainly a worthy investment.

Not every payroll solution adequately serves complex industries and operations. Luckily, OnPay delivers a much-needed lifeline for some of these often shut-out organizations.

For starters, the full-service payroll platform supports all 50 US states and Washington, DC, at no extra charge. Many competitors levy $12 extra per state, so this is a crucial money saver if your business extends across continental borders.

But OnPay’s true magic shines with its handling of farmers, nonprofits, and religious organizations. For agricultural businesses, there is full support for H-2A workers and automatic filing of IRS form 943. Plus, there’s no cost to keep seasonal laborers on the books. Instead, you’re only charged when you actively pay these helping hands. 

Oh, and when you need to focus on making money to fund wages, you’ll enjoy an officially e ndorsed integration with FCSAmerica’s Magnify financial analysis software. We've seen no other payroll software that offers this direct connection, making OnPay uniquely suited for farmers.

This level of tailored support also extends to religious organizations and nonprofits. These entities can easily arrange parsonage allowances, the Federal Unemployment Tax Act (FUTA) exemptions, and other special considerations. For comparison, many payroll competitors, such as Payroll4Free, overlook these nuances, which makes it difficult to properly balance the books.

A massive downside to OnPay is its lack of user-friendly training. Notably absent are elaborate guides, walkthroughs, videos, and helpful blogs, which are par for the course in competitors like Gusto. As a result, you’re mostly on your own to master the platform, although US-based phone support is offered Monday through Friday.

Let’s be clear: Payroll4Free is as basic as it gets, and it’s only free for entities with 25 or fewer workers. Also, you’ll have to endure plenty of in-app advertising and possible one-off f ees, such as a $10 charge for deposit receipts. With this in mind, we’d only recommend the platform for the tightest budgets or for new businesses still finding their footing.

Still, the partially   platform is quite impressive for the money (or lack thereof). It covers all the essentials of a bona fide payroll service, such as direct deposit, 1099 contractor payments, and time off balance tracking. You can also utilize a third-party integration with QuickBooks, although there are no other integrations.

You’ll have to manually remit all taxes and deductions though, including garnishments and benefits. If you’d rather not do this, the company offers full-service tax filing for only $15 flat per month. This is a steal of a deal that’s at least half the price of other services, most of which also charge per employee.

With a starting cost of a whopping zero dollars, Payroll4Free is a handy, albeit minimalist, option that gets the job done.

You’re probably already familiar with ADP. But you might now realize how suitable it is for small businesses, despite the company’s historical prevalence among large organizations.

We think RUN Powered by ADP (shortened to “RUN”) payroll service is a commanding alternative to Paychex with comparable power and long-term value. Even if you only have a few employees, RUN still offers a customized full-service payroll option that you can expand and downsize as needed. Down the line, you could latch on to the company’s numerous other solutions, such as HR software, retirement plan administration, and recruiting tools.

Plus, you’ll get peace of mind since the New Jersey-based company promises to pay all fees and interest on the off chance their tax calculations are erroneous.

While this all sounds swell, you’ll need a solid budget to afford ADP. That’s because the company conceals its pricing behind subjective quote requests, similar to Paychex. This lack of transparency makes it hard to ensure you’re getting the best deal, both initially and in the long run.

You’ll also need to factor in activation fees and costs to file tax documents, along with charges for just about every add-on as your business grows. Even templates for commonly used forms, such as onboarding documents, are locked behind a p aywall that requires a top-tier subscription.

Finally, the platform focuses on complexity more than user-friendliness. There are guides available, but they are highly technical in nature and require at least a basic understanding of personnel administration. This knowledge expectation means you’ll need patience and time to overcome the software's steep learning curve.

Patriot Software is our best overall alternative to the Paychex payroll software. If you’re on a tight budget though, Payroll4Free.com offers a truly free but incredibly basic solution.

Farmers, nonprofits, and religious organizations are well taken care of with OnPay.

Meanwhile, Zenefits offers a harmonious marriage between human resource administration and payroll functions.

Ultimately, when you’re ready to grow massively, RUN Powered by ADP is the best option for long-term expansion.

Need something even more budget-friendly? Check out our picks for the best free payroll software for small businesses.

This depends on your business’s growth trajectory and your budget. If you have fewer than 50 employees with no substantial growth plans, then we think Zenefits and Patriot Software are two of the best payroll software companies for small businesses.

However, if you have major hoop dreams that involve plenty of hiring and geographic expansion, then ADP and Paychex are just two options suited for growth.

On the opposite end of the spectrum, Payroll4Free is a zero-cost service that sticks to minimalistic simplicity. It’s a free payroll option for tiny budgets that don’t mind the platform’s heavy advertising.

We researched over 15 payroll software brands and narrowed them down based on these and other aspects:

• Comprehensiveness
• Affordability
• Value for the money
• Full-service payroll capabilities
• Support for all 50 US states

Disclaimer

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.