Paylocity — Independent Software Review

Empowering HR and Payroll with Innovative Technology

Compliance Transparency Index

Grade: B — Score: 70/100

Best For

• US-based mid-market companies with 50 to 1,000 employees that need payroll, HR, time tracking, and talent management in a single modular platform.
• Organizations across regulated industries like healthcare, manufacturing, education, restaurants, and nonprofits that need built-in compliance dashboards, tax geolocation, and 40+ payroll audits.
• HR teams that want employee engagement tools (Community hub, peer recognition with leaderboards, video messaging, pulse surveys with sentiment analysis) alongside core payroll and HR.
• Companies that want to extend HR into finance (Airbase by Paylocity for expense management, AP automation, corporate cards) and IT (asset management with CDW, access management with Google Workspace and Microsoft Entra ID).

Not Ideal For

• Companies outside the US that need a non-US-centric HRIS. Paylocity's core platform is built around US payroll tax, compliance, and benefits structures.
• Organizations that require transparent, publicly listed pricing before engaging sales. Paylocity uses custom quotes only, with no published price tiers.
• Small businesses with fewer than 20 employees. The platform's depth, modular structure, and implementation requirements may exceed what very small teams need.
• Companies that prioritize a streamlined, minimalist UI. Some reviewers report the dashboard can feel overwhelming during initial setup, with modules not always logically grouped.

Operational Overview

Pricing Structure

Payroll: Contact sales

• Automated and custom payroll workflows
• Global payroll support for 100+ countries
• 30+ payroll audits with automatic alerts
• Accurate, on-time tax filings
• Flexible On Demand Payment options
• Garnishment managed services
• Digital expense management

Human Resources: Contact sales

• Templated or custom workflows
• 24/7 access through self-service portal
• Compliance dashboard
• Interactive compliance training
• Centralized document management
• Position and seat level management
• HR consulting services (HR Edge)

Workforce Management: Contact sales

• Time collection via mobile, web, kiosk, or time clock
• Automated time and attendance tracking
• Schedule management with rules
• Easy shift claim and swap functionality
• Location-based clock-in with smart geofencing
• Attendance reporting and notifications

Talent Management: Contact sales

• Centralized candidate communication and recruiting
• Automated onboarding with pulse surveys
• 360-degree feedback collection
• Pre-made talent assessment templates
• Compensation management based on business goals
• 600+ pre-built L&D classes (LMS)

Benefits Administration: Contact sales

• ACA compliance tracking
• Electronic file feeds for carriers
• Employee notifications around key enrollment dates
• Dedicated benefit FAQ support groups
• Flexible benefits administration
• Expert benefit support assistance

Employee Experience: Contact sales

• Social collaboration hub (Community) with chat and file sharing
• Peer recognition with leaderboard features
• Record and share video messages
• Employee surveys with text-based sentiment analysis
• Satisfaction tracking
• Internal and company-wide communications

Finance (Airbase by Paylocity): Contact sales (add-on)

• AI-powered touchless expense management
• Corporate cards with built-in policy controls and cash-back
• Touchless AP Automation
• Guided Procurement with parallel approvals
• Headcount Planning
• Spend analytics and fraud detection

IT Management: Contact sales (add-on)

• Access Management with SSO and MFA
• Google Workspace and Microsoft Entra ID integrations
• SCIM API for custom identity provider connections
• Asset Management with CDW storefront
• Automated device returns and refresh cycles
• Lifecycle-based provisioning and offboarding

Alternative Consideration

Consider switching to ADP: ADP offers a more extensive range of services for larger enterprises.

Frequently Asked Questions

How does Paylocity compare to Paycom for mid-market payroll?

Both target mid-market companies (50-1,000 employees) and neither publishes pricing. Paycom's Beti feature lets employees manage their own payroll, while Paylocity focuses on engagement tools like Community, peer recognition with leaderboards, and video messaging. Paylocity offers a broader platform with Finance (Airbase by Paylocity for expense management, AP automation, corporate cards) and IT management (asset tracking, access management) modules that Paycom lacks. Paylocity also has 350+ marketplace integrations compared to Paycom's more closed ecosystem.

Does Paylocity support global payroll for international employees?

Yes, through its 2021 acquisition of Blue Marble Payroll, Paylocity provides integrated global payroll in 100+ countries. US-based project managers coordinate with local payroll experts in each country for statutory compliance, tax filing, and currency management. Both domestic and international payroll data appear in a single dashboard with aggregated reporting and single sign-on access. However, Paylocity's core platform remains US-centric, so companies with a primarily non-US workforce may find global-first providers more suitable.

What employee engagement features does Paylocity offer?

Paylocity includes a set of engagement tools branded as Employee Experience. Community provides a social collaboration hub with chat, file sharing, and team groups. Recognition and Rewards lets employees publicly acknowledge peers with leaderboard tracking. Premium Video enables leadership video announcements. Employee Voice delivers surveys with text-based sentiment analysis and satisfaction tracking. These features are integrated into the same platform as payroll and HR, available through the mobile app (rated 4.8/5.0 with 500K+ ratings).

What integrations does Paylocity support?

Paylocity's Marketplace includes 350+ prebuilt integrations across HR, finance, and IT categories. The IT Access Management module shows prebuilt connections to Google Workspace, Microsoft Entra ID, Salesforce, Slack, Microsoft Teams, Zoom, Asana, Monday.com, DocuSign, Zendesk, and Dropbox. The platform supports API connections (OAuth2 with webhooks), EDI, and SFTP transfers, plus a SCIM API for custom identity provider needs.

What security certifications does Paylocity hold?

Paylocity maintains SOC 1 Type II and SOC 2 Type II attestations through annual independent SSAE 18 audits, plus ISO 27001:2022 certification. The company has aligned with GDPR compliance obligations. Access Management supports SSO and MFA with prebuilt Google Workspace and Microsoft Entra ID integrations. Paylocity states it considers ethical use of AI data a core value, with security professionals holding CISSP and GIAC certifications.

What is Airbase by Paylocity and what does the Finance suite include?

Airbase by Paylocity is the Finance suite that extends the platform beyond HR and payroll into spend management. It includes AI-powered touchless expense management with receipt capture and local currency reimbursement, corporate cards (existing or Paylocity-issued) with policy controls and cash-back, Touchless AP Automation covering vendor onboarding through payment and ERP syncing, Guided Procurement with parallel approval workflows across six review stages (department, procurement, IT, InfoSec, legal, finance), and Headcount Planning for cross-team staffing forecasts.

How does Paylocity handle IT asset and access management?

Paylocity for IT connects employee data with IT systems to automate provisioning. Access Management syncs HR and IT directories to eliminate manual updates, secures access during onboarding, role changes, and offboarding, and supports SSO with MFA via Google Workspace and Microsoft Entra ID integrations or custom SCIM API connections. Asset Management tracks any employee asset (laptops, keycards, specialty tools), ties device requests into onboarding, automates returns and warranty repairs, and includes an integrated CDW storefront for hardware procurement.

What industries does Paylocity serve best?

Paylocity serves companies across 12+ named industries with specialized configurations, including healthcare, education, manufacturing, financial services, nonprofits, restaurants and hospitality, retail and wholesale, technology, transportation and logistics, government services, and churches/religious organizations. The platform supports multi-state payroll with tax geolocation for companies with employees across different US jurisdictions. Case studies include POLYWOOD (manufacturing), NWEA (education), Taco John's (restaurants), Dallas Stars (sports), and Weigel's (retail).

AI Visibility Report

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