Paycom vs. Paylocity: Payroll & HR comparison (2025)

Choosing the right payroll and HR software is one of the most important decisions a business can make. The tools you select will shape how you manage your workforce, remain compliant, and support your employees day-to-day. Two well-known options on the market are Paycom and Paylocity — but how do they really compare? And is there a better alternative out there that can meet all your needs more effectively?

In this in-depth guide, we'll explore the key capabilities, strengths, and limitations of Paycom and Paylocity. By the end, you'll have a clear understanding of which platform may better fit your organization's unique requirements.

Paycom vs. Paylocity: Feature overview

Let's start with a high-level comparison of some of the core features offered by Paycom and Paylocity:

Both Paycom and Paylocity cover the fundamentals of payroll and HR management. They offer tools for processing pay, tracking time, benefits administration, and managing talent. However, there are some noteworthy differences in their target customers, service models, and integration capabilities that we'll explore further.

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Paycom vs. Paylocity: Payroll features

At their core, both platforms aim to simplify and streamline payroll processing. But let's examine the available Paycom features and how they compare to Paylocity's offerings.

Paycom

Paycom's payroll software is built for large businesses. Here are some of its standout features:

1. Employee-driven payroll

Beti® lets employees check and fix paycheck issues before payroll runs in the Paycom app. The app guides them through finding and correcting potential problems, which means fewer mistakes and less work for human resources teams.

2. Tax handling

Paycom handles all payroll tax filings, including Forms 941, 940, and state requirements. They automatically deposit taxes when due and manage all federal, state, and local filings.

3. Expense management

Employees can also file expenses and get reimbursed through payroll. The platform streamlines the process.

Paylocity

Paylocity, on the other hand, focuses more on mid- to large-sized businesses. Its key payroll features include:

1. On-demand payment

Paylocity's on-demand pay feature lets employees access their earned wages before payday. 

2. Tax management

As an IRS-registered reporting agent, Paylocity handles tax filing requirements. They manage everything from quarterly returns to state and local annual reconciliations.

3. Global capabilities

Paylocity manages payroll for companies with employees across multiple countries. The system handles international wage calculations while ensuring compliance with local laws.

4. Expense handling

The platform includes an expense management system for submitting, approving, and reimbursing employee expenses efficiently.

Paycom vs. Paylocity: HR features

Beyond payroll, both Paycom and Paylocity offer HR tools. But again, each platform has its own unique strengths and weaknesses.

Paycom

For larger organizations looking for core HR capabilities, Paycom offers:

1. Advanced reporting

Paycom’s report center lets organizations generate reports across their workforce data. Users can build analyses with charts and graphs, plus schedule automated report delivery.

2. Learning management

Paycom's LMS offers customizable training courses for employee development. The LMS lets managers create courses, track employee progress, and foster a culture of continuous development.

3. Compliance management

The system helps organizations manage key regulations including FLSA, FMLA, EEOC, and OSHA requirements. It provides automated reporting in government-required formats and tracks compliance data across all these areas.

4. Talent acquisition

The platform streamlines recruiting and hiring with tools for applicant tracking, background checks, and employment verification.

Paylocity

For medium and large businesses seeking to streamline HR processes, Paylocity provides:

1. Employee engagement

The Community feature serves as a social collaboration hub where employees can connect, share ideas, and stay informed. Team members can interact through comments, emojis, and gifs while accessing important company updates.

2. HR expert support

Through HR Edge, clients get an HR account manager and access to a library of resources covering topics like healthcare reform, wages, employee leave, and state laws.

3. Talent management

The recruiting system streamlines hiring with modern features like QR code applications, one-way video interviews, and self-scheduled interviews. Candidates can even text to apply, making the process more accessible.

4. Employee self-service

Paylocity self service portal empowers employees with 24/7 access to their HR information through desktop or mobile apps. They can view paystubs, request time off, update personal information, and collaborate with teammates.

Paycom vs. Paylocity: Integrations

Let's also see how Paycom and Paylocity stack up in terms of integrations:

Paycom

Paycom takes a controlled approach to integrations, prioritizing their single-database architecture. They offer limited third-party integration options. This can create data silos and inefficiencies if you rely on multiple best-of-breed tools.

Paylocity

Paylocity offers nearly 400 out-of-box integrations spanning accounting, recruitment, finance, benefits management, and performance management apps. The platform also provides an API for building custom integrations, allowing businesses to connect with their existing systems.

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Paycom vs. Paylocity: Customer support

Here's how Paycom and Paylocity approach service:

Paycom

Paycom assigns a specialist to each client account, with in-house receptionists answering all calls and directing clients to the right person during business hours. When your specialist is unavailable, another team member is available to assist. 

Paylocity

Paylocity provides each client with an account manager and service team as their main points of contact. Support is available Monday through Friday from 6:00 AM to 7:30 PM Central Time by phone or email. They also maintain a knowledge base called PEAK with how-to articles, training modules, and product guides for self-service support.

Who is Paycom for?

Paycom aims to serve larger businesses that want HR and payroll in one place. Industries that often use Paycom include healthcare, manufacturing, retail, and education.

Who is Paylocity for?

Paylocity often serves midsize and large businesses. Their cloud-based platform functions as an HRIS with systems for HR and payroll. While they support organizations of differing sizes, their integrations and global payroll support in multiple countries may appeal to businesses with international needs.

Rippling: The better alternative to Paycom and Paylocity

Looking for a Paycom alternative or Paylocity alternative? Rippling goes further than traditional payroll and benefits administration, offering a complete workforce platform that unifies HR, payroll, benefits, and IT in ways other platforms haven't explored.

Some key advantages of Rippling include:

• All-in-one platform: Most HR platforms are actually a collection of separate systems stitched together. Rippling takes a different path, building everything on a single foundation of employee data. This means everything works together seamlessly without the usual headaches of data syncing or double entry.

• Advanced automation: Rippling automates routine changes like onboarding out of the box, but goes further by letting you build custom workflows for any process. When changes happen, the system automatically handles all downstream implications, from payroll taxes to app access.

• Built-in IT management: Unlike Paycom and Paylocity, Rippling includes a complete IT management suite. Need to set up a new hire with their laptop and software? Or disable a departing employee's access? Rippling handles it all automatically, keeping your HR and IT worlds perfectly in sync.

• Extensive integrations: Rippling connects seamlessly with over 600 business apps, far more than both competitors. This means your HR data flows automatically to all your essential business systems, from accounting to productivity tools.

• Global workforce management: Whether your team is spread across three countries or thirty, Rippling has you covered. The platform allows you to run payroll, manage benefits, and manage compliance with local requirements in over 185+ countries (more than Paylocity) all from one straightforward dashboard.

The bottom line? While Paycom and Paylocity are both solid HR and payroll providers, Rippling emerges as the more innovative, user-friendly, and forward-looking solution. By unifying every system and workflow in one place, Rippling helps you maximize efficiency, engage employees, and make confident business decisions.

Whether you're a small startup or global enterprise, Rippling scales with you — providing the advanced technology and expert support you need to thrive. Instead of settling for disconnected systems or "good enough" solutions, explore how Rippling can transform your organization.

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