How Much Does Paylocity Cost? Exploring the Pricing Model

Understanding Paylocity: An Overview

Paylocity Overview

Paylocity is a renowned Human Capital Management (HCM) software provider that is designed to cater to small and medium-sized businesses. The company offers a range of cloud-based services and solutions focused on simplifying HR and payroll processes.

Paylocity’s success lies in its ability to provide automated and streamlined payroll solutions. It helps organizations ensure compliance with tax laws and regulatory requirements. The software offers features such as a self-service portal, benefits administration, time and attendance tracking, employee engagement tools, talent management, and much more. By automating critical HR tasks, Paylocity enables its users to focus on more strategic initiatives. This translates to increased productivity, efficiency, and employee satisfaction.

Paylocity is known for its user-friendly interface, offering an intuitive and visually appealing dashboard that is easy to navigate. It seamlessly integrates with other solutions used by HR professionals, such as applicant tracking software, employee engagement tools, and benefits administration platforms. The platform also offers built-in mobile apps for payroll and HR tasks on the go.

Paylocity offers a flexible pricing structure based on the number of employees and the chosen package. The price for Paylocity starts at $2 per employee per month, which includes payroll processing, employee self-service, and other features. The higher-end packages offer additional features such as performance management, learning management, and recruiting modules.

In addition to its primary payroll solutions, Paylocity offers a suite of HR solutions tailored to meet the unique requirements of its clients. These additional solutions include benefits administration, talent management, employee engagement, and analytics. Organizations can opt to include these solutions in their existing package or add them later as their needs evolve.

Paylocity offers several benefits to its users, making it a popular choice for many small and medium-sized businesses. These benefits include:

  • Efficient payroll processing: Paylocity automates payroll processing, improving accuracy, reducing errors, and ensuring compliance with tax laws and regulations.
  • User-friendly interface: The platform features a dashboard that’s easy to navigate and provides an intuitive user experience.
  • Cloud-based system: Paylocity’s cloud-based system enables users to access the platform from anywhere at any time, making it an ideal solution for remote workers and distributed teams.
  • Flexible pricing plans: The platform offers flexible pricing plans based on the needs of the organization and the number of employees.
  • Scalability: Paylocity can easily scale with business growth, providing a reliable and robust HR solution for businesses of all sizes.

Overall, Paylocity is an excellent HR and payroll solution for small and medium-sized businesses looking to automate their HR processes. Its attractive pricing, user-friendly interface, and additional HR solutions make it a popular choice among organizations. With Paylocity, businesses can focus on their core objectives while leaving critical HR tasks to the software.

What Factors Affect Paylocity’s Costs?

Paylocity Costs

Paylocity provides comprehensive payroll, HR, and workforce management solutions for businesses of all sizes. The cost of using Paylocity’s services depends on several factors, including the size of your business, the number of employees you have, the services you need, and your payroll frequency. Let’s explore each of these factors in more detail:

1. Business Size

The size of your business impacts the cost of using Paylocity’s services. Paylocity offers customized solutions tailored to meet the specific needs of small, midsize, and large businesses. Small businesses can choose from a range of cost-effective payroll and HR solutions that suit their budget, while large enterprises can access enterprise-level tools and services that can streamline complex payroll and HR challenges.

2. Number of Employees

The number of employees you have is one of the key factors that determine the cost of using Paylocity’s services. If you have a small team of employees, Paylocity’s basic payroll and HR solutions could be an affordable option for you. However, if you have a large workforce, you may need to opt for Paylocity’s more advanced products, which may cost more.

Moreover, if your business has hourly or seasonal employees that require frequent updates to their pay and benefit information, this increased level of complexity can lead to additional cost. You may also incur additional fees for services such as year-end W-2s, direct deposit, and other essential options.

3. Services Required

Paylocity offers a range of payroll, HR, and workforce management services to meet the diverse requirements of businesses. The cost of using Paylocity’s services depends on which services you choose. For instance, if you need only basic payroll processing, the cost may range from $2 to $4 per employee per payroll. In comparison, if you need services such as tax filings, time and attendance tracking, and benefits administration, you may need to pay a higher fee.

The cost for Paylocity’s services is typically calculated based on a base fee plus a per-employee fee, which varies depending on the services you require. If your business needs more extensive HR services that go beyond payroll, such as hiring and onboarding, performance management, and employee engagement, you may have to pay an extra fee.

4. Payroll Frequency

The frequency of your payroll can also affect the cost of Paylocity’s services. If you pay your employees weekly or biweekly, you may incur a higher cost than if you pay them monthly. The reason being, more frequent payrolls require more administrative work and, therefore, cost more to process.

It’s crucial to consider the frequency of your payroll before selecting the best Paylocity option for your business. Paylocity typically offers flexible pricing to accommodate your business’s specific payroll frequency needs.

In conclusion, Paylocity’s pricing depends on various factors such as business size, number of employees, services required, and payroll frequency. It’s essential to understand these factors before selecting the best Paylocity product for your business to ensure that you’re getting the best value for your investment.

Comparing Paylocity’s Pricing Plans

paylocity pricing plans

Paylocity is a comprehensive human resource management solution for businesses of all sizes. Its features include recruitment management, performance analytics, benefits management, payroll, tax management, time and attendance tracking, and more.

One of the most frequently asked questions regarding Paylocity is how much it costs. The company offers different pricing plans to cater to the needs of different businesses. Here is a breakdown of Paylocity’s pricing plans.

Web Pay

Web Pay

This is Paylocity’s basic payroll processing plan, and it starts at $2 per employee per month. It includes standard features such as payroll processing, direct deposit, tax management, and employee self-service. It is suitable for small to medium-sized businesses with relatively straightforward payroll needs.

However, businesses that require additional features, such as human resource management or time and attendance tracking, will need to upgrade to other Paylocity pricing plans.

HR & Payroll

HR & Payroll

The HR & Payroll plan costs $5 per employee per month and includes all the features of the Web Pay plan. Additionally, this plan includes HR management tools such as performance management, applicant tracking, and onboarding. It also includes a compliance dashboard that helps businesses stay compliant with laws and regulations.

Overall, the HR & Payroll plan is a good choice for businesses that need more advanced features than the Web Pay plan and is more suitable for medium-sized businesses

Advanced Solutions

Advanced Solutions

This is the top-tier Paylocity plan, with pricing available only by quote. It offers all the features of the HR & Payroll plan, plus additional HR management tools such as surveys, talent management, mobile app access, and more. It is the best choice for large and complex organizations that need advanced HR solutions.

Moreover, businesses can request a free demo or consultation session with Paylocity to learn more about the Advanced Solutions plan and its pricing.

In conclusion, Paylocity’s pricing plans offer a wide range of solutions, which allows businesses to choose a package best suited for their needs and budget. From the basic Web Pay plan to the advanced Advanced Solutions, each plan can provide both small and large businesses an efficient and comprehensive HR and payroll management system.

Hidden Fees and Extra Costs to Watch Out For

Paylocity hidden fees

Paylocity has been garnering a lot of attention lately, and many people are wondering whether it’s worth the investment. While there are many benefits to using Paylocity, such as reliable payroll processing and a user-friendly interface, it’s essential to be aware of any hidden fees and extra costs before deciding to sign up for their services.

Here are some of the hidden fees and extra costs you should keep an eye on when using Paylocity:

1. Implementation fees

Paylocity implementation fee

Before you start using the Paylocity platform, you’ll need to pay an implementation fee. This fee varies depending on factors such as the size of your company and the complexity of your payroll. Paylocity does not publish their implementation fees on their website, which can make it challenging to budget for this initial cost.

However, Paylocity does offer a free demo of their platform, which can help you understand the system better before signing up.

2. Additional modules and services

Paylocity additional services

Paylocity offers a wide range of additional modules and services that can improve your payroll processing experience. However, many of these modules and services come at an extra cost.

For example, you’ll need to pay extra for their benefits administration module, which allows you to manage employee benefits, such as health insurance and retirement plans, through the Paylocity platform. Additionally, Paylocity offers employee engagement and feedback tools that can help improve company culture and productivity, but these services require an additional fee.

3. Contract renewal fees

Paylocity contract fees

Paylocity requires you to sign a contract when you first sign up for their services. This contract typically lasts for a year, after which you’ll need to renew your contract to continue using their platform.

When you renew your contract, you may be charged a renewal fee. This fee can vary depending on your contract, but it’s essential to be aware that this cost may be incurred when signing up for Paylocity.

4. Processing fees

Paylocity processing fees

Paylocity charges processing fees for each pay run you process through their platform. These fees are typically a percentage of your total payroll and can add up quickly, especially if you have a large workforce.

It’s important to budget for these fees when considering Paylocity as a payroll processing option. Paylocity does offer affordable processing fees compared to other platforms, but it’s essential to be aware of this cost when considering their services.


Paylocity conclusion

While Paylocity offers many benefits to its users, it’s crucial to understand the hidden fees and extra costs that may come with using their platform. By being aware of these costs, you can make an informed decision when choosing a payroll processing system for your company.

It’s worth noting that Paylocity does offer transparent pricing and excellent customer support. Additionally, their platform can help you improve your payroll processing efficiency and accuracy. By weighing the pros and cons of Paylocity, you can decide whether their services are right for your business.

How to Determine if Paylocity is Cost-Effective for Your Business


Paylocity is a cloud-based payroll and human resources software that provides businesses with a variety of tools to streamline their HR processes. However, investing in a payroll service can be a significant expense for small and medium-sized businesses. So, how do you determine if Paylocity is cost-effective for your business? Below are five factors to consider.

1. Company Size

Size of your business

The size of your business is one of the most critical factors when determining if Paylocity is a cost-effective solution for your business needs. Paylocity typically caters to medium to large companies with more than 50 employees, as smaller companies may not have a need for all of the features provided by the software. However, if you have a growing business, Paylocity might be worth considering from the get-go.

2. Industry and Complexity of Payroll

Industry and Complexity

The nature of your business and the complexity of your payroll are also essential factors to consider. Paylocity can be beneficial to businesses in industries such as healthcare, finance, and hospitality, where regulations and compliance requirements can be complex. If your payroll involves complex payouts such as commissions, bonuses, and reimbursements, Paylocity can help automate the process and ensure accurate payments every time.

3. Number of Payroll Processing Runs

Number of Payroll Processing Runs

The number of payroll processing runs is another crucial factor when determining if Paylocity is worth the cost. Businesses that have weekly or bi-weekly payroll processing runs might find the price tag a bit steep, especially if they only have a few employees. However, if your business has multiple locations, hourly employees, or a high turnover rate, Paylocity can help automate the process and save you time and money in the long run.

4. Scalability


One of the significant benefits of Paylocity is its scalability. As your business grows, you can quickly add more employees, locations, and departments to the software without incurring additional costs. This feature is especially essential for businesses with high employee turnover rates or those that are rapidly expanding.

5. Additional Features

Additional Features

Paylocity offers many additional features beyond payroll processing, such as onboarding, timekeeping, and benefits administration. Depending on your business needs, these features can be a value-add and can justify the cost of the software. For example, if your business has struggled with manual onboarding or tracking employee time, Paylocity can streamline these processes and ultimately save you money in the long run.

In conclusion, determining if Paylocity is cost-effective for your business requires careful consideration of several factors, including your company size, industry, payroll complexity, number of payroll processing runs, scalability, and additional features. By weighing these factors against the cost of the software, you can decide whether Paylocity is a smart investment for your business.

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