Key Takeaways
- Paylocity is a cloud-based HRIS solution designed to boost efficiency.
- It is suitable for mid-sized companies with 50 to 1000 employees.
- The average cost of the platform ranges between $22 and $32.
- Pricing is based on a Per-Employee-Per-Month (PEPM) model.
- The platform supports payroll automation in 100+ countries.
- It is beneficial for HR, IT, and finance departments looking to simplify critical functions.
- Features can be customized based on the needs of the organization.
About Paylocity
The right payroll and HR software can significantly improve an organization’s efficiency. Paylocity is a cloud-based software that offers several features for streamlining payroll, HR functions, and employee management, ultimately boosting overall operational output. The platform handles several major functions, such as payroll processing, crucial HR operations, and workforce management, offering many administrative benefits to employees. The best part about this tool is its mobile accessibility, allowing HR professionals and other stakeholders to work from anywhere at any time. This makes it an ideal solution for organizations with remote or hybrid work models.
How Much Does Paylocity Typically Cost?
The pricing of the Paylocity software is based on a Per-Employee-Per-Month (PEPM) model. This means that the platform charges you a recurring fee for every employee in your organization every month. The cost per employee is between $22 and $32, with the total amount depending on the size of your organization and the features you have selected.
Understanding The Paylocity Pricing Model
Paylocity uses a PEPM pricing model, which means that the overall cost is determined by the features selected and the number of employees using the tool. Based on these factors, the tool offers you a custom quote for your monthly charges. This pricing model stands out among the HR tools on the market due to its flexibility. While other pricing models may involve a fixed fee along with an additional charge per employee, Paylocity allows you to pay only for the features you choose to use, providing you with greater control over your expenses.
Core Features And Modules That Affect Pricing
Paylocity helps HR, IT, and finance professionals simplify their operations. Let’s examine the core features of the platform:
Payroll
The platform automates and customizes the payroll workflow, with its features supporting over 100 countries. It also offers on-time and accurate tax filing and digital expense management. Additionally, it offers more than 30 payroll audit features with automatic alerts to ensure compliance with various regulations.
Human Resources
Paylocity helps HR professionals stay aligned with industry best practices. It offers 24/7 access to a self-service portal, allowing HR professionals to work at their convenience. It also features easy onboarding and offboarding, helping professionals save time. The platform includes centralized document management features, allowing organizations to simplify their document storage. It also includes a compliance dashboard and interactive training feature, enabling organizations to ensure their operations meet regulatory standards and internal policies.
Benefits Management
This feature provides employees with extensive benefits support. It includes tracking for ACA compliance, allowing employees to access information related to their healthcare coverage. Additionally, it notifies employees about important enrollment dates and offers a dedicated FAQ section to help clarify any questions they may have.
Talent Management
Paylocity also acts as a centralized employee communication platform. It offers automated pulse surveys that allow management to understand the wants and needs of their employees. It also features training models for onboarding, which simplify the entire process, and 360-degree feedback collection to ensure transparency in the organization.
Workforce Management
The tool’s workforce management feature improves overall productivity within the organization. It automates attendance tracking and monitors each employee’s work hours. It also includes smart geofencing capabilities, which benefit organizations with hybrid and remote work models.
Additional Charges
In addition to the core features, several other factors can influence the overall price of Paylocity:
Customization
The software offers extensive customization options, which can lead to higher prices. For instance, if you want advanced reporting features, complex workflow management, or any other highly customized feature, these features drive up the overall cost.
Contract Length
Businesses that want to commit to a long-term partnership with Paylocity can unlock better pricing, making the platform more cost-effective over time. With this commitment, you receive consistent priority support, and the company values your loyalty by providing favorable quotes. Additionally, Paylocity may be able to accommodate special requests tailored to your unique needs.
What Types of Companies Are Best Suited for Paylocity?
Paylocity is a mid-market HRIS. This means the platform is best suited to organizations with 50 to 1000 employees. It is designed to meet the needs of a mid-sized company, but its capabilities can be expanded as required. It is important to know that implementation can take some time. The average time to implement a mid-market HRIS is between 3 and 6 months. The process includes planning, configurations, data migration, training, trials, and post-launch optimization.
How To Estimate Your Paylocity Costs
By now, you know that several factors determine the overall cost of your Paylocity software. Let us look at how to estimate the implementation cost:
- Determine Your Employee Count
Paylocity pricing is based on a PEPM model. Hence, your monthly fee will be higher if your employee count is higher. - Identify Needed Features
Evaluate the features you need in your software. Are you looking for easy talent management, employee benefits management, payroll management, or streamlined onboarding? The options vary, and the total cost will depend on the number and complexity of the features you choose. - Research Industry Estimates
According to industry research estimates, Paylocity pricing plans range between $22 and $32 PEPM. So, take this as the base and expect a higher rate for additional features. - Compare With Alternatives
As an informed buyer, always compare the prices offered by Paylocity with those of other tools. This will ensure that the price you are paying is justified. - Consult Reviews And Case Studies
Look for reviews and case studies shared by real users. This will give you a better idea of the actual pricing and whether it is value for money.
Pros And Cons Of Paylocity
Like every software, Paylocity has advantages and disadvantages. We have listed them below.
Pros
- The tool supports global payroll in over 100 countries.
- It provides on-demand pay options, which means you pay for what you want.
- It is a centralized platform for communication and employee engagement.
Cons
- Employees may need some time to learn and adapt to the platform’s features.
- Some customers have reported slower response times and difficulty reaching the customer service department.
- Some users even suggest that Paylocity works best for organizations with 130 to 150 employees. Organizations with more employees have witnessed issues with efficiency.
- The implementation can take longer than expected, impacting an organization’s workflows.
Summing Up
If you are looking for an HRIS solution, Paylocity is an excellent choice. It is among the leading platforms in the mid-market space and offers strategic solutions that streamline an organization’s core functioning. This tool will significantly change how you track your employees if you have a remote or hybrid workforce. It also simplifies complex payroll structures and is excellent if you have a high volume of frequent hirings. The best part is that it streamlines feedback collection, making the work environment more transparent.
References:
Understanding Paylocity’s Pricing: A Complete Breakdown
How Much Does Paylocity Cost? A Complete Pricing Breakdown 2025
FAQs
The platform’s pricing is based on a PEPM model. Hence, the total cost depends on the number of employees working in your organization. Additionally, the overall price will vary based on the specific features and modules selected. The estimated cost typically ranges from $22 to $32 per employee, but this amount may change depending on the factors mentioned.
Paylocity offers a range of comprehensive suites that include HR management, payroll automation, workforce management, talent management, expense management, accounts payable automation, asset management, and much more. Various departments, including IT, finance, and HR, can use it to streamline their operations.
Paylocity is best suited for mid-market organizations, meaning companies with 50 to 1000 employees can benefit from using the tool, and its features are designed to accommodate these businesses’ needs.