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September 30, 2024

Top 5 ADP Payroll and HR Alternatives in 2024

Top 5 ADP Payroll and HR Alternatives in 2024

Akhil Reddy

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For any company, payroll isn't just a task—it's a critical function that keeps the business running smoothly. Whether it's bi-weekly or even weekly, ensuring employees are paid accurately and on time is non-negotiable. That's why it's important that you compare the popular payroll and HR solutions available in the market, and find the best one for your business.

So if you've been using ADP for your payroll and HR needs or considering it for the future, this blog is for you. While ADP has been a cornerstone in payroll management for decades, serving businesses of all sizes, it's not always the perfect fit for everyone. As businesses evolve and workforce structures become more complex, some companies find themselves looking for alternatives that better suit their changing needs.

In this post, we'll explore why you might need an ADP alternative and introduce you to some options that could provide the flexibility, ease of use, and scalability your business requires.

What is ADP?

ADP, which stands for Automatic Data Processing, is a leading global provider of human capital management (HCM) solutions. They specialize in three main areas: payroll, HR, and talent management. Their payroll services handle everything from tax calculations to distributing pay stubs, ensuring employees are paid accurately and on time.

They provide essential HR tools and services, including recruitment process outsourcing, background checks, and benefits administration. These services help companies streamline their HR operations, allowing them to focus more on their core business activities.

ADP also offers cloud-based software solutions for employee benefits and talent management. These tools assist businesses in attracting, retaining, and effectively managing their workforce.

Why do you Need Alternatives to ADP?

While ADP is a well-known payroll service provider, many businesses are finding reasons to explore alternatives.

User experience is a key concern. One user mentioned having to navigate through multiple drop-downs and tabs just to find the clock-in button, highlighting potential productivity issues.

One Reddit post notes that ADP has issues with user-friendliness and interface problems, which are causing significant frustration and driving the user to look for alternatives.

It shows that even when a system has good features, it needs to be easy to use, or it can cause big problems for a growing business.

Scalability presents another challenge. ADP requires different platforms for companies of varying sizes, which can disrupt operations as businesses grow. This lack of seamless transition can be time-consuming and frustrating.

Cost is a significant factor, particularly for small businesses. ADP's high fees for additional payroll runs and year-end reporting can strain tight budgets. The complexity of the system can also be overwhelming for smaller teams with simpler needs.

Implementation inconsistencies across companies pose difficulties for standardization and employee transitions. Furthermore, ADP's 4 out of 5-star rating on G2 (based on 235 reviews) suggests room for improvement compared to competitors.

While ADP offers comprehensive services, these points highlight why exploring alternatives can be beneficial. Let's explore some of the alternatives to ADP for your payroll and HR needs.

Quick Overview of Top 5 ADP Alternatives

| ADP Alternative | Key Feature | Best For | Pricing |
| --- | --- | --- | --- |
| Thera | Speedy payroll processing, great for paying contractors, offers real-time Slack support | Startups and fast-growing companies with a mix of contractors, freelancers, and employees | Starting at $10 per person monthly |
| Deel | User-friendly portal where employees can access pay info and benefits | Companies hiring both contractors and full-time employees | Ranges from $19 for basic US payroll to $599/month for full services |
| Papaya Global | Handles payments in multiple currencies and various employment types | Large businesses with complex international payroll needs | From $15 per employee monthly for basic payroll to $599/month for complete services |
| Rippling | Combines HR, IT, and Finance into one system | Small to medium-sized businesses looking for an all-in-one solution | Custom pricing - contact for a quote |
| Gusto | Offers payroll, tax management, benefits, and compliance support in one package | Medium-sized companies needing a comprehensive solution | Flexible pricing based on number of employees |

Thera

Thera is a YC-backed, all-in-one payments platform designed for fast-growing global teams, providing solutions for payroll, accounts payable (AP), and accounts receivable (AR). It simplified the complexities of managing a global workforce, particularly in terms of compliance and payment processing.

Here's how it compares to popular tools in the market —

Key features

  • Multi-currency support: Thera supports payments in various currencies, making it easier for businesses to operate internationally. This feature is essential for companies with a diverse workforce spread across different countries, as it simplifies transactions and reduces conversion fees.
  • Automated AP/AR Processes: Thera automates accounts payable and receivable processes, streamlining financial operations. This integration allows companies to manage their entire finance stack from one platform, reducing the need for multiple tools and minimizing errors that often happen with manual processes.
  • Top-notch customer support: At Thera, we provide instant support through Slack. No need to wait in a queue to talk to someone or wait 24 hours for an email reply. Just message us on Slack and get help right away. You can even include your team members in the conversation, making problem-solving quick and easy.
  • Instant payouts: Your contractors can get paid the same day, whereas ADP typically takes 2-3 days.

Pricing

Pricing structure is designed to be competitive and startup-friendly with Payroll services starting from $10/month/user and EOR prices starting from $199/month. Schedule a demo today so we can understand your requirements, show you how Thera can help you, and share a custom quote with you.

Rating on G2

Thera scores an impressive 4.9 out of 5 from 24 happy users. People love how Thera makes it easy to hire workers from around the world and pay them without hassle. Our helpful support team gets lots of praise too. Fast-growing companies find Thera perfect for building their global team.

Deel

Deel is a payroll and compliance platform to help with hiring and payments for companies employing international employees and contractors. It can help you manage global payroll, ensure compliance with local labor laws, and streamline the onboarding process for remote teams.

While ADP excels in HR and payroll services, Deel's focus on global payroll and compliance makes it a suitable choice for companies seeking to navigate the complexities of international employment.

Key features

  • Global Payroll: Deel allows companies to run payroll for their entire global workforce in 150 countries using a single self-serve platform.
  • Competitive Benefits Packages: Deel enables companies to provide attractive benefits to their global employees, including health insurance, retirement plans, life insurance, disability coverage, paid time off, parental leave, and additional perks like gym memberships.
  • HR Operations Consolidation: Deel HR brings all employee data from around the world into a single global HRIS, localizing everything from onboarding to holiday days based on location and local labor laws.
  • Performance Management Tools: It provides AI-powered products to manage goals, performance, learning development, and team satisfaction.
  • Immigration Support: Deel offers immigration expertise to help companies relocate and retain top talent with ease, handling visa processes.

Pricing

The pricing structure is straightforward, with plans starting at $49 per month for contractor management and $599 per month for the Employer of Record (EOR) service. Deel's global payroll solution starts at $29 per employee per month. This includes payslip generation, salary payments, and local tax filings. Deel's pricing is designed to be flexible, catering to startups as well as large enterprises, with the option for tailored quotes based on specific requirements.

Rating on G2

Deel has a rating of 4.7 out of 5 on G2, based on 532 user reviews. Users praise the platform's ease of use, global coverage, and customer support. Some users mention that the pricing could be more affordable for smaller teams.

Papaya Global

Papaya Global offers a comprehensive EOR solution for enterprises looking to expand globally, with dedicated local expertise, compliance, and a centralized platform for managing their entire workforce. It allows companies to hire employees in over 160 countries.

Key features

  • Comprehensive Solutions: They provide global payroll services in over 160 countries, EOR (Employer of Record) to hire and pay employees without a local entity, and contractor management for hiring, tracking invoices, and managing payments to contractors
  • Global payments: Papaya Global's platform includes a global wallet with bank-level security that enables paying employees anywhere in the world in any currency. Payments are secure, efficient, and always come through on time
  • Equity Incentive Planning: The platform offers support for setting up and administering equity incentive plans for your global workforce. Their team can help design and implement stock options, RSUs, and other equity compensation

In countries where Papaya Global does not have a local entity, they rely on third-party EOR services and experts to provide information relevant to your team members. This can create multiple touch points for you before you can resolve any query or get any help.

Pricing

Papaya Global's payroll service starts at $15 per employee per month and goes up to $25 per employee per month. This flat fee pricing model provides transparency compared to percentage-based models that can get expensive for higher salaries. Their EOR pricing at $599 per employee per month is however expensive compared to alternatives like Thera.

Rating on G2

Papaya Global has received a mixed rating on G2, with an average score of around 4.5 out of 5. Many users reported issues with invoicing, noting that the invoices lack sufficient detail, making it difficult to link specific items to individual employees. This can lead to confusion in financial management.

Rippling

Rippling is a platform designed to manage workforce needs by combining human resources (HR), information technology (IT), and finance into one system. This integration helps businesses save time and minimize mistakes, particularly as they grow and handle more employees.

Key features

  • Automation: The platform automates tasks such as onboarding, payroll processing, and compliance checks, which helps reduce manual work and errors.
  • Fast Global Payroll: The platform automatically calculates payroll details such as hours worked, expenses, and time off, making pay runs faster. Employees can expect to be paid in just 5 days in popular markets and 12 days in less common ones.
  • Compliance Automation: Rippling continuously checks for compliance issues in the background, alerting users to potential problems. This feature helps protect businesses from legal troubles and fines.

Pricing

Rippling's pricing starts at $8 per month for each user but can go up to $500 per employee per month for additional services like Employer of Record (EOR). Users can customize their plans by adding or removing features to meet their specific needs.

Rating on G2

Rippling holds a rating of 4.8 out of 5 on G2. However, some users find it expensive given its limited features. Many also report challenges in getting customer support replies, citing issues with changing account managers and unclear support channels.

Gusto

Gusto is a comprehensive payroll and HR platform primarily known for its US-focused solutions. Recently, they've expanded to offer global payroll capabilities, aiming to serve businesses with employees or contractors across multiple countries.

Key features

  • All-in-one payroll processing: Gusto simplifies payroll by letting you set salaries or hourly wages, automate payroll runs, and choose flexible schedules. It's designed to make payroll management a breeze, even for those new to the process.
  • Automatic tax compliance: The platform calculates and files payroll taxes for you, ensuring you stay compliant with federal, state, and local regulations. This feature can save you time and reduce the risk of costly tax errors.
  • Integrated benefits administration: Gusto offers a range of benefits options, including health insurance and 401(k) plans. It even provides recommendations tailored to your employees' needs, helping you create competitive benefits packages.
  • Employee self-service portal: Your team can manage their own information, view pay stubs, access tax documents, and handle PTO requests through an easy-to-use portal. This feature can significantly reduce HR administrative tasks.

Pricing

Gusto offers three main pricing tiers:

  • Simple Plan: $40/month + $6 per person
  • Plus Plan: $80/month + $12 per person
  • Premium Plan: Custom pricing

There's also a contractor-only plan with no monthly base fee, charging $6 per contractor per month.

Rating on Capterra

Gusto scores a solid 4.6 out of 5 based on user reviews on Capterra. Users praise its ease of use and comprehensive feature set, though some note that customer service can be slow at times.

Choose the Best ADP Alternative

You've seen a bunch of alternatives to ADP, and you still might be thinking about which one to go ahead with. Your ideal choice depends on your specific needs, but if you're a startup or an agency that's just hired someone overseas, give Thera a try.

What sets Thera apart is that we use it to manage our own global employees, payroll, and contractors. This means we're not just developers and designers — we're users too. We understand the challenges firsthand, which drives us to create features based on real-world experience.

What makes us different?

  1. Top-notch support: You don't waste time with generic help centers. You can join our Slack channel and get answers right away from our team.
  2. Quick payouts: With Thera, contractors get paid faster than any other platform. That leads to better work relationships and happier teams.
  3. Better take-home pay: Your contractors can earn up to 3% more with us compared to other providers. You can attract top talent and keep your team motivated.

We're proud of our 4.9 out of 5 rating on G2, backed by glowing reviews from our users. But we're not resting on our laurels. We're constantly listening to feedback and improving our platform.

As a Y Combinator-backed company, we've got the resources and the drive to keep innovating. Our mission is to make global hiring and payments so easy, you'll wonder why it was ever hard in the first place.

Schedule a demo with us, and we'll show you how Thera can help you build your dream global team.

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Elizabeth Wellington

Liz writes about business, creativity and making meaningful work. Say hello on Twitter or through her website.

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