How Much Does ADP Payroll Cost?

Last Updated on May 29, 2024
Written by CPA Alec Pow | Content Reviewed by CFA Alexander Popinker

As one of the largest and most well-known payroll services, ADP offers powerful solutions for businesses to handle payroll, HR, benefits, and talent management. But with costs starting at $79/month plus $4 per employee, it’s essential to understand ADP’s pricing models based on your needs.

This comprehensive guide breaks down ADP’s standard payroll plan costs, influencing factors, real-world pricing examples, available discounts and promotions, comparisons to competitors, and tips to control costs. Read on for an in-depth look at everything that goes into ADP payroll pricing.

Highlights

• ADP Payroll plan fees start at $79/month plus $4 per employee, with custom pricing for enhanced features.
• Costs scale with number of employees, locations, features, customization needs, and integrated HR services.
• Discounts available for annual billing, bundles, non-profits, and promotional offers.
• Alternatives like Gusto, OnPay, and QuickBooks can provide lower pricing for simpler needs.
• But ADP delivers full payroll, HR, benefits, and talent management in a unified platform.

How Much Does ADP Payroll Cost?

ADP offers four main payroll tiers plus the ability to customize with add-ons:

Essential Payroll

• $79 per month base fee
• $4 per employee per month
• Core payroll, tax filing, direct deposit, check printing
• Employee self-service portal
• Mobile access

Enhanced Payroll

• Custom pricing
• Everything in Essential
• Unemployment insurance
• Labor law poster compliance
• Background check integration

Comprehensive Payroll

• Custom pricing
• Everything in Enhanced
• Custom reports
• HR guidance and resources
• Benefits enrollment
• Employee performance tools

HR Pro Package

• Custom pricing
• Everything in Comprehensive
• Legal services
• Custom employee handbook
• Enhanced benefits management
• Employee discount programs

MarketWatch provides insights into ADP Payroll pricing, stating that the Roll by ADP plan is an affordable option at $29 a month plus $5 per employee. For other ADP plans, businesses can get a custom quote by contacting an ADP sales representative. The pricing structure allows businesses to choose between paying for their plan monthly or annually, providing flexibility based on their needs.

Forbes offers a detailed breakdown of ADP Payroll plans and pricing. The Essential plan starts at $79 per month plus $4 per employee, catering to businesses seeking basic payroll tools. The Enhanced plan includes additional features like state unemployment insurance management and labor law poster compliance. The Complete plan combines payroll processing with basic HR features, while the HR Pro plan offers enhanced HR help desk support and additional HR training features.

The pricing for each plan is customized based on the number of employees and the complexity of business needs, with businesses required to complete an online form or speak to a sales representative to get a quote tailored to their requirements.

Wise explains that ADP Payroll pricing is not publicly disclosed, and businesses need to contact ADP directly for a custom quote based on their specific needs. The pricing varies depending on factors like the number of employees, types of services required, states where employees are located, and payroll frequency.

ADP offers multiple plans for small businesses with 1-49 employees, including the Essential, Enhanced, Complete, and HR Pro plans. Each plan offers different features and services, with the Essential plan starting at $79 per month plus $4 per employee. The pricing structure allows businesses to select a plan that aligns with their payroll and HR needs, providing a tailored solution for effective payroll management.

Pricing factors include number of employees, locations, and complexity of payroll needs. Exact costs for Enhanced, Comprehensive, and HR Pro require quotes.

ADP Payroll and HR Services

Founded in 1949, ADP provides payroll, HR, benefits, time and attendance, and talent management software and services to over 810,000 businesses worldwide. Core features include:

• Automatic payroll tax filings, payments, and direct deposits.
• Full payroll reporting and insights.
• Employee self-service portal.
• Benefits administration: health insurance, retirement plans, workers’ comp, and more.
• Time and attendance tracking.
• HR services for labor compliance, handbooks, performance management, and more.
• Onboarding, training, and talent development tools.

This comprehensive suite aims to handle all payroll, HR, and talent needs in a unified platform. Understanding ADP’s pricing tiers allows you to choose the right level of features for your business.

You might also like our articles about the cost of Paychex Payroll services, Ace Cash Express services, and H&R Block.

Factors That Influence ADP Payroll Pricing

The main variables that affect total ADP payroll costs include:

Number of Employees

• More employees means higher monthly fees.
• Packages customized based on employee count.

Plan Tier and Features

• Higher tiers with more features have greater costs.
• Must assess features needed.

Add-Ons

• Additional services like insurance, retirement plans, recruiting, and time tracking add costs.
• Bundling add-ons can provide discount.

Payroll Customization

• More complex needs for multiple locations, job types, and pay rules increases costs.

HR Services

• Extensive HR functionality adds significantly to costs.
• Can bundle HR with payroll for potential savings.

Industry and Compliance Factors

• Specialized capabilities needed for restaurants, retail, healthcare etc. add costs.

Pricing Examples for ADP Payroll

To understand how costs add up, here are two real-world ADP pricing scenarios:

Small Business Payroll Plan

A company with 10 employees wants basic payroll. Their ADP solution includes:

• Essential Payroll plan
• 10 W2 employees
• $79 monthly base fee
• $40 for 10 employees
• $119 per month total

Keeps costs low for essential payroll services.

Mid-Sized Company Integrated Package

A 100 employee company wants full payroll, HR, and benefits:

• Comprehensive Payroll plan
• Full HR functionality
• Health insurance
• Retirement plans
• Custom reporting

Roughly $1,000 per month with all integrated services and employees.

Bundling services and more employees equals higher yet more comprehensive costs.

Ways to Save Money on ADP Payroll

While ADP is competitively priced, they offer money-saving opportunities like:

Annual Billing Discounts

• Paying annually reduces base plan fees up to 10%.

Introductory Offers

• Special deals like 2 months free for new customers.

Bundled Service Packages

• Bundling payroll, HR, and benefits results in discount pricing.

Non-profit Discounts

• Special discounted pricing available for registered 501(c)(3) non-profits.

Early Renewal Discounts

• Extend service early to earn a discount off each monthly bill.

Evaluating all options helps optimize costs for your payroll needs.

Alternatives to ADP Payroll Pricing

When estimating costs, it helps to compare options:

Gusto

• Starts at $39/month + $6 per person
• Integrated payroll, benefits, HR
• More affordable for very small businesses

OnPay

• $36 per month + $4 per employee
• $10 monthly base for 1099 contractors
• Low fees for just payroll

Paychex Flex

• Starts at $41 per month
• $2.50 per employee
• Slightly cheaper than ADP for payroll alone

QuickBooks Payroll

• Starts at $25 per month + $4 per employee
• For simplest DIY payroll needs
• Lacks full-service HR

While ADP provides a full suite of payroll, HR, and talent tools, other standalone or integrated platforms exist at competitive price points for simpler needs.

Controlling ADP Payroll Costs

When evaluating ADP, keep these tips in mind to control costs:

• Only select the features and tools truly needed rather than paying for unneeded add-ons. Start basic.
• For multi-location businesses, the consolidated ADP platform may be cheaper than multiple disjointed solutions.
• Compare pricing tiers in detail to determine the optimal balance of functionality and cost.
• For largest savings long-term, annual billing, bundled services, and renewal discounts help lower overall fees.
• Integrated HR functionality may cost less through ADP than standalone systems when bundled with payroll.

Final Words

With various packages tailored to any business size, ADP provides a scalable payroll solution at reasonable costs, with discounts helping offset higher-end plan fees.

Frequently Asked Questions

Below are answers to some frequently asked questions about ADP payroll costs and competitor comparisons.

Is Paychex or ADP more expensive for payroll?

ADP and Paychex have very similar payroll pricing, making them competitively priced options. Both start around $40-$45 monthly for essential payroll services for 10 employees. Paychex offers a lower $29/month starter plan, while ADP provides more HR services at higher tiers. For basic payroll, they are comparably priced, so features and needs should drive selection.

How much does ADP Workforce Now cost?

ADP Workforce Now packages robust payroll processing with advanced HR tools for benefits, talent, and performance management. Pricing is customized based on company size and needs, but small businesses can expect to pay $100 – $150 per month for Workforce Now for up to 50 employees. Mid-size and larger firms will pay more for the full-suite platform and extensive HR features.

What percentage of businesses use ADP payroll?

With over 810,000 payroll clients, ADP currently handles payroll for around 12% of businesses in the U.S. ADP is the payroll processor for an estimated 1 in 6 employees in the private sector, thanks to their strong brand, HR integrations, and flexibility. Their market share and focus on an integrated suite makes ADP a trusted payroll provider for businesses nationwide.