What payroll system do most companies use?

Brenna Whitaker November 30, 2022

A SHRM-SCP certified People Ops leader with 20+ years of HR experience, Brenna brings deep expertise in company culture, strategic HR, and organizational leadership.

What payroll system do most companies use?

Here is a table of the top payroll companies in the world. This list examines size by number of clients and/or number of employees on LinkedIn. These companies often have multiple service lines, so not all of their clients are payroll service clients. Below the table, we discuss how to pick a payroll system, and how much running payroll will cost your business. 

Payroll CompanyClientsEmployees on LinkedInNotes
ADP920.000167,000Largest payroll provider in the world. 
Deluxe4.5 million *5,000*Mainly HR clients, and it could be referencing individuals. Deluxe started payroll in 2016 after purchasing Payce
Gusto Payroll200,0002,500Best known for being a quality low-cost payroll
OnPay10,000111Very transparent pay structure: $40/month base fee + $6 per person per month. Cloud payroll system with HR-add ons.
Paychex700,00016,000Second largest payroll provider. 1 in 12 private sector employees in the U.S. 
Paycor40,0002,500Paycor is an all-in-one HR and payroll system. 
Paylocity30,0004,500All-in-one platform that focuses on automation and data.
Rippling2,0001,600Great employee experience. Software service with multiple use cases.
SuccessFactors (SAP)7,0002,000Payroll in 46 countries with 1.2 billion transactions on the platform per day. 
UKG70,00012,000Over 13,000 healthcare and 5,500 manufacturing clients. 
Zenefits1,500500Notably, Zenefits does payroll for Meta. 

How do you pick a payroll platform?

Your payroll system can make a monumental difference for the time and effort it takes to process payroll. Different systems will also make it easier for your payroll compliance depending on your business type. The first thing you should do when picking a payroll service provider is to list out your top pain points caused by running payroll. If your company does not have a payroll system, list out priorities. 

As a small business, it’s important to make these decisions with the future in mind, because changing your payroll system is a hassle. The price tag should not determine your decision, because the fit is more important in the long run. Begin by looking at third party reviews. These include blogs or websites like Capterra or G2. The top payroll companies may not be the best options for your small business. This research can give you a baseline for 3-5 payroll providers your company should demo with. After listening to the demos, discuss with your stakeholders to decide the best path forward.

How much does payroll cost?

Running payroll has two main costs. The first is the payroll system. Payroll systems are typically dependent on the size of your organization. Most payroll providers charge $5-$20 per employee per month plus a base-fee. These prices increase with additional HR services. The second cost is your payroll processor. An outsourced payroll company will charge $10-$25 per employee per month. A full-time payroll specialist salary costs on average $40,000 a year plus benefits. A third option is hourly payroll processing, which can be $20-$50/hr depending on complexity. 

Need Payroll Help?

At Milestone, we have a team of seasoned payroll professionals ready to assist you in your payroll needs. Contact us today and let us take the stress of payroll off your shoulders.

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