ADP Payroll Review: Should You Use It?

Dealing with growing workforces can be problematic without a proper, dedicated HR process. As a result, many companies are now moving from in-house to cloud-based online HR systems. Mostly because they’re faster, more convenient, and more efficient. Payroll services like ADP Payroll automate a lot of redundant tasks while saving you time, money, and resources.

With so many SaaS companies and products in the market, it’s hard to make the right choice for your business.

For that reason, I’ve put together this complete review to help you find out whether ADP Payroll will be a good fit for you, or not.

About ADP Payroll

ADP Payroll is one of the biggest payroll processing, Human Capital Management (HCM), and HR services providers in the United States. The company currently has over 700,000 customers across the country.

In addition to being a payroll software, ADP also provides benefits administration and onboarding for new hires, among other services. The company initially started to provide payroll solutions to small business owners around 71 years ago, but transitioned into a cloud-based HCM software. Over time, ADP became a leader in business outsourcing, compliance, and analytics too.

Headquartered in Roseland, New Jersey, ADP is used by almost every 6th business in the US. Until 2014, ADP was one of 4 S&P 500 companies to have AAA credit rating from both Moody’s and S&P.

ADP Workforce Now and Payroll Pricing

You won’t find any direct pricing on ADP’s website. You will have to request a quote from a salesperson, who will provide you with a custom plan that’s best suited for your business.

The typical costs include a $25 set-up fee. You also get charged every time you run payroll, whereas, rnning payroll is usually part of the package with other small business payroll services.

ADP services are divided into three main categories based on the number of employees you have. The first is RUN, which is designed to cater to up to 49 employees. You get full payroll processing, direct deposits, tax filing, electronic payroll reports, and garnishment payment.

ADP Workforce Now is for companies with 50-999 employees. You get all the RUN features along with compliance reports, time and attendance tracking, and country-based record keeping. You also get the ACA (Affordable Care Act) compliance assistance.

The third and most expensive option is ADP’s Vantage HCM, designed for large companies with more than 1000 employees. It has all the Workforce Now features along with recruitment and talent management. There’s also employee scheduling and employee record-keeping.

There are also extra charges involved if you offer health care benefits. You can also add worker’s compensation insurance and other HR services and benefits to the mix.

ADP Payroll Services and Features

While ADP Payroll is primarily a payroll processing service, it also serves as an HCM software. Which means it has a wide variety of features that take care of all-things HR.

The following are some of the more noteworthy features.

Complete Payroll Suite

ADP features a fully automated payroll. Even adding in new employees is a simple 5-minute task. All you need to do is add their hours, pay dates, and pay scales.

You can also add messages in the paystubs for your employees. Plus, with the options of time cards and timesheets, it’s easier to calculate things like PTO.

User-Friendly Dashboard

The dashboard is designed to have a short learning curve so anyone can get used to it quickly. There are quick-access buttons on the homepage. The straightforward interface not only looks easy to use, but is also designed to save time.

Anyone using ADP Payroll can access all the features using the dashboard. And the dashboard can be accessed on any device with an internet connection, since the software is entirely cloud-based.

Employee Management

ADP has built-in talent management and recruitment management features. It’s made to let you manage all employees, part-time employees, and contractors from one interface.

Through it, you can add job titles, time off, payment information, tax documents, and benefits. You can also track and take care of any additional garnishments, earnings, and deductions.

Employee Self-Service Portal

There is a dedicated employee self-service portal where employees can have their own logins. They can use it to access their pay stubs, tax information, and any additional information provided.

If you have opted for additional HR features, employees can also access them. You can also choose which employees get access and to what extent.

Refined Payment System

ADP lets you use both direct deposits and cash cards to pay employees. However, there may be extra fees involved.

Furthermore, employees can get a list of their paystubs in PDF form from the employee portal. All the payment information is automatically updated across all systems. If you pay employees through checks, you can print the checks, too.

Time Tracking

A key part of running payroll is keeping track of the hours worked. ADP’s time-tracking feature integrates with time-tracking programs to record all employee record, which are updated in the payroll database.

Benefits Administration

Limited to only top plans, you can provide benefits through ADP payroll. Additionally, you can also provide insurance and retirement benefits, but only through ADP partners.

Tax Support

ADP Payroll provides full tax support by calculating, withholding, and paying all relevant taxes. It also provides all relevant tax forms and updates on any new laws or compliances. ADP also supports I-9s, 1099s, and W-2s. If you get your employees to e-sign their forms, they can access and download their year-end tax documents, too.

ADP Payroll Pros and Cons

ADP Payroll is a complete human resource and payroll solution for companies of all sizes. However, customized plans mean that the more money you’re ready to invest, the better service you get. With that being said, ADP still has its pros and cons.

ADP Pros

The following are some reasons why ADP Payroll wins over others.

  • Advanced payroll processing and full HR-suite ensure all HR-related processes are automated.
  • Extended employee management ensures talent and recruitment management.
  • Full employee access ensures that employees can check and update their records.
  • Full-range payroll features take care of payroll taxes, payroll data, and other tax forms.
  • Excellent customer support ensures that your business is set-up and running smoothly.
  • There are several video tutorials available for guidance with the software.
  • There is a fully optimized ADP mobile app available on both Android and iOS mobile devices.

The best part about ADP is that it has different tiers for all kinds of companies. If you’re a fast-growing IaaS, PaaS, or SaaS company, you won’t have to change your payroll provider. You can just upgrade your tier/plan.

ADP Cons

The following are some reasons why you may be better off utilizing a different software.

  • ADP doesn’t disclose any prices online. You have to contact a company representative and receive a custom quote.
  • There are many additional fees that are not disclosed. For example, every time you run payroll, there is a fee.
  • Integration with other software like QuickBooks is not optimized.
  • Users have reported issues with time-off policies.
  • A lot of the HR features are additional. That means you have to pay more to use them.

If you have a query, ADP’s FAQs provide little help. They encourage you to always get on customer support if you have any issues, which may be an upselling strategy.

Is ADP Payroll Worth it?

ADP Payroll is a good investment if you intend on keeping the same software throughout your company’s growth. Because ADP caters to companies of all sizes, you just have to upgrade your package. This would save the hassle of moving to another software.

Plus, with all the additional features, you practically have your HR department in your pocket. While there are certain drawbacks, the pros outweigh the cons, especially if you have decent financial resources.

Josh Fechter
Josh Fechter is a business strategy consultant and founder. He's written several world-recognized books on software configuration, speaks Spanish, ballroom dances, and owns The Product Company and Squibler.