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Payroll software review

Paylocity

Payroll and HR platform sold by quote, with federal, state and local tax filing, On Demand Pay and a two-year standard order term.

By PaylocityParent company: Paylocity Holding Corporation

RTC SCORE

4.6

#19 of 22 with enough data

Our verdict

A full HR suite with local tax filing and broad integrations, built for groups that will use more than payroll. For a 15-person restaurant, the quote-only pricing, two-year term and 50% termination fee weigh against it.

What we like

  • Files and pays federal, state and local payroll taxes in all 50 states, as an IRS-registered reporting agent.
  • On Demand Pay comes in every small-business plan at no cost to you (the employee pays per advance).
  • Toast sends punches with tip data into Paylocity Time & Labor.
  • Unlimited pay runs, electronic garnishments and new hire reporting are included.
  • Phone support Monday to Friday, 6:00 a.m. to 7:30 p.m. Central Time, with an account manager.

What to watch

  • No published prices: base fee, per-employee fee, setup and year-end forms are all by quote.
  • Standard order term of two years with automatic one-year renewals (60 days' notice) and an early termination fee of 50% of the remaining months.
  • Time tracking and scheduling are not in the payroll-only plan; tip pooling needs a partner app.
  • After you leave, access to your records costs $5 per user a year (minimum $1,000) for up to one year.

How the score breaks down

RTC Score4.6out of 10

Methodology v0.1.0

Data completeness80%

We could verify 80% of the scoring data

Strongest points
Who files payroll taxes, Payroll in all 50 states, Unlimited pay runs
Weakest point
POS integrations

Score by criterion

  • 12-month payroll cost (reference restaurant)Weight 19%No data
  • Who files payroll taxesWeight 7%Strongest10.0 out of 10
  • POS integrationsWeight 6%Weakest1.4 out of 10
  • Published pricingWeight 5%0.0 out of 10
  • Tip credit and minimum wage make-upWeight 5%3.0 out of 10
  • Tips imported from POS systemsWeight 5%1.4 out of 10
  • 2026 W-2 ready for No Tax on TipsWeight 5%0.0 out of 10
  • Initial termWeight 5%5.0 out of 10
  • Live support hours a weekWeight 5%4.0 out of 10
  • Payroll in all 50 statesWeight 4%Strongest10.0 out of 10
  • Time trackingWeight 4%5.0 out of 10
  • FICA tip credit (Form 8846)Weight 3%5.0 out of 10
  • Tip pooling and tip-outsWeight 3%5.0 out of 10
  • Early termination feeWeight 3%2.5 out of 10
  • Unlimited pay runsWeight 3%Strongest10.0 out of 10
  • Fastest direct deposit includedWeight 3%6.0 out of 10
  • Tax penalty guaranteeWeight 3%10.0 out of 10
  • Year-end W-2 and 1099 formsWeight 2%5.0 out of 10
  • Accounting integrationsWeight 2%10.0 out of 10
  • Notice to avoid renewalWeight 2%5.0 out of 10
  • Garnishments and new-hire reportingWeight 2%10.0 out of 10
  • Declared cash tipsWeight 2%10.0 out of 10
  • State and local minimum wages built inWeight 2%No data
  • Dedicated specialistWeight 2%10.0 out of 10
  • Paying 1099 contractorsWeight 1%10.0 out of 10
  • Early pay for employeesWeight 1%5.0 out of 10

All the data, with sources

Each value links to its source. "Not published" means the vendor doesn't disclose it; "Unconfirmed" means we looked and couldn't confirm it. Data points we have for fewer than four vendors are left out until we can compare them.

Pricing
Data pointValue
Base feeQuote only()Source: Paylocity (opens in a new tab)Paylocity publishes no prices; the pricing page asks you to request a quote. Its 10-K says recurring fees include a base fee plus a fee per employee and per product. A public order from October 2025 for a 112-employee public agency showed a $100 monthly base for its full HR bundle; that is one negotiated quote, not a list price.
Per employeeQuote onlySource: Paylocity Holding Corporation (SEC) (opens in a new tab)Quote only. In the public October 2025 order (112 employees, full HR bundle with time tracking, HR and recruiting) the rate was $20.66 per employee a month; a payroll-only plan for 15 employees will be priced differently, so we don't use it in the calculator.
Who counts as an employeeEach active employee, even if not paid that monthSource: Paylocity (order published by the Greater Salt Lake Municipal Services District) (opens in a new tab)You pay each month for every employee record that is not terminated, whether or not that person was paid that month. The Subscription Agreement counts contractors in the same headcount.
Per contractor (1099)Quote onlySource: Paylocity (agreement published by Tippecanoe County, Indiana) (opens in a new tab)Contractors with an active record count in the same per-person fee, which is quote only.
Published pricingQuote only()Source: Paylocity (opens in a new tab)The pricing page and the small-business plans (Express, Enrich, Elite) only offer a demo or a quote.
Setup feeQuote onlySource: Paylocity Holding Corporation (SEC) (opens in a new tab)Paylocity charges a one-time implementation fee set in each quote. In the public October 2025 order it was $5,000 for the bundle plus $4,500 to import payroll history, non-refundable and due when you sign.
Year-end forms feeQuote onlySource: Paylocity Holding Corporation (SEC) (opens in a new tab)Year-end forms are billed separately. The public October 2025 order charged $50 plus $7 per W-2 or 1099, and $25 plus $1.50 per Form 1095.
Each extra stateNot publishedSource: Paylocity Holding Corporation (SEC) (opens in a new tab)Paylocity doesn't publish a charge per extra state. The public October 2025 order had no per-state line, but listed $200 per tax registration as a usage fee.
Other feesPublished in Paylocity's terms: $100 if the funds for a payroll aren't in your account one banking day before the check date; 1.5% a month on late payments; extra fees for data corrections, amended returns and emergency payments; after you leave, access to your data costs $5 per active user a year (minimum $1,000). Usage fees in the public October 2025 order: $9.25 managed garnishment, $200 tax registration, $20 next-day delivery, $6 split pack. Employees pay $1.25 per On Demand Pay advance.Source: Paylocity (opens in a new tab)
Taxes and forms
Data pointValue
Who files payroll taxesThe provider calculates, files and pays federal, state and local payroll taxesSource: Paylocity (opens in a new tab)Tax filing and payments are included in every small-business plan (Express, Enrich and Elite). The 10-K adds that Paylocity's tax teams make the deposits, file quarterly and annual returns and handle tax notices.
Payroll in all 50 statesYesSource: Paylocity (opens in a new tab)
Year-end W-2 and 1099 formsPrepared and filed for an extra chargeSource: Paylocity Holding Corporation (SEC) (opens in a new tab)Paylocity prepares and files W-2 and 1099 forms for a yearly charge; see the year-end fee.
Paying 1099 contractorsIncluded in payroll plansSource: Paylocity (agreement published by Tippecanoe County, Indiana) (opens in a new tab)Contractors are paid in the same payroll and counted in the same headcount; the 1099 is billed with the year-end forms. Contractors do not have a separate plan of their own.
Tax penalty guaranteePays penalties caused by its own errorsSource: Paylocity (opens in a new tab)Paylocity's site says it takes liability for its own errors, but the Subscription Agreement we found (v29, February 2024) says paying any IRS or state penalty is the client's responsibility. Ask for this in writing in your contract.
Garnishments and new-hire reportingIncludedSource: Paylocity (opens in a new tab)The plan comparison marks Electronic Garnishments and New Hire Reporting in all three small-business plans. The managed garnishment service, where Paylocity handles the orders for you, is billed per use ($9.25 each in the public October 2025 order).
Paying your team
Data pointValue
Pay schedulesWeekly, Every two weeksSource: Paylocity (opens in a new tab)The public help pages we could read name weekly and biweekly payrolls; the frequency is chosen at setup. Semimonthly and monthly are not listed in the public pages we found (the full help center needs a login).
Unlimited pay runsYesSource: Paylocity (order published by the Greater Salt Lake Municipal Services District) (opens in a new tab)Listed as included in the public October 2025 order; Paylocity's site doesn't publish a limit.
Fastest direct deposit includedTwo business daysSource: Paylocity (opens in a new tab)Paylocity debits your account one banking day before the check date and needs the funds there two business days before it. It publishes no same-day or next-day option.
Early pay for employees (earned wage access)Offered; the employee pays a feeSource: Paylocity (order published by the Greater Salt Lake Municipal Services District) (opens in a new tab)On Demand Pay is included in every small-business plan at no cost to you; the employee pays a fee per advance ($1.25 in the October 2025 order).
Tips
Data pointValue
Imports tips from these POS systemsToastSource: Toast (opens in a new tab)Toast sends punches with tip data into Paylocity Time & Labor, a module of the Enrich plan or above. Paylocity's own Square and Lightspeed (R-Series) listings only send employee data from Paylocity to the POS. Other POS can reach Paylocity through TipHaus or 7shifts. We found no Clover, Shift4 POS, SpotOn or Heartland listing.
Tip pooling and tip-outsThrough an integrationSource: Paylocity (opens in a new tab)Tip pooling is done in partner apps (TipHaus, Gratuity Solutions, 7shifts) listed in Paylocity's marketplace; Paylocity documents no tip pooling of its own.
Tip credit and minimum wage make-upClaimed, without documented mechanicsSource: Paylocity (opens in a new tab)Paylocity markets tip and wage compliance tools but its public pages don't document how a tipped employee's pay is topped up to the minimum wage.
FICA tip credit (Form 8846)Gives you a report for itSource: Paylocity (opens in a new tab)Paylocity has a FICA Tip Credit report; it doesn't say it prepares Form 8846, which you file with your income tax return.
Declared cash tipsYesSource: Paylocity (opens in a new tab)The standard Tip Sign Off report lists employees' declared tips. This public help page was last updated in 2018.
2026 W-2 for No Tax on Tips (code TP and tipped occupation code)Not confirmedSource: Paylocity (opens in a new tab)Paylocity's tax alerts explain the new deduction, but none says its 2026 W-2 will report qualified tips with code TP and the tipped occupation code. We also searched its product updates and help pages.
2026 W-2 for qualified overtime (code TT)Not confirmedSource: Paylocity (opens in a new tab)Paylocity explains qualified overtime in its tax alerts but doesn't confirm that its 2026 W-2 will report it with code TT.
Service charges paid as wagesUnconfirmedSource: Paylocity (opens in a new tab)Paylocity doesn't document how it treats mandatory service charges; we searched its restaurant pages, tax alerts and public help pages.
State and local minimum wages built inUnconfirmedSource: Paylocity (opens in a new tab)Paylocity says it stays current on federal, state and local labor laws, but doesn't document that state and local minimum wages are built into payroll; we searched its restaurant pages and public help pages.
Integrations and time tracking
Data pointValue
POS integrations (hours or sales data)ToastSource: Toast (opens in a new tab)Paylocity's marketplace also lists Square and Lightspeed (R-Series), but those connections send employee data from Paylocity into the POS, not hours to payroll. Scheduling partners (7shifts, Homebase, Harri, Crunchtime) can carry POS hours into Paylocity.
Time trackingPaid add-on or higher planSource: Paylocity (opens in a new tab)Time & Attendance comes with the Enrich plan (Payroll + HR + Time) and above, not with Express (payroll only).
SchedulingPaid add-on or higher plan()Source: Paylocity (opens in a new tab)Scheduling is part of Paylocity's Workforce Management (Time & Labor) products, sold on top of payroll.
Accounting integrationsQuickBooks Online, NetSuite, OthersSource: Paylocity (opens in a new tab)The marketplace lists Intuit QuickBooks Online, Oracle NetSuite, Sage Intacct and Acumatica. No Xero or Restaurant365 listing. General ledger is included from the Enrich plan.
Payroll engineThe vendor itselfSource: Paylocity Holding Corporation (SEC) (opens in a new tab)
Benefits and insurance
Data pointValue
Health benefitsThrough a partner broker()Source: Paylocity (opens in a new tab)Paylocity sells benefits administration (enrollment and carrier feeds) and works with your broker; it doesn't sell the health plans itself.
Workers' compensationThrough a partnerSource: Paylocity (opens in a new tab)Pay-as-you-go workers' comp comes through marketplace partners (TrakPay, E-COMP NOW!, The Hartford, AmTrust and others) with your own policy.
Contract and exit
Data pointValue
Initial term24 monthsSource: Paylocity (order published by the Greater Salt Lake Municipal Services District) (opens in a new tab)Two years in Paylocity's standard order terms (public order of October 2025). Its FY2026 10-K says most of its existing agreements can be cancelled on 60 days' notice or less and that its term agreements are generally two years, so check the term in your quote.
Automatic renewal12 monthsSource: Paylocity (order published by the Greater Salt Lake Municipal Services District) (opens in a new tab)
Notice to avoid renewal60 daysSource: Paylocity (order published by the Greater Salt Lake Municipal Services District) (opens in a new tab)
Early termination feeFees left in the termSource: Paylocity (order published by the Greater Salt Lake Municipal Services District) (opens in a new tab)
Early termination clauseIf you cancel after your first payroll, you pay 50% of the months left in the term times your average monthly bill over the last 12 months. If you cancel before the service starts, you pay three months of service fees. Implementation fees are non-refundable.Source: Paylocity (order published by the Greater Salt Lake Municipal Services District) (opens in a new tab)
Right to raise pricesPaylocity may update its prices at any time after the initial term (order terms). Some clients have signed a price-guarantee addendum that locks base and per-employee fees for a set term.Source: Paylocity (order published by the Greater Salt Lake Municipal Services District) (opens in a new tab)
Your records when you leaveLimited or lost access after you leaveSource: Paylocity (agreement published by Tippecanoe County, Indiana) (opens in a new tab)Access ends when you leave; keeping it costs $5 per active user a year (minimum $1,000) for up to one year, then the data is deleted. Download your reports before you go.
Support
Data pointValue
Support 24/7NoSource: Paylocity (opens in a new tab)
Live support hours a week68Source: Paylocity (opens in a new tab)Phone support Monday to Friday, 6:00 a.m. to 7:30 p.m. Central Time (67.5 hours, rounded). Email and the in-app AI assistant outside those hours.
Dedicated specialistYesSource: Paylocity (opens in a new tab)Clients are pointed to their account manager, and the public October 2025 order lists Dedicated Account Management as included. The small-business plans describe a chat-first service, so confirm who your contact will be.
Language
Data pointValue
Employee app in SpanishPartlySource: Paylocity (article PCTY-71697, copy posted by an employer) (opens in a new tab)Paylocity's article lists Spanish for expenses, journals, timecard approvals, schedules, punches, the activity feed, news and company links; it doesn't list pay stubs or onboarding, and content your company writes is not translated. The App Store lists Spanish among the app's languages.
Owner's dashboard in SpanishUnconfirmedSource: Paylocity (article PCTY-71697, copy posted by an employer) (opens in a new tab)Paylocity doesn't document a Spanish owner's dashboard; we searched its public help pages and site.
Pay stubs in SpanishUnconfirmedSource: Paylocity (article PCTY-71697, copy posted by an employer) (opens in a new tab)Paylocity's Spanish app article doesn't list pay stubs, and we found no other public page about Spanish pay stubs.
Support in SpanishNoSource: Paylocity (opens in a new tab)Paylocity's support pages publish one English phone line and an email address, with no Spanish line or team.
Contract or terms in SpanishNoSource: Paylocity (opens in a new tab)The Subscription Agreement, the Service Specific Terms and the order forms we found are in English only.
Website in Spanish for the USNoSource: Paylocity (opens in a new tab)paylocity.com has no Spanish version (the /es/ address returns a 404 page and the site has no language selector).

More about Paylocity

How we score