Choosing the right payroll and HR software is an important decision for every organization. Paylocity is a popular cloud-based platform that offers a range of solutions for streamlining payroll, human resources, benefits administration, and workforce management. However, one of the most common questions prospective customers ask is, 'How much does Paylocity cost?'
Understanding Paylocity HR & Payroll software pricing can be challenging because it is not publicly available in a simple table form. Instead, the cost is determined by various factors, including business size, specified features, and added services. In this article, we'll look at the Paylocity pricing structure, what factors influence the cost, how it compares to competitors, and how to estimate your expenses.
Paylocity basically offers per employee per month (PEPM) pricing model. It provides customized quotes based on each customer’s business size, features needed, and service preferences. This suggests that the monthly charges you pay are calculated considering the number of employees on the platform multiplied by a rate determined by your selected features.
In contrast to some payroll providers that charge a set monthly price plus a per-employee fee, Paylocity's pricing is modular and flexible. This allows customers to add or remove features as they grow without renegotiating the entire contract.
Paylocity structures its pricing around functional software categories, allowing organizations to create customized packages depending on their operational demands. Instead of providing a one-size-fits-all package, the platform categorizes its solutions into six core functions:
Payroll Software
This includes core payroll, tax filing, direct deposit, and wage garnishment services. It is the foundation of most Paylocity packages, and the pricing typically begins from here.
Human Resources Software
Features in this category cover employee recordkeeping, document management, compliance tracking, and HR workflows, including onboarding and offboarding.
Workforce Management Software
This includes scheduling, time and attendance tracking, and labor cost controls to help businesses monitor productivity and ensure accurate payroll.
Talent Management Software
This focuses on recruiting, performance reviews, goal setting, and learning management. These tools support employee development and retention.
Benefits Management Software
This offers benefits enrollment, carrier connections, ACA compliance, and life event tracking. These tools streamline administration and improve employee transparency.
Employee Experience Platform
This includes surveys, peer recognition, internal communication tools, and data analytics designed to improve engagement and culture.
While Paylocity's pricing is mostly based on the PEPM model, there can be additional costs depending on your setup and usage:
Company Size
Larger organizations often benefit from bulk discounts, while smaller enterprises can have higher PEPM costs due to baseline service requirements.
Selected Modules
The monthly fee will increase if you add extra features, such as benefits administration, learning management, or performance tracking.
Level Of Customization
If your business needs complex workflows, custom integrations, or advanced reporting, these services may come with additional implementation fees.
Onboarding And Support Needs
Paylocity provides guided set-up and training, but extensive support, especially if on-site or ongoing, can add to the total cost, though exact figures are determined case by case.
Payment Schedule And Contract Length
Businesses that commit to annual contracts or longer-term agreements can negotiate better pricing.
Paylocity pricing generally falls within the following ranges:
- Base Rate: There might be a small monthly base fee (Starting price: $39/month + $5/employee), but this varies
- Per Employee Fee: Usually between $22–$32 per employee per month, depending on selected features and company size
(Disclaimer: These are estimated prices sourced from third-party sources).
Paylocity’s pricing reflects the platform’s robust capabilities:
Since Paylocity does not publish fixed pricing, here are steps to help you estimate your costs:
By doing this groundwork, you can form a reasonable budget estimate for Paylocity without needing to contact the company directly.
While Paylocity does not publish fixed prices, its flexible per-employee-per-month model allows businesses to customize costs to their size and operational demands. By providing modular solutions for payroll, HR, benefits, talent, and workforce management, enterprises can scale and customize as they grow.
Whether you're a small or medium-sized organization, taking the time to understand your needs and comparing available solutions will help you estimate costs more accurately and ensure you receive strong value for your investment.