Paylocity Review

Schaumburg, IL
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Paylocity At A Glance

Good: Community feature for users to learn new company updates and interact with co-workers, automated expense reimbursement feature, full-service tax filing.
Bad: Creating reports can be cumbersome, interface is not always user-friendly.
Bottom Line: Unified, cloud-based solution that streamlines important HR processes.

Product Overview

Paylocity is a cloud-based human capital management (HCM) solution that streamlines tasks, allowing HR administrators to focus more on the strategic activities, such as improving employee engagement. The software includes features for managing the entire employee lifecycle, from recruiting to succession planning.

Paylocity has several benefits, listed below.

  • Self-service functionality that lets employees view or update their personal information without having to rely on HR
  • Built-in tax services, including preparing, filing and paying federal, state, and local taxes
  • An intuitive dashboard where users can easily set up and monitor integrations with third-party systems (e.g., ERP, accounting)
  • A mobile app that lets users access Paylocity’s features while away from the office
  • An expense management feature that automates the reimbursement process

Paylocity’s seven core modules are:

  • Modern Workforce
  • Payroll
  • Human resources
  • Talent management
  • Benefits administration
  • Workforce management
  • Data Insights

We detail each module in our Features section below.


Modern Workforce – This module helps organizations improve employee engagement in the era of remote work. There’s a social collaboration feature called Community that helps employees receive company updates and interact with their co-workers. Employers can gather employee feedback with customizable surveys that personalize the employee’s journey (e.g., new hire, satisfaction, exit analysis), and employees can give kudos to their coworkers with the peer recognition tool. Finally, the Premium Video feature lets managers communicate with employees via video. Recruiters can also embed videos within the job posting, as well as use video as an interviewing tool.

Payroll – The Web Pay payroll module includes new hire and quick edit templates, custom checklists and a preprocess register for verifying payroll data before it’s finalized. The compliance dashboard tracks data that’s related to labor laws and informs administrators of any changes. Administrators can also monitor and verify I-9 work authorization processes as well as assign compliance training courses to employees.

Paylocity offers full-service tax filing for companies that want to outsource this function. The service includes preparing and filing unemployment returns, state and local tax withholding forms, and W2, 1095 and 1099M forms. Paylocity can resolve tax issues on the client’s behalf and honor interest or penalties that occur as a result of their errors.

The software also has an expense management feature. Employees can capture their receipts via the Paylocity mobile app and submit them to the finance team. Expenses can be grouped into specific categories (e.g., travel, meals) for better organization. The reimbursement approval process is automated, so employees can get reimbursed faster.

Human resources – With the HR module’s self-service portal, employees can update their personal information, view their paychecks and benefit plans, and submit time-off requests for manager approval.

For administrators, there’s an onboarding portal that collects new hire data that is then automatically sent to the payroll module. Administrators can customize the portal to include a welcome message and company information. In addition, administrators can stay on track of changing compliance requirements with the Compliance Dashboard. The Compliance Dashboard stores data on I-9 work authorization, Affordable Care Act, Equal Employment Opportunity and more. Finally, Paylocity offers a service called HR Edge that provides HR consulting, a detailed resource library, compliance training courses and custom handbooks.

Talent management – The talent management module offers applicant tracking, performance management, compensation management and learning management features. Recruiters can send job postings to Indeed or social media sites, create customized job applications and communicate with the hiring team. Paylocity integrates with Checkr for background checks.

The performance management feature supports ongoing feedback rather than just annual feedback. It includes customizable review templates, goal management and 360-degree review capability. The compensation management functionality provides customizable raise and bonus plans based on a company’s pay cycle.

Paylocity also has a built-in LMS where managers can browse a training library or create their own course content. They can assign courses to employees and monitor their learning progress.

Benefits administration – In this module, employees can enroll in benefits plans and update information, such as life events, contributions and beneficiaries. It also gives administrators the ability to configure various plan types (e.g., health, retirement) and send data files to various benefits carriers electronically. Administrators can monitor open enrollment status, plan contributions and other metrics using Paylocity’s reporting and analytics tools. Finally, companies can manage flexible benefits offerings within the software, such as flexible spending accounts (FSA), health savings account (HSA) and COBRA.

Workforce management – Web Time, Paylocity’s time and labor module, can capture time data from any employees, regardless of type (e.g., hourly, salaried, remote). Managers can create, edit and track shift schedules, run reports via the Supervisor Dashboard and assign points for absenteeism and tardiness. The module also has mobile features, such as clock-in/clock-out via mobile devices, geo-fencing and time off requests.

Paylocity has recently included new features to support COVID-19 safety in the workplace. In addition to logging in and out via the web and mobile app, employees can clock in via a kiosk tablet that can record punches and screen for the employee’s COVID-19 health symptoms. Paylocity’s new timeless touchclock can capture punches from badge readers, photos, fingerprints scanners and more.

Data Insights – Administrators can get real-time insights into their HR data with Paylocity’s custom dashboards and reports. They can analyze various metrics, such as headcount, demographics, position management, turnover and labor costs. There’s also the Modern Workforce Index feature that lets administrators measure employee engagement and the usage of Paylocity’s modules.

Target Market

Paylocity targets small, midmarket and enterprise companies in many industries. We’ve listed several of its clients below.

  • Colorado Kidney Care
  • Equity Resources
  • Gateway Industrial Services
  • Raising Cane's
  • Statewide Remodeling
  • Stonewall Kitchen
  • Sullivans Tire
  • Tangent
  • The Boiling Crab
  • The Sphere Institute

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New clients work with an assigned Account Manager who will be their point of contact during and after the implementation process. The specific details of each process, including the timeline, may differ depending on the client’s needs and requirements.

Customer Service & Support

Paylocity offers phone and email support during normal business hours, and users can access the self-help knowledge base anytime. It provides unlimited online training courses on the various modules and features, and there’s an annual user group conference for clients to learn about new features and to network with other users.


Paylocity doesn’t publicly display its pricing. Please contact the company directly for a quote.


Some users feel that the reporting tools, especially creating reports, can be cumbersome. Also, a few users say that it can be difficult to find specific features.


Paylocity Screenshot 1
Paylocity Screenshot 2
Paylocity Screenshot 3


Founded in 1997, Paylocity is a leading provider in cloud-based payroll and HCM solutions. Its unified software aims to help companies streamline HR tasks so companies can focus on improving employee engagement.

Paylocity has received many awards over the years, including the Association for Talent Development’s 2021 Top 100 BEST Award, Glassdoor’s 2019 Best Places to Work and SellingPower’s 2019 50 Best Companies to Sell For.

The company is headquartered in Chicago and has additional locations in several states, such as New York, Florida and California.

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