7 Best ADP Alternatives in 2026 (Smaller & Modern Options)

Gusto is what you wish ADP looked and felt like—modern, intuitive, and designed for small businesses from the ground up. While ADP feels like enterprise software crammed into a small business box, Gusto is purpose-built for companies with 5-500 employees. The interface is clean, setup takes 10 minutes (not weeks), and employees actually enjoy using it.

The payroll engine is rock-solid: automatic tax filing (federal, state, local), multi-state support, contractor payments, flexible pay schedules, and direct deposit that never fails. Benefits administration is excellent, with health insurance, 401(k), workers comp, and commuter benefits integrated seamlessly. The HR features (onboarding, PTO tracking, document storage, org charts) cover 90% of what small businesses need.

Pricing is transparent—$40/month base + $6 per employee—unlike ADP's "call for quote" nonsense. Customer support is responsive (email, chat, and phone on higher tiers), and you're not stuck in multi-year contracts. Integrations with QuickBooks, Xero, and most accounting software work smoothly.

The only real limitation is scalability. Once you're past 500 employees or need extremely complex workflows, you might need something more robust. But for 99% of small businesses escaping ADP's complexity, Gusto is the perfect landing spot.

If ADP feels like too much software for what you actually need (just reliable payroll), OnPay is the antidote. It's laser-focused on doing payroll exceptionally well without drowning you in features you'll never use. The interface is cleaner than ADP's, the setup is faster (2-3 days), and customer support is phenomenal—real humans who answer the phone.

OnPay handles full-service payroll: automatic tax filing, multi-state, direct deposit, check printing, contractor payments, garnishments, and flexible pay schedules. They also include HR essentials—new hire reporting, PTO tracking, document storage, and basic benefits administration—at no extra cost. This is stuff ADP charges hundreds extra for.

Pricing is straightforward: $40/month + $6 per employee. No surprise fees, no annual contracts, no aggressive upsells. What you see is what you get. Integrations with QuickBooks, Xero, and most accounting software work smoothly, and onboarding takes less than an hour of your time.

OnPay doesn't try to be everything like ADP. There's no fancy workforce management or enterprise-grade analytics. But if you just need reliable payroll with great support at a fair price, OnPay is one of the best decisions you can make.

Rippling is the modern answer to ADP's legacy platform. While ADP offers breadth, Rippling offers depth and automation that makes ADP look ancient. It combines payroll, HR, benefits, IT management, app provisioning, and device deployment into one powerful platform. If you're frustrated by ADP's dated approach, Rippling is the future.

The automation is mind-blowing. Hire someone, and Rippling creates their email, provisions Slack, GitHub, Google Workspace, laptop, health insurance, 401(k)—all from one click. When they leave, it revokes everything instantly. This isn't just convenient; it's a security and compliance advantage ADP can't match without bolting on five different modules.

Payroll is excellent (better than ADP's, honestly), with built-in time tracking, multi-state support, and flexible pay schedules. Benefits administration is smoother with direct carrier integrations. The reporting is enterprise-grade, letting you slice data across HR, payroll, IT, and finance in ways ADP requires expensive add-ons to achieve.

The catch? Setup requires more technical knowledge than ADP (which has implementation teams), and pricing can add up with all the modules. But if you value automation and want one platform to replace ADP + your IT tools, Rippling is worth every penny.

Paylocity is ADP's main competitor in the mid-market space, offering similar depth but with a more modern interface and better customer experience. If you need ADP-level features but hate ADP's dated platform and aggressive sales tactics, Paylocity is the obvious alternative.

The platform offers full payroll, HR, time and attendance, benefits administration, ATS, performance management, and learning management. It handles complex scenarios (multi-state, certified payroll, union workers, garnishments) as well as ADP but in a cleaner interface. The mobile app is actually good—employees can view paystubs, request PTO, and clock in/out smoothly.

What sets Paylocity apart is their "community" approach. They offer free HR training, webinars, and networking events for customers. The support team is responsive (unlike ADP's hit-or-miss service), and implementation is handled by dedicated teams who actually care about your success.

The downside? Pricing isn't transparent (you'll need to call for a quote), and it's best suited for 50-1,000 employees—too much for tiny teams, not enough for enterprise. But if you're in that sweet spot and frustrated with ADP, Paylocity is a strong move.

If you're in retail, hospitality, or restaurants and already use Square POS, Square Payroll is a no-brainer alternative to ADP. It integrates perfectly with Square's ecosystem, syncing hours, tips, and sales data automatically. No manual entry, no reconciliation headaches—just smooth payroll that understands your industry.

The payroll process is simple: hours from Square POS flow in automatically, you approve, and payroll runs. Tax filing is automatic (federal, state, local), and direct deposit works reliably. The platform handles hourly workers, tipped employees, commissions, and bonuses—all the complexities of hospitality payroll that make ADP feel clunky.

Pricing is transparent and competitive: $35/month + $5 per employee. Contractor-only payroll is even cheaper at $5 per contractor. There's no setup fees, no annual contracts, and you can cancel anytime—a refreshing change from ADP's lock-in tactics.

The limitations are real: Square Payroll doesn't have deep HR features (no performance management, limited benefits admin), and it's best suited for hourly workers rather than salaried office employees. But if you're running a cafe, boutique, salon, or restaurant and ADP feels like overkill, Square Payroll is purpose-built for you.

If you live in QuickBooks for accounting, QuickBooks Payroll is the logical alternative to ADP. It's built directly into QuickBooks (Desktop or Online), eliminating the need for exports, imports, or reconciliation. Your payroll and accounting stay in perfect sync automatically, which is a huge time-saver come tax season.

The platform offers full-service payroll: automatic tax filing, direct deposit, contractor payments, multi-state support, and workers comp. You can run payroll right from the same interface you're already using for invoicing and expenses. Employee self-service lets people access paystubs and W-2s without bugging you.

Pricing is straightforward: $45/month + $5 per employee for Elite (full-service tax filing), or cheaper tiers if you want to handle some tasks yourself. There's no setup fee, and you can bundle it with QuickBooks Online for a discount. Integration is obviously seamless since it's the same company.

The downsides? QuickBooks Payroll is pretty basic—don't expect ADP's advanced features or deep HR tools. Customer support can be hit-or-miss (you're dealing with Intuit's support maze). But if you're already a QuickBooks user and just need reliable payroll without switching platforms, it's a solid, affordable choice.

Paycor is another mid-market alternative to ADP, positioned similarly to Paylocity but with a slightly different flavor. It's built for companies with 50-500 employees that need robust features but find ADP's enterprise approach overwhelming. The platform is modern, the customer service is better, and the implementation process is less painful.

The feature set is comprehensive: payroll, time and attendance, HR management, benefits administration, ATS, performance management, learning management, and analytics. It handles complex payroll scenarios (multi-state, tips, commissions, garnishments) as well as ADP but with a cleaner interface. The mobile app is solid, and employee self-service actually gets used.

What differentiates Paycor is their focus on user experience and modern workflows. The platform feels more intuitive than ADP, with guided processes for common tasks like onboarding or running payroll. Reporting is visual and customizable without requiring a degree in data science. Integrations with common business tools (Slack, Microsoft, accounting software) work smoothly.

The catch? Like ADP, pricing requires custom quotes (no transparency), and it's best suited for mid-market—too complex for tiny teams, not robust enough for enterprise. Setup takes 4-8 weeks. But if you're in the 50-500 employee range and fed up with ADP, Paycor is worth a serious look.