Best Paylocity Alternatives for Small Businesses in 2026

The reasons business owners look for Paylocity alternatives come down to a few things: the pricing scales faster than expected, it’s a product built for HR departments rather than hands-on managers, and it includes a feature set most small businesses pay for but never fully use.

Paylocity is a payroll software designed for mid-size companies with dedicated HR staff. So, for a small business owner managing scheduling, payroll, and time tracking yourself, that fit rarely holds.

We’re keen on helping small businesses choose the right payroll provider to make their lives simpler. To do that, we compared seven alternatives on pricing, ease of use, payroll, and fit for hourly teams. Whether you need a simpler payroll tool or you’re looking for particular features that match how your business runs — we’ve done the comparison for you.

If you need to run payroll yourself without the enterprise overhead, these seven tools cover what most small businesses will actually use:

One of the biggest reasons to switch from Paylocity is fit: Paylocity targets mid-market companies, typically those with 50 to 1,000 employees. That typically falls well above the number of employees at most small businesses, meaning that pricing and features are often mismatched, too.

Complaints tend to cluster around a few consistent themes.

Paylocity works well for businesses with dedicated HR staff managing the system. But for smaller teams without that infrastructure and who are managing payroll and HR themselves, it lacks in support, implementation, and usability.

For clear pricing and payroll that only takes a few clicks to run bi-weekly, you can see how Homebase prices payroll.

Paylocity is a cloud-based human capital management (HCM) and HRIS platform built for mid-size businesses, typically those with 50 to 1,000 employees and a dedicated HR team. 

It bundles payroll processing, time and attendance tracking, benefits administration, talent management, and employee engagement tools into a single system. Companies in healthcare, manufacturing, hospitality, retail, and professional services use it to centralize HR operations across larger teams.

Paylocity's core product suite includes:

Every app on this list was evaluated the same way: we looked at it the way a small business owner would, asking whether it fits how hourly teams actually work.

To save you time researching, we did the work: using publicly available information from vendor websites and pricing pages, drawing from user reviews on G2 and Capterra, forum discussions on Reddit, and third-party editorial coverage. Where free trials were available, we used them. 

We evaluated each app on:

For a full breakdown of our research standards, check out our methodology page.

We put together this review of payroll and HR tools because these are exactly the kinds of solutions we help small business owners with. Comparing payroll software options takes time (that you could otherwise be using to do what makes your small business special). 

Homebase also makes scheduling, time tracking, payroll, hiring, and team communication tools for small business owners with hourly teams. When it comes to comparing software, we bring tons of knowledge that comes directly from conversations with small business owners on what they want to see in the products they’re using.

We’re a participant in the market we’re writing about, and think you should get a chance to compare Homebase side-by-side with other options. We think that's worth saying directly. 

Ready to make the switch from Paylocity to another payroll and HR app? Here are our top 7 picks, with pricing, features, and customer ratings at-a-glance to help speed up your research.

Best for: Small businesses with hourly teams who want scheduling, time tracking, payroll, and HR in one app, with a free plan to start.

Rating: G2: 4.5/5 · Capterra: 4.6/5 · Trustpilot: 3.8/5 (306 reviews)

Homebase is built specifically for hourly small businesses. While Paylocity is designed for mid-size and enterprise companies, Homebase starts free and scales with you. You get scheduling, time tracking, team messaging, HR tools, and optional payroll.

Key features:

Pricing: Free plan available. Paid plans start at $24/month/location (billed annually). Payroll is an add-on starting at $49/month + $6/employee. See full pricing at joinhomebase.com/pricing.

What users like: Homebase makes it easy to switch payroll providers. For one customer, Homebase managed the switch and all the related onboarding for about 300 employees  in less than two weeks — so that payroll was delivered on time (Student Agencies). 

Best for: Small to mid-size businesses that need strong HR management, onboarding, and performance tools, and are willing to pay for them.

Rating: G2: 4.4/5 · Trustpilot: 3.5/5 (149 reviews)

BambooHR is a dedicated HR tool that handles the full employee lifecycle: hiring, onboarding, performance reviews, and offboarding. 

Key features:

Pricing: From $10/employee/month for the Core plan; $250/month minimum. Pro and Elite plans run $17–$25/employee/month. Time tracking is an add-on on lower tiers.

What users like: Users find customer support helpful and the platform easy to navigate. "BambooHR is by far the best platform I've used. Their customer service is amazing... very easy to navigate" (Brandi Jones, Trustpilot, August 2026).

What users criticize: There's no free plan, pricing starts high, and time tracking is limited and costs extra (Mike Terruso, Trustpilot, July 2026).

Our take: BambooHR is a solid pick if HR management is your top priority and you have a salaried team. But if you're running a restaurant, retail shop, or any business with hourly workers, the time tracking limitations and high minimum pricing make it a harder sell. Consider Homebase if scheduling and time tracking are core to how you operate.

Best for: Growing businesses that want payroll, HR, and IT management in a single connected system, and have the budget for it.

Rating: G2: 4.8/5 · Trustpilot: 4.6/5 (2,353 reviews, 88% 5-star)

Rippling stands out by combining HR, payroll, and IT device management in one place. You can onboard a new hire, run payroll, set up their laptop, and assign app permissions all from the same dashboard.

Key features:

Pricing: Starts at $8/seat/month for the base Unity plan; most businesses pay $20–$35/employee/month once HR and payroll modules are added. Quote required for full pricing.

What users like: For tech-savvy teams, the app is user friendly. Users appreciate how comprehensive the HR features are.

"I find their app to be easily understood and very user friendly" (Mickey Griffin, Trustpilot, August 2026).

What users criticize: Some users say that implementation is more challenging than expected and the setup complexity can be a shock for small teams. Plus, pricing can add up fast once you layer in modules. 

Our take: Rippling earns its high ratings for a reason. The integration depth is genuinely impressive. It's overkill for a 10-person coffee shop. But it's best suited for tech companies or multi-location businesses that need HR and IT tied together.

Best for: Small businesses looking for simple payroll with transparent flat-rate pricing and no hidden fees. 

Rating: G2: 4.8/5 · Capterra: 4.8/5 · Trustpilot: 4.1/5 (307 reviews, 85% 5-star)

OnPay is a payroll-first tool with an unusually simple pricing model: one flat monthly base fee plus a per-person rate. There are no add-on fees for tax filings, direct deposit, or year-end W-2s. It also includes basic HR features like employee offer letters, org charts, and PTO tracking. Where it falls short is scheduling — OnPay doesn't offer scheduling or a time clock, so hourly businesses will need a separate tool.

Key features:

Pricing: $49/month base fee + $6/employee/month. All features included — no add-on fees for tax filings or year-end forms.

What users like: Users say that the interface is intuitive and easy to navigate. "The interface is easy to use and running payroll takes only a few clicks. The value is unbeatable." — Rachel Spadaro, Trustpilot, April 2026

What users criticize: Customer service is often a pain point, which is a big deal when it comes to running payroll. "Customer service response time to tickets is outrageous." — Erica C., Trustpilot, August 2026

Our take: For a small business that just needs clean payroll at a predictable price, OnPay is hard to beat on value. But note the limitations: no scheduling, no time clock, and customer support that can be slow. If your business runs on hourly schedules, you'll need to pair OnPay with a separate scheduling app — or use Homebase, which bundles all of it.

Best for: Established businesses with 50+ employees that want a dedicated payroll specialist and full compliance support.

Rating: G2: 4.1/5 · Trustpilot: 1.7/5 (820 reviews)

Paychex is one of the largest payroll providers in the US, with a full suite of HR, benefits, and compliance tools. For larger companies with complex payroll needs, it can be a capable option, particularly if you want a dedicated account rep and don't mind paying for it. 

Key features:

Pricing: Quote-based; Paychex charges per payroll run plus per-employee fees. Expect to pay significantly more than flat-rate competitors.

What users like: " The website is user friendly and easy to navigate. Customer service is prompt, payments are timely and the staff is knowledgeable" (Vickie, Trustpilot, August 2026).

What users criticize: For small businesses, Paychex is consistently cited as overpriced, overly complex, and frustrating to work with when issues arise. One user said that it took over a year to amend a payroll issue (JM, Trustpilot, August 2026).

Our take: Paychex has the infrastructure for large, complex organizations, but doesn't offer the same hands-on approach for small businesses. The negative reviews on Trustpilot are hard to ignore.

Best for: Mid-size businesses with 50–500 employees that want a single database for payroll, HR, and workforce management. 

Rating: G2: 4.2/5 · Capterra: 4.4/5 · Trustpilot: 4.0/5 (668 reviews)

Paycom is a comprehensive HR and payroll tool built around the idea that employees should own their own data. It's well-regarded for its single-database architecture and dedicated account reps. 

Key features:

Pricing: Quote-based. Generally runs $25–$36/employee/month for small to mid-size businesses, with a setup fee. No pricing is published.

What users like: Users praise their experience with onboarding employees. "We implemented Paycom and it has been a wonderful experience for us... Our employees transitioned to the new system and processes with ease" (Victoria Kennedy, Trustpilot, August 2026).

What users criticize: The cost is steep, depending on the size of your business, and pricing requires a sales call. For some, the initial onboarding was very involved and required multiple in-depth support calls. "Over 20 meetings and numerous forms later, we have discovered mistake after mistake" (Jeremy Johnson, Trustpilot, September 2026).

Our take: Paycom is a legitimate upgrade from Paylocity for larger organizations that want everything in one place. But the high price point, lengthy onboarding, and contract lock-in make it a poor fit for small businesses. If you have fewer than 50 employees, you'd be paying enterprise prices for features you don't need.

Best for: Small businesses with salaried workers who want a clean, easy-to-use payroll app.

Rating: G2: 4.6/5 · Capterra: 4.6/5 · Trustpilot: 1.9/5 (2,508 reviews)

Gusto is a popular payroll app for small businesses, covering payroll, benefits, and basic HR. One important note: Their pricing increased in early 2026.

Key features:

Pricing: Simple plan starts at $49/month + $6/employee/month (raised from $40 in March 2026). Plus plan is $80/month + $12/employee/month. Premium plan pricing requires a call.

What users like: The biggest resounding compliment is the ease of running payroll (THod, Trustpilot, March 2026).

What users criticize: Users have had the greatest issues with getting support when things do go wrong (Joe Boucher, Trustpilot, August 2026). The pricing increase in 2026 also made Gusto more expensive for small business owners.

Our take: Gusto works well when nothing goes wrong. But payroll is one place where things do go wrong, and when they do, Gusto's support track record is a real liability. The March 2026 price increase also narrowed the value gap with competitors. 

The best alternatives to Paylocity for small business payroll and HR are Homebase, Bamboo HR, Rippling, or OnPay. While Paylocity is designed for mid-size and enterprise companies, the alternatives we reviewed offer free options that scale with your business.

Homebase is a top  Paylocity alternative for small businesses with hourly teams. It offers free scheduling and time tracking, plus optional payroll and HR tools — all in one app built specifically for small businesses. Unlike Paylocity, which is designed for mid-size and enterprise companies, Homebase starts free and scales with you.

For businesses that only need payroll and aren't managing hourly schedules, OnPay is a strong runner-up. It charges a flat $49/month + $6/employee with no surprise fees and solid G2 and Capterra ratings.

Paylocity is built for mid-market and enterprise companies, not small businesses. Many of Paylocity’s reviews on G2 come from mid-market companies. Small businesses often find it overbuilt for their needs, with pricing that scales to a size they haven't reached yet and a feature set that requires dedicated HR staff to use well.

If you're running a small business — especially one with hourly employees — tools like Homebase, Gusto, or OnPay are a better fit. They're easier to set up, more affordable, and built for teams your size.

The most common reasons businesses look for Paylocity alternatives come down to a few things: pricing that doesn't fit a small business budget, customer support that's hard to reach when payroll issues arise, and a product that's more complex than most small teams need.

Some users also report unexpected charges and difficulty getting refunds. If you're a small business owner who found Paylocity through a previous employer or a recommendation geared toward larger companies, it's worth evaluating tools designed specifically for your size.

Yes. Homebase offers a free plan for one location that includes scheduling, time tracking, team messaging, and basic HR tools — with no credit card required. It's the only tool in this category with a meaningful free tier.

Payroll is available as a paid add-on. But for small businesses that just need to schedule shifts and track hours, Homebase's free plan covers a lot of ground that Paylocity charges for at every tier.

Paylocity is built for mid-size to large businesses and includes advanced HR, talent management, and compliance tools. Gusto is built for small businesses and focuses on payroll, benefits, and basic HR. Gusto is generally easier to set up and less expensive for teams under 20 people.

That said, both Paylocity and Gusto have drawn complaints about customer support. Gusto holds a 1.9/5 on Trustpilot (2,508 reviews), with frequent mentions of payroll delays and unresponsive support. For small businesses, especially those with hourly workers, Homebase offers a stronger all-in-one option — with scheduling and time tracking built in.

Paylocity does not offer a public free trial or self-serve signup. You need to contact their sales team for a demo and pricing quote. This is one reason small businesses often explore alternatives: the lack of transparent pricing and the sales-first model can be a barrier for owners who want to try before they commit.

Homebase, by contrast, lets you sign up and start using the free plan immediately — no sales call required.

Finding the right Paylocity alternative comes down to what your business actually needs. If you're a small business with hourly workers, you need something built for your reality: a free time clock, simple scheduling, and payroll that doesn't require a dedicated HR team to run.

Homebase was built for exactly that. More than 150,000 small businesses use it to manage schedules, track hours, communicate with their teams, and run payroll — often starting on the free plan before upgrading as they grow.

Start for free at joinhomebase.com