ADP Workforce and Square Payroll are both HR management tools that wrap several functions into a single software package. Both are highly-rated with large, established userbases, and they do more or less the same thing.
However, while they share much of the same functionality, that doesn’t mean that each is right for every business. Depending on how features are implemented, the size of an organization and its software budget, one package may be a better fit than the other.
This article will compare their relative merits to help you determine which is right for you.
Each package supports many of the same functions, but these are implemented differently to cater to their intended market.
Square Payroll is designed for small businesses, those with less than 50 employees. As a result, it isn’t quite as robust as Workforce. Implementations are simplified to speed workflows for smaller operations. This can be a boon for small companies that don’t need access to some of Workforce’s extended options.
Users will find all of the functionality they need to run successful HR departments. As the name suggests, Payroll makes payroll easy to process. A streamlined interface makes entering data and updating fields a breeze. Payrolls can be run on desktop machines or mobile devices.
Because the package integrates with every other Square tool, hours can be imported instantly from the Square POS or Team app. QuickBooks Online and other third-party integrations are also available.
Payroll taxes are generated automatically and filed electronically from within the software. The package also allows worker’s comp insurance to be synced with payroll on a pay-as-you-go basis. In fact, most employee benefits, like retirement and healthcare, will sync automatically.
The only real caveat is that large enterprises may find Payroll’s offerings to be a bit meager for their needs. ADP Workforce could be the better choice for them.
Workforce is built with larger organizations in mind. It’s built to scale well, providing convenient HR management to companies of any size.
You’ll find all of the core features available in Payroll, including payroll and tax compliance. Both are cloud-based, meaning your data is accessible wherever you are. Workforce also offers automated timekeeping, attendance tracking, and scheduling. Reports are easier to generate within Workforce, and are generally more robust.
The software supports custom workflows and self-service functions that give employees access to critical HR data from a convenient web portal. Square Payroll also allows users to input their information, but Workforce offers speed enhancements that Payroll doesn’t.
The software integrates with a wider set of third-party products and embeds access to ZipRecruiter, making it easier to fill positions quickly. HR professionals can also leverage the software to create pay-for-performance opportunities within the organization and track employee progress toward specific goals.
In general, more options are available within Workforce, and configurations run deeper, allowing a more comprehensive range of businesses to design systems that work for them.
Workforce offers four packages, scaled to meet the needs of various-sized organizations.
Payroll Essentials is perfect for businesses that only want access to payroll and tax components. The add-ons Workforce Management and HR Assist are also included.
HR Plus adds enhanced HR tools, onboarding functions, and robust digital record keeping options. Two other add-ons, Benefits Administration and Enhanced Analytics are also included.
Hiring Advantage is designed for companies interested in improving their recruitment processes to help attract top talent. Users will have access to ZipRecuiter and thousands of other job boards, along with advanced onboarding tools.
Performance Plus is the most expensive package, intended for enterprise-level organizations that need to manage high-performing teams. A full suite of performance and compensation management tools are added to provide the most powerful solution ADP offers.
Square Payroll’s plans are significantly simpler. They only offer two, and the difference comes down to who you’re looking to pay.
Their standard plan includes all the functionality you’ll need to pay employees and contractors — that is to say, all the functionality the software offers. The second plan strips out features that are specific to employees, and provides a streamlined experience for companies that only need to pay contractors.
This is one area where Payroll has a leg up. Square offers a simple, upfront payment scheme that’s consistent from customer to customer.
For their standard plan you’ll pay a $29 monthly fee and an additional $5 per month for every person on your payroll. If you only need contractor support, the monthly fee is removed. You’ll pay $5 per month for each contractor you pay.
There’s no commitment with either plan, and you can cancel at any time.
Pricing for Workforce isn’t standardized, and depends on a number of factors. Companies interested in purchasing one of their four plans must contact the company to get individualized pricing.
So which is right for you? If you’re a small company or work exclusively with contractors, Square Payroll is probably your best option. However, if you need a more full-featured HR tool, or if you’re a large company, Workforce may be the better option.