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Paylocity vs Xero Payroll: Which Payroll Software Is Better?


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Last Updated: May 22, 2025

Both Paylocity and Xero Payroll are leading payroll software solutions, but which one is better for you and your business?

Below we compare Paylocity and Xero Payroll across nearly 50 different data points to help you make find the right one.

 

Paylocity vs Xero Payroll Reviews

PaylocityXero Payroll
Trustpilot Rating1.84.3
Number of Trustpilot Reviews215747
iPhone App Rating4.24.7
Number of iPhone App Reviews2940026300
Android App Rating4.24.3
Number of Android App Reviews447007410

Paylocity vs Xero Payroll Pricing

PaylocityXero Payroll
Free Trialn/aYes
Free Trial Lengthn/a1 month
Cheapest Plan Namen/aEarly
Cheapest Plan Cost Per Month$n/a$9.25
Mid Priced Plan Namen/aGrowing
Mid Priced Plan Cost Per Month$n/a$9.25
Top Plan Namen/aEstablished
Top Plan Cost Per Month$n/a$17.5

Paylocity vs Xero Payroll Features

FeaturesPaylocityXero Payroll
Target Business SizeEnterpriseSmall business
Unlimited Payrolls✘✘
Automated Tax Filing & Payments✔✔
E-sign I-9 & W-4✔✘
Live Customer Support✔✔
Third-Party Integrations✔✔
Ability To Manage Employee Benefits✔✔
Employee Access To Platform✔✔
Direct Deposit✔✔
Expense Reimbursement✔✔
Time Off Accrual✔✔
Pre-Tax Deductions✔✔
Wage Garnishment✔✔
Background Checks✔✘
Check Printing✔✔
Check Delivery✔✘
API✔✔

Paylocity n/a Features

n/a

Xero Payroll Early Features

  • Send quotes and 20 invoices†
  • Enter 5 bills
  • Reconcile bank transactions
  • Capture bills and receipts with Hubdoc
  • Short-term cash flow and business snapshot
  • Payroll with Gusto (Optional)

Paylocity n/a Features

n/a

Xero Payroll Established Features

  • Send invoices and quotes
  • Enter bills
  • Reconcile bank transactions
  • Capture bills and receipts with Hubdoc
  • Short-term cash flow and business snapshot
  • Bulk reconcile transactions
  • Use multiple currencies
  • Track projects
  • Claim expenses
  • Analytics Plus
  • Payroll with Gusto (Optional)

Paylocity vs Xero Payroll Pro & Cons

PaylocityXero Payroll
Pros
  • User Friendly
  • Saves Time
  • Customer Service
  • Easy Processes
  • User Interface
  • User Friendly
  • User Interface
  • Integrations
  • Saves Time
  • Management
Cons
  • Technical Issues
  • Not User Friendly
  • Customer Service
  • Need Improvements
  • Reporting Issues
  • Expensive
  • Not User Friendly
  • Expense Report Issues
  • Technical Issues
  • Room for Improvement

Other Payroll Software Comparisons

  • Revelo vs Trolley
  • Zenefits vs Toast
  • OnPay vs Paychex
  • Square Payroll vs Paymate
  • Sage vs HRONE
  • Rippling vs Online Paystub Generator
  • Push Payroll vs WorkZoom
  • Rippling vs Aruti
  • APS Payroll vs Trolley
  • Namely vs PDS Vista Payroll

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