ADP was founded in 1949 and has operated for over 75 years as the dominant payroll services provider globally, processing payroll for more than 40 million workers. For small businesses, the relevant product is RUN Powered by ADP — a cloud-based payroll and HR platform serving companies with 1 to 50 employees. The platform handles payroll calculation, federal, state, and local tax filing and remittance, direct deposit, pay cards, W-2 and 1099 year-end forms, new hire reporting, and workers compensation insurance administration. ADP’s deepest strength relative to newer competitors is compliance breadth. The platform can register with tax agencies in all 50 states directly, handles garnishments and wage levies, manages unemployment insurance claims, and carries decades of experience navigating changing regulations. 24/7 support from live payroll specialists is included on all plans — a differentiator from Gusto and QuickBooks which have more limited support hours. Where ADP creates friction is pricing opacity. Unlike Gusto and QuickBooks Payroll, ADP does not publish prices publicly and requires a quote from a sales representative. Most published estimates put the Essential plan at approximately $79 per month base plus $4-5 per employee per month — but the actual price depends on company size, payroll frequency, selected modules, and negotiated terms. ADP also charges per payroll run rather than a flat monthly fee — running payroll biweekly means 26 charges per year, and off-cycle correction runs add additional cost. Year-end W-2 filing costs approximately $55 plus $6.50 per form. Add-ons for time tracking, benefits administration, and HR tools add further cost. ADP is the right choice for growing businesses that need enterprise-grade compliance depth, multi-state payroll capability, and scalable HR infrastructure — and are willing to pay the premium for it.
ADP
Gusto offers transparent flat-rate pricing, unlimited payroll runs, and comparable features for small businesses under 50 employees at a materially lower and more predictable cost
Finance Specs
- 75+ years of payroll compliance experience — registers in all 50 states directly without third-party workarounds
- 24/7 live payroll specialist support included on all plans
- Scalable from RUN (small business) to Workforce Now (enterprise) on the same vendor relationship
- Pricing is quote-based and opaque — no public pricing; per-run billing model adds cost for frequent off-cycle payroll
- Year-end W-2 filing costs extra (~$55 + $6.50/form) — included in Gusto and OnPay at no extra charge
- Annual contracts with 30-60 day cancellation notice requirement — less flexible than month-to-month competitors
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Frequently Asked Questions
ADP does not publish prices publicly. Third-party estimates put RUN Essential at approximately $79/month base plus $4-5/employee/month. A business with 10 employees running biweekly payroll typically pays $100-200/month before add-ons. Year-end W-2 filing adds approximately $55 plus $6.50 per form. Always request a detailed written quote from ADP sales before budgeting.
RUN Powered by ADP is designed for small businesses with 1-49 employees. It covers payroll, basic HR, and compliance. ADP Workforce Now is the mid-market and enterprise platform designed for 50+ employees with advanced HR, talent management, benefits administration, and deeper analytics. Businesses can migrate from RUN to Workforce Now as they grow.
Yes. ADP can register with tax agencies in all 50 states directly without requiring third-party assistance. This is a meaningful differentiator for businesses with remote employees in multiple states. Competing providers like Gusto and QuickBooks Payroll also handle multi-state payroll but may use third-party registration services for some states.
Gusto offers transparent flat-rate pricing (starting at $40/month plus $6/employee), unlimited payroll runs at no extra charge, included W-2 filing, and flexible month-to-month contracts. ADP has deeper compliance tooling, 24/7 specialist support, and scales better to larger organizations. For straightforward small business payroll, Gusto is typically more cost-effective. For complex compliance needs, ADP is more capable.
ADP charges approximately $55 plus $6.50 per W-2 form for year-end tax filings on standard RUN plans. For a business with 15 employees, year-end fees are approximately $152.50. Competitors including Gusto, OnPay, and Patriot Payroll include W-2 filing at no extra charge in their base plan pricing.
Advertiser Disclosure: Pricing is quote-based. Estimates from third-party sources — verify directly with ADP sales for accurate pricing.. We may receive compensation for clicks or purchases on this site.
