Paylocity
Xero
| Feature | Paylocity | Xero |
|---|---|---|
| Pricing | Contact sales | From $15/mo |
| Free Plan | ✗ No | ✗ No |
| Rating | 4.3 / 5 | 4.4 / 5 |
| Best For | mid-size-businesses, hr-teams, payroll-managers, growing-companies | small-businesses, accountants, international-companies, uk-businesses |
| Founded | 1997 | 2006 |
| Payroll | ✓ | ✗ |
| Benefits Administration | ✓ | ✗ |
| Talent Management | ✓ | ✗ |
| Time Attendance | ✓ | ✗ |
| Hr Analytics | ✓ | ✗ |
| Employee Experience | ✓ | ✗ |
| Invoicing | ✗ | ✓ |
| Bank Reconciliation | ✗ | ✓ |
| Reporting | ✗ | ✓ |
| Payroll Addon | ✗ | ✓ |
| Projects | ✗ | ✓ |
| Expenses | ✗ | ✓ |
| Multi Currency | ✗ | ✓ |
✓ Paylocity Pros
- Strong payroll processing
- Good employee self-service
- Modern community features
- Comprehensive benefits admin
✗ Paylocity Cons
- Implementation can be lengthy
- Pricing not transparent
- Customer support varies
✓ Xero Pros
- Beautiful, modern interface
- Unlimited users on all plans
- Strong in UK, Australia, NZ markets
- Excellent bank reconciliation
✗ Xero Cons
- Fewer integrations than QuickBooks in US
- Payroll is a paid add-on
- Inventory management is basic
The Verdict
Paylocity is built for mid size businesses and hr teams, with a focus on payroll and benefits-administration. Xero targets small businesses and accountants and leads with invoicing and bank-reconciliation.
Paylocity uses custom enterprise pricing, while Xero starts at $15/mo — a tangible advantage for teams with a fixed budget.
Neither tool offers a free plan, so factor the subscription cost into your decision from the start.
Feature-wise, Xero offers broader built-in capabilities (7 features vs 6), while Paylocity takes a more focused approach — which can mean a simpler, faster onboarding experience.
This is a genuinely close comparison. If you can, sign up for both free trials (where available) and run a one-week test with your actual team tasks before deciding.