Paylocity is a comprehensive cloud-based Human Capital Management (HCM) platform designed specifically for mid-market businesses with 50-750 employees seeking to unify their HR, payroll, finance, and IT operations. Founded in 1997 by Steve Sarowitz and publicly traded since 2014, Paylocity has evolved from a pure payroll provider to a full-service workplace technology platform serving over 39,000 clients worldwide.
When companies use Paylocity, they gain access to an integrated ecosystem that manages the complete employee lifecycle while emphasizing engagement and user experience. Unlike traditional HR systems focused solely on administrative tasks, Paylocity combines essential business functions with modern workplace tools designed to build culture, connection, and collaboration.
The platform serves multiple organizational needs:
- Comprehensive payroll processing with automated tax compliance and multi-state capabilities
- Full-service HR management including onboarding, performance reviews, and compliance tracking
- Benefits administration with carrier integrations and ACA compliance reporting
- Talent management covering recruiting, learning and development, and succession planning
- Employee experience tools including social collaboration, peer recognition, and survey capabilities
- Finance integration with expense management, procurement, and corporate card programs
- IT management features for device tracking, access controls, and security compliance
What makes Paylocity distinctive is their “employee-first” design philosophy that prioritizes user experience and engagement alongside administrative efficiency. The platform includes social collaboration hubs, peer recognition systems, mobile-first interfaces, and AI-powered insights that transform HR technology from a compliance necessity into an engagement driver.
Paylocity operates on a per-employee-per-month (PEPM) pricing model ranging from $22-32 monthly, with modular add-ons allowing businesses to customize their solution. This approach enables organizations to start with core payroll and HR functions and expand capabilities as they grow without switching platforms.
Their customer base consists primarily of mid-market companies across various industries including technology, healthcare, manufacturing, and professional services that need enterprise-grade capabilities without the complexity and cost associated with solutions designed for Fortune 500 companies.