ADP Pricing: Everything You Need To Know

ADP is a well-known provider in the payroll and Employer of Record (EOR) space. It has been offering services like payroll processing, tax compliance, and workforce management to businesses of various sizes for decades. However, despite its widespread use, many companies explore alternatives for more flexible pricing, better customer support, or solutions better tailored to their specific business needs.

While ADP’s features and brand recognition are strong, pricing is a critical factor for businesses comparing payroll and EOR solutions. Understanding the true ADP pricing is essential for making an informed decision. 

This guide breaks down the ADP pricing model, highlights potential hidden fees, and compares it with alternative solutions like Tarmack to help you decide which platform fits your business the best.

Understanding the ADP Pricing: What to Expect?

ADP does not publicly disclose its pricing for Run Powered by ADP. Costs vary depending on several factors, including whether you are a new or existing client, business location, and employee count. However, based on online sources and user reports, here’s what you can expect: 

ADP’s pricing model considers multiple variables:

• New Vs. Existing Clients: New customers may receive promotional offers like six months free.
• Business Size: Pricing is typically based on the number of employees on payroll.
• Location: Rates may vary depending on state-specific tax and compliance requirements.
• Service Package: ADP offers multiple tiers: Essential Payroll, Enhanced Payroll, Complete Payroll & HR+, and HR Pro Payroll & HR
• Pay Cycle Frequency: More frequent payroll runs may incur additional fees.

Payroll and HR Pricing Tiers (based on their website)

ADP offers multiple Run Powered by ADP plans, each with increasing levels of features:

Essential Payroll	Enhanced Payroll	Complete Payroll & HR+	HR Pro Payroll & HR (Premium)
Perfect for startups and small businesses that need payroll processing, tax filing, and basic compliance support	Includes additional features such as garnishment payment service, SUI (State Unemployment Insurance) management, background checks, and job posting via ZipRecruiter®	Adds ADP’s HR tools, including a handbook wizard, compliance alerts, HR guidance, and a job description wizard	A full suite of HR tools, including proactive HR support, employee training, legal assistance, and business advice from Upnetic Legal Services®
A base fee of approximately $79 per month, plus $4 per employee. For example, a company with 10 employees might pay around $119 monthly	Custom pricing	Custom pricing	Custom pricing

Additional services

Run by ADP^®  also provides optional services, which may be priced separately or bundled into custom packages:

• Retirement Plans: 401(k) and other employee retirement options
• Workers’ Compensation: Insurance and compliance solutions
• Time and Attendance: Time tracking and workforce management tools
• Business Insurance: Various coverage options for employers
• Professional Employer Organizations (PEO): A co-employment model for outsourcing HR and compliance

Run by ADP^®  Pricing: Estimated Costs Based on Online Sources

Since ADP does not disclose exact pricing, users have reported estimated costs based on various parameters:

• Implementation Fee: Typically a one-time setup cost of around $2,000 for onboarding, backend setup, and adding employees to the system
• Monthly Base Fee + Per Employee Cost: A fixed monthly fee, plus a per-employee charge which is a reported $44 per employee on payroll and $7 per employee for reporting purposes (not on payroll) (Reddit)
• Payroll Processing Fee: Additional fees may apply for each payroll run

ADP by Run® ‘s promotional offer for new clients

ADP currently offers six months of free payroll processing for new clients who sign up and process payroll by March 28, 2025.  Key terms and conditions summarized: Eligibility: – New ADP clients using RUN Powered by ADP® (RUN) – Businesses with 3-49 employees (unless stated otherwise) – Must use Direct Debit of Fees – Must process payroll for 3 consecutive months at the original bundle, frequency, and discount level Free Months Application: – First 3 free months applied after 3 months of processing – Second 3 free months applied after 12 months of processing – Free months cover standard payroll processing only (excludes non-payroll services, pass-through costs, courier fees, etc.) Restrictions: – The offer cannot be combined with other promotions – Available only in the Continental U.S. – Applies to new ADP clients only

Comparing Tarmack’s Pricing to ADP’s Pricing

It is evident from the above that ADP’s pricing is complex. This makes it difficult, especially for small businesses, to evaluate plans or make cost-effective decisions with confidence. 

There is also the added complexity of implementation fees and promotional terms, which are not clearly listed and require further inquiry.. 

Taken together, these variables put ADP’s pricing at a disadvantage compared to Tarmack’s simple and straightforward pricing.

Given the drastically different pricing tiers and models, a side-by-side comparison is not possible. However, we can take a hypothetical example to work out how much cost a business will incur for each tool. 

Hypothetical Cost Comparison

Let’s take the example of a company with 25 employees running biweekly payroll (26 pay periods annually):

Tarmack	Run by ADP
Per Payroll Cost: $15 per employee × 25 employees = $375 Annual Cost: $375 × 26 pay periods = $9,750​ (Straight-forwarding pricing with no other hidden charges)	Monthly Base Fee: $79Per Employee Fee: $4 per employee × 25 employees = $100Monthly Total: $79 + $100 = $179​ Annual Cost: $179 × 12 months = $2,148 (Tentative pricing estimate based on online sources. Actual costs could be significantly higher considering business type, location, and charges for additional services)

From the above calculation, it might appear that Run by ADP^® offers more cost-effective pricing. However, it is worth noting that ADP does not provide a complete breakdown of all charges. 

ADP’s pricing can vary, and additional fees may apply for services such as tax filing, year-end reporting, or benefits administration. These extra costs reduce pricing predictability and may lead to higher overall expenditures that exceed Tarmack’s straightforward model.​

Why Choose Tarmack?

While ADP may initially seem more affordable based on base pricing, the potential for additional fees and a complex cost structure could result in higher overall expenses. 

Tarmack’s transparent and straightforward pricing model provides more predictable costs, especially for businesses with international payroll needs.

Here are some definite reasons why you should choose Tarmack over Run by ADP^®: 

Simple and Predictable Pricing

Tarmack’s per-employee, per-payroll pricing offers transparency, supporting budgeting and financial planning.​

Comprehensive Services

Tarmack provides a global platform covering payroll, EOR, and recruiting services across 150+ countries, ideal for businesses with international operations. ​

ADP’s Hidden Costs

ADP’s complex pricing structure may include additional fees for various services, potentially leading to unpredictable and inflated costs. ​

Tarmack Vs. Run by ADP^® : What’s the Best Choice?

In short, with Run by ADP^®, the price you see isn’t always the price you pay. 

When it comes to payroll, predictability matters just as much as base cost. While ADP’s pricing may seem competitive at first glance, its complex structure, hidden fees, and unpredictable add-ons can inflate total costs over time. 

Tarmack, on the other hand, offers transparent, straightforward pricing that businesses can rely on.

For companies looking for a payroll provider that keeps costs simple, scalable, and predictable, Tarmack is the smarter choice. Why gamble with hidden fees when you can get a clear, cost-effective solution from day one?

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Frequently Asked Questions (FAQs)

How much does ADP cost?

ADP’s pricing is not readily available online. You need to painstakingly navigate a maze of information fields to arrive at the pricing. However, reports suggest that ADP’s RUN platform for small businesses starts at $79 per month plus $4 per employee. 

Additional fees may apply for tax filing, year-end reporting, benefits administration, and other services, making the total cost unpredictable.

Who is ADP best suited for?

ADP is designed for businesses of all sizes. However, small to mid-sized companies that prefer a well-known payroll provider are its primary takers. 

Does ADP offer a free trial?

ADP does not offer a traditional free trial but they do run promotional offers. Currently, new ADP RUN customers may qualify for up to six months of free payroll if they meet specific conditions.

Is ADP worth it?

ADP can be beneficial for businesses that need a global brand name with a comprehensive suite of payroll and HR services. However, its complex cost structure and potential hidden fees can inflate costs compared to affordable and transparent alternatives like Tarmack.