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Software · head to head

ADP vs Avalara

ADP logo

ADP

Software

Always Designing for People

From
$29/month
Rated
-
Full reviewWebsite
Avalara logo

Avalara

Software

Tax compliance done right

From
$29/month
Rated
-
Full reviewWebsite

The short version

  • Each has a real cost: ADP no pricing is published; every quote is custom and driven by employee count and which services are taken; Avalara plans start at $699 per state per year, so multi-state sellers multiply that figure rather than paying one subscription
  • They diverge on capability: ADP covers Payroll, Avalara covers Tax calculation.

Where they differ

Only the attributes on which ADP and Avalara actually diverge.

Attributes where ADP and Avalara differ
AttributeADPAvalara
PlatformsWeb, Ios, AndroidWeb, Api
Founded19492004

Identical on both: starting price ($29/month), pricing model (subscription), free tier (No), user rating (Not yet rated), category (Unknown).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in ADP

  • Payroll
  • Tax services
  • HR management
  • Time & attendance
  • Benefits administration
  • Sage
  • Oracle
  • SOC 1/2

Only in Avalara

  • Tax calculation
  • Returns filing
  • Exemption management
  • Document management
  • Real-time rates
  • NetSuite
  • Shopify
  • Magento

Both cover

  • QuickBooks
  • Web support

What people use each for

The jobs each tool is most often brought in to do.

ADP

  • Payroll processing and tax filingnot Avalara
  • HR administration and employee recordsnot Avalara
  • Time and attendance trackingnot Avalara
  • Benefits administrationnot Avalara
  • Talent management on the mid-market and enterprise productsnot Avalara

Avalara

  • Real-time sales tax calculation at checkoutnot ADP
  • Multi-state and multi-jurisdiction tax determinationnot ADP
  • VAT, lodging, communications and excise tax calculationnot ADP
  • Feeding tax results into an ERP or ecommerce platform through the APInot ADP

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

ADP

  • No pricing is published; every quote is custom and driven by employee count and which services are taken
  • Split into three separate products by company size, RUN for 1 to 49 employees, Workforce Now for 50 and above, and Lyric HCM for enterprise, so growing across a threshold means changing product rather than plan

Avalara

  • Plans start at $699 per state per year, so multi-state sellers multiply that figure rather than paying one subscription
  • Billed by transaction, where one API call is one transaction, so cost tracks invoice volume
  • The free option is limited to the Streamlined Sales Tax programme, in up to 25 states and only for qualifying businesses

Pricing, plan by plan

ADP

$29/month
  • Essential$79/month
    • Payroll
    • Tax filing
    • Direct deposit
  • Enhanced$139/month
    • HR tools
    • Background checks
    • Job posting

Avalara

$29/month
  • AvaTax$50/month
    • Tax calculation
    • Exemption certificates
    • Returns filing

Which should you pick?

Choose ADP if

  • You need payroll.
  • You work on Web, Ios, Android.
  • You also want tax services.
ADP review

Choose Avalara if

  • You need tax calculation.
  • You work on Web, Api.
  • You also want returns filing.
Avalara review

Questions people ask

Is ADP or Avalara better?
Neither clearly leads. ADP starts at $29/month and Avalara at $29/month, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, ADP or Avalara?
ADP starts at $29/month and Avalara at $29/month.
Does ADP or Avalara run on more platforms?
ADP runs on Web, Ios, Android. Avalara runs on Web, Api.
What is ADP best used for?
ADP is most often used for payroll processing and tax filing, hr administration and employee records, time and attendance tracking, benefits administration. Of those, payroll processing and tax filing and hr administration and employee records are not what Avalara is typically brought in for.
What can ADP do that Avalara cannot?
ADP covers Payroll, Tax services, HR management, Time & attendance. Avalara covers Tax calculation, Returns filing, Exemption management, Document management. Both handle QuickBooks, Web support.
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