When it comes to choosing a payroll provider in Canada, there are more options than most people know what to do with. Just one Google search and you could spend the rest of your day scrolling for the right fit for your business.
To make the process of choosing a new payroll provider a little easier, we’ve conducted a head-to-head comparison of one of the biggest players in the industry, ADP, and the payroll software startup, Knit. To find out how they compare, we’ll look at Knit vs ADP TeamPay on the basis of software, payroll features, HR and benefits, customer service, and cost.
Looking for more options? Download our free, 45-page Guide to the Best Payroll Software Solutions in Canada.
It is important to note that ADP offers two different payroll options: ADP TeamPay, which is designed for small businesses with less than 50 employees, and ADP Workforce Now, which is designed for mid-size to enterprise companies. In this article, we look at how Knit stacks up against ADP TeamPay. To see how Knit compares to ADP Workforce Now, click here.
Note: You might have noticed we’re writing about the difference between our service and someone else’s. We’ve done our best to give them a fair shake because we want you to make an informed decision. That said, we think we offer the best payroll service in Canada. Want to give Knit a try? Find out how to get started here.
Knit vs ADP Team Pay: An Overview
|Cost||Starting at $39 + $4/employee per month||Pricing varies|
|Custom Excel Exportable Reports||✔||✘|
|Printable Paystubs & T4s||✔||✔|
|Customizable Department Payroll Codes||✔||✔|
|Accessible on Any Web Browser (Chrome, Firefox, Safari, Internet Explorer)||✔||✘|
|Complimentary ROEs and T4s (No Additional Cost)||✔||✘|
|Stat Holiday Pay Calculations (Automated)||
|Multiple Pay Groups||✔||✔|
|Unlimited Off-Cycle Pay Runs (No Additional Cost)||✔||✘|
|Multiple Bank Accounts||✘||✔|
|Can Process Union Dues||✔||✔|
|Can Pay Contractors||✔ (T5018s yes, T4As no)||✔|
|Self-Serve Employee Portal||✔||✔|
|The Provider Automatically Remits to CRA||✔||✔|
|HR Modules||✔||✔ (add-on)|
|Performance Modules||✔||✔ (add-on)|
|Recruitment Modules||✘||✔ (add-on)|
|Benefits Management||✔||✔ (add-on)|
|Time-Tracking||✔ (TSheets)||✔ (add-on)|
Even if you’re the company has fairly straightforward payroll needs, you’ll want to consider some of the software basics such as ease of access and security.
Both Knit and ADP TeamPay are cloud-based programs. This means that instead of storing information on a single computer, information is stored over the Internet—much like online banking. This is a great feature for business owners in any industry because it means their data is accessible from virtually anywhere, at any time, as long as there is an Internet connection. It also means they can run payroll at home, in the office, or even on vacation if they need to.
Both Knit and ADP TeamPay also offer the protection of 256-bit SSL security. This means that your data is just as safe with either of these two payroll providers as it is with any major bank. However, it is important to note that Knit hosts its data here in Canada (in Montreal), while ADP does not host its information in Canada—something that may or not matter to some business owners.
Both Knit and ADP TeamPay are more than capable when it comes to basic payroll tasks. Each of the platforms automatically calculates, deduct, and remit payroll taxes to the CRA, saving you time and keeping you compliant.
Where the platforms begin to differ is when it comes to more complicated payroll features. ADP TeamPay is specifically designed for smaller businesses with less than 50 employees. As a result, the platform lacks payroll features such as customizable department payroll codes, automated stat holiday pay calculations, and emailed PDF pay stubs and T4s for employees. As a result, ADP TeamPay is more of a no-frills payroll platform that is best suited for business with fairly straightforward payroll needs.
On the other hand, Knit offers a more comprehensive payroll platform that can be tailored to both small and medium-sized companies. Unlike ADP TeamPay, Knit offers extra features such as multiple pay groups, unlimited off-cycle pay runs, WSIB remittance, and the ability to pay third-party payees such as RRSP management companies. Knit also offers some “nice to have” payroll features like email reminders to process payroll and complimentary ROEs and T4s. Finally, Knit boasts a self-service employee portal that allows employees to access their paystubs, T4s, ROEs, and more, all without the need to contact an administrator—a time-saver for both employees and employers.
HR & Benefits
While some companies are simply looking for a straightforward payroll solution, others benefit from having their HR and benefits on the same platform. Knit bills itself as a united platform for all three processes, while ADP offers a more a la carte option.
ADP offers both an HR module and outsourcing for an additional fee. While ADP TeamPay is reasonably priced as a stand-alone payroll service, companies that need additional features such as HR and benefits management may find that the costs add up very quickly.
Beyond the cost, ADP’s robust HR module allows businesses to maximize their HR processes across payroll, compliance, talent management and other HCM practices with guidance from ADP. Some of ADPs standout HR features include an employee directory, flow charts, and employee onboarding.
In contrast, Knit’s HR features are included in the monthly fee for the platform, making it a more affordable option for smaller companies looking for integrated HR. This means that all payroll and HR information is united across the platform for easy management. Some of Knit’s standout HR features include an employee database, e-signature documents, employee performance reviews, employee onboarding, and vacation tracking.
While great customer service is important when it comes to any product or service, it is particularly crucial when it comes to time-sensitive processes such as payroll. Not only can payroll issues lead to employees not receiving proper compensation, it can also result in a call from the CRA.
Both Knit and ADP are well aware of the importance of addressing payroll concerns as soon as possible. Both companies employ customer support teams of trained payroll specialists, who are equipped to handle virtually any issues.
Of course, as a much smaller company, Knit’s customer support team is far smaller than ADPs. As a result, response times can sometimes be a little longer. However, the trade-off is that Knit’s smaller support team means you’ll receive more personalized support from someone who is already familiar with your account.
ADP does not make its pricing available publicly, meaning interested customers will need to contact the company directly to receive a quote. The reasoning is that no two businesses have the same payroll needs, therefore pricing should reflect only the modules the company will be using. However, ADP TeamPay is the company’s more affordable payroll package as it is tailored to small businesses of 50 employees or fewer.
On the other hand, Knit makes its pricing publicly available on its website. Knit’s payroll and a lite version of its HR platform are available for $39/month + $4/employee. For payroll and the full HR suite, the price is $39/month + $6/employee. These prices include unlimited pay runs, which mean companies that run frequent payrolls or often find themselves running off-cycle pay runs won’t incur any additional fees.
The Bottom Line
Both Knit and ADP TeamPay are designed to handle the payroll of small to medium-sized businesses. While Knit offers an integrated payroll and HR platform for an affordable monthly price, ADP offers an a la carte module that ranges in price depending on what is added.
By Katherine Pendrill on Aug 7, 2019