Your payroll provider choice matters more than you think. We analyzed three years of data from hundreds of tech companies to show you what's really happening in the payroll market—and what it means for your business.

Payroll Tech Adoption Dashboard

Payroll Tech Adoption Trends

Date Range:
Last 36 Months
All Time
Last 36 Months
Last 24 Months
Last 12 Months

Top Performers

Tech Adoption Percentage Over Time

The big picture: Modern beats legacy, every time

Here's what caught our attention: While legacy providers like ADP and QuickBooks are losing ground, modern payroll platforms are growing at breakneck speed. The numbers don't lie.

Gusto still dominates with 47 percent of the market, but its growth has slowed to 24 percent over three years. Meanwhile, Rippling more than doubled its customer base with 126 percent growth, and Deel isn't far behind at 93 percent growth.

The fastest-growing provider? Remote.com exploded by 232 percent, though from a smaller starting point.

What's driving this shift

Three major trends are reshaping how businesses handle payroll:

Remote work changed everything. Companies with distributed teams need providers that handle multi-state (and multi-country) compliance seamlessly. That's why international-focused platforms like Deel and Remote.com are seeing explosive growth.

All-in-one wins over point solutions. Business owners are tired of juggling separate systems for payroll, benefits, HR, and compliance. Integrated platforms like Rippling and Gusto eliminate that headache.

User experience finally matters. Modern providers built their systems for 2025, not 1995. Clean interfaces, mobile apps, and self-service options aren't nice-to-haves anymore—they're table stakes.

The cost of staying put

Sticking with an outdated payroll provider isn't just about missing out on better features. It's about the hidden costs that add up:

  • Time waste: Legacy systems require more manual work and support tickets
  • Compliance risk: Older providers are slower to adapt to changing regulations
  • Integration headaches: Modern accounting software plays better with modern payroll systems

How to choose the right provider for your business

The data reveals clear patterns about which providers work best for different business types:

For established businesses with traditional workforces: Gusto remains the gold standard. It offers reliability, comprehensive features, and excellent customer support. There's a reason it maintains market leadership.

For fast-growing companies: Rippling's explosive growth reflects its ability to scale with businesses. Its all-in-one HR platform becomes more valuable as you add employees and complexity.

For remote or international teams: Deel and Remote.com aren't just trending—they're solving real problems around global compliance, contractor payments, and multi-jurisdiction payroll.

Three questions to ask any payroll provider

Before you switch (or stick), get clear answers to these questions:

  1. How does this integrate with my accounting system? Your payroll data needs to flow seamlessly into your books. If it requires manual entry or file uploads, keep looking.
  2. What happens when I have a compliance question? You need real human support, not just a knowledge base. Test their response time before you commit.
  3. How much will this actually cost as I grow? Per-employee pricing can get expensive fast. Understand the total cost, including add-ons for benefits administration or time tracking.

The bottom line

The payroll market is consolidating around providers that understand what modern businesses need: simplicity, reliability, and integration. Legacy providers built for a different era are losing customers for good reasons.

Your payroll provider should make your life easier, not harder. If you're spending time on payroll tasks that feel like they should be automated, or if your team complains about the system, the data suggests there are better options available.

The companies growing fastest aren't just winning on features—they're winning on the complete experience of running payroll. That's worth paying attention to.

Need help evaluating payroll providers or integrating payroll data with your financial reporting? That's exactly what we do at Pilot. We handle the back office complexity so you can focus on growing your business.

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