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Read More Jul 10, 2023 Filed under: Accounting, Bookkeeping, Invoicing, Small Business
Paychex Review
If you have a small or medium-sized business and you're looking for payroll and a suite of additional HR and other business services, Paychex could be a great choice.
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Expert Analyst & Reviewer
UPDATED
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Paychex
| Total Rating | 3.5 |
|---|---|
| Pricing | Fair |
| Features | Good |
| Customer Service | Excellent |
| Integrations | Excellent |
| Reviews | Fair |
Payroll Processing Time
Two days (faster costs extra)Pricing
Starts at $39/month + $5/employeeBusiness Size
Self-employed contractors to enterprises with 1,000+ employeesPaychex At A Glance
- Paychex is payroll software designed to provide businesses with HR support, tax support, benefits administration, and payroll solutions.
- With an easy-to-use interface, onboarding support, and strong reporting features, Paychex is a solid option for businesses looking to manage multiple areas of their payroll and HR duties in a single platform.
- Although the company doesn’t publish its pricing online, Paychex offers different service packages to accommodate small to enterprise-sized businesses across various industries, depending on the business’s payroll needs.
Pros
- Easy to use
- Scalable
- Good customer support
- Built-in onboarding and HR
- Valid in all 50 states
Cons
- Non-transparent pricing
- Has many extra fees
Table of Contents
What Is Paychex?
Paychex is a cloud-based payroll and HR software that provides payroll, HR, benefits administration, business insurance, retirement plans, health care, and more for small to enterprise-sized businesses.
Paychex’s most impressive features include strong employee management tools, direct deposit, 100+ reports, two-day payroll processing, and employee onboarding support.
The downsides are limited information about the software’s security and numerous user complaints about unfiled taxes.
Paychex Pricing
| Paychex Plans | Price | When To Use |
|---|---|---|
| Flex Essentials | $39/month +$5/employee | If you need basic payroll services and tax support for your mid-sized business |
| Flex Select | Custom | If you need a dedicated payroll specialist to walk you through your payroll runs |
| Flex Pro | Custom | If you need accounting software integrations for your payroll software |
| Flex Enterprise | Custom | If you need advanced HR solutions, analytics, and insurance setup support |
Paychex only advertises pricing for its Paychex Flex Essentials plan online, which starts at $39/month + $5 per employee and supports paying up to nine employees.
This pricing is consistent with plans offered by other payroll software on the market. However, Paychex doesn’t provide unlimited payroll runs and charges extra for off-cycle payroll runs. There are no contracts with Paychex, and you can cancel your plan anytime.
Including its Flex Essentials plan, Paychex offers four total service tier packages, with each tier adding additional services and solutions, such as a dedicated payroll specialist, state unemployment insurance, advanced HR, and onboarding tools. However, you’ll need to get a quote to determine how much these plans will cost your business.
Contact Paychex directly for pricing details.
Paychex Flex Essentials
Paychex Flex Essentials costs $39/month +$5 per employee and includes:
- Direct deposit
- Check-printing
- Free mobile app
- Employee self-service
- Reports
- General ledger service
- Garnishments (only available for this plan and Flex Pro)
- Payroll tax support
- W-2s
- 1099s (extra cost)
- New-hire reporting
- Workers’ compensation insurance
- Compliance posters
- HR resource library and forms
- Financial wellness programs
- Tax credit services
- Employee paycards
- Employee assistance program (only available for this plan)
Paychex Flex Select
Paychex Flex Select’s pricing is unpublished. The plan includes everything from Flex Essentials, plus:
- Dedicated payroll specialist
- Paper checks, check-signing, or check logo services
- eLearning platform access
Paychex Flex Pro
Paychex Flex Pro’s pricing is not published. The plan includes everything from Flex Select, plus:
- Accounting software integrations
- State unemployment insurance services
- Onboarding tools
- Pre-employment screening
- Employee handbook tool
Paychex Flex Enterprise
Paychex Flex Enterprise’s pricing is not published. The plan includes everything from Flex Pro, plus:
- Custom analytics and reporting
- HR administration
- Online employee training
- Employee handbook resources
- Onboarding essential tools
- Custom analytic tools
- Professional support setting up SUI and workers’ compensation
Extra Paychex Costs & Fees
| Paychex Extra Costs | Price |
|---|---|
| Time Tracking | Variable |
| Employee Benefits | Variable |
| HR Packages | Variable |
| Hiring Services | Variable |
| Online Marketing | Variable |
| Business Insurance | Variable |
| Financing | Variable |
| Expense Management | Variable |
| Payment Processing | Variable |
| Tax Services | Variable |
| Professional Employment Organization (PEO) Services | Variable |
Paychex offers an incredible number of services, such as time tracking, business insurance, hiring services, payment processing, and more. Most of these services will integrate directly with your payroll dashboard, so you can manage many areas of your business in a single spot.
Unfortunately, Paychex’s extra costs and fees for these services get into nickel-and-dime-ing territory compared to other similar payroll software options. That said, the modular approach to business solutions allows larger businesses with sizable budgets to pay for only the services they need.
Is Paychex Easy To Use?
Paychex is cloud-based, so no downloads or installation is required.
Paychex’s UI is generally well-organized, contributing to the software’s ease of use. Each major feature has its own place on the sidebar for easy access, and all Flex plans include a designated support specialist to help if you get stuck.
The setup process is easy since Paychex does the entire implementation process for you. The Paychex team will enter all of your data for you and get your account set up correctly, so you can be ready to run your first payroll within a few days or weeks, depending on the size of your business.
Paychex Features
| Paychex Features | Availability |
|---|---|
| Payroll Tax Support | |
| Auto-Schedule Payroll | |
| Bonus Payroll | (extra cost) |
| Off-Cycle Payroll | (extra cost) |
| Employee Management | |
| Paid Time Off | |
| Time Tracking | (extra cost) |
| HR Support | |
| Onboarding Support | (Flex Pro & up) |
| Benefits Administration | |
| Number Of Reports | 100+ |
Paychex offers a robust suite of payroll features and solutions that is consistent with similar payroll software solutions.
Better yet, Paychex’s advanced features, such as HR resources, time tracking, and onboarding support, are somewhat more fleshed out than other options. However, you’ll have to pay a lot more for these services.
Payroll Processing
Paychex payroll processing takes two days (with faster options available at an extra cost). The software allows you to work on multiple payrolls at once, including future payroll, and you can run payroll from any device.
Some of Paychex’s most notable payroll processing features include:
- Mobile app
- Two-day payroll processing
- Same-day and ACH processing (extra cost)
- Direct deposit
- On-site check-printing
- General ledger report
- Multiple pay rates
- Off-cycle payroll (extra cost)
- Garnishments (not available for Flex Select)
- Dedicated payroll specialist (Flex Select and up)
- Accounting software integration (Flex Pro and up)
Employee Management & PTO
Paychex’s employee management feature is quite advanced and allows you to record personal information, employee history, direct deposit information, and more. You can add multiple employee pay rates and easily manage earnings and deductions.
Here’s a look at Paychex’s employee management and PTO features:
- Employee profiles
- Custom fields
- Employee portal
- Employee pay stub access
- PTO management (requires Paychex Time & Attendance add-on)
Time Tracking
Paychex’s time-tracking features are limited to its add-on Flex Time. With the Flex Time add-on, you can manage your employee attendance and schedules anywhere you have internet access.
Paychex’s time tracking features include:
- Multiple time collection methods
- Employee self-service via mobile app
- Manage meals and breaks
- Timecard management
- Scheduling support
- Overtime rules
- Calendar integration
- Geolocation and geofencing
- Attendance alerts (Flex Time)
- Tips and reimbursements
Payroll Tax Support
One of the best parts about Paychex payroll is that the company will handle calculating and filing your payroll taxes for you. The most notable payroll tax support features of Paychex include:
- The calculation, filing, and payment of federal, state, and local payroll taxes (may incur fees)
- W-2 tax form
- 1099 tax forms (extra cost)
Reporting
Paychex offers upwards of 100 reports and advanced analytics for customers on its Flex Enterprise plan. The software’s reporting feature highlights include:
- 100+ reports
- Customizable reports
HR & Onboarding
Each Paychex Flex plan includes a basic HR section where you can store key documentation. These plans also include a labor poster kit. However, you’ll need to upgrade to the Flex Enterprise plan to start using some of the software’s more advanced HR features, such as performance reviews and tracking employee training.
Here’s a look at some of Paychex’s HR and onboarding features:
- New-hire reporting
- Financial wellness course
- Elearning portal (Flex Select and up)
- Onboarding tools (Flex Enterprise only)
- Employee screening (Flex Enterprise only)
- Employee handbook tools (Flex Enterprise only)
Benefits Administration
Paychex offers employee benefits as a separate service within the platform’s ecosystem. If you opt for this service, you’ll be able to give your employees benefits spanning from health insurance to retirement plans.
Here’s a look at what you can expect from Paychex’s benefits administration services:
- Integration with Paychex Payroll
- Medical contribution tracking
- Enrollment tracking
- 401(k) retirement accounts
- Health insurance benefits
- Dental and vision benefits
- Employee portal for benefits management
- Flexible spending accounts
- Health savings accounts
- Tax savings plans
In addition to payroll features, Paychex also now offers one of the best employee retention credit funding services to help your small business file for the ERC credit on your tax return.
Paychex Customer Service
| Paychex Support | Availability |
|---|---|
| Phone Support | |
| Email Support | |
| Support Tickets | |
| Live Chat | |
| Dedicated Support Representative | Flex Select plan & up |
| Knowledge Base or Help Center | |
| Videos & Tutorials | |
| Company Blog | |
| Social Media |
Each Paychex payroll plan includes 24/7 support by phone and chat.
Customers with the Flex Select plans and up are assigned a dedicated payroll specialist, making it easy and convenient to get answers to payroll-specific questions.
The inability to contact a payroll specialist is usually a pain point cited by customers using other software solutions, so Paychex gets a big win in the customer service category.
Paychex Integrations
Paychex offers many additional services but still has plenty of third-party integration options. You can connect your Paychex payroll services to 225 software solutions, including QuickBooks Online, Xero, Sage Intacct, SimplyHired, and many more.
There is also API available for developers.
Paychex Reviews
Out of the hundreds of Paychex reviews, the majority are positive, with the number of positive reviews far outweighing the number of negative reviews. The software receives 4.2/5 stars on G2 (based on 1,300+ reviews) and 4.1/5 on Capterra as well (based on 1,200+ reviews).
While it’s important to take negative reviews with a grain of salt (considering the role of negativity bias), there are enough recurring complaints about significant issues, such as unauthorized payments, payroll inaccuracies, and missed tax filings, to take note of them before purchasing the software.
Negative Paychex Reviews & Complaints
- Unauthorized payment withdrawals
- Missed tax filings
- Payroll inaccuracies
- Expensive
Positive Paychex Reviews
- Good customer support
- Easy to use
- Strong payroll features and tax support
- Time-saving
- Convenient mobile app
Is Paychex Secure?
Paychex employs strong security tools to keep your data safe. While the company doesn’t give much more detail about its security measures, it does provide a detailed privacy policy. The company does not share or sell personal information.
- Data encryption
- Malware detection and prevention
- Firewalls
- Multifactor authentication
- Restricted access to confidential information
- SOC reports
Final Verdict Of Paychex
| Paychex Review Summary | |
|---|---|
| Pricing | Starting at $35/month + $5/employee |
| Choose If You Need |
|
Paychex offers strong payroll features, including customizable employee management, preprocessing payroll reports, and automatic payroll tax filing. Built-in HR and onboarding set the service apart. The software is well-organized, offers 24/7 customer support, receives many positive customer reviews, and — best of all — Paychex takes care of the entire setup process, so you don’t have to worry. However, it’s difficult to say if the service is worth it for small business owners without knowing exactly how much Paychex costs.
Paychex could be a great choice if you have a small or medium-sized business and you’re looking for payroll and a suite of additional HR and other business services. Contact Paychex directly for a quote and a demo of the software.
If pricing is a concern and you need payroll software that won’t break the bank, check out our picks for the best free payroll software for an in-depth look at the top free payroll software options on the market.
Paychex Payroll FAQs
Davina Ward
Expert Analyst & Reviewer
Davina joined Merchant Maverick in 2022, covering small business payroll and accounting. She began writing for small businesses in 2018 and has since gained expertise in the SaaS industry. She earned her Bachelor’s of Arts in English Literature from SUNY Geneseo in 2018. She currently resides in New York.
View Davina Ward's professional experience on LinkedIn.
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Organization Name: Loughborough Auto Body, Inc.
If we could leave 0 stars, we would. Paychex got worse with each pay week. They were not paying our taxes on time, messing up our payroll almost a weekly basis, you are on hold at least 40 minutes to talk to customer service, calls were not being returned and promises to improve were not kept. We are a very small business, and I can’t imagine how poorly they must handle a large business. We now have a new company with no issues. What a relief! Good riddance.
This comment refers to an earlier version of this review and may be outdated.
Organization Name: 1st Corey Enterprise
Paychex has been an absolute nightmare to work with. From their poor customer relations to charging us for services we didn’t use; partnering with Paychex was simply a mistake. Fortunately, we were able to find a better company to partner with and we have had great success with them (Heartland Payroll Solutions). They provide cheaper rates, they are extremely responsive, and the service has been night and day compared to Paychex. From start to finish, our experience was horrific. I wouldn’t recommend for anyone unless you are looking for something to keep you up at night.
This comment refers to an earlier version of this review and may be outdated.