HR tasks, compliance, and payroll management can be a great burden on companies of all sizes. Regulations and workplace environments constantly shift, and as your company grows you’ll find that these matters only grow in how burdensome they can be.
A PEO service might be the best option for your business to solve this problem, outsourcing the payroll and HR tasks to an outside company while you work on what counts. Paychex PEO is a standard in the industry, and you can learn more about it by taking a look at our review below:
Founded in 1971 by Tom Golisano, Paychex currently employs more than 12,000 employees and, astonishingly, by their count handles payroll for one out of twelve American private sector employees. That level of size is nearly incomprehensible, but despite it (and perhaps because of it) many business are happy to use the service to handle their payroll and HR needs, alongside receiving a wide variety of other benefits.
In recent years, Paychex has continued to acquire assets and build technology solutions to better serve its clients, for instance just recently adding a few years ago enhanced time tracking assets as well as changing to a mobile-first design for many of its products.
On a similar note to its growth, Paychex, and Paychex PEO among it, is such a massive service (Paychex reports working with over 600,000 businesses in some capacity and the company takes in billions in revenue each year) that it can be easy to get lost in the variety of options and services the company provides. In this review we want to focus on the PEO side of the business, so for those purposes of this review we’re going to ignore non-PEO facets of the business.
Given all of this, it is easy to note Paychex as the PEO that can handle anything for any business. With their experience, infrastructure, and stability, they will absolutely have the resources to help your company.
Service and Experience
Operates in all 50 states. While this can often simply be considered an industry standard, we would like to note that Paychex operates in all 50 states, making the location of your business a non-issue.
Accredited by both the IRS and ESAC. Paychex was one of the first PEO services to receive certification from the IRS and was already assuming tax liability for its clients before it received accreditation. It has also achieved ESAC accreditation, meeting some of the highest standards in the industry. Having both certifications only demonstrates that Paychex is one of the best and most reliable service providers in the industry.
Long-term contracts are not necessary. There are no long-term contract periods when working with Paychex, so your business will not have to work with a PEO service they might potentially not enjoy. Additionally, your business can cancel at any time so it can move on quickly should an issue or impasse arise.
Excellent, dedicated service representatives. You will work with a representative to set up your services, take care of any potential issues and resolve any issues quickly, ideally before any damage is done. Nearly all consumer and client reports about them have been extremely positive.
Benefits and Perks
Health, vision, and dental benefits. Paychex PEO can provide any of these benefits at various costs and packages for your employees. Related benefit accounts (HSAs, HRAs, and FSA) are all available, and Paychex will be able to administer benefits as necessary. Affordable Care Act compliance is assured as well as compliance with any other regulations that might come into play.
Well-managed 401(k) and retirement plans. Paychex prides itself heavily on its financial and retirement management services, and your plan will be customizable and scalable based on your company’s needs and abilities. It has the best 401(k) recordkeeping in the country, allows management from nearly any location, and works with expert financial planners to ensure top performance.
Small business funding options. While your business may already have options, Paychex can provide loans via its funding programs. This is something that other PEO services do not do and can be a source of immense convenience should your business need to recover or want to expand.
Financial wellness programs. In a proactive move to benefit your employees, PayChex has partnered with FinFit to help your employees reach financial stability and give them the tools they need to save more for retirement.
Compliance and Risk-Management
On-site safety reviews and training on a variety of topics. Paychex has safety and compliance experts on staff which you can utilize to come to your office (or field of work) and assess any risks or potential problems, making them a great way to get ahead of a concern. Onsite training is also available to keep your employees up to date.
Workers’ compensation insurance. Paychex is partnered with a variety of workers’ compensation insurance providers and will provide up to date and relevant information on any wages or deductions. They will work with you to find the best solution should any incidents occur.
Workplace safety programs. Paychex offers workplace safety programs that pair you with a team of experts to create manuals, provide training, and work to determine just what policies your place of business needs in order to reduce risk. Your team will work with you to make sure your business is OSHA compliant.
Information and Management Tools
Time management tools and apps. Paychex can set your business up with biometric time clocks, online timekeeping through their Paychex Flex® Time tools, all integrated with existing online payroll and management services. Apps are available for more mobile or remote employees. You or your managers can also receive notifications about such things as scheduling conflicts or discrepancies.
Manager dashboards and tools. In addition to the available time-tracking tools, managers will have functions to easily schedule, manage, and review employee schedules, likely increasing productivity and giving managers more time to perform other important tasks. Additional features such as leave tracking are also available for a price.
Training libraries and services. In addition to on-site safety training, Paychex also offers online training options and materials for employees to review at your convenience.
Streamlined service and payroll processing. Handling more than a million employees has given Paychex plenty of practice and opportunity to streamline their processes. Their systems are simple, effective, and consistent week after week.
Generally excellent services. Able to hire experts and utilize the best techniques in every department and service offered, you will be impressed in what you find from Paychex and find yourself complaining about few services.
Unique perks and opportunities. Paychex, in part due to its expertise, and in part due to its size, can offer things no other PEO service can, such as business loans and technologically advanced information-gathering tools.
Clear and itemized pricing. One would be concerned given the number of elective options available to Paychex clients, but fortunately the service is transparent in nearly all of its dealings with clients. You will know what you are paying for and how much you are paying for it.
Excellent retirement plans and 401(k) planning. Paychex stands out when it comes to retirement planning and signing up your company for their 401(k) services will be an immense talent draw and an employee retention tool for your company. Their services in this category are effectively unmatched, and every potential desirable feature can be found.
Strong management tools. Paychex clients will be able to manage their employees more easily, more effectively, and more accurately. Medium to larger sized companies will see the greatest benefit from their tools.
A five employee minimum for the service. Unfortunately, businesses with less than five employees will not able to use the service, meaning very small and startup businesses might not find it the best option.
An extremely large, unmaneuverable company. While Paychex offers customized solutions, there are other PEO services out there that place an even greater value on personalized service, allowing you to get the advice and plan your business needs to a snug fit. Paychex is unlikely by comparison to offer your business that same level of care.
Master of most trades, grandmaster of none. Except for perhaps 401(k) planning, we found Paychex to be an excellent service in nearly every regard, but not the very best when compared in certain categories to other PEOs. There are services that are more effective when it came to risk-management and compliance, for instance. If you have a specific need that trumps all others when looking for a PEO, you may still want to look elsewhere.
Difficulty closing accounts. A concerning trend among customer and employee reviews has been a string of reports stating that it has been very difficult transferring accounts to other services or closing accounts in general.
An expensive, premium service. Paychex, no matter the size of your company or the services you are getting, will not be the cheapest service you encounter in your search for the right fit. While many services will be clearly labeled in their cost, you will need to add them, and many services can add up to a notable bill for your business. Other services are locked behind premium (and relatively expensive) plans. Businesses trying to cut expenses will want to look elsewhere.
What Businesses Is Paychex PEO Best For?
Businesses looking for a large, stable PEO solution: Paychex isn’t going anywhere, and you aren’t going to see many changes that could turn your benefits or business on its head. Businesses looking for that sort of stability won’t easily find a better option than Paychex. The IRS and ESAC accreditations only serve to bolster this fact.
Businesses that want to choose from a great number of options: Whatever sector your business is in or whatever its size, Paychex PEO is likely to have a solution or service package that will be just right for your business. Experienced enough to know what you’ll need, their options will each be measured to the parameters of your current business (and perhaps for growth in the future).
Small and medium businesses that can use everything Paychex has to offer: Paychex, being a huge business, is likely more expensive than many of the other options you could look at. The best way to make use of Paychex is often to use all of Paychex. If you need a full service PEO, then look deeper into the service. If not, then maybe other options might be a better fit.
Businesses looking for high-level help yet don’t need a full-service option: Conversely, perhaps your business is small and might not need a full-service option, but you need some or a few of the high-level options available. As long as you’re willing to pay for a premium service, then Paychex can still be for you.
Businesses that are not looking to commit: Paychex is rare in that you don’t need to sign a year-long contract or give a long-term cancellation notice. If you don’t like Paychex, you can get out of using them in a process far simpler than normally. Businesses looking to just try out a PEO will want to look at Paychex for that reason.
Paychex PEO Competitors
- Oasis Outsourcing
- Engage PEO
Great for businesses that can use everything it has to offer and would like the stability of an industry titan, Paychex PEO can provide benefits, payroll, and any type of HR support your business might need. If you would like a simpler, leaner, or more specialized service, perhaps another of our recommendations is best.
Have you used Paychex PEO before? What businesses do you think it would be best for? If you have any thoughts on the matter or the service in general, please leave a comment below, as we would love to hear your thoughts.