Paychex is a robust cloud-hosted payroll service that manages payroll processing and tax obligations, and provides a host of other HR-related survives. The Paychex Flex platform is accessible online or via the mobile app for iOS and Android devices. You can pay anyone who does work for you through Paychex, including W-2 workers, 1099 contractors and freelancers.
Paychex offers plans suitable for businesses small and large, making it a good option for businesses seeking a payroll processing partner they can scale with. Paychex offers three different service plans, and payment methods are customizable as well, including direct deposit, paper checks and prepaid debit cards.
Running payroll is a simple process with Paychex. In essence, all you have to do is enter your employees' salaries and pay rates, note how many hours they worked, and then submit your payroll for processing. Paychex takes care of the rest. It calculates each paycheck, withholding the proper amounts for payroll taxes and other benefits. It then pays your employees via direct deposit, pay card or printed check.
September 2021: To ensure paychecks are accurate, Paychex users now have the opportunity to review paystubs before payday. The new feature, Paychex Pre-Check, lets users choose how they want to be notified, such as via email, a smartwatch or smart speaker, when their paystub is ready to be reviewed. Users can then confirm accuracy or report a problem.
June 2021: Paychex recently unveiled a new labor cost tool that gives business owners and their financial team a real-time look at their total labor costs and labor distribution. Having instant access to labor costs and allocation helps businesses better understand their financial standing, as well as plan more adeptly for the future. One use of this data from Paychex can, for example, help business owners see how salary cost adjustments would impact overall expenses.
May 2021: Paychex recently began offering a self-service tool that allows new hires to get set up in the Paychex Flex platform quickly. Employers send an invite to new employees. That invite gives new hires access to the Paychex system and allows them to sign up for direct deposit and fill out their W-4 forms.
Paychex has three pricing plans: Go, Flex Select and Flex Enterprise. Each of these plans include all the core payroll processing and payroll tax features we looked for in our review. Here's more about these three plans.
- Go: Paychex's basic plan, Go, includes online payroll, payroll tax preparation, time and attendance tracking and new-hire reporting. This plan costs $59 per month, plus $4 per employee.
- Flex Select: Flex, Paychex's most popular plan for small businesses, includes everything in the Express plan, plus access to a dedicated payroll specialist, labor compliance poster kits and paper check options. There is no set or fixed price for this plan; pricing is customized for your business.
- Flex Enterprise: This is the most comprehensive plan and designed for larger organizations. It includes everything in the Pro plan, plus custom analytics, reports and HR administration. Pricing is customized for businesses.
In addition to its payroll services, Paychex offers human resources tools and services, time and attendance systems, employee benefits, and business insurance. This is another element that makes Paychex a scalable platform. Larger organizations can also leverage Paychex to manage time and attendance, recruiting, hiring, and benefits.