Paychex PEO Review and Pricing

Why We Chose Paychex for Remote Teams

Businesses with remote work plans or dispersed teams face unique HR challenges, and we found that Paychex has the tools and expertise to handle them well. It offers comprehensive HR services across the U.S. and can take on tasks like payroll processing, benefits administration, payroll taxes, employee training and development and legal compliance support. We like that these capabilities help business owners feel confident about meeting federal and state requirements, no matter where their employees work.

Paychex also offers both PEO and non-PEO HR outsourcing plans, so employers can choose the approach that fits their current needs and adjust it as those needs evolve. A PEO arrangement includes a co-employment model, where Paychex shares specific employer responsibilities like payroll tax filings and benefits administration, while an HRO plan keeps those responsibilities in-house but outsources certain HR tasks. This flexibility makes it easier for companies to scale their HR support in step with business growth.

We also appreciate Paychex’s cloud-based platform, which, paired with its mobile app, delivers the flexibility remote and dispersed teams need to manage HR tasks from anywhere.

Ease of Use

Part of Paychex’s ease of use comes from its ability to support remote and dispersed teams without adding complexity. Here are a few elements that we felt enhanced the platform’s usability. 

• Straightforward dashboard: The Paychex Flex dashboard is easy to navigate. We appreciate that you can view HR details — such as payroll, user access, hiring information, a general ledger, COBRA information and benefits — in one place. Quick access to this content is vital for all employers, but particularly important for those that manage remote team members across various locales.
• Employee self-service features: We appreciate the platform’s employee self-service tools. These features give team members control over their HR information and ensure they can access what they need without issue — wherever they are. 
• Mobile access: Paychex offers Android and iOS apps for on-the-go HR functionality, with capabilities comparable to those of competitors. We appreciate that the Paychex Flex mobile app has a 4.7- and 4.8-out-of-5 rating in the Google Play and Apple App Stores, with a combined total of more than 600,000 reviews. This is a testament to the software’s overall usability.
• Smooth mobile experience: The mobile experience has been significantly enhanced with advanced security features, including Touch ID and Face ID authentication for both employers and employees. The Paychex Time Kiosk app can turn an iPad into a working time clock with offline capabilities, allowing employees to punch in and out, manage breaks and perform job transfers even without cellular or Wi-Fi connectivity. These improvements ensure that remote and mobile workforce management remains seamless and secure across all devices.

Paychex Features

The specific services you have access to will depend on your PEO or HRO agreement with Paychex, but here are a few of the many features it offers.

HR Services

Paychex has some of the best HR services available nationwide among the PEOs and HROs we reviewed. Here are some highlights:

• HR guidance: We like that Paychex provides your business with an HR consultant who can help develop internal HR policies. The vendor and its team can assist with employee handbook and policy development, new-hire reporting, and best employment practices. It can also help with compliance services, performance evaluations, behavioral assessments, and employee termination and dispute assistance. 
• Recruitment: Additionally, Paychex offers employee recruitment assistance, onboarding tools and employee training. With the release of its AI recruiting solution, Paychex Recruiting Copilot, the hiring process is further simplified. For example, the Recruiting Copilot AI assistant tool constantly searches for qualified job seekers and matches you with the best candidates. 
• Remote onboarding: We especially like that Paychex can help expedite the onboarding process for remote employees with features like electronic documents and e-signatures, saving your small business time, reducing errors and cutting costs. The onboarding process is scalable, so you can add or remove certain tasks based on your company’s needs. 
• Secure document storage: Paychex also offers document storage capabilities, allowing you to securely store important HR documents in the cloud — a requirement for complying with specific labor laws across different cities and states.

Risk and Compliance

Paychex’s risk and compliance assistance can be incredibly valuable to businesses with remote and dispersed teams. We like that the vendor can support businesses with HR compliance challenges across various states and locations. The company can help you maintain legal compliance with federal and state laws, which is especially helpful for employers with dispersed teams.

Paychex offers workers’ compensation insurance, COBRA administration, state unemployment insurance, OSHA compliance assistance, safety programs to help prevent workplace accidents and custom employee handbook creation. It also provides drug-screening assistance, automatic W-2 and 1099 forms, and Form 5500 filing. You’ll get access to essential HR and business forms, as well as printed and electronic labor compliance poster kits. Paychex even monitors current federal, state and local laws to help your company stay compliant.

Payroll and Taxes

Adhering to tax laws can be challenging when you have remote workers in various locations. Paychex helps ensure you make the correct payments to the appropriate agencies at the right times. Its PEO payroll services can run payroll and handle all your federal, state and local payroll tax administration. You can pay your team via direct deposit and opt for electronic pay stubs — ideal for employees who work offsite.

For businesses requiring faster payment processing, Paychex also offers advanced payment options, including Real-Time Payments that can send payments in seconds via direct deposit and Same-Day ACH for payment by the end of the next business day. These enhanced capabilities meet the growing demand for immediate payroll processing and are particularly beneficial for companies with urgent payment needs or gig workers who expect faster compensation.

Employee Benefits

We like that Paychex PEO can provide Fortune 500-level employee benefits to small businesses. You and your team can opt for:

• Health, vision and dental plans
• 401(k) retirement plans
• Health savings accounts
• Flexible spending accounts
• Prepaid college funds
• Parking and transit plans
• Health and wellness coaching
• Financial wellness programs
• Employee assistance programs (EAPs)

Paychex also offers the Paychex Flex Perks program, an integrated e-commerce experience that lets employees select benefits such as earned wage access and voluntary lifestyle benefits at no cost to the employer. These types of benefits, along with remote work opportunities, are especially great for attracting and retaining talent in a multigenerational workforce.

We like that Paychex can also work with your current brokers. In addition, the company offers an added level of oversight with benefits functions such as communications, recordkeeping, analytics and reporting, and automated renewal.

Training and Development

When testing Paychex’s services, we noticed the vendor has a learning management system (LMS) that can help you train employees and maintain legal compliance. Team members can access virtual courses to stay current on job certifications and compliance training in their respective locations. Paychex’s virtual learning services also include reporting capabilities, making it competitive with other PEOs on the market.

Paychex can also facilitate employee performance reviews, track training progress and gather employee feedback.

Paychex Pricing and Plans

Paychex has flexible pricing options that work for any organization, whether you have in-office or remote workers. While you’ll need to contact the vendor directly for a custom quote based on your specific needs, our research shows that prices for Paychex’s plans generally start at around $39 per month plus $5 per employee.

We love that, unlike some competitors, Paychex doesn’t have minimum-salary requirements, and there is no required contract length — just a 30-day cancellation notice. 

The company offers both PEO and HRO plans, and clients can move between them as their needs change. The requirements for each are slightly different. 

Paychex PEO contract requirements:

• A minimum of five employees is required to be eligible for PEO services.
• Around 10 employees are typically required to qualify for medical plans.
• You can choose which Paychex services you want, but you must use Paychex payroll (a common PEO requirement).

Paychex HRO contract requirements: 

• Available to businesses of all sizes, including those with just one employee.
• Select HRO plans do not require you to use Paychex payroll.
• Medical plan eligibility may still require around 10 employees.

Paychex’s HR outsourcing plans are scalable. As your organization grows, you can add services or products, making it a strong fit for businesses of different sizes and complexities.

Implementation and Onboarding

When we tested the Paychex Flex platform, we found the implementation process to be comparable to other solutions in the industry. We like that a sales representative can walk you through selecting the right Paychex plan for your company, and the intuitive online platform makes it simple to get your team up to speed quickly.

One of Paychex’s advantages is that it can tailor its services, as well as its implementation, to individual organizations. Every small business is different (office staff, remote workers or hybrid workplaces), and Paychex’s services reflect that.

During or after the initial implementation, you can integrate Paychex with other third-party applications you already use. Paychex includes robust API capabilities for custom integrations and can sync with more than 150 popular programs, giving you a strong chance of streamlining business functions once you’ve integrated the platform. Although some rivals boast more than 500 integrations, others have as few as 40, so we believe Paychex’s integration capabilities are competitive.

Customer Service

The level of customer support you can access will depend on your agreement with Paychex. 

• PEO support: Paychex PEO clients can access a team of support professionals, including a relationship manager, an HR business partner, a payroll specialist and an employee benefits specialist. These experts will help you develop and implement new HR practices in your business. That level of attention is a huge asset for organizations with remote or hybrid teams, which often need varying policies based on employee location. Your Paychex team will be available to answer questions by phone and email.
• HRO support: If you partner with Paychex under an HRO model, you may not have access to as many support specialists as a Paychex PEO client. But some of the HRO plans include access to an HR professional for support. Paychex also offers around-the-clock service centers you can call if needed.

Paychex is accredited by the Better Business Bureau and has an A+ rating with the agency, which is better than many of the other PEOs we analyzed. It is also accredited by the IRS and the Employer Services Assurance Corporation. These accreditations suggest the company is committed to providing excellent PEO support to its customers.

Limitations 

The following may be potential concerns if you’re considering working with Paychex:

• Lack of pricing transparency: Paychex doesn’t publish pricing for its PEO or HRO plans online — you’ll need to contact a representative for a custom quote. Customized pricing can be beneficial, especially for small businesses that need to outsource only a few functions, but it can be inconvenient for owners who want an immediate idea of costs. If you’re looking for an HR solution with transparent online pricing, see our review of Bambee.
• Staff requirements: Another potential downside is that you must have at least five employees to use Paychex’s PEO services. A company representative also told us that the minimum number of employees needed to qualify for medical plans is typically around 10. This may not be a deal-breaker for many organizations, but it’s worth noting for smaller businesses — especially startups. Consider our review of Justworks for a PEO that excels at accommodating smaller companies.
• Integration scope: While Paychex offers more than 150 third-party integrations, some competitors support 500 or more. This may not matter if your business uses only the most common HR, accounting and productivity tools, but companies with niche software requirements may find the options limited. Check out our review of Rippling if integrations are a top priority. This platform can support more than 500 integrations.  

Methodology

We researched and analyzed dozens of PEOs and HROs to identify the best HR services on the market. We looked at pricing, contract terms, bundled vs. a la carte features, minimum requirements, employee benefits administration, time-tracking tools, payroll processing and taxes, administrative HR functions, talent-management features, integrations, legal risk and compliance assistance, accreditations and customer service.

As part of our review process, we used free trials, watched product videos and conducted demos when possible. When searching for the best outsourcing solutions for remote teams specifically, we prioritized payroll processing, tax assistance, legal risk and compliance assistance, usability, scalability, paperless and mobile services, and customer service.

Bottom Line

We recommend Paychex for …

• Companies with remote or hybrid teams.
• Small and midsize businesses.
• Organizations seeking payroll and tax assistance.

We don’t recommend Paychex for …

• Businesses with fewer than five employees.
• Companies that want transparent online pricing.
• Very large enterprises.