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Paychex HRO Review

Skye Schooley
Skye Schooley

Paychex has scalable payroll and HR outsourcing (HRO) plans, an advanced help center, and no employee minimum requirements (or minimum salary requirements), and it is our choice as the best HRO for small businesses. With Paychex's HRO plans, you can access comprehensive HR features such as employee recruitment, employee benefits administration, time and attendance tracking, payroll processing, payroll tax administration, and employee training and development. The Paychex dashboard and mobile apps are intuitive and easy for employees to use to view their paychecks and modify benefits. Paychex can integrate with nearly 200 third-party applications, which is especially ideal for small businesses that want to keep some of their current business software intact while outsourcing some HR functions to Paychex. Paychex also offers professional employer organization (PEO) partnerships, which may be a better match for some small businesses. 

Paychex HRO

Paychex HRO

The Verdict

If you need assistance with your human resource tasks, Paychex has the services and tools to assist you. This HR outsourcing company offers assistance online, on-site and through outsourcing. It can assist you with most of your human resource tasks, inclu

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Paychex HRO

Pricing/Value 9.5
Features 8.5
Expertise 8.9
Ease of use 9.4
Customer support 8.7
Editor's score 9.0

Paychex Human Resources Outsourcing Pricing and Terms

Since they are available to businesses of all sizes, even those with just one employee, Paychex HR outsourcing plans offer a lot of flexibility. Paychex doesn't enforce minimum salary requirements, and there is no required contract length, just a 30-day cancellation notice condition with the Paychex service agreement.

Paychex is great for small businesses that have unique HR needs, as they offer a variety of features packaged into different options. Paychex's HR outsourcing plans are scalable; as an organization grows and needs change, it can add services or products along the way. 

Customers of Paychex fluctuate in size and complexity, so the HRO offers service plans to accommodate those differences. For example, Paychex Go is a basic payroll and compliance plan that costs $59 per month plus $4 per employee per month. Paychex Flex and Paychex Flex Enterprise offer additional HR features at customizable rates.

TipTip: As your organization grows and its HR needs change, you can easily add services. In fact, some companies transition between HRO and PEO services.

Paychex HRO Features

Small businesses can access a variety of features through Paychex's HRO plans. For example, you can choose from functions that assist with payroll, risk and compliance, employee benefits, and HR administrative services. Instead of paying for HR features you don't need, select the solution that works best for your business based on the level of support that you require.

FYIFYI: Paychex offers many of the same HR functions to both PEO and HRO customers. If there is a service you need, speak to a representative about adding it to your plan.

HR Services

Paychex can help with administrative tasks, like employee hiring and management, employee training, termination assistance, HR consulting, and more. If you run pre-employment background checks on potential new hires, Paychex can connect you with the right background screening service.

When you hire new employees, Paychex can help expedite the onboarding process with features like electronic documents and e-signature capabilities. These can save your small business time and money, and reduce the potential for error. Paychex has document storage capabilities as well, so you can store your team's important HR documents, which is important for complying with certain labor laws.

Payroll and Taxes

Managing payroll can be difficult, but Paychex simplifies the process for companies. In fact, one of Paychex's defining characteristics is its excellent payroll features. Paychex handles all of your payroll processing, payroll tax administration, employee payments (e.g., direct deposit, pay cards, paper checks), new-hire reporting to government agencies, workers' compensation, and garnishment payments. It also has online self-service capabilities, so employees can track important payroll information like hours, pay and time off.

Paychex makes it easy to review employee hours and submit payroll.

Employee Benefits Administration

You can manage and update employee benefits (e.g., group health insurance, Section 125 plans, retirement plans, employee assistance programs, etc.) in real time with Paychex Flex. Paychex can work with your current brokers, and it offers an added level of oversight with benefits functions like communications, recordkeeping, analytics and reporting, and automated renewal.

Paychex has online calculators to help your employees find the right benefits.

Risk and Compliance

Managing risk and maintaining legal compliance is no small feat, but Paychex can alleviate some of the burden. It offers workers' compensation insurance, COBRA administration, state unemployment insurance, OSHA and safety programs, custom employee handbook creation, automatic W-2s and 1099s, and Form 5500 filing. You also get essential HR and business forms, as well as printed and electronic labor compliance poster kits. Paychex monitors current federal, state and local laws to help your business maintain compliance.

Employees can quickly and conveniently raise concerns to a designated admin.

Employee Training and Development

Paychex offers a learning management system (LMS), which can help you train employees and help your business maintain legal compliance. With the online platform, your team can access virtual courses to stay current on job certifications and compliance training. Paychex also offers employee performance reviews, employee training tracking and employee feedback. If employee development is a top priority for you in an HRO, check out our review on G&A Partners.

Ease of Use

Paychex's flexibility and scalability lend itself as a great partner for HR outsourcing. Its online dashboard is intuitive and easy to navigate, and you can view HR details in one location, such as payroll, user access, hiring information, a general ledger, COBRA information and benefits.

The Paychex Flex dashboard easily lets you access and manage various HR functions.

Paychex has mobile apps for Android and iOS devices. Paychex also offers self-service features for your employees, which puts employees in control of their HR information. All of this ensures that employees can access what they need, wherever they are.

Paychex makes it easy for employers and managers to get a clear view of their business with comprehensive reporting and analytics. You can access several reports to inform business decisions that improve your team and streamline your business's processes. 

Although Paychex offers a comprehensive set of HR services, there is a good chance your business uses other software. Paychex makes it easy to integrate them, as it is compatible with a variety of third-party applications.

Did you know?Did you know? Paychex offers more than 160 reports and more than 190 third-party integrations.

Limitations

Paychex is accredited with the Better Business Bureau (BBB) and has an A+ rating with the agency, but it has a 1.81 rating out of five stars (at the time this review was written). While this is not necessarily an indicator of the type of service you will receive from Paychex, we would prefer it if Paychex's rating were higher. Paychex has many positive ratings on other review sites. 

Another potential limitation is that Paychex does not list pricing for its HRO plans online. You can find pricing for Paychex Go, but for its higher-tiered plans, you need to contact a representative to receive a customized quote. While customized pricing can be ideal – especially for small businesses that only need to outsource a few functions – it can be inconvenient for business owners who want an immediate idea of how much the service will cost them.

Customer Support

Paychex offers several helpful online resources. You can access a help center, blogs, webinars and online calculators. There is a searchable knowledgebase that can be filtered based on topic, e.g., payroll, taxes, benefits, insurance, etc.

If you need more support, you can receive one-on-one assistance from a Paychex representative. Paychex offers customer support by phone, webchat, and you can always check with your assigned Paychex representative as well. If customer support is a top priority for you, check out our review on TriNet.

Image Credit: fizkes / Getty Images
Paychex HRO

Paychex HRO

The Verdict

If you need assistance with your human resource tasks, Paychex has the services and tools to assist you. This HR outsourcing company offers assistance online, on-site and through outsourcing. It can assist you with most of your human resource tasks, inclu

Visit Site
Skye Schooley
Skye Schooley
business.com Staff
Skye Schooley is a staff writer at business.com and Business News Daily, where she has written more than 200 articles on B2B-focused topics including human resources operations, management leadership, and business technology. In addition to researching and analyzing products that help business owners launch and grow their business, Skye writes on topics aimed at building better professional culture, like protecting employee privacy, managing human capital, improving communication, and fostering workplace diversity and culture.