Paychex PEO Review and Pricing

Why We Chose Paychex for Remote Teams

Businesses that have remote or dispersed team members face unique HR challenges. We believe Paychex is a top HR solution that can address those issues. Paychex, for example, provides comprehensive HR services throughout the U.S. Such services include payroll processing, payroll tax administration, benefits administration, training and development, and legal compliance assistance. With Paychex as your HR partner, we love that business owners can rest assured that they’re complying with federal and state laws wherever they and their employees operate.

Since Paychex offers PEO and non-PEO HR outsourcing plans, employers can choose a plan that best meets their current needs. Then they can modify their plan as those needs change.

We also like that Paychex offers a cloud-based platform. Coupled with its mobile app, it gives businesses the level of flexibility they need to accommodate remote and dispersed teams.

Ease of Use

We found that Paychex’s flexibility makes it an ideal HR partner for businesses of almost all sizes. The vendor is an especially solid option for companies with remote or dispersed teams that are looking for HR, payroll and benefits support across various locations. Furthermore, instead of getting bogged down with services you don’t need, we like that you have the freedom to choose the functions that work best for you and your remote staff.

Regardless of the services you choose, the Paychex Flex dashboard is straightforward and 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 especially vital for employers who manage remote team members across various locales.

The Paychex Flex dashboard provides the most important information at a glance with options to click deeper. Source: Paychex

We like that the vendor uses the platform to provide self-service features for employees. It gives team members control over their HR information and ensures that they can access what they need without issue — wherever they are. Paychex also has Android and iOS apps that are on par with competitors’ offerings for easy mobile access. We appreciate that the Paychex Flex mobile app has a 4.8-out-of-5 rating in the Google Play and Apple App stores, with a combined total of more than 600,000 reviews. That is a testament to the software’s overall usability.

Paychex Features

Paychex has some of the best services available nationwide of any PEO or HRO we reviewed. Notably, you get to choose from a broad list of functions that are helpful while trying to accommodate a remote or hybrid workplace. We particularly like how you have the flexibility to scale Paychex’s PEO and HRO services as your business grows or changes.

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 they offer.

HR Services

Paychex provides your business with an HR consultant who can help develop your company’s HR policies. We found that 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. In addition, it offers recruiting assistance, onboarding tools and employee training. With the release of its new AI recruiting solution, Paychex Recruiting Copilot, the hiring process is simplified even more. For example, the Recruiting Copilot AI assistant tool constantly searches for qualified job seekers and matches you with the best candidates. 

Paychex collects a variety of employee information that can be used to enhance performance and DEI initiatives. Source: Paychex

We especially like that Paychex can help expedite the remote employee onboarding process. That’s thanks to features such as electronic documents and e-signatures, which can save your small business time and money and reduce the potential for error. The onboarding process is scalable, so you can add or remove certain tasks based on your company’s needs. Paychex also has document storage capabilities, so you can securely store your team’s important HR documents in the cloud — a requirement for complying with specific labor laws across different cities and states.

Risk and Compliance

One of the Paychex services we found most valuable for organizations with remote teams is its risk and compliance assistance. We like that the vendor can aid businesses with HR-related challenges across various states and locations. The company can help you maintain legal compliance with federal and state laws, for example, which is ideal for employers with dispersed teams.

Employees can quickly and conveniently use the Paychex Flex platform to raise concerns to a designated administrator. Source: Paychex

Paychex offers workers’ compensation insurance, COBRA administration, state unemployment insurance, OSHA and safety programs, and custom employee handbook creation. It also boasts drug-screening assistance, automatic W-2s and 1099s, and Form 5500 filing. You also 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 that you make the correct payments to the appropriate agencies at the right times. The software processes your payroll and handles all of your federal, state and local payroll tax administration. You can choose to pay employees via direct deposit, plus there are options for paperless pay stubs — both of which are ideal if your employees don’t come to the office.

Paychex makes it easy to run payroll for your in-office, remote and hybrid employees. Source: Paychex

Employee Benefits

We like that Paychex PEO can provide Fortune 500–level benefits to small businesses. You and your employees can choose from multiple 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; and employee assistance programs (EAPs). Paychex also released Paychex Flex Perks, 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), which can help you train employees and help you 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 have reporting capabilities as well. It’s competitive with other PEOs on the market.

Paychex can also facilitate employee performance reviews, employee training tracking and employee feedback.

Employees can view and manage their own HR information and tasks through the Paychex platform. Source: Paychex

Paychex Pricing and Plans

Paychex has flexible pricing options that are great for any organization, regardless of whether you have in-office or remote workers. We love that, unlike some competitors, Paychex doesn’t have minimum-salary requirements, and there is no required contract length. The Paychex service agreement just requires a 30-day cancellation notice.

Paychex offers PEO and HRO plans, but the requirements for each are slightly different. We appreciate that the company allows clients to transition among plans based on their needs.

• Paychex PEO contract requirements: To be eligible for Paychex’s PEO services, you must have at least five employees. A representative we spoke with also mentioned that the minimum number of employees needed to qualify for medical plans is typically around 10 people. When partnering with Paychex as a PEO, you can pick some of the Paychex services you want. You must, however, use the company’s own payroll service. That’s a requirement for nearly every PEO we reviewed.
• Paychex HRO contract requirements: If you partner with Paychex without the PEO model, you have a little bit more flexibility. Select HRO plans, for example, don’t require you to use Paychex’s payroll. The HRO plans are also available to businesses of all sizes, including those with just one employee. Keep in mind, though, that the medical plan requirement of around 10 team members may still apply.

We like that Paychex’s HR outsourcing plans are scalable; as an organization grows and its needs change, company leaders can add services or products. That’s one reason Paychex is great at serving businesses of different sizes and complexities.

Because there is some flexibility in the specific services you choose, however, you will need to contact the vendor directly for a custom quote based on your particular needs. Based on our research, prices for Paychex’s plans generally start at around $39 per month, plus $5 per employee.

Implementation and Onboarding

When we tested the Paychex Flex platform, we found the implementation process to be on the same level as other solutions in the industry. We like that a sales representative can walk you through the process of selecting the right Paychex plan for your company. Then the intuitive online platform makes it simple to quickly get your company’s workers up to speed.

One of Paychex’s advantages is that it can tailor its services, as well as its implementation, to individual organizations. Every small business is built differently (i.e., office staff vs. remote workers vs. hybrid workplace), and Paychex’s services reflect that.

During or after the initial implementation, you can integrate Paychex with other third-party applications you may be using. Paychex can sync with more than 130 popular programs, so there’s a good chance you’ll be able to streamline business functions once you’ve successfully integrated the platform. Although some rivals boast more than 500 integrations, others have as few as 40. We believe Paychex’s integration capabilities are pretty competitive.

Customer Service

The level of customer support you can access will depend on your agreement with Paychex. When you become a Paychex PEO client, you have access to a team of support professionals: a relationship manager/client advocate, 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 your questions by phone and email.

If you partner with Paychex under an HRO model, you may not have access to as many support specialists as does a Paychex PEO client. But some of the HRO plans include access to an HR professional for HR support assistance. 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. That leads us to believe the company truly cares about providing excellent PEO support to its customers.

Limitations

One potentially significant limitation when considering Paychex as an HR partner is that the vendor doesn’t list pricing for its PEO or HRO plans online. Instead, you need to contact a representative to receive 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 business owners who want an immediate idea of how much a service will cost them. If you’re looking for an HR solution with transparent online pricing, see our review of TriNet’s HR platform.

Another potential downside of Paychex is that you must have at least five employees on staff to use its PEO services. When we spoke with a company representative, we were also told that the minimum number of employees needed to qualify for medical plans is typically around 10 people. That may not be a deal-breaker for a lot of organizations, but it is a consideration for smaller businesses — especially startups. Consider our review of Justworks for a PEO that excels at accommodating smaller companies.

Methodology

We researched and analyzed dozens of PEOs and HROs to identify the best HR services on the market. We looked at pricing, contract requirements, 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 investigation, 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 to midsize businesses.
• Organizations looking for payroll and tax assistance.

We don’t recommend Paychex for …

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