Paychex HR Outsourcing Review

Why Paychex Is Best for Payroll

We like that Paychex has multiple features that differentiate it from its competitors. For example, the company’s training programs, which cover topics, such as HR onboarding and safety, are some of the most extensive of any HRO company we reviewed. However, it was the payroll features that really stood out to us in our review.

Paychex’s payroll services and tools are very well-regarded in customer reviews and, when we tested the platform out for ourselves, we were equally impressed by how user-friendly the payroll processing tools were. Additionally, we found the in-depth payroll reporting features to be particularly useful. Paychex also offers some flexible payroll options that others don’t, such as off-cycle payments, contractor payments, and direct deposit to prepaid debit cards.

Paychex has robust payroll functions and reporting to make paying your employees easy and efficient. Source: Paychex

Usability

Paychex was among the first companies to provide payroll services and, later, HRO support. The company has evolved its platform over time to create a user-friendly solution that is quick to learn and intuitive to navigate. The full-service mobile app is a standout feature for Paychex, enabling users to engage with all the same features as the desktop version, including the well-designed user dashboard that allows administrators and employees to complete their tasks quickly.

The Paychex Flex platform has a smooth interface, which makes it simple to find what you need. Source: Paychex

You can try out Paychex’s software before you commit to the company’s HRO services. We like that Paychex offers online demos to help new users learn how to navigate the platform — and we found them to be extremely helpful. Explore Paychex’s applicant tracking, employee onboarding, performance management and time and attendance features through the self-guided demo to see whether it’s the right fit for your needs and preferences. We completed the product tour ourselves and found it essential to better understand Paychex’s offerings and functionality.

Paychex Features

Payroll and Taxes

Paychex is one of the best in the industry at running payroll and offering insightful reporting. It is well-designed for small companies, which often have only one person dedicated to managing payroll. We found that Paychex customers can use the payroll processing software to track employee hours, including paid time off and sick days. The payroll service also includes compliance with government regulations, state and local tax preparation, time clock technology and other key payroll features. Paychex also provides a well-tested mobile app for payroll and HR management on the go. Out of the HRO services we reviewed, Paychex’s payroll offerings were the most robust by far.

Additionally, we rated Paychex’s payroll functionality a 10/10, which is an incredible rating especially when compared to other HR outsourcing companies like TriNet. We especially liked that Paychex’s payroll services and tools are helpful, flexible, and user-friendly. In fact, the company offers payroll options that many other HR outsourcing vendors lack.

Paychex can handle all of your payroll processing and payroll tax responsibilities. Source: Paychex

HR Services

Paychex offers a comprehensive slate of HR services, including onboarding and recruiting resources, handbook and policy development, HR assessments and consulting, termination and dispute assistance, benefits orientations, and employee screening and training. With Paychex’s HRO services, you can confidently outsource the entirety of your HR department if you wish. If you prefer to keep certain functions in-house, you can choose to only outsource certain tasks based on your business’s needs.

Employee Benefits

Through the HRO model, Paychex offers guidance on benefits support and related needs. The company provides advice and can guide you in selecting a third-party benefits provider that suits the needs of your workforce. You and your employees can manage your benefits online through the Paychex platform, even though these benefits are provided by a third party. We also love that Paychex helps you find the right benefits plan for your business and educates you on the various health insurance options available to your team.

Another benefit is that Paychex has an employee minimum of just one, while companies like Insperity and TriNet have an employee minimum of five.  

Paychex makes it simple for employees to sign up for health insurance policies. Source: Paychex

Risk and Compliance

Remaining compliant with state and federal regulations is critical for any business. Failure to do so could result in fines and lawsuits, which, if severe enough, can even lead to permanent closure. To help you avoid these pitfalls, Paychex makes sure your business complies with all existing HR regulations and all legal requirements. This includes considerations like COBRA, required annual reporting, workplace safety training, development of workplace safety policy and guidelines, workers’ compensation, return-to-work programs, unemployment insurance, and on-site safety inspections.

Training and Development

Paychex’s HRO model offers scores of training materials and related courses, including online books, videos and e-learning courses. This breadth of training resources ensures you can offer the right education programs for your business. We found this to be a great resource for small businesses that do not have their own internal training resources yet.

Recruitment and Onboarding

Paychex supports customers with their recruitment and onboarding needs. In addition to providing an HR support team, we noticed that Paychex offers training on how to write and post job ads, interview job candidates and onboard new employees. That way, your team will be prepared to manage future recruitment challenges, such as location specification; diversity, equity and inclusion requirements; and unique skill sets that are required for a particular job.

With Paychex, you can see instant data on employee performance and staffing trends. Source: Paychex

Paychex Cost

Because Paychex’s HRO plan is available to businesses of all sizes, even those with just one employee, it offers a lot of flexibility. There are no minimum-salary requirements or required contract lengths, and you can cancel at any time by providing 30 days’ notice.

Like many other HRO services, Paychex does not openly advertise its pricing. We found that Paychex is great for small businesses that have unique HRO needs, as it offers a variety of features packaged into different HRO options. The plans are scalable, so you can add services or products as your business grows.

Paychex also offers a number of other services a la carte, including Paychex PEO, Paychex HR software, Paychex time and attendance and Paychex payroll. For Paychex’s payroll tools alone, pricing starts at $39 per month, plus a $5 per month per employee fee.

Paychex Setup

It’s easy to get set up with Paychex. New customers are assigned a Paychex HR representative who will help them import employee data and set up the platform with any desired customizations. Once the platform setup is complete, Paychex assigns dedicated points of contact who will provide ongoing support and expertise on a variety of payroll, compliance, and HR matters.

According to Paychex’s customer service team, the implementation timeline can vary based on your business’s size and service needs. They reported that the average setup time was about two to four weeks. However, the setup process can be longer for very large businesses or those with complex needs.

Paychex Customer Service

Like most of the HRO services that we reviewed, Paychex provides a designated team of payroll and HR experts. We love that each HR expert specializes in a different area. For example, there is an HR generalist who acts as a liaison between Paychex and your business and doubles as a consultant or coach, helping you to develop policies and troubleshoot issues as they crop up. You can contact Paychex’s customer service team by phone at (833) 299-0168 or via the Paychex help desk. Paychex also has a variety of self-guided online resources for tutorials and troubleshooting, including articles, webinars and tools such as tax calculators. 

Paychex Drawbacks

We found that the area where Paychex has the most room for improvement is within the various channels for communicating with customers. Although Paychex does have an online chat option, support is often delayed. The best way to connect with a representative is to call the dedicated HR expert assigned to your account.

Additionally, obtaining pricing for Paychex’s HRO services requires a discussion with a company representative. HRO costs are tailored to your business size and the scope of services you need, so you will need to contact the company for a custom quote. Pricing for just the payroll tools, however, is available without obtaining a custom quote.

Another downside of Paychex is that it has a lot of complaints on its Better Business Bureau (BBB) profile, specifically around customer service. Although that is to be expected for a large company that’s been around a long time, our research corroborated some of the customer service challenges referenced in the negative customer reviews. It is worth mentioning that Paychex appears to proactively respond to negative reviews and customer complaints, resulting in an A+ rating from the BBB.

Methodology

We combed through customer reviews, product videos, and feature listings to find the top HRO options on the market.  We reviewed product videos, spoke to Paychex customer service representatives, and used the interactive product tour to review the features and user interface to learn more about Paychex’s HRO offerings. We found that the service excelled in its payroll features and that current customers spoke very highly of Paychex’s payroll tools in their reviews. For this reason, we selected Paychex HRO as the best HRO for payroll.

Overall Value

We recommend Paychex for …

• Small businesses, even those with only one employee.
• Businesses that want demos and sophisticated features.
• Businesses that want an advanced, mobile-friendly platform that provides a consistent experience across mobile and desktop devices.

We don’t recommend Paychex for …

• Businesses with 500 or more employees.
• Businesses that put a lot of stock into BBB customer reviews.
• Businesses that need quick access to customer service reps.