Paychex PEO is a professional employer organization (PEO) solution by Paychex, a company that offers integrated human capital management (HCM) tools for payroll, HR, and benefits. Its PEO service lets users outsource day-to-day HR tasks and connect with expert professionals on how to manage all aspects of the employee lifecycle—from hiring to retirement. Paychex PEO is best for businesses that want on-site HR consulting services.
Paychex PEO Pros and Cons
Comprehensive benefits options
Pricing isn’t transparent
Access to Paychex Flex (all-in-one platform for managing HR, benefits, and payroll)
Offers dedicated HR support
Who Paychex PEO Is Best For
Businesses that want on-site HR consulting services: Aside from having access to the company’s integrated HCM solutions, you get to work with an HR professional who is dedicated to providing expert advice and best HR practices to your business.
Paychex PEO Pricing
Paychex PEO’s pricing scheme is based on the number of employees you have and the HR solutions selected. However, its fees aren’t published on its website and are available only upon request. According to a third-party site, it charges a monthly fee of less than $100 per employee for businesses that have no more than 10 staff.
Paychex PEO Alternatives 2021
(Best Overall) Businesses with fewer than 100 employees that want the low price option
Existing ADP Run or Workforce users looking to upgrade to a PEO quickly
Employers that want employee engagement tools like performance feedback
Multi-state employers that want to offer affordable benefits for all staff
Franchise businesses that need a customized PEO solution
High-risk and regulated industries like financial services and light manufacturing
Paychex PEO Services and Features
The company aims to help you manage day-to-day HR processes more efficiently—allowing you to focus on business-building tasks. It offers a standard Paychex PEO service and a Paychex PEO+ option, which is the company’s full-service HR solution. Let’s look at some of Paychex PEO’s essential services and features.
HR management: Paychex PEO’s standard services include helping you manage the entire employee lifecycle—from onboarding new hires to retiring staff. You are also granted access to its integrated HCM platform, Paychex Flex, that lets you track applicants, hire new employees, store staff information, capture time and attendance details, process payroll, and monitor learning programs.
Employee benefits: As a PEO, Paychex provides access to a comprehensive selection of benefit programs that you can offer to employees. For reference, here are some of its benefit options:
- Individual and group health insurance plans
- 401(k) retirement plans
- Health savings account (HSA)
- Flexible spending account (FSA)
- Health reimbursement arrangement (HRA)
- Life insurance plans
- Short and long-term disability plans
Benefits administration: With Paychex Flex, you can easily view and manage your company’s benefits programs. The features of its benefits administration module include secure carrier connections, online enrollments, communication tools, and analytics. On a tangent, Paychex can also help manage your state unemployment insurance (SUI) program.
Payroll processing: Submitting payroll data for processing is made easier with Paychex Flex and the services of a dedicated payroll specialist. You have the option to either send it online through a desktop computer and mobile device or have your dedicated payroll specialist submit it via phone. Moreover, Paychex PEO is Internal Revenue Service (IRS)-certified, enabling the company to efficiently handle all of your payroll tax processes and help determine if your business qualifies for certain federal tax credits.
Employee self-service: Your employees are granted access to mobile apps (for iOS and Android devices) and a self-service portal where they can complete onboarding tasks, update their personal information, and view payroll and benefit details among others.
Access to expert HR consultants: With Paychex PEO, you are assigned a dedicated HR professional who can provide regulatory updates and offer assistance in managing employees, creating a staff handbook, handling annual benefits enrollments, and more. If you subscribe to Paychex PEO+, then you also get consultative guidance from an HR business partner on legal risks and issues involving employment practices liability insurance (EPLI).
Summary of Paychex PEO Reviews
As of the date this article was written (Oct. 20, 2020), there are no up-to-date Paychex PEO reviews available online.
Paychex PEO Frequently Asked Questions (FAQs)
Is Paychex PEO a contract HR staff provider?
No, it isn’t. As a PEO, Paychex is an HR services provider that helps you manage day-to-day employee-related tasks while providing you access to a wide range of benefits options and expert advice from HR professionals.
Can Paychex’s PEO services help me manage employee time-offs?
Not only can Paychex’s PEO services help you manage employee time-offs, but it can streamline and automate the process as well. With the company’s timekeeping solution, eligible employees can submit, review, and approve time-off requests online.
Which types of customer support does it offer?
Paychex offers 24/7 customer support via email and phone. It also has help documents that you and your employees can access online.
Our Top PEO Company Picks
If you aren’t sure if Paychex PEO is right for you, then this article on the best PEO companies for small businesses examines our top choices. Our team looked at a variety of solutions and narrowed our recommendations down based on price, ease of use, and features like payroll, benefits administration, onboarding, employee self-service, and applicant tracking.