Paychex PEO Review
by Paychex
Paychex PEO is a co-employment service covering payroll and tax filing, benefits, HR compliance and workers' compensation, supported by a dedicated client team; pricing is quoted on request.
- Company size
- Small businesses, mid-market companies
- Pricing model
- Quote only
Best for
- Small employers outsourcing HR, benefits and payroll
- Businesses wanting workers' comp managed by the PEO
- Employers wanting a dedicated HR business partner
Not ideal for
- Buyers who need published prices up front
- Employers that must file payroll taxes under their own EIN
How we evaluated Paychex PEO
This review rests on 19 facts checked against Paychex PEO’s official pricing pages and documentation, most recently on . We did not test the product hands-on: the score and the pros and cons use only those verified facts, as our methodology explains, and third-party ratings are quoted, never scored.
Our verdict
Paychex PEO is a co-employment service that bundles payroll tax filing under its own EIN, group benefits, workers' compensation and HR support for US small and mid-sized employers. Pricing is quote-only, and the terms page lists extra fees and an early termination fee.
Strengths
Bundled HR, payroll and benefits
One co-employment package covers payroll and tax filing, benefits administration, HR compliance and workers' compensation administration.
Evidence: Modules: Payroll processing and tax filing, Benefits administration, HR compliance and risk management, Workers' compensation administration, Time and attendance (additional solution), Hiring and recruiting (additional solution), Employee engagement, talent and performance management (additional solution), Business insurance (additional solution)
Workers' comp included
The vendor states workers' compensation is included and managed by the PEO, with coverage, claims and reporting administration.
Evidence: Workers' comp included: Yes
Dedicated service team
Clients get an HR business partner, payroll specialist and client advocate, with a relationship manager at 200+ employees.
Evidence: Support channels: Client advocate (10+ employees), HR business partner, Safety specialist (master workers' comp policy clients), Payroll specialist, Relationship manager (200+ employees)
Group benefits access
Clients access health, retirement and wellness plans through a larger benefits group.
Evidence: Benefits offered: Health, Retirement, Wellness
Weaknesses
Quote-only pricing
The HR PEO package shows only 'Get Custom Pricing', and the billing basis is not stated.
Evidence: Pricing model: Quote only
Fees beyond the quote
The PEO terms allow extra fees, such as a W-2 fee for clients not active through December 31, a per-location payroll delivery fee with postage, and a late fee for injuries reported after 48 hours.
Evidence: Extra costs: W-2 fee if the client is not active on the PEO service through December 31, Fee per payroll delivery per location, and postage for checks mailed to employees, Late fee when a workplace injury is reported more than 48 hours after it happened
Auto-renewing term with exit fee
Leaving before the end of the term triggers an early termination fee based on the employee count times a daily amount set in the agreement.
Evidence: Contract term: Custom
Price at a glance
Pricing model
Quote only
Contract term
Custom
Quick answers
- Is Paychex a PEO?
- Yes. Paychex offers a PEO co-employment service, listed as the HR PEO package and provided by Paychex Business Solutions, LLC and Oasis Outsourcing, LLC.Based on Vendor: Paychex, Inc.
- How much does Paychex PEO cost?
- Paychex does not publish PEO prices; the HR PEO package shows «Get Custom Pricing», and the terms allow fees such as W-2, payroll delivery and late injury-notice fees.Based on Pricing model: Quote only
- Does Paychex PEO include workers' comp?
- Yes. The vendor states workers' compensation is included and managed by the PEO. Safety services apply to clients on the PEO master workers' compensation policy.Based on Workers' comp included: Yes
- Does Paychex PEO file payroll taxes?
- Yes. The PEO files payroll taxes under its own EIN.Based on Automatic tax filing: Yes
Coverage of core PEO services capabilities
Each core capability we evaluate in PEO Services, checked against Paychex PEO’s own documentation. “Not verified yet” means we have not confirmed it either way, not that it is missing.
10 verified of 10 core capabilities
PEO Services
- Co-employment arrangement
- Payroll and tax filing
- Group benefits access
- Workers' compensation
- HR advisory support
- Compliance support
- Risk and safety services
- HR and payroll technology
- Reporting
- Exit and transition support
Specifications
Pricing
- Price transparency
- Quote only
Fit
- Industry focus
- Retail
- Countries supported
- US
Product
- Modules
- Payroll processing and tax filing, Benefits administration, HR compliance and risk management, Workers' compensation administration, Time and attendance (additional solution), Hiring and recruiting (additional solution), Employee engagement, talent and performance management (additional solution), Business insurance (additional solution)
- Mobile apps
- Paychex Oasis Employee Connect
Support
- Support channels
- Client advocate (10+ employees), HR business partner, Safety specialist (master workers' comp policy clients), Payroll specialist, Relationship manager (200+ employees)
Where it ranks
- #6 of 24 scoredPEO Services
- #9 of 20 scoredPEO Services for Mid-Sized Companies
- #3 of 5 scoredPEO Services for Retail
- #10 of 23 scoredPEO Services for Small Business
- #3 of 8 scoredPEO Services in Texas
Paychex PEO alternatives
- ExtensisHR75% similar
Compare Paychex PEO
Security and compliance
- SOC 2 Type IIYes
- ISO 27001Yes
About Paychex
- Founded
- 1971
- Headquarters
- Rochester, NY and Cincinnati, OH (dual headquarters)
- Ownership
- Publicly traded
Official profiles
Frequently asked questions
Is Paychex PEO legit?
Paychex PEO is sold by Paychex, which was founded in 1971, is headquartered in Rochester, NY and Cincinnati, OH (dual headquarters), and is publicly traded. Paychex states that it holds a current SOC 2 Type II report.
Is Paychex PEO safe?
Paychex states it maintains SOC 2 Type 2 reports and an ISO 27001 certificate, but the scope for the PEO line is not specified.
What is Paychex PEO used for?
Paychex PEO is a PEO services product built for small businesses and mid-market companies. Its modules include Payroll processing and tax filing, Benefits administration, HR compliance and risk management, Workers' compensation administration, and 4 more.
What are the best alternatives to Paychex PEO?
In our PEO services ranking, the highest-scored products other than Paychex PEO are Justworks, TriNet, and PrestigePEO. Compared side by side, by reason to switch: Paychex PEO alternatives.
Which is better, Paychex PEO or ADP TotalSource?
It depends on the team. Choose Paychex PEO if: you want to start with HR guidance and move up to a full PEO later. Choose ADP TotalSource if: you want one dedicated HR business partner for your account. The full comparison: Paychex PEO vs ADP TotalSource.
What are the pros and cons of Paychex PEO?
Strengths documented on the vendor’s own pages: bundled HR, payroll and benefits, Workers' comp included, and dedicated service team. It is less suited to buyers who need published prices up front and employers that must file payroll taxes under their own EIN.
Is Paychex PEO secure?
Paychex PEO states a SOC 2 Type II report and ISO 27001 certification.
Does Paychex PEO have a mobile app?
Yes. Paychex PEO lists mobile apps: Paychex Oasis Employee Connect.
Get Paychex PEO pricing for your team
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