Payroll software platforms help companies big and small pay employees accurately and timely, file taxes correctly, keep accurate payroll records and automate human resources (HR) roles. Paychex Flex is one of the top payroll platforms on the market today. Here’s a full breakdown of Paychex pricing plans and fees. Learn which features you get at different price points so you can pick the best plan for you. We’ll also compare Paychex to three of its top competitors to help you understand if it is the right payroll software for your company.
Featured Partners
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OnPay
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$40 per month + $6 per user
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SurePayroll
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$29.99/mo plus $5 per employee
3
Gusto
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$40 per month plus $6 per user
4
Rippling
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$35 per month + $8 per user
Who Is Paychex Best For?
Paychex is a well-known cloud-based payroll software service for W-2 employees and 1099 contractors. In addition to payroll, it provides a variety of HR tools, custom user roles and integrations such as time, attendance and business management.
The software solution offers three basic tiers of payroll services as well as a broad range of add-on services. While the first plan covers the basics, the next two plans layer on more advanced reporting capabilities and HR services. This is ideal for scalable businesses wanting a company that will support them as they grow.
While Paychex is designed for businesses of all sizes, it is especially suitable for companies with a large number of employees. Not only can larger companies afford Paychex’s higher pricing, but they can also take advantage of Paychex’s more advanced features such as a dedicated payroll specialist, HR training modules and accounting software integration. Larger companies can also take advantage of Paychex’s dedicated payroll specialist as complex labor laws begin to take effect once companies expand past 15, 50 or more full-time employees.
Paychex Plans and Pricing
Paychex offers customers three payroll plans—Paychex Flex Essentials, Paychex Flex Select and Paychex Flex Pro. Each plan allows companies to choose from a variety of payment methods including paper checks, payroll cards and direct deposits. Payroll can be scheduled on a weekly, biweekly or monthly basis.
Paychex Flex Essentials
Paychex Flex Essentials is the company’s introductory plan. It is best for hands-on business owners who prefer handling payroll themselves. The plan costs $39 per month plus $5 per employee. In addition to payroll processing and payroll tax services, the basic plan also includes new hire reporting, standard analytics, garnishment payment services, workers’ compensation services, a financial wellness program and an Employee Assistance Program. The Flex Essentials plan allows companies to electronically wire transfer wages into an employee’s bank account or to print employee checks from the office.
The Essentials plan also includes a mobile app for both employees and employers to access their Paychex account information. Employers can even submit payroll on the go with the app. Business owners can set up this plan online in a matter of minutes and begin processing payroll within 24 hours. Chat and phone support are available 24/7/365.
Paychex Flex Select
According to Paychex’s website, the Paychex Flex Select is the company’s most popular plan. After talking with a Paychex representative about their company’s size, complexity and business needs, business owners can get a custom quote created by the representative. Setting up a new account can take up to a few weeks to complete depending on the complexity of the company.
Paychex Flex Select includes all the features of Flex Essentials except for an Employee Assistance Program and Garnishment Payment Services. The Flex Select plan provides business owners with personal services to match their company’s needs. In addition to these services, Flex Select also provides a learning management system that helps employers improve employee retention and reduce turnover. In addition to direct deposit, this plan includes paper checks, check signing and check logo services.
Paychex Flex Pro
As with Flex Select, this plan is customized to meet your business needs. Flex Pro is for companies that want full-service payroll and tax filing as well as HR hiring and handbook tools. The plan includes step-by-step support with setting up payroll as well as a dedicated payroll specialist who serves as a single point for all payroll and tax needs. Access to a highly trained payroll specialist who serves as a single point of contact is one of the main benefits of this plan.
Unique to this plan are state unemployment benefit services, an onboarding package that allows new employees to complete new-hire documentation such as direct deposit and tax forms through an online portal, an employee screening package that performs background checks on candidates and an employee handbook builder that includes access to state and federal policies.
Paychex Alternatives
Paychex is by no means the only payroll processing service out there today. It is only one of the Nine Best Payroll Services for Small Businesses in 2024. Top competitors include ADP, Gusto and OnPay. Because Paychex does not offer pricing up front with two of its plans, it is hard to compare competitors based on price. There are, however, several key differences in features offered.
Gusto was designed to target solutions for startups and small businesses. In addition to payroll solutions for employees, it also offers a low-cost contractors-only plan. Features include automated charitable deductions, paycheck advances for employees and a wallet to give employees greater control over their money. Unlike Paychex, all its plans support deducting garnishments.
ADP is the largest payroll provider in the world in part because it provides an easy employee payroll system with customizable plans for a competitive price. All plans, however, require a quote and some of its features such as time and attendance are add-ons. The company also requires an additional product to pay contractors.
OnPay is perfect for small businesses looking for a straightforward, “what you see is what you get” payroll processing system. The all-in-one payroll and HR solution does not offer customizable plans. It comes with one price—$40 plus $6 per employee per month. It does not include built-in accounting services but does integrate with tools such as QuickBooks, When I Work and Xerox. OnPay also offers a free 30-day trial period for companies to test out its service. Paychex does not offer any free trial.
Bottom Line
Because Paychex is not transparent with its pricing, it is hard to determine whether or not it is a good deal for companies looking for a payroll software platform. If your company is looking for a payroll processing service that also acts as an entire HR system, then Paychex’s top-tier plan may be for you. The Flex Pro plan automates payroll processing, employee benefits, workers’ compensation and employee relations issues, which might be worth the cost for companies that want to offload the burden of their HR department. Ultimately, your business needs will determine if Paychex is right for your company.
Featured Partners
1
OnPay
Yes
Yes
$40 per month + $6 per user
2
SurePayroll
Yes
Yes
$29.99/mo plus $5 per employee
3
Gusto
Yes
Yes
$40 per month plus $6 per user
4
Rippling
Yes
Yes
$35 per month + $8 per user
Frequently Asked Questions (FAQs)
Why do companies use payroll processing services?
Companies choose to outsource payroll processing for several reasons, the most popular being to help ensure their employees and taxes are paid on time. Payroll companies can also help process employee hours, record attendance and apply funds to 401(k) plans.
What do I need to sign up for Paychex?
A name, email address and phone number is all that is needed to get the process started with Paychex. During the process, you will need a federal tax ID number (TIN), employees’ payment and tax information, your bank account information and signed federal and state tax documents.
What is the difference between Paychex and Paychex Flex?
Paychex is a payroll and HR platform for businesses of all sizes. Paychex Flex is its simplified, payroll-only platform for small businesses.
Is Paychex a good payroll service?
What makes a good payroll service depends on the size and needs of your business. Paychex Flex is a simple, payroll-only service designed for small businesses. If your business requires benefits administration or more complex payroll help, the more robust Paychex platform or another service might be a better fit.
Is Paychex Flex legit?
Paychex has been serving small- and medium-sized businesses since its founding in 1971 and is trusted by hundreds of thousands of companies in the U.S. and Europe. In recent years, it’s made Forbes lists of World’s Best Employers, World’s Most Innovative Companies and more.
How much does Paychex cost?
Paychex has three pricing plans for its payroll packages. The first tier starts at $39 plus $5 per employee per month. The second two tiers are priced depending on the company’s size and complexity of needs.
