Our Full Review
Paychex is ADP's scrappier younger sibling—same comprehensive features, similar pricing, but with a reputation for better customer service. For SMBs who want enterprise-grade payroll without feeling like just another account number, Paychex delivers.
Who Should Use Paychex?
Paychex is ideal for:
- Growing SMBs (20-200 employees) who need reliable payroll and HR but aren't ready for full enterprise software
- Multi-state businesses with complex tax compliance needs
- Companies offering comprehensive benefits who want one vendor for payroll + health insurance + 401(k)
- Industries with high compliance needs (healthcare, finance, construction)
- Businesses wanting full-service support who don't want to DIY their payroll
Who Should Look Elsewhere?
- Startups under 10 employees — Gusto or OnPay will save you money and complexity
- Tech-forward companies wanting modern UX — Rippling offers better interfaces
- International teams — Paychex US focus; use Deel or Remote for global payroll
- Budget-conscious bootstrappers — Premium pricing reflects premium service
Core Payroll Features
Paychex handles payroll soup-to-nuts:
- Unlimited payroll runs with flexible schedules (weekly, biweekly, semi-monthly, monthly)
- Automatic tax calculations and filings for federal, state, and local taxes
- Direct deposit with next-day or same-day options
- Multi-state payroll with jurisdiction-specific compliance
- Garnishment handling for child support, tax levies, etc.
- Year-end services: W-2s, 1099s, ACA reporting
- Tax penalty protection: Paychex covers penalties if they make errors
HR & Compliance
Paychex Flex includes robust HR tools:
- Employee records management with document storage
- Onboarding workflows with e-signatures and I-9 compliance
- Handbook builder with state-specific templates
- Compliance alerts for changing labor laws
- HR library: Guides, templates, and state-specific resources
- Employee self-service for paystubs, tax forms, PTO balances
On higher tiers, you get access to HR advisors for questions about hiring, terminations, compliance, etc.
Benefits Administration
Paychex shines in benefits management:
- Benefits marketplace: Shop and compare health, dental, vision plans
- Carrier integrations: Direct connections with major insurance providers
- Enrollment automation: Employees enroll online; data syncs to carriers automatically
- COBRA administration: Automatic notifications and payment processing
- 401(k) services: Paychex offers its own 401(k) recordkeeping or integrates with others
- FSA/HSA administration
- Workers' compensation: Pay-as-you-go workers' comp insurance
Paychex PEO (Professional Employer Organization)
For companies wanting more support, Paychex offers PEO services:
- Co-employment model: Paychex becomes employer of record
- Better benefits rates: Access Fortune 500-level benefits pricing
- Liability protection: Reduced risk for employment practices
- Full HR outsourcing: Dedicated HR team handles all people operations
- Workers' comp under master policy
PEO pricing is typically 2-8% of payroll. Makes sense for companies 20-200 employees who want to outsource HR entirely.
Time & Attendance
Paychex offers integrated time tracking:
- Mobile time clock with GPS verification
- Web-based time entry for salaried employees
- Physical time clocks (biometric, badge, PIN) for manufacturing/warehouse
- Geofencing to prevent off-site clock-ins
- Automatic overtime calculation
- PTO tracking and accrual
Time data flows directly into payroll—no manual imports.
Reporting & Analytics
Paychex offers 160+ standard reports:
- Payroll summaries and details
- Labor cost analysis by department/location
- Turnover and retention metrics
- Benefits enrollment and costs
- Compliance reports (EEO-1, VETS-4212, etc.)
Custom report builder available on higher tiers.
Integrations
Paychex integrates with major business tools:
- Accounting: QuickBooks, Xero, Sage, FreshBooks
- HR: BambooHR, Namely, 15Five
- Time Tracking: TSheets, Hubstaff (beyond native time clock)
- Retirement: Fidelity, Vanguard, others
Pricing Breakdown
Paychex doesn't publish pricing, but expect:
- Paychex Flex Essentials: ~$39/mo base + $5/employee — Core payroll and tax filing
- Paychex Flex Select: ~$50/mo base + $8/employee — Adds HR tools, onboarding, time tracking
- Paychex Flex Pro: ~$60/mo base + $12/employee — Adds benefits admin, advanced reporting, HR advisor access
- Paychex PEO: 2-8% of total payroll — Full outsourcing with co-employment
For a 50-person company on Flex Select: ~$50 + (50 × $8) = $450/month.
Comparable to ADP. Get quotes from both and negotiate.
Customer Support
This is where Paychex often beats ADP:
- Dedicated payroll specialist assigned to your account
- 24/7 phone support with U.S.-based teams
- Proactive compliance updates and alerts
- Live chat and email support
Reviews consistently praise Paychex support over ADP's. Your mileage may vary.
The Bottom Line
Paychex is the safe choice for SMBs who want enterprise-grade payroll without enterprise headaches. It's not innovative—the interface looks like it's from 2015—but it's reliable.
If you're comparing Paychex vs ADP, the decision often comes down to support experience and pricing. Get quotes from both, talk to their reps, and see who you'd rather work with.
For smaller teams (under 20), Gusto or OnPay will save you money. For larger teams (200+), consider Paylocity or Workday. But for the meaty middle market? Paychex is a solid, boring, dependable choice.
And sometimes boring is exactly what you want from your payroll provider.