After conducting extensive research on professional employer organizations, we recommend Paychex as the best PEO service for mid-size businesses in 2018. To understand how we selected our best picks, you can find our methodology, and a comprehensive list of PEO services, on our best picks page.
Scalability of service
Paychex provides small to mid-size businesses with a wide-range of PEO services and HR outsourcing resources. It offers personalized coverage so that as your business grows, your services with Paychex do, too. Paychex's pricing model, as well as its emphasis on personalized coverage, makes it a great option for mid-size businesses.
Pricing: Paychex is priced on a per-employee basis, regardless of how big your company grows. You'll be able to easily predict costs as you add employees and grow your business. Businesses can access all of Paychex's services for the flat, per-employee fee. This is an ideal offering for mid-size businesses, because they require more services compared to very small businesses. It also means that you can use Paychex's professional services to better your business – if you didn't have certain HR practices in place, the experience and influence of your Paychex team means you can add structure that may have been lacking in your business in the past.
Training: Paychex provides a solid training offering for employees and mid-size business owners. Businesses have access to more than 140 training courses. These courses can be conducted either on-site or online, depending on your business's needs. You can also develop training programs and other HR-related sessions with your HR generalist. The HR generalist serves as the point person connecting you with your Paychex team.
Support: Paychex offers excellent support options compared to other companies we reviewed. Business owners can contact Paychex via phone, email or live chat. Paychex also provides FAQ pages for quick reference on PEO-related issues. These support options are in addition to having the direct contact information of industry experts on the Paychex PEO team working with your business. We posed as small business owners and interacted with Paychex via live chat, email and phone. In all instances, Paychex sales representatives were extremely helpful. They helped us learn more about the PEO model and various PEO-related topics, like healthcare and benefits offerings.
Contract structure: Paychex doesn't require long-term contracts, and you can cancel at any time with a 30-day notice. This kind of flexibility allows mid-size businesses to adjust or terminate their service based on how the business grows and changes. This service does require a minimum of five employees to qualify for the PEO service, but that shouldn't be an issue for mid-size businesses.
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Paychex offers solid resources and services in risk management, benefits administration, payroll processing and HR outsourcing. These services can also be scaled and adjusted easily to fit your businesses size – Paychex offers solutions for businesses ranging from five to over 100 employees. By joining Paychex, you're joining a network of thousands of small and mid-size businesses. The company offers services for all your HR and compliance needs, including:
- Employee document management
- Employee onboarding
- Applicant tracking
- Employee screening
- HR assessments
- Termination and dispute assistance
- Benefits orientation
- Workplace safety training
- Annual benefit enrollment
- Cobra compliance
- OSHA compliance
- ACA compliance
- Federal and state tax and labor law compliance
- Payroll processing
- Small business loans
- Health benefits packages
- Employee wellness programs
- On-site and virtual training
- Email, phone and live chat support
Paychex, like many of the PEOs we reviewed, provides a team of experts to work with your business on HR solutions, benefits administration, risk management and payroll processing. As mentioned earlier, Paychex provides a point person who doubles as your HR consultant.
This person, known as the HR generalist, coordinates your PEO services team and works with you and your business. In addition, as your business grows and changes, you have a dedicated rep with Paychex, regardless of whether you need to ramp up or cut back service. This personalized aspect is great for mid-size businesses – you can get highly scaled support without sacrificing the hands-on, personal aspect of a PEO solution.
- Accreditation: Paychex is accredited by both the Employer Services Assurance Corporation and the IRS. The ESAC has only accredited 5 percent of PEOs, which means Paychex is among industry leaders in the PEO field. The organization reviews and ranks PEOs based on financial health, ethics, and operational standards. It is one of the premier PEO accrediting agencies. The IRS also verifies a PEO's financial well-being and ability to provide services. Being ranked by both these organizations means Paychex is among the best PEO options on the market.
There aren't many limitations to Paychex's services. When we reached out to Paychex as a small business looking for more information, it took longer to get a response compared to competitors. This was a minor bump in the Paychex review process, and once we got in contact with representatives, it was clear that Paychex is an ideal service for mid-size businesses.
Ready to choose a PEO solution? Here's a breakdown of our full coverage: