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Paychex Online Payroll Review

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Paychex is a popular online payroll service that drastically simplifies the payroll process. Since Paychex seamlessly integrates with both Sage and QuickBooks, it’s an effective way to complement your existing payroll system.

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  • Features
  • Pricing Packages
  • The Good
  • The Bad
  • Other

Paychex Online Payroll Features

Paychex Online Payroll Management

Pay Hourly Employees: Users can accurately pay hourly employees.
Pay Salary Employees: Users can accurately pay salaried employees.
Pay Contract Employees: Users can accurately pay 1099 contractors.
Direct Deposit: Employers can directly deposit funds into employee accounts.
Employee Hour Management: Employees cannot report their own hours into the system, although they can view paystub information over the mobile app.
Paycheck Printing: Paychex does not give users the ability to print their own paychecks.
Mailed Paychecks: Users can choose to receive mailed paychecks from Paychex.

Paychex Online Payroll Tax Services

Pay and File Payroll Taxes: Paychex guarantees that all payroll taxes and deductions will be accurate and automatically deducted from employee paychecks each payment period.
W-2 and 1099 Processing: Paychex automatically processes W-2s and 1099s.
Tax Accuracy Guarantee: Paychex guarantees that all payroll taxes and deductions will be filed accurately and on-time.

Other Features of Paychex Online Payroll

Smartphone Apps: Paychex apps are available for Android devices and the iPhone.
Tech Support: Personal one-on-one tech support is available during normal business hours.
Mobile Support: Users can use Paychex from mobile devices either through apps or through their internet browser.
Software Support: Paychex automatically syncs with other accounting and bookkeeping software, including popular programs like QuickBooks and Sage.

Paychex Online Payroll Pricing Packages

Custom Quotes Available Upon Request

The Good Paychex Online Payroll

Dedicated Customer Support

Paychex offers excellent customer service and personal support for all users. It’s a refreshing change from the typical ‘support’ users receive from some of today’s other top payroll software. Tech support is available via phone, email, and online contact form. You can also view helpful video tutorials on the Paychex website. If you really like FAQs and hate every other type of online support article, then you’ll be disappointed to realize that Paychex- does not have any FAQs. The best part about Paychex’s customer service, however, is the ability to talk to a dedicated local payroll specialist anytime you need it. However, you can only talk to Paychex representatives on weekdays and they’re not available on weekends.

Syncs with QuickBooks and Sage

One of the biggest advantages of Paychex is that it seamlessly syncs with popular accounting and bookkeeping software like Sage 50 and QuickBooks. Neither Sage nor QuickBooks offers built-in payroll capabilities, so the two programs work well together. If your business already uses Sage 50 or QuickBooks, then this benefit is easy to appreciate and will save hours of time for your business.

Online Access for Employers and Employees

One of the major complaints about other payroll software is that employees cannot access their own data. Employers need to manually enter employee data and manually keep track of hours. That’s annoying and it can add up to a lot of wasted time for businesses with a lot of employees. That’s why I like the fact that Paychex lets employees access a handful of different things online, including pay stubs and retirement information. All of this data is easily accessible via the Paychex mobile app. Employers, however, will still need to enter their employees’ unique data online, including their weekly hours.

Multiple Payment Options Available

Paychex can print off checks and mail them to your business. You can also choose to pay employees via direct deposit or using a pay card. Some other payroll software programs let employers print off their own checks. Unfortunately on Paychex, that’s not an option.

Enter and Submit Payroll Information

This is the primary benefit of any payroll software program: you can easily enter, submit, and manage payroll information online. Paychex does this as well as any other program and lets employers easily setup payroll for new employees. To do that, Paychex accepts payroll reports, PTO accrual, contributions, deduction information, and much more. As with all payroll software, it also automatically calculates state and federal deductions. If you’re looking for an easy way to calculate liabilities, make tax deposits, and file accurate returns, then Paychex offers all of those services.

Multiple Submission Options

Once you’ve subscribed to Paychex, you can submit your payroll information in a few different ways. Most people will be happy to submit their payroll info online, but if you choose, you can alternatively submit it via fax or phone.

Helpful Mobile Apps

Mobile apps are available for iOS and Android. Employees are encouraged to download these apps to view up-to-date payroll information as well as full information about their paystubs. Instead of being forced to hold onto their physical paystubs or worry about losing them, employees can easily access that information at any time via the mobile app.

The Bad on Paychex Online Payroll

Cannot Print Off Your Own Checks

As mentioned above, employers cannot print off their own paychecks using Paychex, which is ironic given the name of the program. You can, however, choose to receive paychecks from Paychex in the mail. It’s not as fast as direct deposit but it’s an option for those who like to pay their employees with physical checks. That being said, many of Paychex’s competitors let you print off paychecks.

Clunky User Interface

Paychex hasn’t always been an online payroll service. The company has existed since 1971 and only recently expanded its online offerings. For that reason, the online user interface can sometimes seem lacking. Paychex’s online user interface isn’t great. Navigation can be confusing and menu systems can be extremely unfriendly to newbies. Since the whole system is based on Java, it can be buggy and slow or even crash without warning. That’s not good. Unless you’re committed to learning an entirely new user interface system, Paychex might not be the best option for your needs. There isn’t even a setup wizard!

Expensive

Today, there are lots of low-cost payroll software providers, including Intuit, which provide accurate, easy-to-use payroll services for between $40 and $100 per month for small businesses. Unfortunately, Paychex is not one of these providers. It does not provide pricing information online and users have to call a sales rep to receive a customized quote for their business. However, when you do receive a quote, you’ll receive a quote significantly higher than those offered by other payroll providers. At the very least, you can expect to pay double the price for the basic Paychex plan and even as much as 5 times the price provided by services like QuickBooks and Online Payroll Plus. For many businesses, that’s simply too much money.

Our Verdict on Paychex Online Payroll

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Paychex is older than most people realize: it was first established in 1971 and is widely regarded as one of the first major payroll services to make in-house payroll software affordable for small businesses. Today, Paychex serves approximately 500,000 small and medium-sized businesses across the country and has 12,000 employees and over 100 office locations.

Paychex is a big player in the world of payroll software. When you sign up for their services, you’re accessing decades of experience and world-class payroll services. Unfortunately, that experience seems to have made it difficult to adapt to its younger, more flexible competitors.

Paychex lacks a few major things provided by other competitors. First, Paychex does not give users the ability to print off their own paychecks. You can, however, receive paychecks mailed from your nearest Paychex office or pay your employees through direct deposit.

Second, Paychex offers considerably higher pricing than almost all other providers on the market today. That’s okay – because Paychex also offers great customer service (during business hours) and a more personal level of service compared to other providers.

Unfortunately, the Paychex online interface will be a deal breaker for some users. It’s based on Java and can be slow and prone to crashes. It’s not a very user-friendly interface to learn and it’s going to take a few pay periods before paying employees feels like second-nature. It also has a significantly longer setup process than other payroll providers. And with no setup wizard available, that setup process could take a long time for employers with lots of employees.

That being said, Paychex does offer some unique advantages over the competition. The Paychex mobile apps are well-designed and let employees view payroll data online. In addition, Paychex lets users submit payroll information online or over the phone, which can be an attractive feature to some users.

Unfortunately, many users won’t be able to look past Paychex’s faults, including its high pricing and clunky user interface. Still, with over half a million users across the United States, Paychex remains one of the most popular payroll software applications in the country today.  If you’re looking for a clear and easy way to simplify your payroll period, then you could certainly do worse than Paychex.

About Johnson Hur

After having graduated with a degree in Finance and working for a Fortune 500 company for several years, Johnson decided to follow his passion by embarking on a path to the digital world. He has over 8 years of experience with large companies setting marketing strategy.

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