Paychex Sucks
1.) Some of Paychex representatives are not competent or do not care. I've seen instances where paychex failed to provide social security numbers for employees on Government filed reports. Getting a social security number is not hard to get for an employee and they should know better than to file payroll returns and W-2's with out this REQUIRED information. This lack of care leads to payroll tax notices the company receives and could lead to penalties. And it is hard to get paychex to handle payroll tax notices even if it is their screw up.
2.) Paychex 401k fees are high and absurd. I have 401k with them and they charged me almost 20% in fees on my contributions. They call the fee the "Mid-Atlantic Trustee Fee". Such a high fee is unexplainable and shows that they don't care about the end customer and only care about profit. If my employer didn't match my contribution I would need to earn >20% from my investments which is not plausible in most instances. Furthermore, no statements or account information I received from Paychex gives information on how this fee is calculated.
3.) Payroll Reports - Paychex payroll reporting sucks. They need a system where their reports can be export to .CSV or excel format (NOT txt or unicode) for easy file keeping and application into accounting systems.
Thursday February 10, 2011 @ 06:23 PM
The problem with Paychex is that their attitude changed from one where you expect perfection and greatness to one where you are making statements like "everyone gets sued" and "everyone makes mistakes". If a companies tag line becomes - "I'm not perfect but its not my fault and its not my fault" you may want to find another providor. No-one is perfect (although there are not that many as unethical as Paychex). I expect the person on the other end of the phone who represents the company that made the mistake to apologize (show some remorse that their company caused me a problem)and then to get it corrected. Paychex has just hired and promoted too many bad people, like the smug sales rep above.
Friday February 11, 2011 @ 02:00 AM
RE: Anonymous said:
the specialist can't track down every piece of missing information for every employee for the 300 or so companies that they are all taking care of.. if you want it fixed give the information to your specialist and you have nothing to worry about.. ive been with them for years and have no complaints
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I'm not asking you to track down the information but it would be nice if you could at least make sure the payroll return we hired you to file is at least accurate and filled out properly before sending to the government and setting off a waive of tax notices that you don't want to deal with
Friday February 11, 2011 @ 11:10 AM
I came to paychex from ceridian and after one run should have left, they switch us to another plataform and i try to give them a chance but they seem to be incapable to keep 40 employees in 2 departments. Their own end of the year reports don't match, the total beeing reported on W3 don't know where they came from and so far neither do them. After 6 month left them and i'm praying ADP will be a little bit better, however not holding my breath.
My contact person never answer the phone and if i'm lucky she will call after a few days. this place is a joke, run!!!
Friday February 11, 2011 @ 04:04 PM
CPA! I can't even tell you how long I laughed at "don't forget to wear your knee-pads the next time you come to my office!!!" That Paychex rep is either lying or they are one of the exceptions we all know exist. I worked there for 5 years and I can tell you that 99.9% of the sales reps did NOT check back on their clients.
and John the Judge: Your question "Did you actually tell someone in Operations at Paychex to “get a college degree so they don’t have to do a bs job?" I can't wait until someone from operations reads that comment. ha ha. classy.
Saturday February 12, 2011 @ 11:59 AM
Paychex is really, really horrible. Every month the invoice is a random number generator. Now they have disabled my login - why I don't know. I am so totally sick and fed up with their crap!
Saturday February 12, 2011 @ 05:36 PM
After asking my boss why I hadn't gotten my direct deposit (this month), he forwarded me an email he got from Paychex apologizing "for a system error and not being called for payroll."
I hate it when a system forgets to make phone calls.
Monday February 14, 2011 @ 02:31 PM
Does anybody have a problem W-2's being torned up because of quality of W-2's that we get from Paychex?
Tuesday February 15, 2011 @ 09:38 AM
This Company Blows, They continue to mess up on processing customers payroll. No Money in account on Payday is a sure sign this company is not relaiable
Tuesday February 15, 2011 @ 11:48 AM
I own a Payroll Service (we are doing very well), I just wanted to share an experience: A few months ago a Paychex Sales Rep showed up in my lobby (which is secured from our operations and we are extremely serious about security and data integrity so no printers or client information are ever in the reception area, we have security cameras monitoring who goes through the door to operations (which requires a magnetic card reader that tracks who comes and goes through that door). He asked to speak with me and nervously let me know that if I was intereseted in selling to Paychex I should call him, then he walked out. Since then I have been hearing from clients and prospects when we are competing against a Paychex Rep, that they came to our office and we have printers right in the lobby printing payrolls, "there are client reports lying around" and "we have no security". OVerall this has worked well for us becuase we invite those people to come see for themselves, once they realize that the Paychex Reps are lying we end up winning the deal and that client will never speak with Paychex again. I have been in this industry for a long time, I have worked in many markets, this is typical of Paychex Sales, it is their culture. This was not one bad apple. By the way, we are profitable, balance daily and are happy to share financials when asked. We are also bonded and in the process of a SAS70 audit.
Tuesday February 15, 2011 @ 01:36 PM
Dear Competitor, You should put some printers in your lobby, and then invite the Rep back in and tell him you are definitely interested in selling.
Tuesday February 15, 2011 @ 08:34 PM
That's classic Payx BS. This rep probably told his DSM that he had the best ACQ presentation ever! This company is the worst when it comes to integrity and they are told to do WHATEVER is necessary to get the sale. If you are a client check your invoices and you will see. No consistency at all at any level.
Wednesday February 16, 2011 @ 02:40 PM
Paychex is pathetic. My W-2 and possibly everyone in the company is wrong, and when we point it out to them, they provide one word email responses that don't respond! They screwed up a tax filing that cost us big bucks last year. We paid them the bucks, then the IRS said they would waive the fine, but we can't get Paychex to give us our money back! How is this service business in business at all?? WHo are the competitors we can go to? We are based in MD/DC area.
Thanks.
Wednesday February 16, 2011 @ 04:11 PM
Just get out of paychex - they do not care and only after the money your pay them!!!
Wednesday February 16, 2011 @ 05:42 PM
Paychex may actually be less likely to make a mistake then other smaller competitors (questionable) but they are impossible to deal with if something does go wrong and needs to be fixed.
Wednesday February 16, 2011 @ 08:13 PM
I asked them to show me proof they are bonded and could not provide any such documentation. Next time their unethical reps tell you them are bonded and insured ask them for proof of documentation...
Friday February 18, 2011 @ 10:14 AM
The company I work for changed to Paychex a little over a year ago. What a mistake!! We have had 3 different representatives, and the response time to complaints are ridiculous. At the beginning of the year the deductibles change on your insurance and Paychex is suppose to update systems that feed to the Paychex FSA cards. At the beginning of the year I get letters stating that I need to “substantiate” my charges. This is extra work for me, because I have to fax documentation in all the time. When I contacted our Paychex rep after getting a letter the 2nd time and emailing her after the 1st time, her response was “they can ask for substantiation any time they want too, but I am checking into it.” We are now into the middle of February, why can’t they update their system before the first of the year.
The government reduced employees Social Security taxes at the beginning of the year. They gave companies until the end of January to make this change in their system. What a mistake that was, because Paychex used clients and employees money through the first pay period of February (which was 2/17) and then decided to give the money back by reducing the SS that employee had to pay in. In other words, Paychex received the interest from the money that everyone was paying out, because their system weren’t correct for 1-1/2 months. Did I receive any interest back on this money? Of course NOT!!! Our account said all the payroll companies that she worked with had this completed before the end of year (2010), because all they needed to do was change the percentage from 6.2% to 4.2%.
I wonder how much interest money Paychex made off of all the thousands and thousands of people that they service?
Monday February 21, 2011 @ 07:06 PM
The last thing that I want to do is defend Paychex. However, in the case of the change to the OASDI tax, the law did not pass until the day before Christmas so there was not much time to make the change before a company might run their first payroll with a check date in the new year. It is not as simple as changing a number to update the rate. Payroll programs are extremely complicated and most have self diagnostics to ensure the proper calculation of taxes so there are numerous issues to address in an update like this, many payroll systems had a single rate for employee and employer OASDI because there was no reason to have separate rates they have always been the same. I do not believe that their was anything to take a shot at paychex for not having the rates updated before the deadline and crediting the employee the overage from payrolls run before the update is the correct way to handle this situation. All of the payroll services had to scramble to get this update in and soem had it in ahead of time if they and others took longer. If you read my posts above you will see that I am no fan of Paychex.
Friday February 25, 2011 @ 05:01 PM
OK Realist - So because Paychex has probably more patches then Microsoft Vista in their payroll programing we should simply accept/defend that the "best" small business payroll provider lackadaisically took 2 months to incorporate the changes? I sure never saw these "self diagnostics" when Paychex screwed up client after client of mine. Paychex has what their reps call Core "Advanced" which I believe they "upgraded" to in 2009, but from the words of Very Dissatisfied Customer above it appears it is not very advanced what so ever. The only thing Paychex can "self diagnose" is just how much money they can suck from their customers, and customer's employees. Seriously save your defense for another blog, or keep pretending you do not work for Paychex.
Friday February 25, 2011 @ 09:19 PM
Core advances what a joke. They never gave me my "client call" to walk me through the reports like they so quickly say they did. No letter to expalin our minimal "price increase" every may-june either. This company is the absolute worst.
Wednesday February 9, 2011 @ 05:18 PM
Anonymous, you are obviously an officer of the company and trying to offset the comments on this blog. Our firm is a competitor in the pension administration market and we must deal with your preditory activities and the lies constantly being purveyed to your clients. Your service in the (k) are is NOT free. You are not disclosing the costs to the consumer. If the customer is paying for the service any way, why should they?