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.
Monday February 28, 2011 @ 11:29 AM
O.K., this is the last time that I will probably ever defend Paychex but the law did not pass until December 24th, Paychex had the update done before the end of January, that is not 2 months, they had nothing to gain by taking that long releasing the update so it must have been complicated for them to do the update for some reason, the IRS gave until the end of January to have the new rates in place. To the contrary taking that long creates all kind of exposure for Paychex having to deal with the catch up for the year and from competitors and angry CPAs. Second, when you report hours to a payroll service you report minutes as 100ths of hours. If you report 75.53, they will assume that you meant 75 and 53/100ths (just over half an hour), someone should have told you that when you started with them, if not that is the problem, they are not trying to short your employees on purpose. Overall Paychex is a horrible company, with bad unethical management practices, an antiquated system, a culture where you need to be a suck up to get ahead (vs. doing a good job) and as a culture they will lie about it's competition and its own products and services to sell them and make a quick buck. Golisano is an unethical p?$%k and likes to surround himself with the same, his recent hire out of Pitney Bowes (another company well known for its unethical, but hard core sales practices) is a good example. I expect that at some point soon unless they make some real changes they will reach a tipping point and fall apart. If you make ridiculous claims and complaints you have no creditility and this site becomes useless. CPA's for the most part are bean counters who should be quiet and produce financial reports and tax returns, 99% of CPA's should never be giving business advice beyond their expertise in tax.
Monday February 28, 2011 @ 01:17 PM
Paychex has shady sales tactics. Throwing companies maliciously under the bus to get sales. Who falls for these antics anyway? Their latest scare tactic is telling prospects that other service bureaus are not bonded. Has anyone ever seen Paychex's bonding certificate?
Monday February 28, 2011 @ 07:24 PM
Does anyone else have problems printing thier performance reviews? They say it's our fault but I don't know how. Anyone got a solution?
Monday February 28, 2011 @ 08:01 PM
I asked my rep to show me proof of their insurance and bond leters for 2011, couldn't produce either. I asked him to call the Corp office so I could speak with their legal group and he couldn't tell me who to contact, this is coming from someone im supposed to trust with my taxes and payroll....NOT!
Tuesday March 1, 2011 @ 01:25 PM
Yes, quite a few W2's for my employees were shredded.
Wednesday March 2, 2011 @ 07:44 PM
Great News, the new CEO of Paychex will be ringing the NASDAQ bell to open trading tomorrow to celebrate Paychex 40th anniversary!!! Are they that hard up to come up with a good press release??
Monday March 7, 2011 @ 11:45 AM
I am an hrs rep selling 401k and Sec 125. I reside in a major metropolitan area. I have read the reviews over the past year on this blog and decided to post my two cents in this manner. I would be full of it if I said everything is on the up and up around here. I have been here about two years and have seen a 90% turn of rep and manager across all divisions. The company is indeed going thru some serious changes from the top down. I will adress my concerns and views from sales and operations. From a service stand point all the payroll specialist are over worked. Each one of them have about 300-360 clients to process. It make it difficult for
Them to really provide good attention to detail or fix problems in a timely manner. The company is focus on profitability not thier service model at the client level. Sales from the core division is not focused on revenue. per client but the amount of clients they bring in to the branch. Operations and sales are not on the same page. I comfirm the acq of sure payroll confirms a translation from the payroll specialist to online automated systems are the direction the company is going. Sure payroll was acquired for about 110 million and they produce about 400-500 million in revenue. Sure payroll does not have a feet on the street sales force. They use a call center environment and a web demo to make sales. My guess is that they will not need so many core reps on the street. This would be more profitable for the company. Our technology both custer facing and employee facing is dated and behind tue times. The sales side just adopted sales force.com from an extremely dated ACT tool from early 2000. Managers want reps closing business and expect one call closes for 26% of all deals. High pressure tactics do not work in today's age. I have noticed a significant problem with the 401k and fss service in the past 4 months. Client conversions at being handled poorly. We are definitely not the professional and detailed organization we were years ago. Current clients are solicited very very hard to upsell on additional services. It's not a good way to handle the customer base.
Our PEO is expected to loose about 50% of our clients due to bad sales pratices and encouraging unit and revenue instead of taking on good profitable business.
Our major market platform is using a software from 1995 with a new graphic interface. They are better solution out there with better functionality.
Health and benefits can barely keep reps on board and many if them are not experienced at all.
It's true PAYCHEX want people that can sell and close at any cost. They generally don't get highly experience professional in 401k or human resource solutions becuase the pay is below grade. The comp plan is taunted as being lucrative if your a performer. You need to be 115% of objective to make real money. I got news for sales management most companies at 115% or better your making more money than you would at PAYCHEX.
The companies image is tarnished and it's causing problems. PAYCHEX is losing top sales people because they have had enough. Low base salaries bad comp plans rising cost of benefits and a horrible retirement plan. I would avoid the company totally for now untill PAYCHEX gets a grasp on direction of sales force.
Monday March 7, 2011 @ 03:20 PM
To make a correction to the post above, Surepayrol was doing about $25mm in revenue and was aquired for $115mm about 5 times revenue.
Monday March 7, 2011 @ 05:02 PM
I am an ex paychex Sr. Major Markets rep and I got tired of the way they did business as well. The managers are basically 22 yrs old and friends with the 26 yr old boss. All they did all day was get together and joke about their fantasy leagues and take 2 hr lunches while the reps had over 125 clients to deal with. Some of those clients would go on vacation and instead of having another employee do their payroll, they would ask us at the last minute to do it for $40 a wk. Great deal if you rather not pay one of your own and want to be cheap about it but for the reps it was a total nightmare. We were not there to collect the data, interpret chicken scratches and didn't always receive all the fax pages when we had to enter 250 employees manually. That might seem easy until you realize it takes you about 6 hrs to hunt down the right info and you still have 124 others to worry about. Our job is to trouble shoot, help with reports, file forms with IRS, etc not to input the data personally. Thats not to mention how many times the clients get angry because you charge them to re-do their 941 when it was their faul for voiding checks from 5 months ago. So both the clients and the management at paychex at are fault on many levels.
Also, the reps dont know how much the clients pay for our service but I can tell you that at that company, you get paid depending on who you know. They tell you that raises are done only once per year but guess what, I got a 10% raise 3 times in one year every time I tried to quit. Its not fair to the old conformist or the newly hired.
Tuesday March 8, 2011 @ 05:10 PM
I would encourage all Paychex employees to quit in hopes of gettig a 10% raise!
Tuesday March 8, 2011 @ 06:30 PM
[at]Realist. I applogize for the error regarding the sure payroll acquistion.
I would like to update that there are many more paychex reps leaving the company to go to competitors and other industries due to management and compensation. I confirm 3 top reps Circle and two conference reps have left the company. Long time tenured Paychex employee who 2 years ago were diehard blue coolaide drinking fools. I know of two more that are planning on leaving in the coming months. The top reps are no longer staying put at this point. We just hired a real scumbag from pitney bowes to run marketing. They fired John Judge and Del Humenik or so they say. The truth is that John Judge was a conservative and loyal executive who would not submit to Paychex corporate culture. John Judge ran IBM on of the most eithical and innovative companies in the world. Why the hell we came to Paychex I do not know. This company has failed to make the capital investment into technology that is needed badly to stay up with competition. Judge was not the person to blaim for our lack luster performance. Del Humenik was a complete scum bag and was having sexing with lower level managers and one of them was in portland. How is got into the door I just dont know. Many senior executives have blamed Judge and Del for the problem with the PEO (PBS). Shareholders and Gallisano pushed hard to increase PEO market share to the point of being unetheical in its business pratices. We are going to lose half of that revenue from that division. The company treats reps bad bad bad all around. Paylocity and Paycor will pay a base salary of 55-70K plus commisions. Thier presidents club trip is actually a vacation were all expenses are paid. Paychex trip is nothing but another smoke and mirrors show that you have to pay for some expenses. This company is sick in the head. I would encourage anyone to post information about whats going on in the branch or zone.
Regional Managers are meeting with Reps to discuss the new comp plan personally with them because they about to screw some of them over. Whats the point of having a sales force when CPA's and Clients can set up and order services themselves. AT&T has been doin this for years hurting thier B2B sales reps.
Maybee Paychex will come clean on the 20 basis points they are earning on 10 billions of 401K assets or 200 million dollars they wish not to disclose. They choose not to license there 401K reps so the reps cant talk about it or be compensated. Carefull when you use fidelity because paychex is being compensated as a broker on that and not paying a 12b1 commision to thier reps. If you do decided to use paychex 401K make sure you stay away from fidelity its horbile. Reps are encouraged to sell it because the company makes money on it and it sets up fast.
Tuesday March 8, 2011 @ 06:33 PM
I can confirm about 80% of Selling reps says is true. There is a lot going on here and the culture and treatment of employees has been changed in the recenty years.
Tuesday March 8, 2011 @ 06:45 PM
Judge was a drunk and ran the company into the ground. Neil is mini me to Del and had his head so far up his butt, they gave him his newest position.
Wednesday March 9, 2011 @ 05:00 PM
Let's face it after TG left it's in the toilet.
Thursday March 10, 2011 @ 01:28 PM
It is one of a CEO's main responsibilities to find/groom a successor. "TG" has been unable to do that. However, I would question whether that is the issue or he and his methods just got old and what worked for Paychex in the past doesn't work anymore and they are unable to adjust to changing times?
Thursday March 10, 2011 @ 02:09 PM
Once you forget who is buttering your bread, you are going to lose your client base. End of story.
Thursday March 10, 2011 @ 06:43 PM
Ha tg is and was chasing too much tail at two vine to care about company
Friday March 11, 2011 @ 11:11 AM
A question for all the Paychex sales folk who are deep in the Paychex kool-aid drinking bliss.... If Paychex offers such a wonderful service, then why resort to using scare tactics, panty dropping, and defaming the competition? Again, can anyone find a copy of Paychex's proof of bonding? Seems that is what Paychex is throwing out there as a smoke screen, but yet can't provide their own proof.
Thursday March 17, 2011 @ 09:57 AM
Check your tax withholdings.
I just noticed a huge discrepancy with my paychecks from 2010 to 2011. My Federal Withholdings in the year 2010 were lower than the OASDI withholdings for the entire year. I compared my checks from last year to this year, and noticed that the Federal WH and OASDI WH have been switched to a T. Were they just mislabeling it for the entire year, or misappropriating my money to further screw me with the IRS?
Since they overpaid OASDI and underpaid Federal Withholdings for the entire 2010 tax year, I now owe a lot to the IRS. I have never owed, nor have I changed my filing status over the past three years. It seems odd that the numbers between Federal and OASDI would be perfectly switched from one year to the next. It seems they have caught their mistake, and just changed it to prevent any further damage; instead of fixing what they have already screwed up in the past.
Thanks a lot for royally screwing me, Paychex. Also, Your websites for employees of Paychex clients are complete garbage.
Saturday February 26, 2011 @ 01:40 AM
Paychex has been screwing workers at my company out of a few dollars every paycheck. When we work 75hr:53min in a week, they are only paying us for 75.53hr. That's almost half an hour im not getting paid for. This thread isn't making me much happier about getting my years worth of back pay any time soon