Paychex Sucks

Great point! Many of the seasoned professionals are leaving or have left Payx/ADP. They just announced today at their sales conference they cut their inside sales force from 50 to 10 very soon. Many of the small private companies have top payroll consultants that truly care about their client base and the welfare of their business needs! Before you make a choice to use these two dinosaurs look into the up and coming compnaies that care!!

I'm not going to bash Paychex (everyone else has that covered), but I am an expert on the whole industry and can probably answer any question about products, services, fees, penalties etc. for just about any Payroll company out there, and any ancillary products (FSA, HR, 401K, etc)...Just because it keeps coming up, I want to clear up what that fee for a third party trustee on a 401K actually covers, and why the advice to "opt out of it if you have a small plan" is dangerous and just plain ignorant. The trustee on a 401K plan guarantees that everything will happen that is supposed to (i.e. funds are transferred within 5 days of deduction, investments meet suitability requirements for demographic of your company, care is taken in the selection and regular monitoring of funds offered, etc.). If you, as a business owner, are trustee on the account....that means that you PERSONALLY are guaranteeing that it's happening the way it should. That means if you get sued by an employee who says you acted improperly, YOU are 100% liabile..personally (even if you are a corporation). Unfortunately, too many well-meaning business owners set up a 401K without realizing the massive liability involved. Hiring a 3rd party trustee adds a layer of protection in that not only will they actively ensure and guarantee that everything stays compliant, in the event an employee does sue, they will attempt to squash the lawsuit before it happens, and if the suit does happen, the trustee will likely have insurance to cover potential judgements. That being said, most trustee services do NOT charge participants for the service, only the plan sponsor.

I work in the industry of corporate qualified retirement plans. I have two quotes from two different people at Paychex I spoke to this week. 1.) "We have a love them and leave them relationship." sales representative who refused to do an enrollment meeting. 2.) Me: "If Paychex does not have a Spanish speaker enroller will they pay for one." Paychex: "Absolutely Not and we understand if we loose this client."

Paychex is difficult to do business with. I a world filled with Payroll providers and 401(k) providers, I don't understand why a employer would deal with the hassle. To comment on a post from above. Yes it is a free country and I freely choose not to work with or recommend Paychex on any level.

What is going on at this company the Senior VP of sales resigned unexpectantly yesterday. Anyone know what's going on with this runaway train everyone is leaving, pricing was cut and now this.....

The latest VP of Sales was simply below this numbers for DSM's in bed. The Board was not happy with Core's numbers when every other division was making a better profit. The writing is on the wall Paychex. Every division is a leach on Core, if Core does not make it's numbers, only so many customers on a silver platter for you, you are eating your own...

Dominic, is that all you switched from Paychex to adp? i've been with paychex for 4 and half years and i've switched over 300 adp clients to paychex. catch up already

So all that means is you're better at discounting and giving away the payrol and ADp hasn't called the client. Lets face it Payx has come to a point where they can't recover too many good people gone with too much experience going to other companies.

"Switch a rue" like most Paychex Sales Reps is most likely lying. Anyone who has been selling for Paychex the past 4.5 years or more must be a very special person. How can you work for a company that is so unethical? I hear that Satan is looking for sales reps, I understand he pays real well and has won tons of awards for "Best Place to Work" and "Most Ethical Organization". Don't worry when you start to have some bad quarters at Paychex, Compupay will hire you and pay you double your base salary, between Satan and Compupay you will always have a place to go.

To: Paychex Dedicated
Posted: Thursday August 12, 2010 [at] 10:34 PM

The class you are referring to is not difficult at all. Most of the class is learning how to use their software and preparing returns using sample data and math skills obtained in the 6th grade. To further humiliate you, they make you carry around a bag that says "Paychex University".

I am an employer who used PayChex for my 401k. January 1,2010 I wrote them a letter asking them to cancel my account, return the $480.00 yearly fee, for one person, and gave them all the information to roll the money over to my finicial advisor. As you can see from the date, nothing has been done. After 4 months, and numerous letters being sent, they told me I had to fill out their forms. Fine, they came 1 month later, I filled them out instantly, faxed and mailed the forms back and quess what? NOTHING. I have faxed the forms to them over 15 times and you'd think they'd get sick of me and do their job. Nope, my finicial advisor has also tried to help with no luck. Any employers out there STAY AWAY FROM THIS COMPANY. I've been in contact with the bank and have informed them not to allow Paychex to remove any money but let them deposit what they owe me. I will get this straightened out no matter how long it takes and if I have to I will sue them for the $480.00. What a nightmare for 1 employee who has only contributed $3000.00. I'm a small business owner and was just trying to be good to my employee, too bad I didn't see this sight first

I wonder exactly when a company like Paychex makes that transition to amoral, is it when they reach a certain size? Maybe it’s when the founders lose the entrepreneurial spirit that made them start the business after they have to deal with institutional investors at the point of IPO or after years of having to answer to fund managers instead of their clients? Whatever causes it, it would do them well if their employees and clients revolt and force them to refocus on what once made them great? How about this: Large companies are forced to spend a fortune on attorneys to protect them from liability, and PR and Marketing to build an image that is primarily focused on increasing the stock price. How about they invest in a high level team that is completely and only focused on the client and employees and make the lawyers and marketing team report through the “Client/Employee Advocate Department”. Imagine of all of their structure and policies started with “what is in the best interest of our clients”. That may result in some short term shake-up that might have some short term negative impact when they lose all of those bad employees but I can only imagine the long term results!!!! I think that is the future, I wonder if Paychex will get it before it’s too late?

New vp of sales. No wonder this company is having a hard time keeping quality reps, the new vp of sales is just another example of nepotism in the sales org, definitely not the best candidate. Interested in seeing what happens this final quarter, maybe TG will read between the lines and give this clown his walking papers too.

The Core Sales Vice-Presidents at Paychex instead of a golden parachute appear to have a golden condom as well. They can sleep with as many subordinates as they want, and when they get caught instead of being fired in shame, they get to become a Premier Human Resource District Sales Manager. Outstanding leadership. A VP gets caught having an affair with a subordinate, someone who works below him, and the leaders at Paychex give him a position in charge of selling Paychex human resource products. You have to love the irony.

World's most ethical company?!?! This is like watching a car crash in slow motion, how many signs does TG need before he realizes that they are headed for a wreck?

They definitely haven't hit rock bottom. The new VP of sales eastcoast loves to force himself on the young ones from their telemarketing group.

Industry Expert... I don't know if you're referring to my comments but if so, you read them wrong. I wasn't advising anyone to "opt out" of a corporate trustee in general. I was saying that it doesn't make financial sense to have one if you are on a Paychex platform that uses Mid Atlantic Trust Company because they have no way to bill the plansponsor directly. It has to come from the plan assets... and guess what "Industry Expert"... It's a far bigger liability for an owner of a company (who is always a fiduciary no matter who the trustee is) to set up a 401(k) that has internal fees equaling 25%, then to be self trusteed on your startup plan with 4 participants. Look up any of the recent articals about 401k plan lawsuits... 90 percent of them are about "excessive participant fees"..... and I'm the ignorant one? Something tells me you are far from an "Industry Expert".

Two more things:
1. Not that it matters that much but I just realized someone else started leaving comments under the name "Realist" on August 17th, Sept 1st, and 3rd. I should probably change my name now. =)
2. Angry Dentist - I was cracking up reading your post. ha ha. You said it perfectly.

FYI... I really am an angry dentist, I just went to the wrong blog, I fully agree with the attitude of the Paychex Employee - "Pissed off at whinners". In fact I would offer free dental work if he/she is willing to come to my office.

There hasn't been many Paychex loyalist bragging about all of their awards in a while? I wonder if that has anything to do with the numerous mysterious and sudden resignations from senior management (C.E.O., numerous VP's of Sales)? Everyone must be too busy scrambling trying figure out who's A?# to kiss.

My employer is currently looking at changing our 401K plan. We currently have 35 employees. He has received a proposal for the 401K plan with Paychex. The proposal doesn't say much about fees so my CEO is leaning towards going with them. Does anyone have a list of the fees they charge or a list of questions we can present to get more information out of them? After reading the comments on this blog, I surely don't want to sign up with a company that charges enormous fees!