In the past they have been mostly fine. Customer service reps are friendly, responsive, and seem to want to help.
Payroll would generally be error-free, with occasional errors happening depending on who your rep was. For example, payroll would be run automatically when I had requested that it only be run on request (this was during the recession when there were no billable hours). One of the reps had difficulty with the "on request" part, the others were fine.
In 6 of the last 14 pay periods of this year, there have been major errors, and the source of the errors was inexplicable. If I don't know the source of the error, I can't know if it will happen again, or how to fix it. Here's an outline of the mistakes.
- An employee that had been inactive was paid, and other employees were not. A call to my specialist went unanswered.
- 401k reporting suddenly ceased. New specialist was at a loss to explain why, since the correct instructions show up in the system.
- Tax deductions in the last pay period had an amount override that resulted in too much federal payment being deducted from my paycheck. I did not request it, I have no idea where this came from, and it looks like it took a lot of effort to calculate and enter it manually. My specialist didn't seem to know about it, and It does not show up in the system.
In the 10 months Paychex administered our 401K plan, Paychex:
- Enrolled inactive employees in 401K plan
- Enrolled the intern in 401k plan. Set up his plan and deducted from his paycheck and all. The intern did not meet the "hours worked" threshold. Took 20 hours on the phone over the course of 3 months to get it permenantly corrected. Apparently the payroll side wasn't feeding into the 401K side properly.
- Charged us erroneous fees for the additional employees enrolled in the 401k, and occasionally for the additional payroll being run to correct this. It would take 1 phone call to get the changes reversed, and then somehow another call or 2 to actually get it credited to us.
- Told us that we were spared the $1,000 termination fee only because we were retaining the Payroll service. Although individual customer support people ranged from very apologetic to condescending, the company itself did not acknowledge that there was legitimate cause for terminating the service.
FYI the 401k plans offered were also terrible. High fees and returns that underperformed the S&P 500.