How Much Does Paychex Employee Leasing Cost?
An industry leader of human resource solutions, Paychex, Inc. is one of the premiere professional employer organizations (PEOs). Paychex is a recognized and respected name in employee leasing, providing leasing services to over 600,000 businesses across the country.
What Is Employee Leasing?
Employee leasing is a cooperation between a business owner and the leasing company wherein you share employment responsibilities. The business owner is still in control of the work performed by the employees, but the leasing company handles aspects such as the hiring process, taxes, and wage reporting. With employee leasing, the owner of the business is primarily responsible for providing payment to the leasing company to cover administrative fees, benefits, payroll, and taxes. Everything else is taken care of by the PEO. The PEO also ensures that your business remains compliant with federal and state laws and regulations.
One of the benefits of employee leasing is that, while the workers carry out the tasks you assign, liability is attached to the leasing company instead of yours. This can save you a lot of money in terms of human resources (HR) functions and offers some protection from different legal complications that may arise.
While employee leasings sounds similar to human resources outsourcing (HRO), there is a difference. An HRO service essentially manages any HR duties of your business and its employees, while employee leasing places your staff officially under another organization instead of yours.
Paychex PEO Services
Paychex PEO services, as well as Paychex PEO+ (the company's professional PEO offerings) take the pressure off of you and your business. They help you manage employee relations issues and ensure that your company runs as smoothly as possible. Some of the benefits of Paychex PEO services include:
- Expert service: Paychex has the knowledge and the experience necessary to handle employee-workplace related issues. From handling HR duties to providing top-notch employees, Paychex provides everything you need to make your business run better.
- IRS certification: Responsibility for federal tax obligations such as payment, reporting, and withholding rests entirely on Paychex. Rather than worry about these issues yourself, the company hands that stress to dedicated and knowledgeable professionals.
- No service-term agreements: Most PEO services require a contract of some sort that locks you in for a set amount of time. Paychex has no service term agreements, meaning you can discontinue their services with no penalty at any time.
- Risk management: Paychex has risk management specialists to help you be proactive when it comes to employee relations or issues.
- Safety: A safe business is a good business, something Paychex is well aware of. That's why the workers' compensation insurance Paychex offers comes with the bonus of a safety representative that ensures you are in compliance with all OSHA regulations.
Remember that the goal of any employee leasing service is to make it easier for you to run your business and that Paychex is no different. They take care of the tasks that you might not have the experience, knowledge, or resources to handle.
What Does Paychex Employee Leasing Cost?
The cost of Paychex employee leasing varies based on a variety of factors. The industry you work in, number of employees, services you require, and size of your business all play a role in the final cost. That being said, here is a general pricing guideline so as to provide an idea of what you can expect to pay for your Paychex employee leasing services:
- There is a one time setup fee which costs, on average, between $1,000 and $5,000
- The company also takes a percentage of the gross payroll, which costs an average of 2 to 6 percent per employee per pay period
- For comprehensive employee leasing solutions, it may cost as much as 15 percent
- Paychex also charges for workers' compensation, which costs an average of 1 to 10 percent of the worker's salary
- Additional services such as background checks and drug tests add to the overall price as well, with costs averaging between $50 and $100 per employee
Employee leasing often seems like a daunting process; sometimes the cost may not seem to be worth it or you may feel like you're giving up too much control. It is a good idea to ask around and see how other business owners have enjoyed Paychex's services. This will give you a better idea as to how they can help and improve your company.