Terrible Customer Service Do Not Use Them
Our small company has been using Paychex for about 8 months. In that 8 months, we have had 6 different account managers assigned to our account. And, you won’t be alerted that they are changing. You’ll figure it out when their phone no longer works or you see it on your dashboard. I have only called 1 time that my account manager actually answered the phone. Every time I call, it is no less than an hour on the phone because they aren’t able to answer our questions or help with issues. If you have 401K , there is absolutely NO WHERE to call for answers. Our account manager for that is no longer there and the contact info they gave me for the replacement is also no longer there. The turnover is HORRIBLE! I don’t know what’s going on there but customer service is the WORST!!! Run, do not walk to another payroll option!!!
Reply from Paychex
Investment Choice And Fee Transparency
With our open architecture platform, you can choose from thousands of investment options with no proprietary requirements. Fee transparency means you know exactly what youre paying for, and our return of mutual fund revenue share policy gives revenue share payments from mutual funds back to participants.
Updating Paychex Retirement Information
If you qualify to take a loan or distribution from your 401 plan, you can easily initiate the process on paychexflex.com.
To take out a 401 loan, the following criteria should generally be met: the plan must allow for loans, you must be actively employed with the company that sponsors the plan, your pre-tax account balance must be greater than $1,000, and your total vested balance must be greater than $2,105.26.
Looking to request a 401 loan? Follow these instructions:
In general, to take a distribution you must meet a qualifying event. In accordance with the IRS, the following are a list of qualifying events:
- Termination of employment
- Termination of the 401 plan by your employer
- Reaching age 59.5
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Dont Let Your Paychex 401 Fees Get Out Of Hand
Even if yours are below average now, Paychexs revenue sharing can cause them to very quickly become excessive as assets grow. For this reason, its crucial that you compare your plans fees on a regular basis.
Too much trouble? Weve got a solution.
Simply switch to a 401 provider that charges fees based on headcount not assets – to the extent possible. Such a fee structure will make it easier for you to keep your 401 fees in check as your plan grows. You just might save some money while youre at it.
About Eric Droblyen
Eric Droblyen began his career as an ERISA compliance specialist with Charles Schwab in the mid-1990s. His keen grasp on 401k plan administration and compliance matters has made Eric a sought after speaker. He has delivered presentations at a number of events, including the American Society of Pension Professionals and Actuaries Annual Conference. As President and CEO of Employee Fiduciary, Eric is responsible for all aspects of the companys operations and service delivery.
- Connect with Eric Droblyen
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This Company Is Not A Good Company
This company is not a good company, bad service and worst customer service. They send my wrong W2 form and since February until today April 14 did not correct it. I spend hours and hours on the phone and thousands of emails, and no one answered me, the excuse was not department. what the hill is this company, and they are not worth even for one star.
Reply from Paychex
Pooled Employer Plan: The 401 Plan Designed For Small To Medium
The Paychex Pooled Employer Plan makes it easier for businesses of any size to offer one of the most popular retirement plans for employees. While you reap the benefits of offering a retirement plan, we oversee plan set-up, implementation, monitoring, enrollment, and other duties. Learn why a PEP could be a retirement game-changer for your business.
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How Much Does A Retirement Plan Specialist At Paychex Make
The typical Paychex Retirement Plan Specialist salary is $55,718 per year. Retirement Plan Specialist salaries at Paychex can range from $51,535 – $65,223 per year. This estimate is based upon 6 Paychex Retirement Plan Specialist salary report provided by employees or estimated based upon statistical methods. When factoring in bonuses and additional compensation, a Retirement Plan Specialist at Paychex can expect to make an average total pay of $80,253 per year.
Instructions And Help About Paychex 401k Terms Of Withdrawal
Lena from Marietta says howdy profit sharing plans work I interviewed with an employer who touted it’s a good benefit, but I don’t know how they rEvally affect me, so a profit sharing plan on the technical side is what’s called a defined contribution plan, and it’s generally contributed to by your employer in effect you won’t have to put any money in so if the company has a good year the employer will put money in on your behalf can be it’s got to be equal in the eyes of the law and there’s a couple of games that can be played on the employers part, so you know some more money can go to older people more mature people less money to the younger people depends on how the calculation it gets put it in a savings account for you yes in your name well that’s free it’s not necessarily in her name well it if she works her ex period of time well so there can be a vesting schedule okay you could be fully vested, or they can cliff vest which is can take up to six years you know zero percent the f
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Paychex 401 Review 2022
Paychex has been providing payroll, human resources, and benefits outsourcing for companies around the country since 1971. The company, based out of Rochester, New York, went public in 1983. Paychex specializes in helping small- to medium-sized businesses handle their payroll needs, and the company also offers a fully integrated 401 plan.
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Make It Easy To Enroll In Your Plan
The quick enrollment feature allows employees to sign up for a retirement plan in four clicks. When you integrate payroll, you can easily see who is eligible for your chosen retirement plan. This means you don’t have to track eligibility separately, saving you time to focus on your business.
Paychex Is A Straight Out Thief
Paychex is a straight out THIEF! They stold over $600.00 a month out of my bank account and couldn’t justify why. They said my monthly fee would be 30 dollars a month bullcrap! They withdrew $750.00 in 1 freaken month and they charged $60.00 as a monthly fee for God knows how long. 1 year of bull crap fees and didn’t realize they weren’t paying my quarterly taxes! I told the girl with customer service that taking money like they did was an act of a thief and she agreed. I am terrible about checking my bank statements if u are too DO NOT USE THIS COMPANY. They will steal from you too. Lesson learned!!!!
Reply from Paychex
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What Is An Employee Retirement Benefits Provider
An employee retirement benefits provider is a company that helps small business owners set up and administer retirement plans for themselves and/or their employees. Companies offer various types of plans, investment options, features and services depending on the role they play in the plan creation and administration process. Some providers also offer features such as payroll administration to make it cheap and easy for participants to contribute to their accounts.
Also Check: I Am Self Employed How Do I Save For Retirement
What Are Average Paychex 401 Fees
In our most recent Small Business 401 Fee Study, we found that Paychex plans cost small businesses an average of 1.15% of plan assets each year, with their admin fees totaling about $330.70 per participant.
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Average Paychex 401 Fees |
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All-In Fees |
1.15% |
While their per-capita admin fee is below the study average of $422.30, that number can easily grow much higher due to the way these fees are charged.
In our experience, about 30% of admin fees charged by Paychex are paid by revenue sharing hidden 401 fees that lower the investment returns of plan participants. Not only are plan sponsors or participants often unaware that theyre paying them, but theyre always charged as a percentage of plan assets. That means plan participants will automatically pay Paychex higher and higher administration fees for the same level of service as their account grows. Thats not fair!
When you factor in compound interest, these growing fees can make a huge dent in your retirement savings. As such, you want to do everything in your power to avoid paying them.
If youre currently using Paychex for your 401, your first step to avoiding these fees is to find out whether or not youre paying them. Well show you how to do that next.
Save More On Taxes With The Secure Act
The SECURE act offers businesses the ability to establish a retirement plan and lower their tax liability. Your business can take advantage of tax credits of up to $5,500 per year, which includes a $500 credit for implementing automatic enrollment in the plan, for three years, if you meet eligibility requirements. These start-up tax credits go towards the costs of starting a new 401 plan. Only new plans are eligible for these tax credits.
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Who Its Best For
Paychex is a great solution for small- to medium-sized businesses that are looking to outsource all of their payroll needs. Businesses can decide whether they want to utilize just some of Paychexs offerings, or the companys full suite of integrated services. While Paychex is primarily a payroll company, small businesses can benefit greatly from Paychexs 401 plan because it easily integrates into the same system that the company would use for payroll. As a result, this makes for an easy resource for employees as well.
Check out our roundup of the Best 401 Companies for Small Business
How Does It Work
A 401 plan helps you save pre-tax dollars, which can grow without being taxed until you start withdrawing amounts from the plan. This feature is especially beneficial if, like most people, you will retire in a lower tax bracket. Your 401 also has the ability to grow faster than similar investments made to ordinary taxable accounts, because the interest you earn on your investment grows tax-free.
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See How Much You Can Save By Starting Now
Contributing to a 401 can generate a large immediate rate of return on your investment. Let’s see how investing 10% of a $1,250 biweekly paycheck could affect your assets.
In other words, contributing 10% of your salary to a 401 would generate a whopping 140% immediate rate of return.
You can see the effect of contributing to a pre-tax account such as a 401 in the pie charts below.
Evaluate Your Admin Fees On A Per
After you have calculated your all-in fee, we recommend you take a quick look at your Paychex administration fees on a per-capita basis.
The reason?
Excess administration fees basically, fees that outstretch your 401 providers level of service might not be readily apparent if theyre solely evaluated on an all-in basis with investment expenses. This is especially true if your plan has lots of assets.
To demonstrate the value of this evaluation, consider a $1,625,825.48 401 plan with only 7 participants from our 2018 small business 401 fee study. While its $25,611.64 all-in fee was only a bit above the studys 1.40% average, its $2,521.81 per capita administration fee was about six times average!
To calculate your per-capita administration fee, simply divide the administration fee total from your spreadsheet by the number of participants in your plan. For our 38-participant example, that number is $103.68 quite a bit higher than what participants could be paying with a low-cost 401 provider.
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I Have Been Working With Paychex For 2+ Years
I have been working with Paychex for about 2+ years and every year it gets worst. Their specialist has made so many mistakes and I am the only one paying for it. They reported the wrong information to IRS, which made me have to pay IRS over $700 and I am still waiting for reimbursement. They made errors in payroll and have charged me multiple times for their error. I spend hours calling their representatives and there is NEVER any resolution. They just double down on repeating more mistakes costing me more money!! I need leadership to finally respond to all of my emails! End of Year Tax season was a night mare, I had to pay my private account to get my staff’s information processed. PAYCHEX was NO Help at all, just a waste of time.
Reply from Paychex
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How To Get Started
Getting started with Paychex is a simple and easy process. You can go on their website or call them at 754-1453 to set up a consultation. If you want, Paychex will also send out a sales representative to your business to go over all the options for payroll and 401 plans, and all the other options it offers.
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