Leaving Paychex PEO?
See the real numbers.
Paychex quarterly earnings reports have disclosed PEO pricing growth of 5 to 7% annually. If you're feeling that squeeze, you're not alone. Here's exactly what a competitive standalone setup looks like for your size.
The 4 reasons Paychex clients call us.
We help mid-sized companies exit Paychex PEO, typically ranging from 50 to 300 employees.
Annual Pricing Escalation
Paychex has publicly disclosed PEO pricing growth of 5 to 7% per year in recent earnings reports. Stacking those increases year after year makes the exit math more compelling every cycle.
Bundled Workers' Comp
Paychex Insurance Agency workers' comp is bundled into your PEO rate. Unbundling and going direct-to-market on workers' comp alone often creates meaningful savings.
Paychex Flex Lock-In
Your HR tech stack is tied to Paychex Flex. Modern alternatives like Paylocity, Gusto, or Rippling offer better employee experience and reporting.
Benefits Selection Limits
Paychex PEO's health plan options are limited to their master carrier relationships. For companies 50+, a full RFP against UHC, Aetna, Cigna, BCBS, and Kaiser typically produces superior plan design at lower cost.
From Paychex invoice to
market-ready in 4 steps.
Same forensic process we use for every PEO exit, customized for Paychex's specific invoice structure and carrier relationships.
Paychex Invoice Forensics
We extract your Paychex invoices line by line. Admin fees, insurance spreads, workers' comp markup, and pass-through costs all separated and quantified.
Census Cross-Reference
Your employee census gets mapped against Paychex's tier structures to calculate accurate per-employee cost profiles and exposure.
Full Market RFP
We run competitive RFPs across medical carriers (UHC, Aetna, Cigna, BCBS, Kaiser), HRIS platforms, workers' comp, and ancillary lines.
Decision Workbook
Comprehensive Excel workbook with rate cards, enrollment data, invoice breakdown, and market comparison. One document, every number.
What companies leaving Paychex ask most.
How much does a Paychex exit analysis cost?
Nothing. The analysis is 100% free with no obligation. We extract your Paychex invoices line by line, map your census data, and show you exactly what you would save transitioning to standalone benefits, payroll, and HRIS. If you move forward, we earn standard broker commissions from carriers, never from you.
How long does a Paychex exit take?
The analysis takes 1 to 2 weeks from the time we receive your Paychex invoices and census. Full exit execution (carrier selection, enrollment, payroll/HRIS implementation, COBRA coordination) typically runs 60 to 90 days depending on your target effective date.
What size companies leave Paychex?
The sweet spot is typically 40 to 300 employees. Below 40, PEO economics can still work. Above 300, almost any mid-market broker can beat PEO pricing. The 40 to 300 band is where the exit math gets clearest.
Will my employees lose benefits during a Paychex exit?
No. We coordinate effective dates so your new standalone benefits start the day after your Paychex termination. Employees experience a plan change, not a coverage gap. We manage enrollment, ID card distribution, and employee communication.
What does a Paychex exit replace?
Everything Paychex bundles: group medical, dental, vision, life, disability, workers' compensation, EPLI, payroll processing, HRIS, and compliance support. We run a full RFP across carriers (UHC, Aetna, Cigna, BCBS, Kaiser) and HRIS platforms (Paylocity, Gusto, ADP Workforce Now, Rippling, Paycor) and build a tailored replacement stack.
Get your free Paychex
exit analysis.
Find out exactly what Paychex is costing you and what you could save with a standalone approach. No obligation, no pressure, just real numbers.
- Line-by-line breakdown of your Paychex invoice
- Census-matched employee cost profiles by tier
- Full market RFP across major carriers and HRIS platforms
- Comprehensive decision workbook delivered in 1 to 2 weeks
- 100% free, we're paid by carriers, never by you
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Sources & Methodology
SEC filings cited: Paychex, Inc. quarterly earnings disclosures and Annual Report (Form 10-K) references to PEO pricing growth and operating segment trends.
Savings methodology: Illustrative savings range based on typical recoverable PEO overhead (admin fees, insurance loads, workers' comp markup, technology and compliance fees) for a 100-employee company. Actual savings vary by census, industry, geography, and renewal timing. Numbers represent estimated annual PEO overhead, not total invoice.
Leaving Paychex with LeavePEO
LeavePEO is the national PEO exit practice at IMA Financial Group, the 2nd largest independent insurance brokerage in the United States. We specialize in helping companies exit Paychex and transition to standalone benefits, payroll, and HRIS solutions tailored to their workforce.
Our Paychex exit process starts with a line-by-line invoice extraction to identify the recoverable overhead (admin fees, insurance loads, workers' comp markup, compliance fees) buried in your PEPM. We then run a full market RFP across UHC, Aetna, Cigna, BCBS, Kaiser, and other major medical carriers, plus HRIS platforms like Paylocity, Gusto, Rippling, ADP Workforce Now, and Paycor. The analysis is free, delivered in 1 to 2 weeks, and comes with a comprehensive Excel workbook showing every number.
Whether you're a CFO, HR leader, or business owner evaluating a Paychex exit, we provide the forensic data and market comparison you need to decide with confidence. We serve companies nationwide with 40 to 1,500+ employees.