Client Briefing
Paychex Service Agreement Review

Recommendation
Proceed with
confidence.

After a full read of the agreement, the investment summary, and a recorded call with your account manager, the math, the flexibility, and the safeguards all line up. Here's what you're actually signing, what to watch on invoice one, and how to move forward without second-guessing it.

$3,957 saved per year at your actual 3-employee rate vs the prior provider, with a 55% locked discount, zero setup fees, and a 30-day exit clause.
Prepared For O&R Management, LLC C/o Ramiro Hernandez
Prepared By Dabella Consulting
Date April 21, 2026 4:44am
55%
Discount locked in
vs standard rates
$3,957
Saved per year
at actual 3-emp rate
30d
Notice to exit,
zero penalty
$0
Setup fees,
fully waived
The 30-Second Read
You're locking in a 55% discount with one of the largest payroll companies in the country, paying roughly $4,763 in year one for three employees, with zero setup costs and a 30-day exit clause. There's no real lock-in, no early termination penalty on your plan, and the one thing that needs attention is making sure invoice one bills you for three employees, not ten. You're saving money, you're not trapped, and your account manager has already committed to making the first invoice right.
02 / What's Included

Everything a payroll department does, without the payroll department.

Your plan is Paychex Flex Enterprise. It covers the full payroll lifecycle, plus a real bench of HR tools you can grow into as your team scales.

Payroll Processing
Weekly runs, all the math handled for you.
Tax Filing & Payments
Federal, state, and local taxes filed and paid on your behalf.
Direct Deposit
Employees paid straight to their bank accounts.
Year-End W-2s
Prepared and sent to every employee.
New Hire Reporting
Legally required, handled automatically.
Employee Self-Service
Pay stubs, info updates, all in one place.
PTO & Time-Off Tracking
Built-in accrual and balance management.
HR Library & Handbook
Templates, document library, basic HR admin.
Workers' Comp Payments
Premium payments managed for you.
Background Screening
Essentials package, ready for new hires.
Garnishment Processing
Child support and wage garnishments paid automatically.
Compliance Updates
Tax tables and filing rules updated as laws change.
03 / The Cost, Plain

Three employees, paid weekly. Here's what it actually runs.

Pricing is built around 3 employees on a weekly pay cycle. Setup fees were waived in full. Your effective rate is roughly half of what you were paying before.

Weekly payroll fees
Per-run + per-employee charge, every week
~$88.50/ wk
Annual year-end fees
W-2 preparation and base annual charges
$161.50/ yr
One-time setup fees
Account onboarding and configuration
$0
First-year total, all in
3 employees, weekly cycle, fully loaded
~$4,763
Compared to your previous provider
~$8,720/year for 5 employees, at your actual 3-employee rate
≈ $3,957 saved
04 / The "10 Employee" Question

The agreement shows ten employees. You'll only be billed for three.

Your Actual Rate

3 Employee Payroll Run

Annual cost $4,763/yr
You save vs prior provider +$3,957/yr

What you'll actually pay based on your current headcount. This is the default operating case.

Contract Floor

10 Employee Payroll Run

Annual cost if misbilled ~$6,020/yr
Savings drops to +$2,700/yr
Exposure vs actual rate -$1,257/yr

Worst case if Paychex ever bills at the minimum. The 3-business-day invoice review window protects you from this.

The Honest Explanation

This is a system-side workaround, not a pricing commitment. Paychex's internal system requires a minimum of 10 employees on the account to unlock the 55% discount tier and to keep Alex assigned as your dedicated account manager. It's an administrative quirk on their backend, not something that changes what you actually pay.

In plain English, the platform shows ten, but the billing engine charges per actual employee run. Three employees in payroll means three checks billed.

What's in place to protect you
  • Alex confirmed on a recorded call that you'll be billed at the 3-employee rate
  • He committed to personally reviewing your first invoice with you before payment
  • Paychex is aware of this system quirk and is fixing it internally starting in June
  • You have a 3-business-day window to flag any billing error after each invoice
  • If invoice one is wrong, the contract gives you full grounds to dispute and correct it
05 / Your Exit Door

You're not signing a contract. You're signing a service.

There's no real lock-in here. Either side can walk with thirty days written notice, and there are zero early termination fees on your plan.

30
Days
Notice

Cancel anytime, no penalty.

Early termination fees only apply to HR Solutions or Managed Services packages, neither of which you're signed up for. With payroll services only, you can give 30 days written notice and exit owing nothing extra. This is a major advantage, and it's why the downside risk on this decision is genuinely low.

06 / Worth Knowing Before You Sign

Two short lists. Nothing alarming.

These are the standard responsibilities and limits that come with any payroll service contract. Reviewed and clean.

What's on your side You

  • Accurate inputs. If hours or pay rates go in wrong, payroll runs wrong. That's on you.
  • Invoice review within 3 business days. Flag any billing issue inside that window.
  • Mark employees inactive when they leave. Otherwise billing continues for them.
  • Account access security. You manage who can log in.

What Paychex won't do Them

  • Give legal, tax, or financial advice. That's what your accountant and lawyer are for.
  • Cover errors caused by bad input. Garbage in, garbage out, on you.
  • Take liability for third-party vendors. Background check companies and similar.
  • Pay for indirect or consequential damages. Standard limitation in service contracts.
07 / Risk vs Reward Snapshot

The full picture in one view.

You're saving money
At your actual 3-employee rate you save $3,957/yr. Even at worst-case 10-employee billing, you still save $2,700+/yr.
No real lock-in
Cancel anytime with 30 days notice, no penalties on your plan.
Dedicated account manager
Alex is personally on your account and committed to correct billing from day one.
Proven, large-scale platform
Paychex is one of the most established payroll companies in the U.S.
!
Watch invoice one
Confirm you're billed for 3 employees, not 10. Flag inside the 3-business-day window if anything looks off.
!
Verbal billing guarantee
Alex's commitment was on a recorded call, not written into the contract. Invoice one is the proof point.
08 / Your Next Step

Three moves to lock this in cleanly.

Once you sign, the only thing that matters is making invoice one a non-event. Here's the play.

01

Sign the agreement.

The math is sound, the exit clause is real, and the protections are in place. No need to overthink this part.

02

Calendar the first-invoice review with Alex.

Lock in a 15-minute call before invoice one is due. Confirm billing is at the 3-employee rate and the recorded commitment is honored. This is the single most important quality check.

03

Loop Dabella in if anything looks off.

If invoice one doesn't match, you have grounds to dispute under the 3-business-day clause. Send it our way and we'll handle the escalation. That's what we're here for.

Ready When You Are
Review & Sign the Agreement
Opens DocuSign in a secure new tab. Your signature is binding once submitted, please review all pages before signing.
Review Comparison Table
Standard Fine Print, For The Record
Disputes go through arbitration in Rochester, New York under New York law, no class actions, two-year window to raise any claim. This is industry standard for large service providers and not a red flag for your situation. Year-end W-2 corrections, off-cycle pay runs, and add-on services may carry separate fees, all documented in your service summary.