Benefits & HR Administration
Paychex Benefits Administration Pricing 2026: Health, Dental, Vision, and More
Benefits administration is a growing cost as your team grows. Here's what Paychex charges for every aspect of employee benefits management, from open enrollment to COBRA.
$4-$8/mo
Benefits Admin Add-on
Per employee
$1-$2/mo
COBRA Admin
Per employee
$2-$4/mo
FSA/HSA Admin
Per employee
$140/mo
PEO All-In Average
Per employee (industry avg)
Benefits Services Cost Breakdown
| Service | Cost | What's Included | Plan Availability |
|---|---|---|---|
| Benefits Admin Module | ~$4-$8/ee/mo | Carrier integrations, open enrollment, life events | Select, Pro, Enterprise add-on |
| ACA Compliance | Included in Pro+ | 1094-C/1095-C filing, IRS submission, employee forms | Pro/Enterprise included; Select add-on |
| COBRA Administration | ~$1-$2/ee/mo | Notices, billing, carrier coordination | All plans add-on |
| FSA Administration | ~$2-$3/ee/mo | Flexible spending account administration | Available as add-on |
| HSA Administration | ~$2-$4/ee/mo | Health savings account setup and management | Available as add-on |
| Open Enrollment Support | Included in PEO | Employee communication, enrollment portal | PEO included; standalone add-on available |
Standalone vs PEO: Which Is Cheaper?
For businesses under 10 employees, standalone Paychex payroll plus benefits administration add-ons is almost always cheaper than the PEO model. The PEO becomes attractive when your benefits costs are high and access to large-group rates would generate significant premium savings.
| Employees | Standalone (Essentials + Benefits Add-on) | PEO Estimate |
|---|---|---|
| 5 | $94/mo (payroll + benefits admin) | $700/mo (all-in PEO) |
| 10 | $149/mo (payroll + benefits admin) | $1400/mo (all-in PEO) |
| 20 | $259/mo (payroll + benefits admin) | $2800/mo (all-in PEO) |
| 50 | $589/mo (payroll + benefits admin) | $7000/mo (all-in PEO) |
PEO all-in cost includes payroll, HR, and benefits admin but not the actual health insurance premiums. Standalone cost includes payroll and benefits admin but not HR services.
Frequently Asked Questions
How much does Paychex benefits administration cost?
Paychex benefits administration as a standalone add-on costs approximately $4 to $8 per employee per month. This covers carrier integrations, open enrollment support, life event processing, and ACA compliance reporting. Full PEO service including payroll, benefits, and HR averages $100 to $250 per employee per month all-in, with the industry average around $140/employee/month.
Does Paychex handle ACA compliance?
Yes, Paychex offers ACA compliance reporting. It is included in Flex Pro and Enterprise plans, and available as an add-on for Flex Select. This covers 1094-C and 1095-C form preparation, IRS filing, and employee distribution. For businesses with 50 or more full-time equivalent employees subject to the employer mandate, this is a legally required service with significant penalties for non-compliance.
How much does Paychex COBRA administration cost?
Paychex COBRA administration costs approximately $1 to $2 per employee per month as an ongoing fee. This covers required COBRA notices, participant billing, payment processing, and carrier coordination. The qualifying event itself may also have a per-event fee. COBRA administration is also included in the PEO service at no additional line-item cost.