Paychex Expands Payroll Tax Support with New Tax Penalty Protection Service
Paychex (Nasdaq: PAYX) introduced its Tax Penalty Protection Service to help customers resolve eligible payroll tax issues and cover remaining penalties and interest.
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Paychex (Nasdaq: PAYX) introduced its Tax Penalty Protection Service to help customers resolve eligible payroll tax issues and cover remaining penalties and interest. Available to Paychex Flex customers, the service handles eligible issues regardless of cause, including customer and tax agency errors. Paychex works directly with tax agencies to seek relief. Financial protection applies when resolution efforts do not obtain relief, subject to applicable terms, conditions, and limits.
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First-of-its-kind service expands payroll tax resolution and provides financial protection
- Provides financial protection for penalties and interest* when resolution efforts do not obtain relief
- Helps businesses protect cash flow, save time, and reduce the stress associated with payroll tax issues
- AI-driven innovation combined with Paychex expertise expands payroll tax notice support by managing eligible issues regardless of cause and working directly with tax agencies on customers’ behalf
ROCHESTER, N.Y., Oct. 19, 2026 (GLOBE NEWSWIRE) -- Paychex (Nasdaq: PAYX), a leading provider of expert-enabled HR, payroll, and benefits, today introduced Paychex Tax Penalty Protection Service, powered by WISE (Workforce Intelligence Strengthened by Expertise), a first-of-its-kind offering designed to help businesses resolve eligible payroll tax issues more easily and with less financial risk. Paychex’s unique combination of AI-driven innovation and industry expertise has enabled the company to transition the management of eligible issues from the business to its team of experienced advocates at scale. The new service relieves businesses of the burden of navigating complex tax matters on their own and saves them valuable time, protects cash flow, and reduces compliance-related stress.
“Payroll tax issues can divert valuable time and resources from running a business,” said Frank Fiorille, Paychex managing vice president of risk and compliance. "Paychex has always worked to help customers address payroll tax issues, and AI innovation in our back office has evolved what we can offer our customers at scale. We now provide a real, outcome-based solution and stand behind it financially. Our advocates take on eligible payroll tax issues regardless of cause, and if penalties and interest remain after our resolution efforts, we cover them. Business owners get their time back, their cash flow protected, and real peace of mind."
Payroll Tax Issues Can Be Costly and Time-consuming for Businesses
Tax notices can result from federal and state agency processing errors, account discrepancies, or other administrative complexities. In 2025, the IRS assessed more than 4.4 million employment tax penalty notices.
New Service Expands Paychex Support for Payroll Tax Issues
Paychex has long supported customers with payroll tax notice research and resolution. Paychex Tax Penalty Protection Service, powered by WISE, expands that support by covering the cost of eligible payroll tax issues, including customer and tax agency errors. As part of the service, Paychex researches the issue and works directly with tax agencies to pursue a correction, abatement, or appeal on the customer's behalf. The company has built AI into its back-office payroll and tax operations, supported by decades of experience and one of the industry's largest payroll tax datasets. As a result, Paychex can identify, prevent, and resolve payroll tax issues with speed and accuracy at scale that was not possible before. That confidence has enabled Paychex to move from helping with tax notices to standing behind the outcome.
The service is currently available to Paychex Flex® customers. Visit paychex.com to learn more about the Paychex Tax Penalty Protection Service, powered by WISE.
* Financial protection for penalties and interest, subject to applicable terms, conditions, and limits.
About Paychex
Paychex, Inc. (Nasdaq: PAYX) provides a comprehensive suite of expert-enabled technology and advisory solutions that help businesses manage HR, payroll, and benefits. Serving approximately 840,000 customers and paying 1 in 11 U.S. private sector workers, Paychex combines scale, trusted expertise, and innovation to help businesses succeed. Built on more than 50 years of workforce experience and one of the industry’s largest proprietary HR datasets, Paychex’s WISE agentic AI engine embeds intelligence directly into workflows to improve productivity, enhance decision-making, and deliver better outcomes. Learn more at paychex.com.
Media Contact
Tracy Volkmann
Paychex, Inc.
Manager, Public Relations
(585) 387-6705
tvolkmann@paychex.com
FAQ
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What does Paychex Tax Penalty Protection Service cover?
The service covers eligible payroll tax penalties and interest that remain after Paychex’s resolution efforts, subject to applicable terms, conditions, and limits. Available to Paychex Flex customers, it includes eligible issues caused by customer or tax agency errors.