Benefits Administration

This use case is for managing recurring deductions such as Union Dues, Retirement, and other third-party benefits. Users can set up payroll deductions for a variety of third-party benefits and can create integrated solutions with our Payroll APIs through management of recurring deductions at the worker level. Paychex APIs enable third parties to manage specific pay component (deductions) based on the clients’ utilization of their services. Effectivity (aka Effective-Dating, or Future-Dating) relates to the ability for information to be updated on a specific date in the future and is generally used when a client is aware of a scheduled change to a worker. The functionality for Effectivity is supported for the following worker fields: Demographic, Compensation, Employment, and Earnings & Deductions.


  • When managing the deductions at the worker level you can set the effectivity to proactively specify the date when the deduction should be enabled and changed

  • Increases freedom of choice for technology solutions that need to manage worker recurring deductions to integrate with Paychex Payroll 

  • Ability to allow more partners to integrate with Benefit Administration systems 

  • Allows non-Paychex Benefit Administration systems to send Paychex worker recurring deductions 


Step 1

Employee is eligible for benefits

or has had benefit changes made.

Step 2

Employee will make the

benefits decision.

Step 3

Benefits decision is made in

the provided system of choice.



Step 4

Benefits deduction amount to be

withheld from payroll is

identified and sent to Paychex

Step 5

Admin can see the recurring deductions

setup in Paychex that will be

applied during the payrun time.

Step 6

Employee can view the checkstubs

in Flex app and see the

deduction amount withheld


Relevant APIs used: