Benefits Administration

This use case is for managing recurring earnings (such as stipends of mobile phone, parking, auto, etc. or pre-determined amounts such as retirement matching), as well as deductions (such as union dues, retirement, and other third-party benefits). Users can set up payroll earnings and deductions for a variety of third-party benefits and can create integrated solutions with our Payroll APIs through management of recurring earnings/deductions at the worker level.
Paychex APIs enable third parties to manage specific pay components 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 earnings/deductions at the worker level you can set the effectivity to proactively specify the date when the earning/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 or recurring earnings


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 earnings (amounts to be added) and deduction amounts (to be withheld)

from payroll is identified and sent to Paychex

Step 5

Admin can see the recurring deductions and earnings

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 and earnings added


Relevant APIs used: