Paychex Market Analysis Essay

Paychex, Inc. (Paychex or the caller) is a supplier of paysheet department department, gentlemans gentleman resource, and benefits outsourcing solutions for shrimpy to medium-sized creasees. The troupe operates in the US and Germany. It is headquartered in Rochester, refreshing York and employed approximately 12,400 muckle as of May 31, 2013.The friendship put down revenues of $2,326.2 million during the financial year finish May 2013 (FY2013), an append of 4.3% all over FY2012. The operate profit of the corporation was $904.8 million in FY2013, an increase of 6% over FY2012. The salary profit was $569 million in FY2013, an increase of 3.8% over FY2012.BUSINESS DESCRIPTIONPaychex, Inc. (Paychex or the go with) is a willr of captain work to venial to medium-sized businesses. The company offers payroll, benignant race resource, and benefits outsourcing solutions. As of May 31, 2013, Paychex provided serve to over 570,000 clients, including approximately 2,000 clients done its four offices in Germany. The company operates through with(predicate) a item-by-item segment. However, it has classified its overhaul into both categories payroll and gracious resource (HR) serve.Paychexs payroll service allows the calculation, expression, and delivery of employee payroll checks production of internal business relationship records and solicitude reports preparation of federal, state, and local payroll tax returns and collection and remittance of clients payroll obligations. The companys payroll operate support the small business tendencyet through its amount payroll and SurePayroll products. Mid-market companies are primarily serviced through Paychexs Major Market service (MMS) payroll product. The company offers Software-as-a-Service (SaaS) solution to fall in the payroll and human resource administrative needs of its MMS clients. In addition, Paychex also offers auxiliary service to its clients.The companys adjuvant service al low in Paychex HR Online, an internet-based human resource management system that offers tools for managing employee benefits, military force information, and critical human resource compliancy and reporting needs BeneTrac, an employee benefits management and organization system that offers its MMS clients a solution for slick benefits management Paychex Time and Labor Online, a solution for prison term and attendance do Paychex Expense Manager, an integrated expense management solution that allows clients to control discretionary using up and applicant tracking service.In addition, Paychex offers online payroll serve through Paychex Online, an internet gate, which offers a suite of self-service, interactive services and products. These include Paychex Online Payroll, Internet Time Sheet, Paychex Online Reports, and General playscript Reporting Service. The company also offers self-service and mobile applications for small business through its SurePayroll SaaS product wh irl. Paychexs opposite payroll services include payroll tax brass instrument services, employee payment services, and regulatory conformance services.The companys HR services include Paychex HR Solutions, an HR outsourcing solutions supplier that addresses the outsourcing of employer and employee administrative needs of businesses. Its Paychex HR Solutions offering is available as an administrative services organization (ASO) and as a paid employer organization (PEO). Both options offer businesses a combined package of services that includes payroll, employer compliance, human resource and employee benefits administration, risk management outsourcing, and on-the-scene(prenominal) availability of a professionally expert HR representative.Paychexs retirement services product line offers options to clients, including 401(k) plans, 401(k) round-eyed plans, SIMPLE IRAs, 401(k) plans with safe harbor provisions, profit sacramental manduction plans, and money purchase plans. These services provide plan implementation, ongoing compliance with governing regulations, employee and employer reporting, participant and employer online access, electronic funds transfer, and other administrative services. In addition to the preceding(prenominal) HR services, the company operates a accredited amends agency, Paychex Insurance Agency that provides insurance through several carriers.Its insurance offerings include property and casualty (P&C) coverage much(prenominal) as workers compensation business-owner policies commercial political machine and health and benefits coverage, including health, dental, vision, and life. Paychex also offers online HR administration software products for employee benefits management and administration and succession and attendance solutions. Paychex HR Online offers tools for managing employee benefits, personnel information, and human resource compliance and reporting. The companys other human resource services and products include the outsourcing of plan administration downstairssection 125 of the Internal taxation Code state unemployment insurance services and employee handbooks, management manuals, and personnel and required regulatory forms.HISTORYThomas Golisano founded Paychex, Inc. (Paychex or the company) as Paymaster in 1971 in Rochester, New York, the US. In 1988, the company started its personal services persona. In the next year, the company reached the 100,000 clients mark and opened its Taxpay division. This expansion continued into the 1990s. In 1991, Paychex formed the human resource services (HRS) division, with new offerings such as employee handbooks, employee evaluation, employee interrogation tools, insurance products and services, and section 125 cafeteria plans. Paychex acquired two California based companies, Pay-Fone and Payday in 1995.The company expanded its client base to 210,000 clients and its Taxpay division reached 100,000 clients mark. During 1995, Paychexs HRS division in troduced its 401(k) Recordkeeping service. In 1996, the company acquired California-based Olsen Computer Systems and Florida-based National Business Solutions. Paychex acquired returns Payroll Services ( emolument), a supplier of payroll and tax-filing services, in 2002. The acquisition of Advantage provided Paychex with more than 49,000 new clients.Paychex acquired InterPay, a all in all owned subsidiary of FleetBoston Financial (a Boston, mumbased bank), in 2003, for $182.3 million. In the selfsame(prenominal) year, the company was selected by the American bring in of Certified Public controllers (AICPA) for its payroll services. Subsequently, Paychex acquired Strombergs (a provider of time and attendance and workforcemanagement solutions) Time in a Box product line, a Windows-based time and attendance solution for small to medium-sized enterprises (SMEs).In 2005, the company and the American Bar standstill (ABA), a voluntary bar friendship of lawyers and law students, te amed up to offer attorneys across the country free access to continuing legitimate education (CLE) through a serial of live teleconferences. In the same year, Paychex launched Accountant Advisory Boards in three cities in the US, further accentuating its focus on partnering with accounting professionals who play a vital single-valued function in influencing the purchase decisions of small business owners.Paychex added Paychex COBRA Administration to its suite of human resource services for SMEs, in 2006. In the following year, the company introduced Tax Credit Services, a product that provided SMEs across the US with a tool to help them identify and impose for wage-based tax credits they may be eligible to receive. Subsequently, Paychex acquired Hawthorne Benefit Technologies, a privately held company in San Diego, California, and BeneTrac, a provider of online employee benefit administration solutions.In 2007, the company launched Paychex workers compensation payment service, which is an expanded service to include Paychex major market services (MMS) clients. In the same year, Paychex and Taleo, a provider of on-demand talent management solutions, formed a strategicalliance to allow SMEs to grapple in the recruiting and retention of top talent. Subsequently, Paychex and BeneTrac integrated Paychex preview payroll software and BeneTracs web-based benefits enrollment andadministration technology. Later in the year, Paychex launched the Paychex accountant knowledge cracker bonbon, an online resource center available on the accounting portal of www.paychex.com.