Paychex

An American provider of human resource, payroll, and benefits outsourcing services for small- to medium-sized businesses.

#414

Rank

$43.35B

MarketCap US

US United States

Country

Summary

Paychex together with its subsidiaries, provides payroll, human resource, and benefits outsourcing solutions for all businesses. Paychex, Inc., together with its subsidiaries, provides payroll, human resource, and benefits outsourcing solutions for small- to medium-sized businesses in the United States and Germany. Go to http://www.enrollpaychex.com and sign up today. It offers payroll processing services, which include calculation, preparation, and delivery of employee payroll checks; production of internal accounting records and management reports; preparation of federal, state, and local payroll tax returns; and collection and remittance of clients' payroll obligations. The company also provides payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing. 

Its human resource outsourcing services include payroll, employer compliance, human resource and employee benefits administration, risk management outsourcing, and the on-site availability of a professionally trained human resource representative. In addition, the company offers retirement services administration; workers' compensation insurance services; health and benefits services; time and attendance solutions; and other human resource services and products. It also operates a professional employer organization. As of May 31, 2009, the company served approximately 554,000 clients in the United States; and 1,600 clients in Germany. Paychex, Inc. was founded in 1971 and is headquartered in Rochester, New York.


History

1974: The impetus to expand the company came from two friends of Golisano, who approached him independently in 1974.

1979: By 1979, it began to be apparent that there were problems with the looseness of the organization. 1979: The firm incorporates as Paychex Inc. By 1979, he had 17 partners, 11 of them joint ventures, and six franchises.

1982: By 1982, the average salesperson was bringing in 100 clients a year.

1983: In 1983, Paychex went public and began trading on The NASDAQ Stock Market.

1985: He created the Golisano Foundation in 1985 and through it has donated billions to different projects across upstate New York.

1986: They met in 1986 — the year after Golisano had won a prestigious entrepreneurship award at Rochester Institute of Technology.

1987: Some of the growth came from acquisitions, such as the 900 clients acquired when Paychex bought a Minneapolis company, Purchase Payroll, in 1987. In 1987, Paychex opened a division of Benefit Services, to keep track of clients' employee benefit plans.

1989: There wasn't a drop in profit until September 1989. By 1989, ADP had 400 sales representatives in this division, versus Paychex's 310. And Paychex began offering a new service called Taxpay in 1989. In 1989, the company brought in $101 million, from its client base of 115,000 accounts.

1990: By 1990, Paychex had 335 sales representatives and around 125,000 clients.

1991: In 1991, the company formed a Human Resource Services division, offering clients a package of employee evaluation and testing tools, employee handbooks, insurance services, customized job descriptions, and other benefits. In 1991, there were around 26,000 Taxpay customers. 1991 saw record sales of $137 million, as well as record earnings of $9.6 million.

1992: In 1992, Golisano pushed for a third national political party along with other prominent businessmen across America.

1993: At this time the company had around 26,000 Taxpay customers, and that number rose to over 50,000 by 1993. The company then introduced Paylink in 1993.

1994: According to CEO Golisano in a June 13, 1994 Barron's article, Paychex aimed to expand its client base by 11 to 12 percent a year, to keep revenue growing at close to 20 percent annually. In 1994, Paychex added a similar service, Reportlink. And though there were still in 1994 more than 4.6 million businesses with fewer than 100 employees, more than 60 percent of these had only one to four employees, and so were too small to be likely potential clients.

1995: In 1995, the company increased its client base by 11.8 percent, exactly as Golisano had wished.

1996: In 1996, Paychex acquired California-based Olsen Computer Systems Inc. and National Business Solutions of Florida.

1997: By 1997, the company had secured five consecutive years of over 30 percent earnings growth.

2000: In fact, during the year 2000, 5,000 employees were trained at the University of Paychex, and 750,000 hours were spent on field training and ongoing training programs.

2001: In fiscal 2001, the company posted its 11th consecutive year of record revenues and net income. According to the company's 2001 annual report, the firm was dedicated to achieving success in the future by focusing on its growth strategy which included increasing its client base, obtaining higher utilization of ancillary services, developing new services, and leveraging its infrastructure.

2004: Golisano stepped down as Paychex CEO in 2004, leaving behind a company that today has added more services and even more customers.

2013: In fiscal 2013, Paychex revenues exceeded $2.3 billion.“

2014: Paychex and IHS Markit launched a Small Business Jobs Index in 2014 that measures the health of businesses employing 50 people or less.

2017: Oasis, a professional employer organization (PEO) brought 8,400 PEO clients, 1,100 employees, and an annual revenue that exceeded $9 billion in 2017.

2018: In December 2018, Paychex closed on its acquisition of Oasis Outsourcing Acquisition Corporation for $1.2 billion.


Mission

According to Paychex, the company mission is: "the leading provider of payroll, human resource, and employee benefit services by being an essential partner with America's businesses".


Vision

As stated in company website, Paychex vision is: “recognized leader in the payroll, human resource, and benefits outsourcing industry, with a steadfast commitment to success and a record of achievement that continues a tradition of delivering excellence".


Key Team

David J. S. Flaschen (Board Member)

Ariadna Rodriguez (Director, Corporate Marketing)

Jake Flaitz (Board Member)

Bradley Schaufenbuel (Vice President and Chief Information Security Officer)

Joseph G. Doody (Board Member)

Bryan R. Hodge (Vice President of International Sales and Operations)

Joseph M. Tucci (Board Member)

Chris DeSalvo (Vice President-Service Excellence & Operations)

Joseph Mark Velli (Board Member)

David J. S. Flaschen (Board Member)

Kara Wilson (Board Member)

Efrain Rivera (Senior VP)

Kevin A. Price (Board Member)

Frank Fiorille (VP-Risk)

Neal Collins (Vice President-Corporate Development)

Blase Thomas Golisano (Chairman)

Martin Mucci (CEO / President)

Blase Thomas Golisano (Chairman)


Recognition and Awards
Forbes: Most Innovative Companies

References
Paychex
Leadership team

Blase Thomas Golisano (Chairman)

Amy Taney (Chief Human Resources Officer)

Products/ Services
Payroll, human resource
Number of Employees
1,000 - 20,000
Headquarters
Rochester, New York, United States
Established
1971
Company Registration
SEC CIK number: 0000723531
Net Income
1B - 20B
Revenue
Above - 1B
Traded as
PAYX
Social Media
Fri Feb 23 2024
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