Introduction
Paychex was founded in 1971 by B. Thomas Golisano and are headquartered in Rochester, New York. Paychex is a leading provider of payroll, human resource, benefits outsourcing services for mainly small businesses, as their clients average a number of 17 employees. Nevertheless, they hope to expand to more medium size companies and eventually larger companies. The company offers comprehensive payroll services, including payroll processing, payroll tax administration, and employee pay services, including direct deposit, and check signing. They have more than 100 office locations across the United States and four offices in Germany. The company staffs more than 12,000 employees who serve approximately 572,000 clients. The company’s main goal is to make outsourcing easy and affordable for small business owners.
Therefore, the services they offer are as follows:
• administrative services for business
• 401(k) plan recordkeeping
• health insurance
• workers’ compensation administration
• section 125 plans
• a professional employer organization
• time and attendance solutions
The value of outsourcing and Paychex is that an employer typically files and makes payments for more than 40 payroll tax returns each year. In addition, there are over 400 tax law changes each year, with considerable fines for non-compliance. This puts a hindrance on a firm’s financial resources and efficiency, as it drives focus away from their core business activities. Therefore, Paychex offers a reasonable priced alternative to a Human Resource (HR) department. In addition, only 15% of Paychex target mark ...