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Paychex

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Paychex, Inc.
TypePublic
IndustryBusiness Process Outsourcing, Human Capital Management
Founded1971; 50 years ago (1971)
FounderB. Thomas Golisano
HeadquartersRochester, New York, U.S.
Area served
United States, Germany, Brazil, Denmark, Norway, Sweden
Key people
  • B. Thomas Golisano
  • (Chairman of the Board)
  • Martin Mucci
  • (President & CEO)
  • Efrain Rivera
  • (Senior VP & CFO)
ServicesPayroll and HR services
Revenue
  • Increase US$ 3.38 billion
  • (FY MAY 31, 2018)
  • Increase US$ 1.29 billion
  • (FY MAY 31, 2018)
  • Increase US$ 933.7 million
  • (FY MAY 31, 2018)
Total assets
  • Increase US$ 7.46 billion
  • (FY MAY 31, 2018)
Total equity
  • Increase US$ 2.02 billion
  • (FY MAY 31, 2018)
Number of employees
14,300 (2018)
Websitepaychex.com
Footnotes / references
[1]

Paychex, Inc. is an American provider of human resource, payroll, and benefits outsourcing services for small- to medium-sized businesses.[2] With headquarters in Rochester, New York, the company has more than 100 offices serving approximately 670,000 payroll clients in the U.S. and Europe.[3] In 2019, Paychex ranked in position 700 on the Fortune 500 list of largest corporations by revenue,[4] and the company's revenue for fiscal year 2020 is projected to exceed $4.1 billion.[5]

History

Paychex was founded in 1971 by Tom Golisano, who started the company with only $3,000.[6][7]

The operation grew to include 18 franchises and partnerships, which were eventually consolidated into one private company in 1979. Paychex held an initial public offering in 1983 and began trading on the NASDAQ (PAYX).[8][9] In the first quarter of fiscal year 2020, the company repurchased $171.9 million of its own stock and currently has a market capitalization of $30.155 billion.[10][11]

Acquisitions

Company Year Price
Pay-Fone 1995 Undisclosed
Payday 1995 Undisclosed
Olsen Computer Systems, Inc.[12] 1996 Undisclosed
National Business Solutions[13] 1996 $142.5m
Advantage Payroll Services, Inc.[14] 2002 $240m
InterPay Inc.[15] 2003 $155m
Time In A Box product from Stromberg[16] 2003 Undisclosed
Stromberg[17] 2004 Undisclosed
Hawthorne Benefit Technologies, Inc[18] 2007 Undisclosed
SurePayroll, Inc.[19] 2010 $115m
ePlan Services, Inc.[20] 2011 Undisclosed
Icon Time Systems[21] 2012 Undisclosed
ExpenseWire[citation needed] 2012 Undisclosed
myStaffingPro[citation needed] 2013 Undisclosed
NETtime solutions[22] 2014 Undisclosed
Advance Partners[23] 2015 Undisclosed
Human Resources Outsourcing, Inc.[24] 2017 Undisclosed
Lessor Group[25] 2018 Undisclosed
Oasis[26] 2018 $1.2b

Recent acquisitions

In December 2018, Paychex closed on its acquisition of Oasis Outsourcing Acquisition Corporation for $1.2 billion.[27][28] At the time of the Oasis acquisition, Paychex had 650,000 payroll clients and 14,500 employees. Oasis, a professional employer organization (PEO) brought 8,400 PEO clients, 1,100 employees, and an annual revenue that exceeded $9 billion in 2017.[29] Following the acquisition of Oasis, Paychex provides HR outsourcing services to 1.4 million worksite employees.[30]

Small Business Employment Watch

Paychex and IHS Markit launched a Small Business Jobs Index in 2014 that measures the health of businesses employing 50 people or less.[31] Today, the Paychex | IHS Markit Small Business Employment Watch shares small business jobs data going back to 2005 and wage data from 2011 to present.[citation needed][32] The Employment Watch is frequently used by financial experts, analysts, and journalists assessing the economic outlook.[33] Paychex CEO Martin Mucci regularly appears in the media to provide analysis of Small Business Employment Watch data, as well as insight into what the health of Paychex as a company says about the health of small business and the economy in general.[34]

Awards and Honors

  • Paychex named to HR Examiner's 2020 Watchlist for the use of AI in HR[35]
  • In 2019, Paychex was named to the FORTUNE list of Future 50 companies[36]
  • Paychex was listed as number 211 on Forbes 2019 list of the World's Best[37]
  • In 2018, Paychex was named one of the World's Most Ethical Companies by Ethisphere for an 11th time[38]
  • In 2018, Forbes placed Paychex at number 76 on their list of the World's Most Innovative Companies[37]
  • Rochester Democrat and Chronicle named Paychex one of the Best Places to Work in Rochester in 2016[39]
  • Paychex Flex received the 2016 TekTonic Award from HRO Magazine for being a best-in-class mobile and cloud-based technology suite[40]
Chief executives
Name Tenure
Tom Golisano 1979 – October 2004
Jonathan J. Judge October 2004 – July 2010
Martin Mucci October 2010 – present

References

  1. ^ "Paychex, Inc. Annual Form 10-K (May 31, 2018)". U.S. Securities and Exchange Commission. July 20, 2018. Retrieved November 30, 2018.
  2. ^ "2020 Paychex Flex Reviews, Pricing & Popular Alternatives". Fit Small Business. April 25, 2020. Retrieved August 31, 2020.
  3. ^ "#662 Fortune 1000 Revenue Rank Paychex, Inc". hoovers.com. Retrieved August 31, 2020.
  4. ^ "Paychex". Fortune. Retrieved August 31, 2020.
  5. ^ Clifford, Tyler (October 2, 2019). "Paychex CEO tells Jim Cramer that small business hiring picked up in September despite slowdown worries". CNBC. Retrieved August 31, 2020.
  6. ^ "Golisano Built Paychex into a Success StoryArchived 2016-03-03 at the Wayback Machine." Rochester Business Journal.
  7. ^ "Paychex, Inc. (PAYX) Company Profile & Facts - Yahoo Finance". finance.yahoo.com. Retrieved August 31, 2020.
  8. ^ "History of Paychex, Inc. – FundingUniverse". www.fundinguniverse.com. Retrieved August 31, 2020.
  9. ^ "Servicers". Forbes. Retrieved August 31, 2020.
  10. ^ Sharma, Asit (October 2, 2019). "Paychex Lifts Its Full-Year Outlook After a Buoyant Start to the Year". The Motley Fool. Retrieved August 31, 2020.
  11. ^ "Paychex, Inc. (PAYX) Stock Price, Quote, History & News - Yahoo Finance". finance.yahoo.com. Retrieved August 31, 2020.
  12. ^ "Paychex Acquires Olsen". Los Angeles Times. November 22, 1996. Retrieved August 31, 2020.
  13. ^ "Company News;paychex Plans to Buy National Business Solutions". The New York Times. June 26, 1996. Retrieved August 31, 2020.
  14. ^ News, Bloomberg (September 19, 2002). "Company News; Paychex to Buy Advantage Payroll for $240 Million". The New York Times. Retrieved September 5, 2020.
  15. ^ "Paychex to acquire rival InterPay". www.bizjournals.com. Retrieved September 5, 2020.
  16. ^ "Paychex Acquires Product Line From Stromberg". Accounting Today. October 17, 2003. Retrieved September 5, 2020.
  17. ^ "Paychex Completes Acquisition of Stromberg". Accounting Today. April 14, 2004. Retrieved September 5, 2020.
  18. ^ "Paychex announces acquisition of BeneTrac". Reuters. September 13, 2007. Retrieved September 5, 2020.
  19. ^ Yue, Lorene (December 13, 2010). "SurePayroll bought by rival Paychex for $115M". Crain's Chicago Business. Retrieved September 5, 2020.
  20. ^ Team, Trefis. "Paychex Gains From EPlan Deal, But Stock Still Too Rich". Forbes. Retrieved September 5, 2020.
  21. ^ Dougherty, Nate (January 9, 2012). "Paychex acquires Icon Time Systems". Rochester Business Journal. Retrieved September 5, 2020.
  22. ^ Team, Trefis. "Paychex Expands Its Software-As-A-Service Based Solutions By Acquiring Nettime". Forbes. Retrieved September 5, 2020.
  23. ^ Zacks, Publisher. "Paychex (PAYX) Completes Advance Partners Acquisition". www.nasdaq.com. Retrieved September 5, 2020.
  24. ^ "Paychex acquires HR Outsourcing, Inc". RochesterFirst. August 21, 2017. Retrieved September 5, 2020.
  25. ^ Fanelli, Gino (March 1, 2018). "Paychex acquires Lessor Group". Rochester Business Journal. Retrieved September 5, 2020.
  26. ^ "Paychex Acquires Oasis Outsourcing for $1.2 Billion". Wall Street Journal. December 21, 2018. Retrieved September 5, 2020.
  27. ^ Prang, Allison (November 26, 2018). "Paychex to Buy Human-Resources Firm Oasis for $1.2 Billion". Wall Street Journal. Retrieved September 5, 2020.
  28. ^ "Paychex to buy outsourcing firm Oasis for $1.2 billion". Reuters. November 26, 2018. Retrieved September 5, 2020.
  29. ^ "Oasis Outsourcing to be acquired by PayChex". South Florida Business Journal. Retrieved September 5, 2020.
  30. ^ Zacks, Publisher. "Paychex (PAYX) Completes Oasis Outsourcing Acquisition". www.nasdaq.com. Retrieved September 5, 2020.
  31. ^ Karol, Gabrielle (January 9, 2016). "Paychex, IHS Launch Small Business Jobs Index". FOXBusiness. Retrieved September 5, 2020.
  32. ^ "Small Business Employment Watch provided by Paychex | IHS Markit". www.paychex.com. Retrieved September 5, 2020.[self-published source]
  33. ^ Carney, John (June 30, 2015). "Don't Look for Paychex to Bounce". Wall Street Journal. Retrieved September 5, 2020.
  34. ^ Clifford, Tyler (October 2, 2019). "Paychex CEO tells Jim Cramer that small business hiring picked up in September despite slowdown worries". CNBC. Retrieved September 5, 2020.
  35. ^ Sumser, John. "The HRExaminer 2020 Watchlist: Paychex — Payroll and Basic HR Services | HR Examiner". Retrieved September 9, 2020.
  36. ^ "Paychex". Fortune. Retrieved September 9, 2020.
  37. ^ a b "Paychex (PAYX)". Forbes. Retrieved September 9, 2020.
  38. ^ "Honorees 2020". Ethisphere® Institute | Good. Smart. Business. Profit.®. Retrieved September 9, 2020.
  39. ^ "Top Workplaces | The Democrat and Chronicle". Top Workplaces. Retrieved September 9, 2020.
  40. ^ Roth, Audrey (June 8, 2016). "2016 TekTonic Award Winners". HRO Today. Retrieved September 9, 2020.

External links