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Paychex - Payroll Services
Vendor Analysis
published on Aug 25, 2016
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Report Overview:
This NelsonHall vendor assessment analyzes Paychex's offerings and capabilities in Payroll Services.
Who is this Report for:
NelsonHall’s Payroll Services Vendor Assessment for Paychex is a comprehensive assessment of Paychex’s Payroll Service offering and capabilities, designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of payroll outsourcing and identifying vendor suitability for payroll process outsourcing RFPs
- Vendor marketing, sales, and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the support services sector
- HR and payroll decision makers.
Scope of this Report:
The report provides a comprehensive and objective analysis of Paychex’s payroll outsourcing offering, capabilities, and market and financial strength, including:
- Identification of the company’s strategy, emphasis, and new developments
- Analysis of the company’s strengths, weaknesses, and outlook
- Revenue estimates
- Analysis of the profile of the company’s customer base including the company’s targeting strategy and examples of current contracts
- Analysis of the company’s offerings and key service components
- Analysis of the company’s delivery organization including the location, size and scale of delivery locations and their activities.
Key Findings & Highlights:
Paychex, founded in 1971, is a provider of payroll, HR and benefits outsourcing solutions for small to medium sized business in the U.S. Headquartered in Rochester New York, Paychex has ~100 offices across the U.S. servicing ~605k clients. It also has a very small presence in Germany (through an acquisition) and Brazil (through a joint venture). Paychex has an employee base of ~13k, ~3.5k of whom are dedicated to supporting payroll services. Paychex has offices in ~100 locations in the U.S. and pays one out of 12 American private sector employees.
Paychex offers the following payroll services to its clients:
- Payroll processing
- Payroll tax administration services
- Employee payment services
- Regulatory compliance services
Paychex provides clients with a processing service. It pays ~10m client employees.