Paychex - Payroll Services

Paychex - Payroll Services

Who is This Vendor Assessment For?
NelsonHall’s Payroll Services profile on Paychex is a comprehensive assessment of its offerings and capabilities, designed for:
• Sourcing managers monitoring the capabilities of existing suppliers of managed payroll services and identifying vendor suitability for security services RFPs
• Vendor marketing, sales, and business managers looking to benchmark themselves against their peers
• Financial analysts and investors specializing in the HR and payroll technology and services sector.

Key Findings & Highlights
Paychex (NASDAQ: PAYX), founded in 1971 and headquartered in Rochester, NY, is a provider of human capital management solutions, offering HR, payroll, benefits, and insurance services for small- and mid-sized businesses primarily throughout the U.S. and in select countries of Northern Europe. It is currently both the largest 401(k) recordkeeper (by total plans administered, currently >91k plans & >1m plan participants) and the 22nd largest insurance agency in the U.S., managing ~$2.5b in premiums annually.

Paychex offers a comprehensive suite of HR technology and managed services; each is enabled through its proprietary HCM technology, including:
• HR outsourcing services (HR, payroll, benefits)
• PEO services (co-employment model)
• Retirement planning services
• Insurance services.
Paychex targets small and lower middle market clients (generally <5k) for its managed payroll services offering. However, its solutions and platforms can scale to support larger middle market clients (>5k).

Paychex offers both partial and fully managed payroll services solutions. Beyond its HR and payroll services offering, Paychex also offers a range of add-on complementing solutions targeted to small and medium-sized business owners. The solutions provide a ""one-stop-shop"" for small business administrative needs

As of May 31, 2020, Paychex employed ~16k workers across its businesses and supported >680k clients and >1.4m client worksite employees, providing payroll to an estimated 1 in 12 U.S. private-sector workers.

Scope of the Report
The report provides a comprehensive and objective analysis of Paychex payroll services offering, capabilities, and market and financial strengths, 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 of delivery locations.