Paychex 2011 Annual Report Download - page 18

Download and view the complete annual report

Please find page 18 of the 2011 Paychex annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

Company Strategy
We are focused on achieving strong, long-term financial performance by:
• providing high-quality, timely, accurate, and affordable comprehensive payroll and integrated human
resource services;
• delivering these services utilizing a well-trained and responsive work force through a network of local and
corporate offices servicing more than 100 of the largest markets in the U.S.;
• growing our client base, primarily through the efforts of our direct sales force;
• continually improving client service to maximize client retention;
• capitalizing on the growth opportunities within our existing client base and from new clients by increasing
utilization of our payroll and human resource ancillary services and products;
• capitalizing on and leveraging our highly developed technology and operating infrastructure;
• investing in our business through expansion of our service and product offerings to continually add value for
our clients; and
• supplementing our growth through strategic acquisitions when appropriate opportunities arise.
Services and Products
We offer a comprehensive portfolio of services and products that allow our clients to meet their diverse payroll
and human resource needs. These include:
• payroll processing;
• payroll tax administration services;
• employee payment services;
• regulatory compliance services (new-hire reporting and garnishment processing);
• Paychex HR Solutions;
• retirement services administration;
• insurance services;
• eServices; and
• other human resource services and products.
By offering ancillary services that leverage the information gathered in the base payroll processing service, we
are able to provide comprehensive outsourcing services that allow employers to expand their employee benefits
offerings at an affordable cost. We mainly earn our revenue through recurring fees for services performed. Service
revenue is primarily driven by the number of clients, checks or transactions per client per pay period, and utilization
of ancillary services.
Payroll
Payroll processing is the foundation of our service portfolio. Our payroll service includes the 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. Our payroll services are provided through either our core payroll or Major Market Services (“MMS”)
and are made available to clients via traditional or Internet-based methods.
Paychex Online is our secure Internet site, which offers core payroll clients a suite of self-service, interactive
services and products twenty-four hours a day, seven days a week. These include Paychex Online Payroll», Internet
Time Sheet, Paychex Online Reports, and General Ledger Reporting Service. Using these services, clients can
2