Paychex 2014 Annual Report Download - page 22

• Paychex Time and Labor Online makes the time and attendance process more efficient. This solution can
reduce time spent on preparing timesheets, minimize redundant data entry, increase awareness of critical
labor information, and aid in compliance with federal time recording requirements.
• Paychex Expense Manager is an integrated expense management solution that allows clients to control
discretionary spending while giving employees an easy-to-use, secure tool to prepare and submit expense
reports online.
• Applicant tracking provides our clients with a tool to manage their recruiting process in order to better
hire and retain talented employees.
MMS clients also have the option to select from a number of á la carte payroll and human resource ancillary
services. Both core and MMS clients can opt for our comprehensive human resource and payroll outsourcing
solution, Paychex HR Services. This flexibility allows our clients to define the solution that best meets their
particular needs.
Payroll tax administration services: Our payroll tax administration services (including Taxpay®) provide
accurate preparation and timely filing of quarterly and year-end tax returns, as well as the electronic transfer of
funds to the applicable tax or regulatory agencies (federal, state, and local). In connection with these services, we
electronically collect payroll taxes from clients’ bank accounts, typically on payday, prepare and file the
applicable tax returns, and remit taxes to the applicable tax or regulatory agencies on the respective due dates.
These taxes are typically paid between one and 30 days after receipt of collections from clients, with some items
extending to 90 days. We handle regulatory correspondence, amendments, and penalty and interest disputes, and
we are subject to cash penalties imposed by tax or regulatory agencies for late filings and late or under payment
of taxes.
Employee payment services: Our employee payment services provide an employer with the option of
paying their employees by direct deposit, payroll debit card, a check drawn on a Paychex account (Readychex®),
or a check drawn on the employer’s account and electronically signed by us. For the first three methods, we
electronically collect net payroll from the clients’ bank accounts, typically one business day before payday, and
provide payment to the employees on payday. Our Readychex service provides a cost-effective solution that
offers the benefit of convenient, one-step payroll account reconciliation for employers.
Regulatory compliance services: We offer new-hire reporting services, which enable clients to comply
with federal and state requirements to report information on newly hired employees. This information aids the
government in enforcing child support orders and minimizes fraudulent unemployment and workers’
compensation insurance claims. Our garnishment processing service provides deductions from employees’ pay,
forwards payments to third-party agencies, including those that require electronic payments, and tracks the
obligations to fulfillment. These services enable employers to comply with legal requirements and reduce the risk
of penalties.
Human Resource Services
Paychex HR Services: We offer comprehensive human resource outsourcing solutions that provide
businesses a full-service approach to the outsourcing of employer and employee administrative needs. Our
Paychex HR Services offering is available through Paychex HR Solutions, an administrative services
organization (“ASO”), or Paychex PEO, a professional employer organization (“PEO”). Both options offer
businesses a combined package of services that includes payroll, employer compliance, human resource and
employee benefits administration, risk management outsourcing, and the on-site availability of a professionally
trained human resource representative. These comprehensive bundles of services are designed to make it easier
for businesses to manage their payroll and related benefit costs while providing a benefits package equal to that
of larger companies. Our PEO differs from the ASO in that we serve as a co-employer of the clients’ employees,
provide health care coverage to PEO employees, and assume the risks and rewards of workers’ compensation
insurance and certain health insurance offerings. PEO services are sold through our registered and licensed
subsidiary, Paychex Business Solutions, Inc. The integration of the sales and service models of the ASO and
PEO under Paychex HR Services has reduced redundancies and created more flexible options for business
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