Paychex 2014 Annual Report Download - page 7

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company with a proven track record of helping market-
leading businesses successfully enter the Brazilian
market. With about five million
small businesses that account for
approximately 40 percent of the wages
paid in Brazil, as well as increasingly
challenging regulatory requirements,
we believe Brazil is the right place for our Latin American
expansion.
PRODUCT OPPORTUNITY
In the U.S., expansion included moving into new sales
territories and growing existing ones. Members of the
Paychex sales team helped drive results through new and
traditional avenues. In addition to our continuing success
with the CPA community as a key referral source, our
more recent increased focus on franchises and banks has
created new sources of business
for Paychex. We signed a payroll
partnership agreement with
Restaurant Supply Chain Solutions,
the exclusive supply chain
management organization for Yum! Brands, one of the
world’s largest restaurant companies with familiar brands
including KFC, Pizza Hut, and Taco Bell. In addition, we
gained 15 new bank referral partners.
We also expanded our virtual sales team that directly
sells products such as payroll, time and attendance, and
insurance in certain markets. A new product that this
team is also selling across the U.S. is Paychex Payment
Processing Services, a full suite of payment processing
solutions that includes credit and debit card processing,
mobile and online payment services, and point-of-sale
solutions for small businesses. We are partnering with
Elavon, a leading global payments provider, for this
offering.
One area where the partnership we have with our
clients is proving especially important is health care
reform. In fiscal 2014, we introduced new products to
help our clients manage
the complex compliance
requirements tied to
the Affordable Care Act
(ACA). With the legislation having potentially far-reaching
effects on businesses and their employees, we moved
forward with rollout of our product offerings, including
the Paychex Employer Shared Responsibility Service,
designed to make it easier for business owners to comply
if the employer shared responsibility provision applies to
them. We also introduced the Paychex Employer Shared
Responsibility Complete Analysis and Monitoring Service
for clients who want a more robust solution.
Research we conducted during the past year found that
46 percent of small business owners with fewer than
100 employees don’t fully understand what’s expected
of them to comply with the Affordable Care Act. That’s
why we continue to believe health care reform is a good
opportunity for us, even though various changes in ACA
rules over the past year did cause some clients to delay
product purchasing decisions or put off making changes
to health care plans.