How does Paychex payroll service work?


Quick Answer

Paychex payroll service works by allowing small and medium-sized businesses to outsource payroll processing. Besides processing payroll data and issuing paper checks, Paychex facilitates direct deposit and employee payment through prepaid debit cards.

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Full Answer

With Paychex, employers can submit payroll data through phone, fax or email. Paychex also handles payroll tax calculation, depositing and filing for clients. The payroll processor offers an online interface with support for mobile devices. This company simplifies pay check garnishment and exports payroll data to QuickBooks and other accounting applications.

Although Paychex specializes in online payroll management, the company mails hard copies of data upon request. Each new Paychex client works with an implementation specialist to ease the process of implementing new payroll procedures. In addition, all Paychex clients are assigned payroll specialists, who serve as single points of contact for resolving payroll and tax compliance issues.

Tom Golisano created Paychex in 1971. Golisano served as CEO until 2004, when he passed the position to Jonathan J. Judge. In 1983, Paychex joined NASDAQ and became a publicly traded company. The firm experienced consistent growth in the following years. By 2013, Paychex operated over 100 offices to service roughly 550,000 payroll clients. Paychex is the second biggest American payroll processor, as of April 2015.

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