Thoughts on Paychex?

Heather said: "Does anyone have any thoughts on Paychex? Anyone have experience dealing with them? I know there aren't that many national payroll processors.."

BenHouston said: "I think I can name two, ADP and Ceredian, I am not positive of Ceredian, but I know for sure ADP is a check processing company."

AlfredSokol said: "ADP is the main one I've heard of. The nice thing about a business like this is that it results in reliable earnings."

jhealey said: "ADP is dominant here, I have a friend who temped for them and my old boss used them and said they are the best availible. What any one these companies will benefit right now is rising interest rates, they float your bosses money/your paycheck until those checks are issued and cashed/deposited. Average time is probably around 7-10 days. They can pick up some serious "Free" income through this."

AlfredSokol said: "It also depends, I guess, on whether companies are hiring more employees. I'm sure the higher growth they have in payroll, the more money this type of company earns."

jhealey said: "Wage raises, and how much a company can save outsourcing vs doing payroll in house will also modify profits."

AlfredSokol said: "Absolutely. Plus in an increasingly competitive environment (if margins are tightening the competitors are getting hostile), companies like this need to save money and improve net margins. I think service companies come down to execution."

jhealey said: "Clearly, execution and keeping costs to the minimal while providing the best service is key. Service is service exactly that, it is not tangible and it can't produced. Humans are your input and the human capital they have is the output."