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Paychex: Regulations Push Customers

Martin Mucci, PaychexChanges  made under the administration of President-elect Donald Trump will likely drive businesses to outsourcers, Paychex CEO Martin Mucci said during his company's recent earnings webcast. And Mucci believes that it does not matter which directions the changes go because "it makes people worry about whether they can keep up with change."

Mucci cited the proposed overtime rules that were placed on hold a court as one example of this. Even those the changes were not imposed on businesses, many showed an interest in the company's time and attendance products because news about the overtime issued focused attention on the subject.

"It geared up a lot of interested whether or not the overtime rules go into effect," Mucci said

The comments came as the company reports financial results for the half ended November 30. For the most recently ended period, Paychex reported net income of $202.1 million, an increase of 7 percent from $189.2 million a year ago. Revenue reached $771.4 million, up 7 percent from $722.4 million in last year's corresponding period.

Payroll sales for the quarter were $440.9 million, rising 3 percent from $427.4 million while human resources revenue of $319.1 million represented as increase of 12 percent from $283.9 million a year ago.

Mucci said it was difficult to assess the impact of Trump's promise to appeal the Affordable Care Act. However, he said any changes were likely to stretch out over a period of years. Mucci said his company's direct ACA revenue is about 1 percent to 1.5 percent of the total.

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