Jackson Hewitt Tax Service, which suddenly has a leg up on rival H&R Block, said it will operate in more than 2,000 stores during the 2011 tax season.

Paychex, which plans to keep SurePayroll operating as a separately entity, is looking at incorporating the payroll package in its CPA program once the purchase of the online payroll company is complete. Moreover, Paychex sees SurePayroll as the vehicle for reaching do-it-yourselfers who use pen or pencil to handle payroll filings, according to CEO Martin Mucci. Mucci also noted that SurePayroll will get a bigger push as Paychex ramps up marketing overall.

Paychex reported a 6-percent increase in net income on 3-percent increase in net income for the second quarter ended November 30. Those results were a factor in the company's outlook for the current fiscal year with Paychex anticipating payroll services revenue will rise by 1 percent to 2 percent and human resource services revenue by 10 percent to 13 percent.