Paychex is reporting earnings for the fourth quarter of its fiscal year, and company officials say they are finishing with some strong numbers.
The company saw an 18 percent increase in profits in the 4th quarter compared to last year at this time, seeing net profits of about $146 million for the quarter. Sales were up five percent. For the fiscal year as a whole, net profits were up 10 percent and sales were up 6 percent.
Paychex Chief Financial Officer Efrain Rivera says the company has benefited by increasing the types of human resources services it provides to small and medium sized businesses.
"What we are seeing on the HR services portion of the business is that there's a tremendous demand for those services for small and medium sized businesses. It ranges everything from HR services to retirement services.”
Rivera also says additional services related to the new Affordable Care Act aren't really generating a big increase in revenues yet.
"We've done a lot of work in creating products and services for the Affordable Care Act, but given some of the changes that have occurred in the legislation, we haven't seen the benefit yet, we'll start to see that more next year."
Rivera also says Paychex continues to see moderate growth in employment among the small and medium sized businesses that it serves.
