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Paychex reports strong growth in latest fiscal year

Locally based Paychex is reporting profits and sales that beat Wall Street estimates for its fiscal fourth quarter. 

The company earned about $195 million for the quarter, up about 10 percent over last year.  Revenues were up six percent, totaling more than $798 million.

Paychex CEO Marty Mucci says that the company has done well in part because of the increasing regulatory requirements that many small businesses are facing.

“I think the growth has been driven a lot in this last fiscal year by our HR outsourcing, 401k business and time and attendance as well. There’s lot of  increased regulatory and compliance demands on small and mid-sized businesses and we’re really perfectly positioned to help them both from a technology and service perspective.”

Mucci does say the uncertainty over what will happen with regulatory reform in terms of things like health care and taxes may cause some of Paychex’s clients to slow down on hiring until they get a better idea of what the future holds.

“We’ve definitely seen the level of job growth decrease over the last few months and so we do see small business clients, these are under 50 employees, slowing down their hiring rate a bit; now the good news is that wages are going up, so I think as we’re going to more of a full employment type of environment you’re seeing employment down and wages going up," he told WXXI News.

Paychex expects profits and sales to both increase about five percent in the upcoming fiscal year.

Randy Gorbman is WXXI's director of news and public affairs. Randy manages the day-to-day operations of WXXI News on radio, television, and online.