Paychex Inc Stock Price, News & Analysis

The Paychex | IHS Markit Small Business Employment Watch report for July indicates a moderation in employment growth due to rising COVID-19 cases in the South and West. The national jobs index decreased by 0.24% to 94.59. Hourly earnings growth slowed to 3.29%, while weekly earnings grew by 4.14%, driven by increased hours worked. Florida remains the top state for employment growth, despite a 0.44% decline. The Financial Activities sector showed improvement, contrasting with declines in other sectors and regions like Seattle, which saw a 1.89% decrease.

The 2020 Paychex Pulse of HR Survey reveals that 88% of HR leaders view themselves as strategic partners, a shift spurred by COVID-19 and regulatory challenges. Technology adoption is emphasized, with 50% of HR budgets dedicated to tech improvements; 79% believe that self-service HR applications enhance workforce efficiency. However, HR professionals still spend four weeks yearly on manual tasks, with regulatory tracking being the top challenge at 36%. The survey, conducted from April 22 to June 10, 2020, involved 575 HR decision-makers from U.S. companies.

On July 23, 2020, Paychex announced the enhancement of its Paycheck Protection Program (PPP) solution, enabling users to generate signature-ready applications for loan forgiveness. This advancement simplifies the process for customers seeking financial relief amid the COVID-19 pandemic. The upgraded tool integrates with Paychex Flex, auto-populating payroll data, and allows for easy adjustments. Paychex has already facilitated $28 billion in PPP loans for clients, demonstrating its commitment to supporting businesses during these challenging times. The new feature is available at no extra charge to all Paychex Flex customers.

In June 2020, the Paychex | IHS Markit Small Business Employment Watch reported steady employment growth with a jobs index of 94.81, down just 0.06%. Notably, weekly earnings increased by 4.02% year-over-year, while annualized growth in weekly hours worked surged to 8.28%. Regionally, the Northeast saw a 4.40% decline in employment growth, with Arizona and Florida leading in job growth. The Leisure and Hospitality sector experienced significant wage gains, highlighting economic recovery as businesses reopened amid the pandemic.

According to a recent Paychex survey conducted from June 12-15, 2020, the Paycheck Protection Program Flexibility Act is viewed positively by business owners. 90% believe extending the loan forgiveness period from 8 to 24 weeks will be impactful, and 82% appreciate extending loan repayment from 2 to 5 years. Of businesses surveyed, 49% are fully operational, while 42% operate on a limited basis. 64% of those who applied have received PPP funds, with 60% stating it will aid in retaining or rehiring staff. Concerns remain about a potential second COVID-19 wave.