Paychex Inc - PAYX STOCK NEWS

Paychex, a leading HR solution provider, conducted a survey revealing that 49% of businesses support government stimulus waiving penalties for early retirement withdrawals, with additional support for tax credits for PPE and liability protections. The survey indicates that economic uncertainty remains a top challenge for 40% of businesses, with 63% acknowledging cash reserves to weather the pandemic. Overall, 48% report negative impacts from COVID-19, while 72% feel equipped to ensure safety in their operations. Paychex continues to support businesses with resources and technology to navigate ongoing challenges.

The Board of Directors of Paychex has declared a quarterly dividend of $0.62 per share, payable on November 24, 2020, for shareholders of record as of November 2, 2020. This dividend indicates the company’s ongoing commitment to return value to its shareholders. Paychex, a leader in integrated human capital management solutions, serves over 680,000 payroll clients and plays a critical role in the U.S. economy by paying one out of every 12 American private sector employees.

Paychex reported total revenue of $932.2 million for the first quarter of fiscal 2021, down 6% year-over-year. Net income fell 20% to $211.6 million, while diluted earnings per share dropped 19% to $0.59. Adjusted metrics also showed declines, with adjusted net income down 11% to $228 million. The company noted strong client retention despite challenges from COVID-19, with Management Solutions revenue of $687.4 million and PEO revenue of $229.9 million, both experiencing year-over-year decreases. Cost-saving initiatives led to one-time costs of $31.2 million.

ROCHESTER, N.Y., Sept. 29, 2020 /PRNewswire/ -- The latest Paychex | IHS Markit Small Business Employment Watch indicates a 0.06% increase in national hiring and 0.36% in the Northeast, with the national jobs index at 94.44. Small business wage growth slowed to 3.14%, while weekly earnings growth remained steady at 3.86%. The Northeast saw its largest job growth since 2019, with construction leading the sector growth. However, job growth in the West is declining.

Paychex, Inc. announced three new solutions aimed at assisting businesses with employee health and safety as they adapt to COVID-19 challenges. The offerings include COVID-19 Leave Tracking, which helps identify and manage employee issues related to the virus; COVID-19 Screening, allowing employers to track test results; and Health Attestation Support, which simplifies the collection of health information. These enhancements are part of the Paychex Flex platform, designed to support businesses in maintaining operations during the ongoing pandemic.

The Paychex | IHS Markit Small Business Employment Watch report for August reveals that small business hiring remains flat since April, despite notable wage growth. Hourly earnings growth maintained at 3.28%, with weekly earnings also improving due to increased hours worked. The national jobs index is at 94.39, reflecting a 0.21% decrease from the previous month. The West and South regions reported declines in employment growth, with Florida leading states in employment despite a significant downturn. For detailed insights, visit Paychex.com.