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Paychex Mulls SurePayroll for CPA Channel

Martin MucciPaychex, 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.

 

Mucci outlined the future of SurePayroll today as executives discussed the company's financial results for the second quarter ended November 31 during a conference call with Wall Street analysts. Asked about the possibility of offering SurePayroll via the Paychex CPA program, Mucci replied, "We are still working through that. I think it will appeal to some CPAs. We certainly see it as an opportunity for the CPAs to offer choice." SurePayroll offers a referral program for accountants, as well as a reselling program.

There were several questions from analysts about SurePayroll since Paychex already owns an online payroll system. However, executives said the Paychex offering is designed more for those who want full service while SurePayroll is more for those who want self-service.

The bigger marketing push is coming because the company is splitting the job formerly held by sales and marketing SVP Delbert Humenik, who left Paychex in October after 15 months in that position. Humenik, who joined SuperMedia in November as an EVP, got a $210,000 separation payment on the way out the door.

Mucci said he expects to fill both the sales VP and marketing VP jobs in 45 to 60 days. The jobs were created to strengthen the Paychex brand, something Mucci said sometimes got lost in the sales effort. "It will develop more leads and better brand recognition," Mucci said about the creation of the new position. Both VPs will report to Mucci.

Among other factors in Paychex's decision to pay about $115 million for Chicago-based SurePayroll was the target company had agreements for distributing its services through several banks.

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