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Paychex Unveils Support Plans for SMBs Amid Coronavirus Crisis

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Paychex, Inc. (PAYX - Free Report) yesterday announced that it is offering the Coronavirus Aid, Relief, and Economic Security (CARES) Act support to help its clients comprehend and implement the act’s relevant provisions.

The act, signed in to law on Friday, brings in a $2-trillion stimulus package to counter the coronavirus-induced economic turbulence. It is the largest aid package in history.

Paychex mainly serves small- and medium-sized business, and the act has several provisions for these companies. The relief bill includes more than $370 billion funding for small businesses. Enterprises with less than 500 employees will be granted loan of up to $10 million for use in payroll and other expenses with eight weeks of covered costs forgiven. Businesses might become eligible for a payroll tax credit if they retain employees during the pandemic.

Paychex’s Initiatives

The company is offering its clients online accessibility to HR needs and self-service tools to access vital payroll and HR functions. Its compliance support is aimed at enabling businesses manage provision of the Families First Coronavirus Response Act and the CARES Act.  

The company is also offering Expert HR assistance on risk evaluation, workplace-policy adjustment, and communication of HR and payroll changes to employees. Solutions for managing cash flow and getting instant access to earned wages have also been made available. Furthur, online learning, communication and document management tools are being made available.

Paychex stated that its business-continuity plan has enabled it to promptly respond to coronavirus-led changes in business conditions, provide uninterrupted services to clients and protect employees with the work-from-home facility.

Notably, the company’s shares have slumped 20.4% over the past year compared with the 19.5% decline of the industry it belongs to.

Zacks Rank and Stocks to Consider

Paychex currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader Zacks Business Services sector are Charles River Associates (CRAI - Free Report) , Genpact Limited (G - Free Report) and Blucora, Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term expected EPS (three to five years) growth rate for Charles River, Genpact and Blucora is 13%, 14% and 20%, respectively.

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