Paychex Workers Compensation Case Study

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Paychex was started by Thomas Golisano in 1971 with a simple goal in mind: to develop payroll systems catering to American businesses with a payroll of fewer than 100 employees, a market largely ignored by previous payroll processors. 4 years later the company established its corporate headquarters in Rochester, NY and ever since has been growing tremendously into a national provider of payroll services in the US, serving as many as over half of a million clients across the nation. What initially started as a purely payroll service has expanded into a service with multiple different components, including attendance processes, benefits services, personnel services, direct deposit services, 401(k) recordkeeping, as well as many others. What is truly amazing though is Paychex’s ability to maintain an…show more content…
As we found through our research and conversations with management at Paychex, total compensation management is highly stressed by the company. Worker’s compensation through Paychex for example covers any workers who is injured or suffers an illness while performing job related duties. The company coverage packages usually include the payment of medical bills, rehab costs, pregnancies, and other loss of earning during time away from work. There are certain cases where workers compensation does not apply for employees, but the generally the company is very generous with its ability to pay for its employees needs. How does the company calculate workers compensation? There are usually different types and levels of employment that require different classification codes. These codes have a preset value and policy based on the amount of risk involved in that job. When calculating the premium for workers compensation, this preset value is multiplied by the payroll of the given job, which provides an estimate. ("What Is Workers' Compensation and How Does It

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