SOURCE: PayCycle, Inc.

January 09, 2006 09:00 ET

Paperless Payroll for Small Business Made Easy With PayCycle 2006

Only 1/3 of Small Businesses Feel Confident Handling Their Payroll; New "My Setup Wizard" Makes Getting Started Easier Than Ever

PALO ALTO, CA -- (MARKET WIRE) -- January 9, 2006 -- PayCycle (www.paycycle.com), the leader in on-demand payroll, makes paperless payroll for small business easier than ever with enhancements announced today for its award-winning PayCycle® payroll service. Most significant is the new "My Setup Wizard" that completely guides small employers through setup. "My Setup Wizard" comes after two years of research and prototype testing. It is one of numerous other new PayCycle 2006 improvements, all aimed at making small employer payroll easy.

Research Shows Employers Need Payroll Assistance

Only 35% of small employers really know what they're doing when it comes to handling payroll according to a November 2005 NFO (www.nfow.com) small employer online study sponsored by PayCycle. And, of the 5.1 million small businesses in the U.S., 75% are still doing all or some of their payroll work on their own. According to IRS statistics, over 6.3 million payroll tax penalties were assessed in 2004 at an average of $388. The same NFO online employer research shows 66% of all small employers think it is important to avoid tax penalties because they are expensive.

"For the vast majority of small employers who are still doing payroll by hand, getting started with a new payroll solution can seem like a daunting task. We've spent the past two years watching small employers work so we could design the easiest setup process ever," commented Karen White, vice president of product management, PayCycle, Inc. "Our mission is to make paper-based payroll obsolete, and 'My Setup Wizard' is a great step forward on that mission."

"My Setup Wizard" uses a guided, step-by-step setup interview, a visual progress tracker, and customized pathways for special situations (such as brand-new employers) to make setup a task that any employer can complete with confidence and ease. It is the latest example of PayCycle's unique, Do-It-With-You(SM) (DIWY(SM)) web-based technology that lets customers easily manage their payroll anytime and anywhere there's an Internet connection.

PayCycle's DIWY Handles End-to-End Payroll Needs

PayCycle's automated, Do-It-With-You approach simplifies day-to-day payroll management. PayCycle sends email reminders when it is time to pay employees, pay taxes and file forms. Paychecks are instantly and automatically calculated and can be printed directly from the user's computer on blank or pre-printed voucher check stock. PayCycle also offers free direct deposit with the option for employees to view their pay stubs securely online.

New Employee Website Means Truly Paperless Pay Days

Employers can now email employees with a click of a button whenever they have a new pay stub available. The employees then retrieve their pay stubs securely through the new employee website, PaycheckRecords.com. Employees log into their PaycheckRecords accounts with their own, unique email addresses and passwords. Not only can they view and print out current pay stubs, but also all historic pay stubs are available, in case copies are needed for loans or other matters.

Handle Payroll Taxes Electronically in a Few Clicks

When it is tax time, PayCycle's Do-It-With-You (DIWY) web-based technology also lets customers electronically pay and file federal taxes, including Forms 941, 940, W-2 and new Form 944. In 2005, PayCycle launched paperless state tax payments and filings in New York, Massachusetts, New Jersey, and Oregon. The company also supports electronic state tax payments and filings in California, Texas, Florida, Illinois, Connecticut and Georgia for a total of 50% of the U.S. small business population. Eleven other states have electronic state tax features. Pre-filled forms and step-by-step guiding worksheets are provided for the remaining small business population. Users also have access to comprehensive, real-time reports that show insightful payroll information.

Small business owners can sign up for PayCycle directly at www.paycycle.com. The service begins with a 30-day free trial with prices starting at $14.99 per month thereafter. There are no extra charges for setup, direct deposit, electronic tax payments and filings, reports, and W-2s. In addition, toll-free phone and email support with PayCycle's payroll experts is included at no additional charge.

About PayCycle

PayCycle is the leader in on-demand payroll, targeting small businesses and the accountants who serve them. PayCycle's mission is to make paper-based payroll obsolete. PayCycle's unique, "Do-It-With-You(SM)" (DIWY(SM)) technology platform guides customers through the entire payroll process, from paychecks to W-2s. By integrating with the leading small business accounting packages, including QuickBooks® and Microsoft® Money, PayCycle eliminates the hassle of data re-entry. PayCycle is committed to having the Most Satisfied Customers and is a proud finalist for the 2005 American Business Association's "Stevie" award for "Best Customer Service Organization."

PayCycle is a registered trademark, and "Do-It-With-You" and "DIWY" are service marks of PayCycle, Inc. All other product names and trademarks are the property of their respective owners.

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