SOURCE: PayCycle, Inc.

November 09, 2005 09:00 ET

PayCycle Extends On-Demand Payroll Leadership With New State Electronic Payment and Filing Capabilities

Now Serving Over 20,000 Satisfied Small Businesses

PALO ALTO, CA -- (MARKET WIRE) -- November 9, 2005 --PayCycle (www.paycycle.com), the leader in on-demand payroll, today announced that it now supports completely electronic, paperless payroll for New York, New Jersey, Massachusetts and Oregon-based businesses. PayCycle is the only 100% on-demand payroll service with extensive state support.

The PayCycle® service's unique, Web-based architecture integrates with government agency electronic initiatives. With these additional states, the company now offers electronic state tax payments for over 75% of the U.S. small business population and electronic state tax filings for nearly 50% of the U.S. small business population.

"State government agencies are strongly encouraging or even mandating that small employers participate in electronic payroll tax payment and filing programs. Yet, PayCycle Plus is the only online payroll offering to bundle these time-saving options. Even better, we provide them at no additional charge," said Jim Heeger, president and CEO of PayCycle, Inc.

PayCycle has taken a leadership role in implementing Internet-based electronic payroll tax filing solutions. PayCycle was the first IRS development partner to implement the agency's XML filing format in 2003. PayCycle was also selected as a state agency development partner to pilot Illinois and Connecticut's XML-based payroll technology initiatives.

PayCycle Leads Growth in On-Demand Payroll

The most recent U.S. Economic Census reports there are now over 5.1 million U.S. businesses with fewer than 20 employees. This represents nearly 90% of all U.S. employers. What's more, 70% of these companies still do all or some portion of their payroll by hand, according to a 2003 TNS NFO online survey (formerly known as NFO Research).

The sheer number of small employers, coupled with the increasing usage of the Internet for online financial services, is driving the need for on-demand payroll. As an on-demand solution, PayCycle's simplicity, accessibility, and cost-effectiveness hold the key to penetrating the vast majority of the small business market.

"The time is ripe for more rapid adoption of on-demand solutions by small businesses because of the deep penetration of high-bandwidth Internet connectivity, and traditional packaged software solutions remain, for the most part, too complex and difficult for the majority of small businesses. Last, but not least, SMBs face increasing pressure to streamline and automate business processes to gain and maintain competitive advantage," said Laurie McCabe, senior vice president, small business insights, AMI Partners, Inc. "The small business market offers enormous opportunity to those who are bullish and focused on it, such as PayCycle."

PayCycle Serves Over 20,000 Satisfied Small Businesses

PayCycle now serves over 20,000 small business payroll customers. This represents over 100% year-over-year growth. "Historically, it took traditional payroll services such as ADP and Paychex about a decade to build a comparable customer base," commented Heeger. "The extraordinary on-demand benefits offered by PayCycle such as anytime, anywhere access, incredibly low fees, and great customer service are helping to fuel our growth."

The company maintains that ease of use continues to be PayCycle's key benefit. "The easiest payroll solution is the one that's going to win. PayCycle's new state electronic features complement the service's award-winning Do-It-With-You(SM) approach," adds Karen White, PayCycle's vice president of product management.

"When I found PayCycle searching the Internet, I thought I had died and gone to heaven. PayCycle solved ALL of my payroll needs in a couple of clicks of the mouse. PayCycle has continued to improve their service, adding more payroll features and electronic processing of federal and state forms making it SOOOO EASY to use. I love being able to do my payroll at anytime, day or night," says Lance Maliszewski, owner, Franklin Faucet, Franklin, Tennessee.

For the past year, PayCycle has consistently achieved a 9 out of 10 rating in quarterly customer satisfaction studies. Free customer service from payroll experts is a large contributor to those high ratings.

"As a Web designer and 'geek,' I find PayCycle's Web site simple to navigate and easy on the eyes. Customer support is AMAZING. It is SO hard to find companies who strive for a high standard of customer service. Every time I've called, I'm greeted by a helpful staff member. No waiting, no hold time...I love it," says Brooke Lewis, medical billing and payroll specialist, Essential Chiropractic Center, Encino, California.

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 of PayCycle, Inc. All other product names and trademarks are the property of their respective owners.

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