Small Business Optimism Leaps 20% in October While SurePayroll Small Business Scorecard Finds Hiring down 2.9% YTD

Regionally, only the South shows minor gains in hiring

Glenview, Ill. — November 2, 2011 — SurePayroll, the online alternative in payroll services, today announced October results for its monthly Small Business Scorecard showing small business owner optimism leapt 20% to 53% from a record-low last month. The SurePayroll Scorecard includes hiring and wage data for the top 35 U.S. metropolitan statistical areas and surveys national small business owner optimism each month.

For October 2011, the SurePayroll Small Business Scorecard reveals that on a national level there continues to be flat or decreased hiring for the 13th month in a row, totaling a year-to-date decline in hiring of 2.9% -- this downward turn is slowing since September. Wages remain down slightly (0.6%) for the year.

“Optimism is like the fuel that drives small business. With small business optimism taking such a strong upswing, we can be hopeful that hiring and wage trends may follow,” said SurePayroll President Michael Alter. “While hiring is down, a closer look at the numbers shows the decline is slowing. And while wages appear flat, they are in fact up just a bit from this time last year. That coupled with rising optimism makes me think next month may be even brighter for small business.”

The SurePayroll Small Business Scorecard’s optimism survey also found that small business owners have their minds set on long-term growth and indicate that the current administration and presidential candidates should be focusing on putting our fiscal house in order. Other findings from the optimism survey include:

• 51% of small business owners report that the most critical issues related to job growth are balancing the budget, reducing the deficit and stabilizing the housing market.  
• 45% think some kind of flat tax would have a positive impact on hiring.
• 44% think a flat tax would have no impact on hiring and roughly 11 percent thought it could have a negative impact on hiring.

MSA data from the SurePayroll Small Business Scorecard shows that for the seventh consecutive month, the South remains the only positive hiring region, having experienced minimal MOM growth in hiring. In contrast, the Northeast, Midwest, and West again continue to show negative MOM growth. Year to date, the South is up .5%, while the other regions are all negative.

Small business owners continue to rely on contractors to fill their needs versus hiring new employees—contractor use showed a month over month (MOM) increase of 1.3%.

As the first economic indicator created by a payroll company, the SurePayroll Scorecard has provided a monthly look on national hiring and wage trends since September 2004. SurePayroll’s Scorecard compiles data from over 30,000 small businesses, and exclusively reflects the trends affecting the nation’s “micro businesses” – those with an average of eight employees. The full SurePayroll Small Business Scorecard including data for the top 35 MSAs is available at www.SurePayroll.com/SurePayroll.

About SurePayroll

SurePayroll, The Online Alternative, is dedicated to providing a convenient and easy-to-use small business payroll service that keeps business owners in control. Over 30,000 customers rely on SurePayroll to process payroll on demand in as few as two minutes. In addition, SurePayroll offers efficient online solutions for managing 401(k) plans, health insurance, workers' compensation, employee screening and more. For accountants and banking partners, SurePayroll provides private-label and co-branded services that enable them to offer online payroll processing to their small business clients. The company has received numerous prestigious awards for its innovative technology, and outstanding customer service and sales teams, including recognition from PC Magazine, Accounting Today, the American Business Awards and many others. SurePayroll is a wholly owned subsidiary of Paychex. For more information, please visit http://www.SurePayroll.com.

About Paychex

Paychex, Inc. (NASDAQ:PAYX) is a leading provider of payroll, human resource, and benefits outsourcing solutions for small- to medium-sized businesses. The company offers comprehensive payroll services, including payroll processing, payroll tax administration, and employee pay services, including direct deposit, check signing, and Readychex®. Human resource services include 401(k) plan recordkeeping, section 125 plans, a professional employer organization, time and attendance solutions, and other administrative services for business. A variety of business insurance products, including group health and workers' compensation, are made available through Paychex Insurance Agency, Inc. Paychex was founded in 1971. With headquarters in Rochester, New York, the company has more than 100 offices serving approximately 564,000 payroll clients nationwide as of May 31, 2011. For more information about Paychex and our products, visit www.paychex.com.

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Contact:  Marissa Hermo       
Krupp Kommunications           
mhermo@kruppnyc.com
212.886.6711

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