1. Major Market Services Proposal for Services

2. Major Market ServicesMajor Market ServicesP ublicly traded (NASDQ: PAYX), Paychexhas a solid record of year-over-year long-term growth, zero debt, and a triple AAA creditComprehensive ServicesPaychex delivers comprehensive service optionsthrough an on-demand Software-as-a-Servicerating. The company provides comprehensive(SaaS) delivery model. Select from the broadestpayroll and human resource services to overrange of quality service options available as your550,000 clients. The Major Market Servicesbusiness grows and your needs change. No need(MMS) Division of Paychex, started in 1998, wasto update systems or switch vendors.designed to service mid-market businesses with50 to 2,000 employees. Larger clients exceed10,000 employees. Cost Savings and ReturnsAward-winning solutions deliver high rates ofAccuracy andsavings and return. In addition, leveraging theCompliancevolume of over half a million clients puts Paychexin a position to develop and deliver a wide varietyOver half of the CPA firms in the Unitedof high-quality services at affordable rates. EnjoyStates now participate in the Paychex Americanthe benefits of simple economies of scale.Institute of Certified Public Accountants (AICPA)Business Solutions Partner Program. The AICPArecommends Paychex as their preferred providerof payroll and retirement services. Clientsatisfaction levels through this referral programaverage 99.9%. Paychex has over 35 years ofexperience dealing with federal, state, andmunicipal legislative and regulatory agencies.Paychex has been recognized as: One of Americas Best-Managed CompaniesForbes magazine Maintaining Standards of near perfectionInternal Revenue Service Among the Worlds Most EthicalCompanies Ethisphere magazineNumerous awards and accolades demonstrateour commitment to maintaining the higheststandards of business ethics, accuracy, andaccountability. 3. Major Market ServicesAward-Winning SolutionsChoose from a comprehensive suite of award-winning, Web-based solutions thatare fully scalable to meet your organizationalSingle-User Sign-OnMultiple services, one password: Enter a singleuser name and password to access the main suiteneeds, even as your organization continues toof Paychex services, including payroll, time andgrow and change. Highly efficient and cost-labor, human resource administration, employee/effective options include easy-to-follow customsupervisor self-service, and employee benefits.user displays, paperless workflows, employeeand supervisor self-service, streamlined companycommunications, and highly flexible managementReal-Time Data Accessreporting.Administrators, supervisors, and employeescan access key functional data in real-timeEasy to Learn and Use improving communication and increasingaccuracy.Paychex Web-based services are easy to learnand use. Intuitive, user-friendly displays andwork flows ensure turn-key productivity.Integrated ServicesKey data elements are shared across multipleapplications, reducing the costs and inaccuraciesof managing duplicate data. 4. Major Market ServicesComprehensiveData Security andReportingOwnership Powerful standard and custom reporting Your data remains safe and secure. You haveprovides outstanding data analytics that are direct access to multiple years of company andeasy and efficient to use. Data output is highly employee records. Unlimited years of criticalflexible and productive. Reports can be printedpayroll data, including data for terminatedor exported in multiple formats and custom employees, is always at your fingertips. Multipleconfigurations.firewalls, geographically redundant data storage, 128-bit secure-socket layer encryption, and active monitoring are standard.Free Upgrades andEnhancementsAlways enjoy the latest features andbenefits. All Web-based system upgrades andenhancements are made for you at no additionalcost. 5. Major Market ServicesPayroll Administration Year End Form W-2sPaychex Preview provides the fastest andPaychex assures timely and accurate filingmost secure Web payroll solution available.of employee Form W-2s. Human ResourceOur payroll application is a highly flexible,Administration clients can access and reprintfeature-rich system with exceptional reporting individual forms, with the option to grantcapabilities. Preview users experience employee access.consistently fast operating speeds.Features include:New-Hire Reporting Fast, consistent processing speeds Reduce labor costs and exposure to non- Immediate data accesscompliance penalties. Paychex automatically reports all new hires added to payroll. Embedded tax tables Instant pay register prior to processing Garnishment Payment Manual check generationService Automatic labor distribution Paychex automatically handles the burdensome Job costingtask of court-ordered employee garnishments by remitting garnishment deductions to the Certified reporting proper agencies when due, and making electronic Visual custom reportingtransfer of funds where accepted and required. Hands on, flexible general ledger reporting Direct data exports (Microsoft Excel) State Unemployment Insurance ServiceTax Deposits and Filings Control state unemployment insurance costs while reducing time spent on administrativePaychex assumes responsibility for accurate tasks. Paychex monitors unemployment claims,tax calculations, and timely deposits and filings, while providing tools to actively manage yourbased directly on client-submitted payroll totals. employer experience rating and associated taxYoull always receive your own paper copies of payments.electronic quarterly and annual returns. 6. Major Market ServicesTime and Labor Human ResourceManagement ManagementWeb-based Time and Labor Online (TLO) Web-based Human Resources Online (HRO)provides a fast, easy, and efficient methodis a central data portal for managing companyof scheduling, tracking, reporting, andand employee human resource information. Usedcontrolling labor costs. Simple screen displaysas a central administrative database, the systemand functionality make it easy for supervisors eliminates the inefficiencies and inaccuracies ofand employees to coordinate work efforts and managing data in multiple places throughout themanage labor costs. Input options include online organization. Custom workflows add conveniencepunch, barcode time clocks, and highly accuratewhile reducing administrative labor costs;biometric clocks.supervisor and employee self-service further increases efficiencies and cost-saving advantages.Features include: Custom pay policy definitionFeatures include: User notifications and messaging New-hire management Automatic labor distribution Forms and posters library Time-off balances Automated employee notifications Employee scheduling Company directory Time-off management calendar OSHA tracking Pre-scheduled report generation Equal opportunity analysis Total compensation summary Paperless pay stub access Deduction what if calculators Employee handbook access Salary/Rate change history Paid time-off calendar Training and performance 7. Major Market ServicesExpense ManagementRecruiting and ApplicantPaychex Expense Manager, powered by TrackingExpenseWire, is a state-of-the-art tool forPaychex partners with Taleo to offer thecontrolling employee discretionary spending leading Web-based solution for recruiting andand administrative costs. Ease of use results applicant tracking. Real-time data and customin exceptionally high levels of user adoption work flows drastically cut manual processes andand adherence to centrally managed companyadministrative time. Leverage automated updatesspending policies. With Expense Manager,to job boards, including company-brandedadministrative costs rapidly decline. Real-time recruiting sites, pre-screening questionnaires,data analytics and automated, central policycustom workflows, and integration with Microsoftmanagement and controls can result in significant Outlook.decreases in excess company spending.Features include:Features include: Automated job board updates Centralized policy management Company-branded recruiting site(s) Paperless expense reporting Custom pre-screening questionnaires Integration with personal and corporate Resume archiving and queries credit cards Custom work flows Tracking by vendor, project, or GL account detail Microsoft Outlook integration Foreign currency calculations Interview scheduling Salesforce.com CRM integration Automated e-mail generation General ledger integration Recruiter accessibility Direct payroll reimbursements 8. Major Market ServicesBenefits AdministrationWeb-based benefits administration is providedFeatures include:by leading industry provider, BeneTrac, a Real-time data accuracyPaychex company. This fully paperless processgives administrators complete visibility and Automated eligibility rulescontrol over benefits administration. Leveraging Automated life-event changesreal-time data, automatic eligibility rule Optional employee self-serviceassignments, automated life change events,carrier connections, and highly productive Benefit carrier connectionsreporting tools, BeneTrac reduces duplicate data Bill reconciliationentry, increases accuracy and timeliness, and Automated e-mail generationdelivers powerful cost controls. Highly productive reporting toolsComplete and timely setup and support is Complete and timely implementationperformed by knowledgeable industry experts. Carrier Bill Report Site - DEMOSITE AA DemonstrationSorted by Name Billing Summary by: ProductBilling Month: 11/1/2009Prior Run: 10/16/2009 (Subtotaled by: Product) Run date: 10/16/2009 (Counted by: Product)Cutoff date: 11/15/2009Product: Aetna HDHP PlanEmployee SSN Carrier Premium TierEffective Davis, Bob 888-00-0111Aetna 185.76 Emp Only 05/01/09 Dixon, Charles 888-00-0451Aetna 185.76 Emp Only 10/01/08 Employee, Test 197-57-5315Aetna 445.84 Emp & Sps09/01/09 Haney, Marie 100-00-0000Aetna 185.76 Emp Only 01/01/08 Kiley, Cheryl888-00-0193Aetna 445.84 Emp & Sps08/01/09 Kirchmer, Jared112-34-5678Aetna 325.10 Emp & All Chdrn02/01/09 Link, Jared112-34-5679Aetna 445.84 Emp & Sps04/01/09 Sample, Jennifer 111-55-6421Aetna 185.76 Emp Only 10/01/09 Test, Avascent 999-88-8777Aetna 185.76 Emp Only 05/01/09(Aetna HDHP Plan enrollments: 9)2,591.42Product: Blue Shield of CA Access+ HMO PlanEmployee SSN Carrier Premium TierEffectiveAlberts, Maria 912-34-5678 Blue Shield of California 185.76 Emp Only 07/01/09Anderson, Brandette999-46-7824 Blue Shield of California 566.60 Emp & Family 06/01/07Ansel, Daryl 888-00-0081 Blue Shield of California 445.84 Emp & Sps09/01/04Baker, Daren 112-23-4455 Blue Shield of California 325.10 Emp & All Chdrn09/01/04Bell, Kimberly 888-00-0060 Blue Shield of California 185.76 Emp Only 07/01/07Bermann, Joseph888-00-0109 Blue Shield of California 185.76 Emp Only 06/01/04Bettis, Jerome 999-12-1990 Blue Shield of California 566.60 Emp & Family 03/01/06Binder, Arlene 999-00-3390 Blue Shield of California 185.76 Emp Only 04/01/04Bond, James511-55-5555 Blue Shield of California 185.76 Emp Only 05/01/07Bonita, Stephanie666-66-6669 Blue Shield of California 185.76 Emp Only 09/01/03Bran, Sherry 565-23-1456 Blue Shield of California 445.84 Emp & Sps06/06/01 9. Major Market ServicesHealth Insurance COBRA ServiceThe Paychex Insurance Agency offers complete Reduce administrative tasks, labor time, andadministrative support for small-group health, exposure to unexpected COBRA penalties.dental, vision, life, and short- and long-term Paychex takes care of the paperwork and dailydisability insurance. Paychex Insurance Agency administrative tasks associated with keeping upsimplifies the process of managing healthwith ever-changing federal requirements.benefits. Premium deduction management fornew hires, qualifying events, or status changes is 401(k) Retirement Planseamlessly integrated into your payroll. Payroll integration simplifies employee 401(k) deductions and plan administration. EmployeesSection 125 Premiummake profile and deduction change requestsOnly Plan (POP)directly through self-service options. FlexibleDirectly integrated with employee deductions plan design includes multiple investmentthrough payroll, health-care contributions are options.deducted from employee salaries before taxesare withdrawn, lowering taxable income andincreasing take home pay. Paychex handles setup Workers Compensationand compliance. Payment Service Minimize up-front costs and smooth out your cash flow. By integrating our service withSection 125 Flexible your payroll information, we can calculateSpending Account (FSA) your workers compensation costs based onLike a POP, pre-tax payroll deductions are actual wage information. Your true costs areset aside for employees out-of-pocket healthaccurately calculated and electronic paymentsand dependent care expenses. An FSA can payare automatically made for you on an ongoingfor itself by decreasing employer payroll taxes. basis,helping you avoidunexpected year-endPaychex handles setup, compliance, claimsadjustments.processing, and reimbursements. 10. Major Market ServicesPaychex PremierEmployee ScreeningHuman Resources ServicesMinimize risk, improve regulatory compliance, User-friendly Web access provides completeand increase employee retention. With confidentiality, along with a fast, thoroughPaychex Premier Human Resources, you get a response. Background research options includecomprehensive package of HR administrationsocial security number, name, and addressservices and expert support. A dedicated HR verification at all levels. Select from la carteprofessional will be available on-site to conduct options or available packages that includeor assist you with such activities as benefitsnational database and countywide criminalenrollment, workplace-specific training seminars, database searches.and employee handbook development. The HRprofessional is also available to update you andHandbooksyour staff on labor law changes and regulatorycompliance issues.Custom employee handbooks, developedfrom a legally reviewed database of policies,Features include: help to reduce administrative time and costs, Employee benefits administration, such as while helping to ensure that your company hasretirement plan servicesaccess to the latest policy revisions as a result of Employee handbook administrationchanging federal and state employment laws. Human resource servicesTax Credits Human resource management system(HRMS) HR OnlinePaychex automatically reviews your payrollinformation to determine whether you may be Employee Access Online by Paychexeligible for various federal and state tax credit Employee assistance program (EAP) savings, which can result in significant employer Management manualscost savings. Paychex routinely documents thenecessary employee information during the On-site training seminarspayroll process, making it economical and easy Worksite management for your business to obtain any credits to whichyou may be entitled. 11. Major Market ServicesQuality Client ServiceP aychex has enjoyed long-term success asa high-growth industry leader based ona culture of quality client service, supported On-Site Employee Orientationthrough ongoing employee training andPaychex benefit specialists conduct on-sitedevelopment. employee orientations for Paychex benefit plans, including flexible spending accounts and 401(k) Full accreditation by the American retirement plans.Council of Education Average of 107.5 hours of training per year One-on-One Employeeper employee Assistance Required job-dependent trainingexaminations for each traineeEmployees enrolled in the Paychex Employee Assistance Program (EAP) enjoy dedicated one- Consistent ranking among Top 125on-one personalized service, tailored to theTraining Organizations by Trainingindividual needs of the employee.magazine and 100 Best Companies toWork For by FORTUNE magazinePersonalized ServiceAs a Paychex client, youll work directly with adedicated specialist, whose in-depth training andknowledge ensures your satisfaction and helpskeep your business running smoothly.On-Site HumanResource AssistanceOur optional Paychex Premier HumanResource Service includes a full on-site humanresource assessment and ongoing on- and off-sitesupport services. A professionally trained humanresource representative works directly with youand your staff to help develop a more efficient,integrated HR infrastructure. 12. Major Market ServicesRelationship RewardsClient Satisfaction User GroupsPaychex has an excellent reputation for Select clients are invited to actively participatedelivering outstanding, personalized client in Paychex user groups. Participation givesservice.clients an opportunity to provide feedback andcontribute to the development of new Paychexproducts and services, while gathering tips andSingle Point-of-Contactadvice from other users.ServiceDevelop an ongoing relationship with adedicated professional who is assigned to serviceClient Reviews andyour account. This representative knows yourSatisfaction Surveyshistory as a client and learns the best way to work We encourage clients to schedule periodicwith you. While many trained specialists assist inon-site service and pricing reviews to help usservicing your account and are always available,ensure complete client satisfaction. Postage-paida dedicated professional takes ownership of yourclient satisfaction surveys are mailed to everyaccount and ensures your satisfaction as a Paychexclient quarterly to learn how we can maintainclient. consistently high levels of client service andsatisfaction. Survey scores are used for employeerecognition and to encourage outstandingOngoing Educationalcustomer service.SeminarsBi-monthly educational seminars, coveringtopics such as labor compliance, breakingReferral Programsindustry news, and upcoming legislative changes, Client referral programs provide opportunitiesare available at over 100 Paychex branchesfor satisfied clients to earn rewards for referringnationwide. Join us for monthly client Webfriends and colleagues who become new Paychexseminars that cover a wide range of industryclients.topics. Clients with particularly demandingschedules are invited to enroll in monthly e-mailupdates. 13. Major Market Services Quality ImplementationProject Management Post ImplementationAn assigned project manager takes control of A follow-up meeting is scheduled to reviewthe complete implementation and leads a team ofreports and invoicing. Your representative helpshighly trained experts to deliver timely, accurate,identify short- and long-term goals and servicehigh-quality results.needs.On-Site Training One Form W-2 perProfessional trainers come out to your site forEmployeehands-on training using actual company data, Mid-year conversions result in a single set ofcustom screen displays, and real-life procedures.Form W-2s.Training can be arranged online or off site, whenrequired.Electronic Data ImportsPaychex data management tools are among thebest in the industry, helping to ensure accuracyand consistency.Data AuditsStandard implementation includes a full auditof your current-year data, quarter by quarter, toensure the accuracy of your information. Paychexassumes full responsibility for all tax calculationsfrom January first of the current year. 14. Major Market Services 15. FOP 102