David

David asked about Paychex's perspective on the regulatory environment, including potential government shutdowns and H1B changes, and how the business is positioned to navigate these factors.

Answer

President and CEO John Gibson stated that Paychex's small business clients are resilient, with no heavy concentration in government sectors or significant internal H1B visa issues, thus expecting no direct impact. He highlighted a stable small and medium-sized business market with consistent employment and moderating wage inflation (below 3% for 18 quarters). Gibson noted that clarity on the tax bill and initial Fed rate cuts are supporting renewed business confidence and investment decisions.

David asked about Paychex's perspective on the current regulatory environment, including potential government shutdowns and H1B changes, and how the business is positioned to navigate these factors.

Answer

President and CEO John Gibson stated that Paychex's small business clients are resilient, and the company does not have a heavy concentration with the federal government or significant internal H1B visa issues, thus not expecting direct impacts. He noted a stable small business environment with consistent employment and wage inflation below 3%. Mr. Gibson believes clarity from the tax bill and initial Fed rate cuts will support renewed business confidence and investment.