Paychex Inc Q2 2021 Earnings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Joshua Michael Siegler - Evercore ISI Institutional Equities, Research Division - Analyst : This is Josh Siegler on the behalf of David Togut. Just wanting to ask my first question on business formation. So you mentioned last quarter that new uses new business products were up 20% year-over-year. How did you see those trends continue into 3Q? And can you give any projections to what you're expecting for the rest of the year?

Question: Joshua Michael Siegler - Evercore ISI Institutional Equities, Research Division - Analyst : Great. Next on capital allocation. Can you provide an update to your priorities and kind of what you're thinking in terms of capital allocation as we move beyond the COVID-19 environment?

Question: Andrew Owen Nicholas - William Blair & Company L.L.C., Research Division - Analyst : First, I was hoping you could provide maybe a bit more detail on the health of the PEO business specifically. Anything you can say about kind of the growth rate in that business over the past couple of quarters. And then also, just how conducive is the market right now for starting a brand-new PEO relationship. Just wondering if people are kind of stuck in their ways given the current environment? Or if there's still opportunities to initiate a new relationship there?

Question: Andrew Owen Nicholas - William Blair & Company L.L.C., Research Division - Analyst : Great. That's really helpful. And then, Marty, you mentioned the PEP plan that you introduced a few weeks back. It seems to me like Paychex is obviously really well positioned to be able to offer a plan of that type. And I'm just wondering, bigger picture, to what extent new regulations on peps will impact Paychex? Does it increase the target market for retirement administration business? Does it open you up to additional competition? Just any additional color on that offering and what it means for Paychex would be great.