The downslide in the economy, coupled with a constricted credit market, resulted in a 7 percent drop in profits for payroll and benefits outsourcing provider Paychex Inc., to $533.5 million versus the company's fiscal year 2008 numbers.

The company, headquartered in Rochester, N.Y., reported flat year-end revenues of $2.1 billion for the period ended May 31.

Paychex's core payroll service revenues were basically flat at $1.5 billion, while revenues from its human resources services rose 11 percent, to $524 million.

"Fiscal 2009 was one of the most challenging years in Paychex history," said Paychex president and chief executive Jonathan Judge. "We were faced with many difficulties, including the weakest economic conditions we have ever experienced, a severe credit crisis, and extremely low investment rates of return on our funds held for clients."

Despite those problems, Judge said the company's financial position remains strong, with cash and corporate investments rising by approximately $140 million during fiscal 2009.

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