John Gibson: Yes. Yes. So as we said, we’re in our budget and we’re really in our planning stages to figure out how we want to approach the SECURE Act 2.0. We started some education, certainly within our base and we’re trying to figure out in scope the size of the opportunity across the market and determine what investment we’re going to do that. And that’s something I think we’ll talk about more in the next call. We’re doing a lot of surveys trying to get where people are in their understanding of what it means. There’s a huge education effort that I think has to go on, but I think it’s a pretty powerful value proposition. Like I said, I think the secular labor problem is going to continue. I don’t — even we get to a recession, we just simply don’t have enough people working.
The labor participation rate is just not big enough to meet even a lower demand were at 3.4%, 3.5% unemployment. And so, I think the simple fact is small and midsized businesses needing to compete against large employers, we typically have richer benefit plan. It’s going to be a secular trend that’s going to continue, and I think we’re well positioned to do that. And I say that because that’s going to create the opportunity for a 401(k) plan. And the SECURE Act 2.0, just to give you an idea, pretty much if you’re an importer with between 20 and 50 employees, we could provide you and start up a 401(k) plan, and you would pay Paychex literally nothing because you pay us for a startup fee. You pay us for the other fees that we would have there.
But you’d get all that back through tax credit. So it’s — basically, you can add the plan. And then if you want to contribute up to $1,000 to each employee, you can get that $1,000 as a tax credit as well in many circumstances. So I think there’s not a lot of awareness. Look, we found the same thing with the ERTC. They’re just a lot of small and midsized business owners not even where these programs exist and then they have reluctance to participate because whether we want to like it or not, they have some skepticism about government programs and being on some government list. And we’re really positioning ourselves as kind of this trusted adviser to help them and help facilitate that. And so we’re doing a lot of studies on it. We’re trying to figure out how big the opportunity is and certainly, we think it’s a great thing for small, midsize businesses.
And again, I applaud the Congress and all the partisanship that goes on in Washington. It’s great to see them have a program like this, and I hope there’s more programs like this in the years to come to support Main Street small business owners.
Operator: Thank you. Our next question comes from James Faucette with Morgan Stanley.
James Faucette: Just a couple of questions from me. First and I know we’ve talked a little bit about this both in previous quarters, but now, but can you recap for us a little bit why you think ERTC outperformed what you thought it would do during the course of this fiscal year? And then kind of how that contributes to you thinking that it could slow a little bit in next?
