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Payroll Online was organized and began operations in 1993. The initial business plan was based on selling payroll software and supplies to CPA's and Payroll Service Bureau's throughout the United States. The Company was profitable and grew incrementally as it expanded its geographic customer base. In 1996, the Company was recognized as the 32nd fastest growing private company in Washington. With the advent of the Internet, Payroll Online saw an opportunity to evolve the business model from product sales to recurring revenue generating services. Payroll Online began to internally develop web-based payroll technology to begin servicing customers directly. In 1997, Payroll Online launched the payroll industry's first web-based service offering. From 1997 to 1999, Payroll Online expanded its payroll operations on a nation-wide basis focusing on outsource payroll and tax-filing services for small and medium sized businesses. As its customer base grew, Payroll Online saw the opportunity to expand the list of services and increase revenue beyond payroll and tax services. Payroll Online developed a proprietary technology platform based on the use of XML and SOAP technologies called the Employer Services Network (ESNÔ) and launched in 2000. The ESNÔ platform enables Payroll Online to rapidly integrate new applications and seamlessly deliver a bundle of "web-services" to customers. From 2000 to 2002, Payroll Online upgraded and improved the ESNÔ platform to enhance both customer facing "employee self-service" capabilities and reduce the employers operating cost of managing employee data. ESNÔ v3.0 also provides industry leading online reporting and channel management functionality for the delivery of additional "web-services" including time and attendance, human resource and benefits applications.