Paychex, Inc. is one of the leading providers of integrated human capital management (“HCM”) solutions for payroll, human resource (“HR”), retirement, and insurance services for small- to medium-sized businesses. The company was incorporated in Delaware in 1979.
The company’s payroll processing services include payroll processing, payroll tax administration services, employee payment servicesand regulatory compliance services. The company supports small-business companies through its core payroll, software-as-a-service (“SaaS”) Paychex Flex platform, and its SurePayroll ® SaaS-based products. The company’s SaaS solution through Paychex Flex Enterprise integrates payroll processing with HR management, employee benefits administration, time and labor management, applicant tracking, and onboarding solutions.
The company offers a suite of complementary Human Resource Services (“HRS”) products which include comprehensive HR outsourcing through Paychex HR Services; retirement services administration; insurance services; HR administration services, including time and attendance, benefit enrollment, recruiting, and onboarding;and other HR services and products.
Paychex’s wholly owned subsidiary, Paychex Advance LLC (“Paychex Advance”), offers a portfolio of services to the temporary staffing industry. This includes the purchasing of accounts receivable as a means of providing payroll funding to these clients.
As of May 31, 2020, Paychex served more than 670,000 payroll clients (inclusive of the Lessor acquisition). The company maintains its corporate headquarters in Rochester, New York, and serves clients throughout the United States and Europe. The company has one business segment. Its fiscal year ends on May 31.
Paychex operates under two broad categories — Total Service Revenue, and Interest on Funds Held for Clients. In fiscal 2019, Total Service Revenue made up 98% of total revenues and comprised two sub-segments: Management solutions (78% of Total Service Revenue) and professional employer organization (PEO) and insurance services (22% of Total Service Revenue). Interest on Funds Held for Clients accounted for the remaining 2% of fiscal 2019 total revenues.