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Paychex
Human Capital Management

Paychex Company Overview

Paychex logo

Paychex

● Active
Human Capital Management · Rochester, New York · Est. 1971
HCMPayrollHR TechSMBSaaS↗ Website
$47B
Valuation
$5.6B
Revenue
16k+
Employees
1971
Founded

Paychex is a leading American provider of human resources, payroll, benefits administration, and HCM solutions for small and mid-sized businesses, serving over 745,000 clients across the U.S. and Europe. Founded in 1971 in Rochester, New York, Paychex processes payroll for approximately 1 in 12 private-sector employees in the U.S. and expanded into the mid-market segment through the acquisition of Paycor HCM in April 2025.

Recent Press
5 items
Product Launch·2026-02-26
Paychex Launches AI-Powered Workforce Management for Flex and Paycor
Paychex introduced AI-driven workforce management upgrades on February 26, 2026, including AI-powered shift matching, agentic timesheet approvals, auto-shift planning, and time-off intelligence for both Paychex Flex and Paycor HCM platforms.
Press Release·2025-12-19
Paychex Reports Q2 Fiscal 2026 Results with 18% Revenue Growth
Paychex reported Q2 fiscal 2026 total revenue of $1.56 billion on December 19, 2025, up 18% year-over-year, with Paycor contributing 17 percentage points of Management Solutions growth and the company raising its full-year outlook to 16.5%–18.5% revenue growth.
Press Release·2025-09-30
Paychex Reports Q1 Fiscal 2026 Results with 17% Revenue Growth
Paychex reported Q1 fiscal 2026 revenue of $1.54 billion on September 30, 2025, up 17% year-over-year, driven by the $4.1 billion Paycor acquisition, with adjusted diluted EPS rising 5% to $1.22.
Press Release·2025-06-25
Paychex Reports Full Year 2025 Results: Revenue Up 6% to $5.6B
Paychex reported fiscal 2025 total revenue of $5.6B (+6% YoY) and adjusted operating income of $2.4B (+7% YoY), with fiscal 2026 guidance calling for 16.5-18.5% revenue growth driven by the Paycor acquisition.
Acquisition·2025-04-14
Paychex Completes Acquisition of Paycor HCM
Paychex completed the acquisition of Paycor HCM on April 14, 2025, expanding its presence in the mid-market HCM segment and targeting more than $80M in annual cost synergies in fiscal 2026 alongside significant revenue synergy opportunities.
Company History
8 milestones
Tom Golisano founded Paychex in Rochester, New York in 1971 with $3,000 of personal savings and a vision to provide affordable payroll processing to small businesses that couldn't afford the large corporate payroll services of the era.

Paychex Organization Structure & Team

Org Chart
16,000 employees · Click a leader to explore their team
15,220 across 12 departments
Chief Executive Officer
John B. Gibson Jr.
Bob Schrader — Departments
· 15220 people across 12 depts

Paychex Financials, Revenue & Market Share

Annual Revenue
$5.6B
+6% vs prior year
YoY Growth
+6%
From $4.1B to $5.6B
Revenue / Employee
$350K
Annual revenue per full-time employee
Revenue Growth
2021
2022
2023
2024
2025
$4.1B
$4.6B
$5.0B
$5.3B
$5.6B
Market Share
U.S. Small Business Payroll & HCM
22%
share
ADP
25%
Paychex
22%
Ceridian/Dayforce
8%
Gusto
7%
SAP SuccessFactors
6%
$35B
TAM
$18B
SAM
$5.6B
SOM
Revenue Streams
Management Solutions72%
PEO & Insurance20%
Interest on Client Funds8%
Business Units
Small Business (Paychex Flex)60%
Core payroll and HCM services for businesses with 1-49 employees — Paychex's founding market where it processes payroll for 1 in 12 U.S. private-sector employees.
Mid-Market (Paycor HCM)25%
HCM platform for mid-market businesses with 50-1,000 employees — added through the $4.1B Paycor acquisition completed April 2025, expanding Paychex's addressable market significantly.
PEO & Enterprise Services15%
Professional Employer Organization co-employment, retirement plan administration, and insurance products sold across both small and mid-market client segments.

Paychex Internal Tools & Processes

Internal Tools
12 departments
Engineering & Technology3200 people · 3 roles
Standards & Certifications
10 standards
Compliance frameworks, security audits, and quality certifications this company maintains.
Security
SOC 1 Type II
Certified
Paychex maintains SOC 1 Type II certification for its payroll processing services, providing client companies with independent auditor assurance that Paychex's financial controls over payroll tax withholding and fund custody are operating effectively throughout the year.
Security
SOC 2 Type II
Certified
Paychex holds SOC 2 Type II certification across its Paychex Flex and Paycor HCM cloud platforms, verifying that security, availability, and confidentiality controls protecting employee PII and payroll data meet AICPA Trust Service Criteria.
Regulatory
IRS Authorized Agent
Certified
Paychex is an IRS-authorized e-file agent and payroll tax deposit agent, enabling it to file federal tax returns (941, 940, W-2) and remit payroll tax deposits on behalf of 745,000+ client employers directly to the U.S. Treasury.
Privacy
HIPAA
Compliant
Paychex's benefits administration and PEO platforms comply with HIPAA requirements for protecting employee health plan information, including Business Associate Agreements with client employers who share protected health information for benefits administration purposes.
Privacy
GDPR
Compliant
Paychex complies with GDPR for its European operations, including payroll processing and HR management for client businesses in Germany, France, and the UK, with appropriate data transfer mechanisms and employee consent processes for cross-border payroll data flows.
Regulatory
ERISA Compliance
Compliant
Paychex's retirement plan administration services comply with ERISA fiduciary standards for the 100,000+ 401(k) and retirement plans it administers, including annual plan testing, Form 5500 filing, and prohibited transaction monitoring.
Security
PCI DSS
Certified
Paychex maintains PCI DSS compliance for payment processing within its expense management and benefits payment products, protecting employee bank account and payment card data used for direct deposit and employee reimbursement transactions.
Privacy
CCPA
Compliant
Paychex complies with the California Consumer Privacy Act for employee data processed on behalf of its California-based client businesses, providing data subject rights and employee privacy notices as required for HR data processors under CCPA amendments.
Security
ISO 27001
Certified
Paychex holds ISO 27001 certification for its information security management systems covering the Paychex Flex HCM platform, demonstrating systematic risk management for the sensitive employee payroll and benefits data processed for 745,000 client businesses.
Accessibility
WCAG 2.1 AA
Compliant
Paychex's payroll, HR, and benefits administration platforms conform to WCAG 2.1 AA accessibility guidelines, ensuring that HR professionals and employees of all abilities can access payroll data, benefits enrollment, and compliance reporting without accessibility barriers.

Paychex Interview Preparation

Interview Prep
Role-specific interview questions and keywords. Select a department, then click any role to prepare.
Engineering & Technology· 3 roles

Paychex Products & Competitors

Product Suite
4 products · select one to explore
Human Capital Management
Software
Paychex Time & Attendance
Track time accurately, pay people right

Paychex Time and Attendance provides clock-in hardware and software solutions that capture employee hours in real time and sync automatically with Paychex Flex payroll to eliminate manual timesheet entry errors and overtime compliance risk. Solutions include biometric time clocks, mobile GPS time tracking, and scheduling tools for industries including retail, healthcare, and hospitality.

Use Cases
Deploying biometric fingerprint time clocks at 12 restaurant locations and automatically pushing approved hours to Paychex Flex for error-free weekly payrollUsing Paychex mobile GPS time tracking to verify that home care aides are clocking in at the correct client locations before shift pay beginsAutomatically calculating overtime premiums and generating FLSA-compliant time records for a 200-person warehouse operation using Paychex scheduling integration
No image
Key Customers
CMG
Chipotle
PLNT
Planet Fitness
GC
Great Clips
Competitive Intelligence
VSUKG
THEM

UKG (Ultimate Kronos Group) is an HR technology company providing workforce management, HCM, and payroll solutions for large and mid-market employers managing complex hourly and salaried workforces.

EDGE

Direct payroll integration with Paychex Flex ensures hours flow to payroll without manual exports or file transfers

VSWhen I Work
THEM

When I Work is a scheduling and time tracking platform used by hourly workforce businesses in retail, food service, and healthcare to manage employee shifts, communicate schedule changes, and track attendance.

EDGE

Deeper scheduling and labor forecasting tools for multi-location hourly workforces beyond basic time tracking

VSHomebase
THEM

Homebase is a scheduling, time tracking, and team management platform used by small businesses in retail, hospitality, and food service to manage hourly employee shifts, timesheets, and payroll.

EDGE

More affordable entry-level pricing for micro-businesses with 1-10 employees alongside Paychex Flex payroll bundling discounts