The Changing World of Work, Made Simple
Year in Review2021
Martin Mucci President and CEO
Paychex reached $4.1 billion in revenues, with a market capitalization of $36 billion as of May 28, 2021. The company crossed $2 billion in revenues in 2010 and $3 billion in 2017.
Shareholders received $900 million in dividends, or $2.52 per share, in fiscal 2021.
As Paychex emerges from one of the most challenging periods in our 50-year history, I’m proud that we were able to generate positive growth for both service revenue and adjusted diluted earnings per share despite the pandemic environment. Even with almost 15,000 employees working remotely, we succeeded by staying true to our principles — listening to clients, anticipating their needs, and supporting them with innovative technology and personalized service.
We exemplified those principles by helping many of our clients stay open throughout the COVID-19 pandemic. Thanks to the hard work of our functional teams working together, we created a COVID-19 Help Center with webinars, estimators, and other information vital to keeping businesses healthy.
On the day the Paycheck Protection Program (PPP) opened, we were prepared with a PPP report for our clients that business owners used to secure more than $65 billion in PPP loans — 9% of the total amount paid to businesses across the U.S. — and supported their applications for forgiveness, making the process much easier for them. We have also supported our clients in receiving $3 billion in employee retention and paid sick leave credits. And our dedicated compliance team continues to provide real-time regulatory information to help our clients succeed through this difficult, unprecedented period.
We are proud that what Paychex has accomplished during our last fiscal year has had a positive effect on our clients and the U.S. economy.
In addition, Paychex is among only a few companies that grew margins in the middle of a pandemic and then increased them the following year. Our total revenue grew to a record $4.1 billion, and our shareholders received $900 million in dividends, while total service revenue increased 1%. Adjusted diluted earnings per share rose 1% to $3.04. And our adjusted operating margin (excluding one-time costs related to certain cost-savings initiatives) was 36.8%, an expansion of 70 basis points over the prior year.
As our industry and the future of work continue to evolve, we remain committed to driving HR innovation to prepare our clients to thrive in the post-pandemic marketplace. While some companies have attempted to achieve this goal with technology alone, experience has shown us that it also takes the power of people to get the job done.
Our unique combination of innovative technology and service are designed to meet the evolving needs of employers and their employees. Paychex Flex®, our human capital management (HCM) solution, meets clients and their employees where they need us — with device-independent technology and support through self-service, our Paychex Flex Assistant chatbot, Siri®, Google® Assistant, text notifications, and other ways to save time and simplify administration. Clients also have the choice to interact with our knowledgeable experts through traditional channels, such as email, chat, or phone, with 24/7 U.S.-based support.
We provide our clients’ employees with the same cutting-edge technology to give them easy and secure mobile access to their pay, retirement plans — such as our first-to-market Pooled Employer Plan (PEP) — insurance, time and attendance, and W-2s, to name a few. This helps our clients save time and improves employee well-being in the workplace, which can lead to improvements in morale, retention, and productivity — and ultimately to better business performance.
As the post-pandemic future of work continues to evolve, the need for HR advice is more important now than ever before.
We have more than 650 HR professionals across the country who can offer our HR solutions and Paychex PEO clients expert HR advice and guidance based on their specific situations. Our HR professionals handled more than 40,000 HR matters last year, helping clients manage employees, make the most of their HR technology, and navigate relevant employment laws and the unique requirements of the pandemic, including remote work issues and vaccine policies.
Behind the scenes, our dedicated compliance team monitors those laws and regulations to help us inform clients of changes that may affect their business.
As the economy adjusts for a post-pandemic world, many businesses are dealing with HR issues. We listened when our clients told us they needed complete views of their employee data and better ways to make business decisions based on that data. In response, we continually enhance our HR offerings with relevant, timely additions, such as enhanced analytics for pay equity and diversity, and artificial intelligence and machine learning technologies to create a new predictive analytics report. Using the dashboard, clients will be able to quickly assess impactful data points and consider which employees may be at higher risk for turnover — an incredibly valuable insight to have during a tight labor market.
We’re also listening to our clients and stakeholders in the communities where we live, work, and provide service when it comes to our shared focus on CSR, environmental responsibility, and diversity, equity, and inclusion (DEI).
Our award-winning Corporate Responsibility Highlights Report, Putting Good to Work, details our commitment to these ideals. And I’m excited to announce that Paychex completed Carbon Disclosure Project reporting this year for the first time. In addition, we’re reporting greenhouse gas emissions for all our owned U.S. locations.
Also significant to our CSR efforts, we expanded the assets of the Paychex Charitable Foundation to help fund initiatives that support economic development in the communities where we have operations, while also enhancing the quality of life for those who work and live in those communities.
For example, during the COVID-19 pandemic, the Foundation has given more than $1.5 million to the United Way in addition to the contributions of our employees. This gift supports the efforts of nonprofits delivering crucial services as well as builds on the existing support that Paychex provides to human service organizations through the United Way each year.
This fiscal year, I’m also proud of how well our people and technology handled the transition to a new way to work. With 95% of our employees working remotely, we not only maintained our standards for excellence, we also exceeded them, increasing our sales performance and reaching record levels of client retention and satisfaction.
For the 13th year, Paychex was named one of the World’s Most Ethical Companies® by the Ethisphere® Institute. Each year, our cross-functional team updates and enhances our ethics program and training to continuously improve our already strict standards.
Fortune® magazine once again named us one of the World’s Most Admired Companies. We also received a silver Stevie® Award for the performance of our sales and customer service teams, and we ranked number one for vendor satisfaction and user experience in the Annual HR Systems Survey – Voice of the Customer Report by Sapient Insights Group.
This May, Paychex earned a second consecutive HR Tech award, this time for the strength of our innovative technology and service during the COVID-19 pandemic, with Paychex Flex winning Best Small and Medium Business (SMB)-focused Solution in the Core HR/Workforce category.
This year marks the 50th anniversary of Paychex. From the day we provided payroll services to our first client in 1971, to the critical care we gave our clients during the COVID-19 pandemic, we’ve continued to build on our legacy of technology-enabled service to simplify HR, payroll, retirement, and insurance services for our clients and give them the freedom to succeed in their business.
Paychex now pays 1 in every 12 U.S. private sector employees;1 we’re the country’s largest 401(k) recordkeeper by number of plans;2 we have a top 25 insurance agency;3 and we’re one of the country’s largest providers of HR outsourcing for small and medium-sized businesses, supporting 1.7 million worksite employees.1
It’s amazing to think that a company that once had a single client and employee achieved a market cap of $36 billion as of May 31, 2021. A $1,000 investment made when Paychex went public in 1983 would be worth $1 million today, and since then we’ve paid shareholders approximately $10 billion in dividends.
The inaugural Paychex Business Conference was held virtually in June of this year, bringing together 7,000 clients, business owners, HR managers, and others who want to build a better workplace, increase productivity, and thrive in 2021 and beyond.
The conference featured experts, insights, resources, and solutions ranging from HR influencer Cy Wakeman’s inspiring opening session and the powerful keynote from Shark Tank’s Daymond John, to discussions of unique tools to source and hire better talent as well as the benefits and technologies to keep them engaged.
Most importantly, in a year where Paychex again raised the bar on our performance, our conference was an excellent way to thank clients for their loyalty with information they could use right away to improve their business.
As businesses across the country return to the office, our employees are coming back with new flexibility in their schedules, having proven they could perform at historic levels of efficiency and productivity. I believe this will give us a competitive advantage in recruiting and retaining top talent to help our clients navigate the new business climate.
The future looks bright for Paychex. The combination of our sales momentum, client-base growth and satisfaction, industry-leading operating margin, and increased investment in our marketing lead generation and product development has us well-positioned for another year of strong financial performance in fiscal 2022.
We thank our clients, employees, and investors who have been a part of our success for 50 years. I'm proud of how far we've come, and I'm excited to share the technology and service insights and innovations that will take us well into the next 50 years and beyond.
President and CEO
1. Data on file
2. PLANSPONSOR magazine, 2021
3. Business Insurance magazine, 2021
In a challenging year for many businesses, our fiscal 2021 results made a powerful statement that points to an improved economic climate in the year to come. Paychex achieved revenue of $4.1 billion with a market capitalization of $36 billion as of May 31, 2021. We grew our payroll client base by 4% year-over-year, while the number of worksite employees we serve through our HR solutions and professional employer organization (PEO) grew by 18% to 1.7 million. This strengthens our position as a leading provider of HR outsourcing, payroll, retirement, employee benefits, and insurance services.
Our strong fiscal 2021 results were due to our resilient business model and the ability of our employees to stay true to our guiding principles: listening to clients, anticipating their needs, and supporting them with innovative technology and dedicated, personalized service.
With 95% of our employees working remotely, we achieved record-high levels of client retention and satisfaction. Our teams supported clients with new product releases and simplified complex Paycheck Protection Program (PPP) loan applications, helping more than 500,000 businesses apply for the funding necessary to stay in business.1
After a year that redefined financial success as simply survival, we’re prepared to help our clients thrive again. As the business environment improves in FY22, we see outstanding financial opportunities to deliver significant growth, operating profit performance, and financial results for our investors.
Total revenue increased 7% from 2016. Diluted earnings per share increased 9% to $2.28 per share. Adjusted diluted earnings per share increased 8% to $2.20 per share.
Total revenue increased 7% from 2017. Diluted earnings per share increased 21% to $2.75 per share. Adjusted diluted earnings per share increased 14% to $2.55 per share.
Total revenue increased 12% from 2018. Diluted earnings per share increased 4% to $2.86 per share. Adjusted diluted earnings per share increased 11% to $2.84 per share.
Total revenue increased 7% from 2019. Diluted earnings per share increased 6% to $3.04 per share. Adjusted diluted earnings per share increased 6% to $3.00 per share.
Total revenue was flat compared to FY20. Diluted Earnings per Share of $3.03 was flat to 2020. Adjusted diluted earnings per share increased 1% to $3.04 per share.
Operating income and adjusted operating income both increased 8% from 2016. Net income increased 9%. Adjusted net income increased 10%.
Operating income increased 3% from 2017. Adjusted operating increased 6%. Net income increased 20%. Adjusted net income increased 14%
Operating income increased 6% from 2018. Adjusted operating income increased 4%. Net income increased 4%. Adjusted net income increased 11%.
Operating income and Adjusted operating income increased 7% from 2020. Net income increased 6%. Adjusted net income increased 5%.
Operating income was flat to 2020. Adjusted operating income increased 2%. Net Income was flat. Adjusted net income increased 2%.
*For the fiscal year ended May 31
1 Data on file
2 Adjusted operating income is a non-GAAP measure that excludes certain one-time costs in FY18 and FY21.
Our innovative technology and experienced HR and compliance professionals are a powerful combination that uniquely positions Paychex as a market leader. In fiscal 2021, we continued to invest in our products to provide Paychex clients with the tools and technology required to support both onsite and distributed workforces.
Within Paychex Flex, HR Conversations makes it easier for clients’ employees and supervisors to digitally collaborate and communicate, keeping them aligned on the employees’ job activities. At the same time, HR Connect allows employees to ask questions, submit requests, report incidents, and more — in real time from any device — making it easier for HR to manage their daily tasks.
Businesses of all sizes across a variety of industries value our time and attendance solutions for on-site and remote workers. Paychex remains the only provider to offer a truly hands-free experience through our biometric iris-recognition technology. We also offer punch-in and time entry through the web, table kiosk applications with optional facial verification, the Paychex Flex five-star mobile app, and Apple Watch®.
Our PPP loan and forgiveness tools helped eligible clients receive $65 billion in loans and reimbursements they needed to stay in business, while our State Compliance Tool informed clients of state laws, executive orders, advisories, and processes they needed to follow.
We were one of the first to market with our latest innovation in retirement savings. Our PEP introduces client efficiencies, reduces client administration requirements, and makes it easier to offer, manage, and enroll employees in only four clicks.
Currently, 56% of HR leaders reported it was a challenge to keep up and comply with regulations.1 Our dedicated team of compliance experts proactively monitors developments and stays in contact with federal, state, and local tax agencies and regulators, so we can help keep our clients aware of how fast-changing laws and regulations could affect their business. We also support our clients with OSHA and safety programs and provide information to help them comply with workers’ compensation, Equal Employment Opportunity, COBRA, state unemployment insurance, and other regulated programs.
“Within the first 24 hours of being a Paychex customer, our dedicated HR [professional] sent us several emails … about things we needed to do to prepare for 2021, things we needed to be aware of, planning for, and also good day-to-day reminders.”
Whether our HR solutions and professional employer organization (PEO) clients have their own HR department or they’re a team of one, they value the HR advice and guidance available from our Paychex HR professionals. Each client is assigned one of our 650 experienced HR professionals trained to provide more than best practices. They know their clients and can provide recommendations to help them solve their specific HR issues, maximize the value of Paychex Flex technology, make the most of Paychex solutions, and navigate changing workplace dynamics.
During FY21, the expertise of our HR professionals proved vital to helping their clients stay in business by assisting them with $65 billion in PPP loan applications and reimbursements. And our HR professionals continue to leverage the expertise of our in-house compliance team to provide clients with the clarity they need to help them understand federal, state, and local laws and regulations. These are just a few of the reasons that clients are extremely satisfied with their HR professionals’ knowledge, responsiveness, and ability to assess and meet their specific needs.
In FY21, our compliance, risk, and legal teams worked together with marketing to maintain and expand our COVID-19 Help Center — part of our award-winning support for businesses during the COVID-19 pandemic. The Help Center includes answers to frequently asked questions, webinars, articles, and other information business owners and HR managers need to help them stay in business, retain employees, and manage a distributed workforce.
Our combined teams also created an interactive state compliance tool, where each page includes laws, executive orders, advisories, and processes businesses may need to follow. The tool is consistently updated and includes links to state government resources and state-specific articles to help businesses as they transition some or all their employees back to the office.
CSR and environmental, social, and governance (ESG) reporting have risen in importance as more investors, employers, and employees have focused on companies’ environmental policies, corporate philanthropy, employee wellness, and efforts to improve diversity, equity, and inclusion (DEI).
Paychex took early initiatives at the forefront of the CSR movement when we created a steering committee in 2018 with officer-level representation across the company. They continue to meet regularly to discuss ways to drive our CSR program forward.
This responsibility is something we take incredibly seriously. Not only because it’s important to our employees, clients, and investors, but because it’s the right thing to do. Our commitment continues a strong focus on ethics and doing business the right way that started 50 years ago with our founder, Tom Golisano. As he says in his book, Built, Not Born, “Focus on ensuring all your customers, vendors, and employees get a good deal that works for them and for you.”
That commitment is why Paychex was named one of the World’s Most Ethical Companies® in FY21 for the 13th year. Our team reviews best practices; updates our ethics program, policies, and procedures; and takes steps to improve our program each year to meet the exacting expectations of ethics professionals.
We also won an award for our CSR highlights report, Putting Good to Work, which we created thanks to the great partnership of our cross-functional social responsibility team from across the company.
Other CSR milestones we achieved in FY21 include our first-ever carbon disclosure report, where we reported on greenhouse gas emissions from Paychex-owned offices. In FY22, we are working with our landlords to provide a comprehensive report of all Paychex offices nationwide. We also created a formal environmental policy and environmental management system, and we completed our first environmental risk review, which was reviewed by our board of directors.
We completed a new pay parity review based on gender and race where Paychex far exceeded typical results in our market. This coming year, we’re expanding oversite to include DEI.
The COVID-19 pandemic has shined a spotlight on employee wellness. There is a direct link between addressing employees’ emotional, financial, physical, and social needs and improving attendance and performance in the workplace.
With many employees dealing with depression, anxiety, and general uncertainty, our benefits and well-being team helped provide relief in FY21 through effective employee wellness programs.
Telehealth options have been one successful tool we’ve used to improve access to and adoption of our employee benefits.
We also have had very good utilization of our Employee Assistance Program (EAP), offered by a third-party provider. It’s a gateway to many important services employees need, such as a concierge service that can help reduce stress and allow employees to be at their best in life — so they can be at their best at work.
For those who benefit from self-help opportunities, we’ve partnered with meQuilibrium® to help employees get through the ups and downs in their lives.
Our culture also plays an important role in employee wellness by helping prevent issues from occurring. Simply addressing workload issues, helping ensure employees have a say in their job, and encouraging a positive relationship with supervisors and other employees has had an important effect on wellness and ultimately the health of our business.
Charitable giving has always been important to the Paychex culture. Our foundation has contributed millions over the years to support not-for-profit organizations in the communities where we live and work. In fiscal 2021, we made significant corporate contributions to our foundation. This has increased the foundation’s total assets to approximately $10 million overall, adding to our ability to have a positive effect on causes close to our employees and management.
We also ended FY20 with a $1.5 million gift to United Way, and we continued that commitment in FY21 with an additional $250,000 annual gift and $100,000 special grant to help the United Way address COVID-19 in the communities where we and our clients live and work. These gifts were in addition to our employees’ generous donations.
Our employees consistently amaze us with their support for the causes and people close to them. As our colleagues in India were being disproportionately affected by the COVID-19 pandemic, Paychex employees contributed $60,000 to the Paychex India COVID-19 Employee Relief Fund with an additional $25,000 corporate match.
That’s the power of Paychex. Our employees bring the same dedication to each other that they bring to their work. It helped us meet our clients’ needs as we transitioned to a distributed workforce, and it’s preparing us for even greater results during the economic recovery. The best from our people is yet to come.
In the complex new world of work, our cloud-based Human Capital Management (HCM) solution, Paychex Flex, makes payroll and HR simple — in some seriously smart ways. Our technology makes it easier for clients to invest in employee development, offer and manage world-class benefits, comply with changing regulations, and support employees’ mental, physical, and financial well-being to build better business results.
Paychex Flex brings together outsourced HR administration — including our professional employer organization (PEO) — employee onboarding, payroll, time and attendance, benefits administration, and retirement services into a single, easy-to-use technology and service platform.
It gives our clients a choice of how and when they want to interact with us, whether online, using the Paychex Flex Assistant chatbot, or through email or phone, with U.S.-based client service employees. No matter the method, our technology and service professionals are entirely in sync and committed to delivering an unmatched customer experience.
Paychex Flex works with any device, from desktop to mobile, for business owners and HR professionals in the office and working remotely. It delivers more than 30 self-service capabilities for employees, managers, and administrators. In addition, it brings together modules customized for HR, payroll, time and attendance, 401(k) administration, outsourced HR with a PEO, and more. Together, this all-in-one solution helps our clients manage their employees and grow their business.
As our clients navigate today’s tight labor market, they’re asking for help hiring and retaining employees while improving career pathing and development to help reduce turnover.
transactions occur through Paychex Flex
The next phase of our talent dashboard includes artificial intelligence and machine learning technologies to create a new predictive analytics report. Using the dashboard, clients can quickly assess important data points to help identify which employees may be at higher risk for turnover so they can take steps to keep them on board.
Paychex Flex also supports recruiting and retention through our fully integrated recruiting and applicant tracking module and our partnership and integration with Indeed®, the world’s largest job site.
And we were the first payroll provider with a real-time payments option. Paychex clients can process payroll and fund direct deposit in 15 seconds or less, giving our clients’ employees near-instant access to their pay when they need it most.
Managing cash flow and labor expenses continues to be important as the economy ramps up. The new Paychex Flex Labor Cost Hub gives clients a current, holistic view of total job costing and labor distribution expenses, driving greater insights to help them manage their workforce.
At Paychex, we’re always listening to clients and planning ahead, so that when a need arises, we’re ready with a specific technology solution. We continue to update our PPP solutions in near real-time, allowing clients to easily navigate the complexities of the PPP and employee retention tax credits.
Paychex Flex also generates hundreds of standard reports, with the option for clients to customize their own reporting to their specific needs. The difficulty of keeping up with changing laws and regulations makes our reporting capabilities key to helping clients meet their compliance responsibilities.
At its core, Paychex is and has always been a technology company. Ever since we first automated payrolls on computer punch cards 50 years ago, our IT professionals have continually advanced our state-of-the-art information technology infrastructure supporting our HCM platform.
Paychex manages a hybrid architecture of secure on-premises data centers and public cloud computing services from Amazon Web Services®, Google CloudTM, and Microsoft® Azure. We’re one of the largest and most robust private cloud container platforms in the U.S., storing and serving our solutions from more than 50,000 containers.
We also crossed 40,000 customer databases in Microsoft Azure, making Paychex the second largest consumer of their public cloud database technology.
“[Paychex] has a multi-tenant SAS model where they have a single database for customers. They completely optimized their workload … and delivered value to their customers.”
In FY21, we have many applications in the cloud with several more in development, including new time-off and candidate management apps. We’ve also developed artificial intelligence and machine learning-enabled reports that will provide access to data points to assist clients in identifying employees who may be at higher risk for turnover and offer suggestions to help improve retention.
Our client service chatbot is also 100% cloud based. Its natural language processing can understand and answer more than 300 questions. Clients can also easily access support in the cloud through our device-independent technology, self-service, Siri®, Google® Assistant, text notifications, and other ways to save time and simplify administration.
All of our internal applications are API-first. The Paychex open API platform makes it simple for us and third parties to create an integration. We use an iPaaS solution for internal builds that allows for quick implementation and the use of more than 100 integrations — and growing.
And we continue to strategically expand our integrations each month based on market demand and the opportunity to make payroll, HR, and benefits simple for our clients.
Paychex is tech-forward for our employees as well. When the time came to transition most of our employees to work remotely, our business continuity plan helped ensure we were prepared.
Thanks to the hard work of our IT professionals, we were able to set up 15,000 employees to work outside of the office in only five days, and support them continuously — all while maintaining our outstanding level of client service.
Helping our clients apply for PPP loans was a Herculean effort from an IT perspective. Within a few days of receiving the requirements for filing for a PPP loan, our team proactively generated PPP loan applications for our clients. Over a brief period, we created payroll reports for more than 500,000 clients. It was one of the most difficult and rewarding efforts in the history of our IT department, helping many clients secure the funding to stay in business.
Our Enterprise Security organization takes protecting our clients’ data seriously. We continue to invest in our award-winning security capabilities, including personnel security and physical security; system security, access control, and monitoring; data backup and business continuity management; and vulnerability and intrusion detection.
Paychex is one of only a few companies nationally to build a state-of-the-art cyber fusion center that combines proactive cyber threat intelligence and threat hunting with a security operations center (SOC). Our team monitors the threat environment 24/7/365 and analyzes more than 3 billion data points for security risks each day to rapidly identify and respond to cyber security threats.
We also maintain strong control and cyber security practices. Periodically, Paychex internal auditors and external accounting and auditing firms review our operations and business practices for compliance with corporate policies and procedures that specify the controls required to safeguard the confidentiality of information. We’re proud that Paychex has achieved SSAE 18, SOC 1, and SOC 2 attestations for our Paychex Flex and SurePayroll® platforms, with unqualified audit opinions issued by KPMG.
As we continue to provide our clients with access to our applications anytime, anywhere, and from any device, Paychex will remain focused on protecting the confidentiality, integrity, and availability of that information while complying with applicable legal and regulatory requirements.
Our ability to advance HR technology solutions depends on a close collaboration between Paychex and our clients. Working in partnership is another component of our core values. While large, our organization never loses sight of what challenges await small businesses. We focus on our promise — the power of simplicity.
As part of our focus on helping businesses weather the COVID-19 pandemic, we tapped our expertise in HR, payroll, benefits, and regulatory compliance to provide businesses with the information and tools necessary to take positive steps as the economy begins to improve. Clients, analysts, and influential organizations took notice — and we’ve been humbled by their response.
client retention in FY211
Our first-ever virtual business conference brought together 7,000 Paychex clients, business owners, and HR managers to hear from industry-renowned HR experts and Paychex product leaders. Attendees received insights, resources, and solutions to build a better workplace, increase productivity, and prepare to thrive in 2021 and beyond.
The conference was also an important way for us to thank our clients for their tremendous loyalty, demonstrated by historic levels of client retention.
Silver Stevie Award: Our rapid response to the COVID-19 pandemic was a silver Stevie® award winner for the Most Valuable COVID-19 Response by a Business Development Team. “For the past 50 years, we have kept a watchful eye on workplace trends to anticipate customers’ needs and bring them the solutions they need now and for the future. Despite the confusion and hardship for businesses, so swiftly brought on by COVID-19, we were able to quickly deliver resources and services that helped employers respond and adapt." - Martin Mucci, Paychex president and CEO
BIG Innovation Award: We have been recognized by the Business Intelligence Group as a leader in real-time payments (RTP) in 2021. “An update to the traditional bi-weekly pay cycle has been long overdue to meet the evolving needs of today’s workforce. Through RTP, employers can now run payroll when it is convenient for them, and employees don’t have to wait to be paid for time worked.” - Tom Hammond, vice president of Corporate Strategy and Product Management, Paychex
World's Most Ethical Companies: Paychex has been recognized by the Ethisphere Institute® as one of the World's Most Ethical Companies® 13 times, and consecutively since 2012. "We continue to drive our CSR program forward, with a focus on climate-related issues on the sustainability front, and diversity, equity, and inclusion on the people side. This responsibility is something we take incredibly seriously. Not only because it's important to our clients, employees, and investors, but because it's the right thing to do." - Stephanie Schaeffer, Chief ethics officer, Paychex
HR Tech Award: Paychex received an HR Tech Award for Best Small and Medium Business (SMB)-focused Solution in the Core HR/Workforce category of the HR Tech Awards program, powered by Lighthouse Research & Advisory. "Paychex continues to push the envelope, developing and looking for new ways to pursue innovation. Paychex has a network of more than 600 certified HR professionals who customers can pick up the phone and call anytime, which really set them apart for the judges. They're putting the 'service' in software-as-a-service." - Ben Eubanks, Lighthouse Research principal analyst
Top HR Product of the Year: Paychex earned recognition as a "Top HR Product of the Year" by Human Resource Executive Magazine and the HR Technology Conference and Exposition for our cloud-based SaaS platform, Paychex Flex®. "We're honored by this recognition. As the HR landscape continues to quickly evolve, we're confident the solutions we develop will help organizations embrace and adapt to the future of work." - Tom Hammond, vice president of Corporate Strategy and Product Management, Paychex
World's Most Admired Companies: Paychex Named a Leader in Corporate Reputation Among Financial Data Services Companies by Fortune® Magazine. “We’re proud to have been able to make a difference in the eyes of our clients, the wider business community, and the Fortune Most Admired panel. This recognition is a testament to the hard work and integrity of our nearly 16,000 employees who, despite challenging times, put their best forward every day to benefit our clients, colleagues, and shareholders.” - Martin Mucci, Paychex president and CEO
“Paychex has quality developed its (Paychex) Flex technology into a digitally focused platform offering that spans the employee journey and punches above its weight in HCM technology maturity.”
Industry research analysts who evaluate and recommend SaaS solutions and technologies agree that Paychex HR technology and service enable businesses to succeed in the new world of work.
Paychex Flex was number one in both user experience and vendor satisfaction scores in the Annual HR Systems Survey – Voice of the Customer Report from Sapient Insights Group. It also received 4.3 out of 5 stars from more than 1,200 client reviews in G2. You can see the satisfaction in their reviews and testimonials.
1. Approximate; data on file
With 50 years of experience providing businesses with technology and service solutions, Paychex has become an expert resource for information on topics ranging from HR, payroll, and benefits to regulatory compliance.
We share important information for businesses of all sizes and stages of growth through our Paychex WORX resource center. And when businesses needed help finding funding and complying with regulations relating to the COVID-19 pandemic, we came through with the knowledge to help them stay in business.
Unique Page Views
We created our COVID-19 Help Center to support businesses with their finances, employee management, and operations. Throughout FY21, it was a lifeline for businesses looking to apply for PPP loans and loan forgiveness, receiving 1.1 million unique page views.
Our interactive COVID-19 Resources by State tool is updated each day to help businesses stay up to date with the latest state laws, regulations, executive orders, advisories, and mandatory processes. The tool also links to state government resources and state-specific articles.
We’ve also been conducting qualitative research with the goal of supporting our clients and other businesses as they begin their transition from surviving to thriving. Some recent research topics have included:
Our HR Leadership and Paychex Business Series podcasts cover the current events and topics affecting businesses today, featuring interviews with successful small business owners and experts in human resources.
Our HR podcast includes engaging conversations and insights from leading HR influencers as well as from Paychex HR experts.
Hosted by business influencer Gene Marks, our business podcast includes interviews of small business owners and other experts about today’s top business issues.
In FY21, many business owners and HR managers had questions about PPP loans and changing regulations. We increased our output of webinars by 279% to anticipate and help solve their issues — covering topics such as PPP loan forgiveness, employee mental health, and vaccination policies in the workplace.
The response was impressive. Webinar registrations rose 1,166% and our webinars attracted more than 134,000 attendees, an increase of 1,280% from FY20.
On December 15, 2020, we held a live event discussing the outcome of the 2020 elections. Host Gene Marks interviewed guests from ABC News and MSNBC as they provided a national perspective on the election’s effect on the challenges facing businesses and employees, from the stimulus plan to the economy, taxes, health care, and retirement.
Our number one referral source, accounting professionals have long been key partners to Paychex. We’ve earned their trust by providing educational webinars available for Continuing Professional Education (CPE) credit as well as other resources and tools, such as the Accountant Knowledge Center, to support their firms and their clients. These are just a few reasons why we’ve had a nearly two-decade relationship as an AICPA/CPA.com preferred provider.
We also give financial advisors tools, flexible retirement plans, and cloud-based administration. Franchises look to us for support with recruiting, benefits management, and payroll processing. And we add value to national associations by giving chapters the tools to attract top talent and stay aware of changing employment laws and regulations. In each case, we give our partners products, tools, and information to help them remain a trusted partner to their clients.
The story of Paychex can be told through our statistics. Since our founding in 1971, Paychex has grown from a small business payroll company to one of the largest HR technology and service providers in the country. You can see from the numbers how far we’ve come and where our business is heading in fiscal 2022 and beyond.
in PPP loans secured with help from Paychex
(4% year-over-year increase)1
worksite employees supported (↑18%)
private sector employees paid
in 401(k) recordkeeping (96,000 plans)
largest insurance agency in the U.S.
check stub views
employee retirement sessions
1. Data on file
During one of the most challenging periods in the history of the U.S. economy, Paychex succeeded by helping clients emerge well prepared to thrive in the new world of work.
We helped them apply for PPP loans and loan forgiveness, supported them with recruiting and retaining top talent — and we provided the technology, people, and benefits to support the well-being of their employees.
We look forward to continuing to make it brilliantly simple for our investors, clients, and employees to thrive in fiscal 2022.
Thank you for your investment in Paychex. Please visit our investor relations website for more information.
Our board fulfills its oversight responsibilities to the shareholders and the investment community through audit, governance and compensation, corporate development advisory, investment, and executive committees.
President and Chief Executive Officer
Founder and Chairman of the Board