EXHIBIT 11 PAYCHEX, INC. STATEMENT RE COMPUTATION OF PER SHARE EARNINGS (In thousands except per share data) For the three months For the six months ended November 30, ended November 30, 1997 1996 1997 1996 A. Net income $ 24,718 $ 18,068 $ 47,792 $ 35,141 B. Actual weighted-average number of common shares outstanding 108,639 107,742 108,601 107,625 C. Earnings per common share (A/B)(1) $ .23 $ .17 $ .44 $ .33 PRIMARY DILUTED EARNINGS PER SHARE(2): D. Net effect of dilutive stock options based on Treasury Stock Method using average market price for the three months and six months ended November 30, 1,028 1,274 1,047 1,254 E. Adjusted weighted-average shares outstanding (B+D) 109,667 109,016 109,648 108,879 F. Primary diluted earnings per share (A/E) $ .23 $ .17 $ .44 $ .32 G. Dilutive effect on earnings per share (C-F) $ .00 $ .00 $ .00 $ .01 FULLY DILUTED EARNINGS PER SHARE(2): H. Net effect of dilutive stock options based on Treasury Stock Method using the period end market price, if greater than the average market price for the three months and six months ended November 30, 1,114 1,274 1,090 1,280 I. Adjusted weighted-average shares outstanding (B+H) 109,753 109,016 109,691 108,905 J. Fully diluted earnings per share (A/I) $ .23 $ .17 $ .44 $ .32 K. Dilutive effect on earnings per share (C-J) $ .00 $ .00 $ .00 $ .01 (1) Earnings per common share information is based on weighted-average number of shares of common stock outstanding during each period. No effect has been given to stock options outstanding under the Company's Stock Incentive Plans as no material dilutive effect would result from the exercise of these options. (2) This calculation is submitted in accordance with The Securities and Exchange Act of 1934, although not required by Accounting Principles Board Opinion No. 15, since no material dilutive effect would result from the exercise of these options.