EXHIBIT 99.1

PRESS RELEASE OF PAYCHEX, INC. DATED DECEMBER 16, 2009

PAYCHEX, INC. REPORTS SECOND QUARTER RESULTS

December 16, 2009

SECOND QUARTER FISCAL 2010 HIGHLIGHTS

	•		Total service revenue decreased 4% to $483.0 million.
	•		Total revenue was $496.6 million.
	•		Operating income decreased 9% to $193.1 million, as interest on funds held for clients decreased 31%.
	•		Operating income excluding interest on funds held for clients decreased 7% to $179.5 million.
	•		Net income and diluted earnings per share decreased 10% to $125.8 million and $0.35 per share, respectively.

     ROCHESTER, NY, December 16, 2009 — Paychex, Inc. (“Paychex,” “we,” “our,” or “us”) (NASDAQ:PAYX) today announced total revenue of $496.6 million for the three months ended November 30, 2009 (the “second quarter”), a 5% decrease from the same period last year. Net income and diluted earnings per share decreased 10% to $125.8 million and $0.35 per share, respectively.

     “Our financial results for the second quarter were in line with our expectations, and our guidance for the full year fiscal 2010 remains unchanged. The economic environment has continued to influence our results causing unfavorable year-over-year comparisons. On a positive note, our key indicators have been stable for the second quarter in a row,” commented Jonathan J. Judge, President and Chief Executive Officer of Paychex. “We continue to provide excellent customer service, invest in our business while remaining cost conscious, and are positioned to capitalize on our opportunities as the economy recovers,” added Mr. Judge.

     Payroll service revenue decreased 7% to $350.8 million for the second quarter from the same period last year as the impact of the weakened economic environment negatively impacted our client base and check volume. Our checks per client decreased 3.7% for the second quarter compared to the same period last year, an improvement from the 5.0% year-over-year decline for the three months ended August 31, 2009 (the “first quarter”). Our client base has been adversely impacted by weak new business starts.

     Human Resource Services revenue increased 3% to $132.2 million for the second quarter from the same period last year. The following factors contributed to Human Resource Services revenue growth:

As of:		November 30,				%				November 30,				%
$ in billions		2009				Change				2008				Change
Comprehensive human resource outsourcing services client employees served			468,000				5	%			445,000				11	%
Comprehensive human resource outsourcing services clients			19,000				8	%			17,000				15	%
Workers’ compensation insurance clients			78,000				5	%			75,000				11	%
Retirement services clients			50,000				(1	%)			50,000				10	%
Asset value of retirement services client employees’ funds		$	10.3				43	%		$	7.2				(22	%)

     In addition, Human Resource Services revenue for the second quarter was positively impacted by a 54% increase in health and benefits services revenue and favorability in PEO net service revenue from fluctuations in workers’ compensation claims.

     Offsetting some of this revenue growth has been the impact from weak economic conditions. The most significant impacts have been to retirement services and comprehensive human resource outsourcing services. The asset value of retirement services client employees’ funds has increased 43% from the same period last year to $10.3 billion as of November 30, 2009, as a result of recovery in the financial markets. The positive impact of the market recovery on second quarter revenue was offset by retirement services client employees shifting the mix of assets invested to funds earning lower fees. Also, retirement services revenue growth was impacted by $3.4 million for billings in the second quarter of fiscal 2009 related to statutory required restatements of clients’ retirement plans which are not expected to recur for approximately six years.

     During the second quarter, we sold Stromberg time and attendance, an immaterial component of Paychex. Human Resource Services revenue growth excluding Stromberg revenue and retirement plan restatement billings would have been 2% for the first quarter, 9% for the second quarter, and 5% for the six months ended November 30, 2009.

     Total expenses decreased 3% to $303.5 million for the second quarter compared to the same period last year. This decline was primarily due to overall cost control measures and lower headcount, offset slightly by costs related to continued investment in our sales force for key areas, customer service, and technological infrastructure.

     For the second quarter, our operating income was $193.1 million, a decrease of 9% from the same period last year. Operating income excluding interest on funds held for clients (see Note 1 on page 3 for further description of this non-GAAP measure) decreased 7% to $179.5 million for the second quarter as compared to $192.1 million for the same period last year.

		For the three months ended												For the six months ended
		November 30,												November 30,
$ in millions		2009				2008				% Change				2009				2008				% Change
Operating income		$	193.1			$	211.9				(9	%)		$	382.9			$	433.5				(12	%)
Excluding interest on funds held for clients			(13.6	)			(19.8	)			(31	%)			(27.3	)			(44.0	)			(38	%)
Operating income excluding interest on funds held for clients		$	179.5			$	192.1				(7	%)		$	355.6			$	389.5				(9	%)

     For the second quarter, interest on funds held for clients decreased 31% to $13.6 million due to lower average interest rates earned and lower average investment balances. Average investment balances for funds held for clients decreased 10% for the second quarter compared to the prior year period. This decline was a result of overall economic factors, which have negatively impacted our client base, and the impact of the American Recovery and Reinvestment Act of 2009 (the “2009 economic stimulus package”) generating lower tax withholdings for client employees. Investment income decreased 41% to $1.1 million for the second quarter due to lower average interest rates earned, offset somewhat by higher average investment balances resulting from investment of cash generated from operations.

     Average investment balances and interest rates are summarized below:

		For the three months ended														For the six months ended
		November 30,												November 30,
$ in millions		2009				2008				% Change					2009				2008				% Change
Average investment balances:
Funds held for clients		$	2,790.8			$	3,088.3				(10	%)			$	2,849.0			$	3,154.2				(10	%)
Corporate investments		$	627.1			$	510.2				23	%			$	622.8			$	497.3				25	%
Average interest rates earned (exclusive of net realized gains):
Funds held for clients			1.8	%			2.5	%								1.8	%			2.7	%
Corporate investments			0.9	%			1.6	%								0.8	%			2.1	%
Net realized gains:
Funds held for clients		$	0.7			$	0.4								$	1.0			$	0.7
Corporate investments		$	—			$	—								$	—			$	—

     We continue to follow our investment strategy of maximizing liquidity and protecting principal. With the turmoil in the financial markets, this has translated to significantly lower yields on high quality instruments, impacting our income earned on our funds held for clients and corporate investments. We invest primarily in high credit quality securities with AAA and AA ratings and short-term securities with A-1/P-1 ratings. We limit the amounts that can be invested in any single issuer. All the investments we held as of November 30, 2009 are traded in active markets. During the past year, our primary short-term investment vehicle has been United States (“U.S.”) agency discount notes. We have seen gradual improvements in liquidity in certain money market sectors, and during the second quarter we began to invest in select A-1/P-1-rated variable rate demand notes.

     The available-for-sale securities within the funds held for clients and corporate investment portfolios reflected a net unrealized gain of $78.8 million as of November 30, 2009, compared with a net unrealized gain of $66.7 million as of May 31, 2009. During the six months ended November 30, 2009, the net unrealized gain on our investment portfolios ranged from $55.1 million to $78.8 million. The net unrealized gain on our investment portfolios was approximately $79.2 million as of December 11, 2009.

YEAR-TO-DATE FISCAL 2010 HIGHLIGHTS

     The highlights for the six months ended November 30, 2009 are as follows:

	•		Payroll service revenue decreased 7% to $705.2 million.
	•		Human Resource Services revenue increased 2% to $264.3 million.
	•		Total revenue decreased 6% to $996.8 million.
	•		Combined interest on funds held for clients and investment income, net decreased $19.7 million, or 40%.
	•		Operating income decreased 12% to $382.9 million, and operating income excluding interest on funds held for clients decreased 9% to $355.6 million.
	•		Net income and diluted earnings per share decreased 14% to $249.5 million and $0.69 per share, respectively.
	•		Cash flow from operations was $279.2 million.

OUTLOOK

     Our outlook for the fiscal year ending May 31, 2010 (“fiscal 2010”) remains unchanged from the guidance provided at the end of the first quarter. This guidance reflects the impact of current economic and financial conditions, and assumes these conditions will continue through the remainder of the fiscal year. Consistent with our policy regarding guidance, our projections do not anticipate or speculate on future changes to interest rates.

     Projected changes in revenue and net income for fiscal 2010 are as follows:

		Low								High
Payroll service revenue			(7	%)			—				(5	%)
Human Resource Services revenue			3	%			—				6	%
Total service revenue			(5	%)			—				(2	%)
Interest on funds held for clients			(30	%)			—				(25	%)
Total revenue			(5	%)			—				(2	%)
Investment income, net			(35	%)			—				(30	%)
Net income			(12	%)			—				(10	%)

     Operating income excluding interest on funds held for clients as a percentage of service revenue is expected to range from 34% to 35% for fiscal 2010. The effective income tax rate is expected to approximate 35% throughout fiscal 2010. The higher tax rate in fiscal 2010 is driven by higher state income tax rates resulting from state legislative changes.

     Interest on funds held for clients and investment income for fiscal 2010 are expected to be impacted by interest rate volatility, and comparisons to prior year are expected to improve in the second half of fiscal 2010. Interest on funds held for clients will be further impacted by a projected 8% decline in average invested balances for fiscal 2010 compared to the prior year. This decline is the result of overall economic factors, which have negatively impacted our client base, and the 2009 economic stimulus package generating lower tax withholdings for client employees.

Note 1: In addition to reporting operating income, a U.S. generally accepted accounting principle (“GAAP”) measure, we present operating income excluding interest on funds held for clients, which is a non-GAAP measure. We believe operating income excluding interest on funds held for clients is an appropriate additional measure, as it is an indicator of our core business operations performance period over period. It is also the measure used internally for establishing the following year’s targets and measuring management’s performance in connection with certain performance-based compensation payments and awards. Interest on funds held for clients is an adjustment to operating income due to the volatility of interest rates which are not within the control of management. Operating income excluding interest on funds held for clients is not calculated through the application of GAAP and is not the required form of disclosure by the Securities and Exchange Commission (“SEC”). As such, it should not be considered as a substitute for the GAAP measure of operating income and, therefore, should not be used in isolation, but in conjunction with the GAAP measure. The use of any non-GAAP measure may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies.

QUARTERLY REPORT ON FORM 10-Q

     Our Quarterly Report on Form 10-Q (“Form 10-Q”) is normally filed by the close of business on the same day as this press release is issued, and is available at www.paychex.com. This press release should be read in conjunction with the Form 10-Q and the related Notes to Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in that Form 10-Q.

CONFERENCE CALL

     Interested parties may access the webcast of our Earnings Release Conference Call, scheduled for December 17, 2009 at 10:30 a.m. Eastern Time, at www.paychex.com on the Investor Relations page. The webcast will also be archived on the Investor Relations page for approximately one month. Our news releases, current financial information, SEC filings, and investor presentation are also accessible at www.paychex.com. For more information, contact:

Investor Relations:		John Morphy, CFO, or
		Terri Allen		585-383-3406
Media Inquiries:		Laura Saxby Lynch		585-383-3074

ABOUT PAYCHEX

     Paychex, Inc. is a leading provider of payroll, human resource, and benefits outsourcing solutions for small- to medium-sized businesses. The company offers comprehensive payroll services, including payroll processing, payroll tax administration, and employee pay services, including direct deposit, check signing, and Readychex^®. Human Resource Services include 401(k) plan recordkeeping, health insurance, workers’ compensation administration, section 125 plans, a professional employer organization, time and attendance solutions, and other administrative services for business. Paychex, Inc. was founded in 1971. With headquarters in Rochester, New York, the company has more than 100 offices and serves approximately 554,000 payroll clients nationwide as of May 31, 2009. For more information about Paychex, Inc. and our products, visit www.paychex.com.

“SAFE HARBOR” STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

     Certain written and oral statements made by us may constitute “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). Forward-looking statements are identified by such words and phrases as “we expect,” “expected to,” “estimates,” “estimated,” “current outlook,” “we look forward to,” “would equate to,” “projects,” “projections,” “projected to be,” “anticipates,” “anticipated,” “we believe,” “could be,” and other similar phrases. All statements addressing operating performance, events, or developments that we expect or anticipate will occur in the future, including statements relating to revenue growth, earnings, earnings-per-share growth, or similar projections, are forward-looking statements within the meaning of the Reform Act. Because they are forward-looking, they should be evaluated in light of important risk factors. These risk factors include, but are not limited to, the following risks, as well as those that are described in our periodic filings with the SEC:

	•		general market and economic conditions including, among others, changes in U.S. employment and wage levels, changes in new hiring trends, legislative changes to stimulate the economy, changes in short- and long-term interest rates, changes in the fair value and the credit rating of securities held by us, and accessibility of financing;
	•		changes in demand for our services and products, ability to develop and market new services and products effectively, pricing changes and the impact of competition, and the availability of skilled workers;
	•		changes in the laws regulating collection and payment of payroll taxes, professional employer organizations, and employee benefits, including retirement plans, workers’ compensation, health insurance, state unemployment, and section 125 plans;
	•		changes in workers’ compensation rates and underlying claims trends;
	•		the possibility of failure to keep pace with technological changes and provide timely enhancements to services and products;
	•		the possibility of failure of our operating facilities, computer systems, and communication systems during a catastrophic event;
	•		the possibility of third-party service providers failing to perform their functions;
	•		the possible failure of internal controls or our inability to implement business processing improvements; and
	•		potentially unfavorable outcomes related to pending legal matters.

Any of these factors could cause our actual results to differ materially from our anticipated results. The information provided in this document is based upon the facts and circumstances known at this time. We undertake no obligation to update these forward-looking statements after the date of issuance of this release to reflect events or circumstances after such date, or to reflect the occurrence of unanticipated events.

PAYCHEX, INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In thousands, except per share amounts)

		For the three months ended												For the six months ended
		November 30,												November 30,
		2009				2008				% Change				2009				2008				% Change
Revenue:
Payroll service revenue		$	350,817			$	376,090				(7	%)		$	705,238			$	754,548				(7	%)
Human Resource Services revenue			132,207				128,293				3	%			264,277				259,702				2	%
Total service revenue			483,024				504,383				(4	%)			969,515				1,014,250				(4	%)
Interest on funds held for clients (1)			13,552				19,777				(31	%)			27,275				43,995				(38	%)
Total revenue			496,576				524,160				(5	%)			996,790				1,058,245				(6	%)
Expenses:
Operating expenses			162,648				170,675				(5	%)			325,994				339,143				(4	%)
Selling, general and administrative expenses			140,863				141,585				(1	%)			287,864				285,617				1	%
Total expenses			303,511				312,260				(3	%)			613,858				624,760				(2	%)
Operating income			193,065				211,900				(9	%)			382,932				433,485				(12	%)
Investment income, net (1)			1,147				1,932				(41	%)			2,052				4,983				(59	%)
Income before income taxes			194,212				213,832				(9	%)			384,984				438,468				(12	%)
Income taxes			68,362				73,590				(7	%)			135,514				149,517				(9	%)
Net income		$	125,850			$	140,242				(10	%)		$	249,470			$	288,951				(14	%)
Basic earnings per share		$	0.35			$	0.39				(10	%)		$	0.69			$	0.80				(14	%)
Diluted earnings per share		$	0.35			$	0.39				(10	%)		$	0.69			$	0.80				(14	%)
Weighted-average common shares outstanding			361,392				360,812								361,288				360,710
Weighted-average common shares outstanding, assuming dilution			361,692				360,977								361,515				360,998
Cash dividends per common share		$	0.31			$	0.31				—			$	0.62			$	0.62				—

PAYCHEX, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands, except per share amount)

		November 30,				May 31,
		2009				2009
ASSETS
Cash and cash equivalents		$	225,304			$	472,769
Corporate investments			62,011				19,710
Interest receivable			29,107				27,722
Accounts receivable, net of allowance for doubtful accounts			221,711				177,958
Deferred income taxes			—				10,180
Prepaid income taxes			—				2,198
Prepaid expenses and other current assets			27,958				27,913
Current assets before funds held for clients			566,091				738,450
Funds held for clients			2,996,115				3,501,376
Total current assets			3,562,206				4,239,826
Long-term corporate investments			317,430				82,234
Property and equipment, net of accumulated depreciation			262,024				274,530
Intangible assets, net of accumulated amortization			71,478				76,641
Goodwill			421,559				433,316
Deferred income taxes			18,488				16,487
Other long-term assets			3,947				4,381
Total assets		$	4,657,132			$	5,127,415
LIABILITIES
Accounts payable		$	36,494			$	37,334
Accrued compensation and related items			136,777				135,064
Deferred revenue			2,516				9,542
Accrued income taxes			1,739				—
Deferred income taxes			23,683				17,159
Litigation reserve			20,396				20,411
Other current liabilities			42,138				44,704
Current liabilities before client fund obligations			263,743				264,214
Client fund obligations			2,922,986				3,437,679
Total current liabilities			3,186,729				3,701,893
Accrued income taxes			26,580				25,730
Deferred income taxes			7,743				12,773
Other long-term liabilities			43,890				45,541
Total liabilities			3,264,942				3,785,937
STOCKHOLDERS’ EQUITY
Common stock, $0.01 par value; Authorized: 600,000 shares;
Issued and outstanding: 361,407 shares as of November 30, 2009
and 360,976 shares as of May 31, 2009, respectively			3,614				3,610
Additional paid-in capital			485,853				466,427
Retained earnings			853,084				829,501
Accumulated other comprehensive income			49,639				41,940
Total stockholders’ equity			1,392,190				1,341,478
Total liabilities and stockholders’ equity		$	4,657,132			$	5,127,415

PAYCHEX, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)

		For the six months ended
		November 30,
		2009				2008
OPERATING ACTIVITIES
Net income		$	249,470			$	288,951
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization on property and equipment and intangible assets			43,313				41,678
Amortization of premiums and discounts on available-for-sale securities			16,801				11,940
Stock-based compensation costs			13,310				13,942
Provision for deferred income taxes			4,263				13,089
Provision for allowance for doubtful accounts			1,958				1,084
Net realized gains on sales of available-for-sale securities			(1,014	)			(705	)
Changes in operating assets and liabilities:
Interest receivable			(1,385	)			4,644
Accounts receivable			(44,641	)			(35,836	)
Prepaid expenses and other current assets			1,665				5,501
Accounts payable and other current liabilities			(1,422	)			(18,712	)
Net change in other assets and liabilities			(3,147	)			2,809
Net cash provided by operating activities			279,171				328,385
INVESTING ACTIVITIES
Purchases of available-for-sale securities			(756,826	)			(16,284,599	)
Proceeds from sales and maturities of available-for-sale securities			284,071				17,493,183
Net change in funds held for clients’ money market securities and other cash equivalents			697,664				(820,736	)
Purchases of property and equipment			(23,091	)			(39,207	)
Proceeds from sale of business			13,050				—
Purchases of other assets			(9,168	)			(13,445	)
Net cash provided by investing activities			205,700				335,196
FINANCING ACTIVITIES
Net change in client fund obligations			(514,693	)			(279,002	)
Dividends paid			(224,234	)			(223,840	)
Proceeds from and excess tax benefit related to exercise of stock options			6,591				5,657
Net cash used in financing activities			(732,336	)			(497,185	)
(Decrease)/increase in cash and cash equivalents			(247,465	)			166,396
Cash and cash equivalents, beginning of period			472,769				164,237
Cash and cash equivalents, end of period		$	225,304			$	330,633