Paychex, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Service Revenue (Tables)

Service Revenue (Tables)

3 Months Ended

Aug. 31, 2021

Service Revenue [Abstract]

Summary of PEO Pass-Through Costs Netted in Revenue


		For the three months ended
			August 31,
		2021			2020
In billions
Payroll wages and payroll taxes		$	5.6		$	4.9
In millions
State unemployment insurance (included in payroll wages and payroll taxes)		$	15.4		$	12.8
Guaranteed cost benefit plans		$	150.9		$	150.4

Summary of Changes in Deferred Revenue Related to Set-Up Fees



		For the three months ended
		August 31,
In millions		2021			2020
Balance, beginning of period		$	40.2		$	42.6
Deferral of revenue			7.6			4.0
Recognition of unearned revenue			(6.3)			(6.4)
Balance, end of period		$	41.5		$	40.2

Summary of Deferred Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction




In millions		Estimated
Year ending May 31,		deferral
2022		$	16.1
2023			14.5
Thereafter			10.9

Summary of Changes in Deferred Costs to Obtain and Fulfill Contracts



Costs to obtain contracts:
		For the three months ended
		August 31,
In millions		2021			2020
Balance, beginning of period		$	488.2		$	473.6
Capitalization of costs			46.6			37.2
Amortization			(42.9)			(41.4)
Balance, end of period		$	491.9		$	469.4



Costs to fulfill contracts:
		For the three months ended
		August 31,
In millions		2021			2020
Balance, beginning of period		$	69.3		$	67.3
Capitalization of costs			7.1			6.1
Amortization			(6.2)			(5.9)
Balance, end of period		$	70.2		$	67.5