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)

9 Months Ended

Feb. 28, 2022

Service Revenue [Abstract]

Summary of PEO Pass-Through Costs Netted in Revenue


		For the three months ended										For the nine months ended
		February 28,											February 28,
In millions		2022					2021					2022					2021
Payroll wages and payroll taxes		$		6,546.1			$		5,518.5			$		17,909.4			$		15,479.3
State unemployment insurance (included in payroll wages and payroll taxes)				74.2					73.1					108.2					98.7
Guaranteed cost benefit plans				164.3					146.1					471.9					439.6

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


		For the three months ended										For the nine months ended
		February 28,										February 28,
In millions		2022					2021					2022					2021
Balance, beginning of period		$		43.8			$		39.6			$		40.2			$		42.6
Deferral of revenue				9.1					6.9					25.4					16.6
Recognition of unearned revenue				(6.8	)				(6.7	)				(19.5	)				(19.4	)
Balance, end of period		$		46.1			$		39.8			$		46.1			$		39.8

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


In millions		Estimated
Year ending May 31,		deferral
2022		$		6.3
2023				19.4
Thereafter				20.4
Total deferral		$		46.1

Summary of Changes in Deferred Costs to Obtain and Fulfill Contracts


Costs to obtain contracts:
		For the three months ended										For the nine months ended
		February 28,										February 28,
In millions		2022					2021					2022					2021
Balance, beginning of period		$		500.5			$		468.1			$		488.2			$		473.6
Capitalization of costs				70.1					49.9					169.1					127.5
Amortization				(44.8	)				(41.9	)				(131.5	)				(125.0	)
Balance, end of period		$		525.8			$		476.1			$		525.8			$		476.1


Costs to fulfill contracts:
		For the three months ended										For the nine months ended
		February 28,										February 28,
In millions		2022					2021					2022					2021
Balance, beginning of period		$		70.5			$		67.4			$		69.3			$		67.3
Capitalization of costs				7.4					7.2					21.0					19.3
Amortization				(6.3	)				(6.0	)				(18.7	)				(18.0	)
Balance, end of period		$		71.6			$		68.6			$		71.6			$		68.6