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, 2022

Revenue from Contract with Customer [Abstract]

Summary of PEO Pass-Through Costs Netted in Revenue


		For the three months ended
		August 31,
In millions		2022					2021
Payroll wages and payroll taxes		$		6,337.8			$		5,557.2
State unemployment insurance (included in payroll wages and payroll taxes)		$		9.5			$		15.4
Guaranteed cost benefit plans		$		156.7			$		150.9

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


		For the three months ended
		August 31,
In millions		2022					2021
Balance, beginning of period		$		48.9			$		40.2
Deferral of revenue				10.1					7.6
Recognition of unearned revenue				(6.8	)				(6.3	)
Balance, end of period		$		52.2			$		41.5

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


In millions		Estimated
Year ending May 31,		recognition of unearned revenue
2023		$		17.9
2024				17.9
Thereafter				16.4
Total recognition of unearned revenue		$		52.2

Summary of Changes in Deferred Costs to Obtain and Fulfill Contracts


Costs to obtain contracts:
		For the three months ended
		August 31,
In millions		2022					2021
Balance, beginning of period		$		550.2			$		488.2
Capitalization of costs				57.0					46.6
Amortization				(46.6	)				(42.9	)
Balance, end of period		$		560.6			$		491.9


Costs to fulfill contracts:
		For the three months ended
		August 31,
In millions		2022					2021
Balance, beginning of period		$		72.3			$		69.3
Capitalization of costs				7.5					7.1
Amortization				(6.4	)				(6.2	)
Balance, end of period		$		73.4			$		70.2