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, 2021

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 29,			February 28,			February 29,
		2021			2020			2021			2020
In billions
Payroll wages and payroll taxes		$	5.5		$	5.6		$	15.5		$	15.9
In millions
State unemployment insurance (included in payroll wages and payroll taxes)		$	73.1		$	47.2		$	98.7		$	73.9
Guaranteed cost benefit plans		$	146.1		$	159.0		$	439.6		$	489.8

Summary of Changes in Deferred Revenue Related to Material Rights Performance Obligations



		For the three months ended						For the nine months ended
		February 28,			February 29,			February 28,			February 29,
In millions		2021			2020			2021			2020
Balance, beginning of period		$	39.6		$	45.1		$	42.6		$	45.7
Deferral of revenue			6.9			7.4			16.6			20.3
Recognition of unearned revenue			(6.7)			(7.4)			(19.4)			(20.9)
Balance, end of period		$	39.8		$	45.1		$	39.8		$	45.1

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




In millions		Estimated
Year ending May 31,		deferral
2021		$	6.1
2022			18.2
Thereafter			15.5

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 29,			February 28,			February 29,
In millions		2021			2020			2021			2020
Balance, beginning of period		$	468.1		$	456.9		$	473.6		$	464.3
Capitalization of costs			49.9			49.4			127.5			122.7
Amortization			(41.9)			(40.7)			(125.0)			(121.4)
Balance, end of period		$	476.1		$	465.6		$	476.1		$	465.6



Costs to fulfill contracts:
		For the three months ended						For the nine months ended
		February 28,			February 29,			February 28,			February 29,
In millions		2021			2020			2021			2020
Balance, beginning of period		$	67.4		$	66.4		$	67.3		$	66.1
Capitalization of costs			7.2			6.7			19.3			18.7
Amortization			(6.0)			(6.0)			(18.0)			(17.7)
Balance, end of period		$	68.6		$	67.1		$	68.6		$	67.1