Paychex is a one-stop payroll and HCM service provider focused on small businesses.

Paychex’s offering is aimed at companies looking to outsource mission-critical functions, manage and engage employees, and comply with increasingly complex and evolving regulations. We expect increasing regulatory complexity, tight labor markets and growing adoption of hybrid work to underpin strong demand for Paychex’s suite of offerings, supporting share of wallet and market share. This includes greater penetration of the payroll and human resources outsourcing model into the small business market. While we factor in increased market share, we expect increased competition to limit Paychex’s pricing power and force the company to maintain increased software development and innovation costs to remain competitive.