Vendor Analysis
published on Sep 10, 2025
Report Overview:
This NelsonHall vendor assessment analyzes Paychex's offerings and capabilities in Payroll Services
Who is this Report for:
NelsonHall’s Payroll Services profile on Paychex is a comprehensive assessment of Paychex’s offerings and capabilities, designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of Payroll Services and identifying vendor suitability for Payroll Services RFPs
- Vendor marketing, sales, and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the Payroll Services sector.
Scope of this Report:
The report provides a comprehensive and objective analysis of Paychex’s Payroll Services offerings, capabilities, and market and financial strengths, including:
- Identification of the company’s strategy, emphasis, and new developments
- Analysis of the company’s strengths, challenges, and outlook
- Revenue estimates
- Analysis of the profile of the company’s customer base, including the company’s targeting strategy and examples of current contracts
- Analysis of the company’s offerings and key service components
- Analysis of the company’s delivery organization, including the location of delivery centers.
Key Findings & Highlights:
Paychex (NASDAQ: PAYX) is a provider of integrated HCM solutions for payroll, benefits, human resources, and insurance services for small and mid-sized businesses primarily throughout the U.S. and Northern Europe. It supports ~2.5m worksite employees through its HR outsourcing solutions and provides payroll to an estimated 1 in 12 U.S. private sector employees. Paychex is one of the largest 401(k) recordkeepers in the U.S. Paychex offers a comprehensive suite of HR technology and managed services; each is enabled through its proprietary HCM technology, including:
- HR outsourcing services (HR, payroll, benefits)
- Paychex HR PEO services (co-employment model)
- Retirement planning services
- Business insurance services.
In April 2025, Paychex finalized its acquisition of Paycor HCM Inc. for ~$4.1bn. This move aims to enhance Paychex's market position by expanding its capabilities and market reach into the mid-market and enterprise segments. Paycor added ~2.9k employees, and ~30k clients representing ~2.3m employees in the U.S. NelsonHall estimates Paycor’s revenue for CY 2024 was $655m. Post acquisition, Paycor is Paychex’s enterprise platform, targeting U.S. organizations with between 100 and ~1k employees.
