Paychex
| Company type | Public |
|---|---|
| Industry | Human resources, payroll administration, employee benefits outsourcing |
| Founded | 1971 |
| Founder | Tom Golisano |
| Headquarters | Rochester , United States |
Area served | United States, Europe |
Key people | John Gibson (CEO) |
| Products | Human resources services, payroll administration, employee benefits outsourcing |
| Website | paychex |
Paychex, Inc. is a U.S.-based provider specializing in human resources, payroll administration, and employee benefits outsourcing tailored for small and medium enterprises. Established in 1971 and headquartered in Rochester, New York, the company manages operations through more than 100 locations, serving around 800,000 payroll clients throughout the United States and Europe. By revenue, Paychex holds the 681st position on the Fortune 500 ranking.
History
Founded by Tom Golisano in 1971 with an initial investment of $3,000, Paychex began its growth via 18 franchises and partnerships before consolidating into a single private entity by 1979. It transitioned to a publicly traded company in 1983 under the ticker symbol PAYX.
The company's expansion includes significant acquisitions such as Pay-Fone (1995), Olsen Computer Systems and National Business Systems (1996), Advantage Payroll Services (2002), Interpay (2003), and Time in a Box along with its parent company Stromberg (2003–2004). Later acquisitions comprised Hawthorne Benefit Technologies (2007), SurePayroll (2010), ePlan Services (2011), Icon Time Systems and ExpenseWire (2012), myStaffingPro (2013), NETtime solutions (2014), Advance Partners (2015), and Human Resources Outsourcing, Inc. (2017).
In recognition of its workplace environment, Paychex was honored as one of Rochester's Best Places to Work in 2016. The company's acquisition of Lessor Group and Oasis Outsourcing for $1.2 billion in 2018 marked a substantial market expansion. It was also featured on the Fortune Future 50 list in 2019.
John Gibson assumed the role of CEO in October 2022. By 2024, Paychex reported revenues of $5.2 billion and held assets totaling $13 billion.
In 2025, Paychex enhanced its AI-enabled HR solutions by acquiring competitor Paycor for $4.1 billion. Additionally, in May of the same year, it completed a cash purchase of SixFifty, the legal technology division of law firm Wilson Sonsini Goodrich & Rosati, for an amount estimated between $70 million and $85 million.
Small Business Employment Watch
In collaboration with IHS Markit, Paychex introduced the Small Business Jobs Index in 2014 to monitor the performance of companies with up to 50 employees. The IHS Markit Small Business Employment Watch offers employment data dating back to 2005 and wage statistics from 2011 onward. This index serves as a valuable resource for economists, market analysts, and media professionals analyzing economic developments.