Paychex, Inc.: Expanding Digital Capabilities & Macro Factors Influencing Its Growth!

Paychex, in its third quarter, reported a total revenue growth of 4%, which was dampened by a lower contribution from its Employee Retention Tax Credit (ERTC) service, compared to the previous year. However, the company stated that by eliminating this impact, the total revenue grew by 7% during the quarter. Factors such as the winding down of the ERTC program, moderated employment growth within Paychex’s client base, and marginally lower realized rates resulted in stronger headwinds during this quarter than the company had anticipated.