Company: PAYX
Filing Date: 2025-08-29
Form Type: DEF 14A
Source: 0001193125-25-191789
Chunk: 88

Company: PAYCHEX INC
Filing Date: 2025-08-29
Form: DEF 14A
Chunk 88
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 core business operations’ performance period over period. Operating income, net of certain items, excludes interest on funds held for clients. Interest on funds held for clients is an adjustment to operating income due to the volatility of interest rates, which are not within the control of management. Operating income, net of certain items and adjusted diluted earnings per share are not calculated through the application of U.S. GAAP and are not required forms of disclosure by the SEC. As such, they should not be considered as a substitute for the U.S. GAAP measure of operating income and diluted earnings per share and therefore should not be used in isolation, but in conjunction with the U.S. GAAP measures. The use of any non-GAAPmeasure may produce results that vary from the U.S. GAAP measure and may not be comparable to a similarly defined non-GAAPmeasure used by other companies. Paychex, Inc. 2025 Proxy Statement •A-1

APPENDIX B PAYCHEX, INC. RECONCILIATION OF PERFORMANCE MEASURES TO THOSE REPORTED IN THE COMPANY’S CONSOLIDATED FINANCIAL STATEMENTS Under the Company’s incentive compensation programs, performance targets are often based on measures of service revenue and operating income, net of certain items (see Note 4 below regarding this measure). In evaluating achievement, the programs allow for certain adjustments to be made to the results reported in the consolidated financial statements. The following table reconciles the results reported in our consolidated financial statements to those representing achievement under the award agreement for the July 2023 performance-based RSUs.

| In millions                                                              |     | Year Ended May 31, 
 2025               |   |       |   |     | 2024 |   |       |   |     | Two-Year            
 Performance  Period |   |        |   |
|:-------------------------------------------------------------------------|:----|:-------------------|:--|------:|:--|:----|:-----|:--|------:|:--|:----|:--------------------|:--|-------:|:--|
| Service revenue                                                          |     |                    | $ | 5,410 |   |     |      | $ | 5,132 |   |     |                     | $ | 10,542 |   |
| Service revenue, as calculated under the award(1)                        |     |                    | $ | 5,410 |   |     |      | $ | 5,132 |   |     |