Company: PAYX
Filing Date: 2025-03-26
Form Type: 10-Q
Source: 0000950170-25-045216
Chunk: 35

Company: PAYCHEX INC
Filing Date: 2025-03-26
Form: 10-Q
Item: Part I, Item 8
Chunk 35
---
        In millions
         
        2025

        2024

        2025

        2024

        Payroll wages and payroll taxes
         
        $
         
        7,783.0

        $
         
        7,317.0

        $
         
        21,836.6

        $
         
        20,378.5

        State unemployment insurance (included in payroll wages and payroll taxes)
         
        $
         
        81.5

        $
         
        78.0

        $
         
        127.9

        $
         
        116.3

        Guaranteed cost benefit plans
         
        $
         
        172.6

        $
         
        165.6

        $
         
        505.9

        $
         
        499.4

       Insurance solutions are sold through the Company’s licensed insurance agency, Paychex Insurance Agency, Inc., which provides insurance through a variety of carriers, allowing companies to expand their employee benefit offerings at an affordable cost. Insurance offerings include property and casualty coverage such as workers’ compensation, business-owner policies, commercial auto, cyber security, and health and benefits coverage, including health, dental, vision, life and disability. Insurance Solutions revenue reflects commissions earned on remitted insurance services premiums billed and is recognized over time as services are performed and the client simultaneously receives and controls the benefits from these services. Contract BalancesThe timing of revenue recognition for Management Solutions and PEO and Insurance Solutions is consistent with the invoicing of clients as they both occur during the respective client payroll period for which the services are provided. Therefore, the Company does not recognize a contract asset or liability resulting from the timing of revenue recognition and invoicing.  Payments received for certain of the Company’s service offerings for set-up fees are considered a material right. Therefore, the Company defers revenue associated with these performance obligations, which exceed one year, and subsequently recognizes them as future services are provided, over approximately three to four years. Changes in deferred revenue related to material rights that exceed one year were as follows: 

        For the three months ended

        For the nine months ended

        February 28,

        February 29,

        February 28,

        February 29,

        In millions
         
        2025

        2024

        2025

        2024

        Balance, beginning