Company: PAYX
Filing Date: 2025-06-06
Form Type: 11-K
Source: 0000950170-25-083153
Chunk: 9

Company: PAYCHEX INC
Filing Date: 2025-06-06
Form: 11-K
Chunk 9
---
 2024.

Recently Issued Accounting Pronouncements:Recent accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”) (including technical corrections to the FASB’s Accounting Standards Codification), and the American Institute of Certified Public Accountants did not, or are not, expected to have a material effect on the Plan’s net assets available for benefits or changes in net assets available for benefits.

Subsequent Events:The Plan has evaluated subsequent events for potential recognition and/or disclosure through the date of issuance of these financial statements. No significant subsequent events have occurred requiring adjustments to the financial statements.

On April 14, 2025, Paychex completed its acquisition of Paycor HCM, Inc. ("Paycor"). Paycor sponsors a 401(k) plan for the benefit of its employees (the "Paycor Plan"). The Plan is currently evaluating the steps necessary to allow Paycor Plan participants to join the Plan and subsequently transfer Paycor Plan assets to the Plan. These actions will likely take place in the first half of 2026. The final number of Paycor Plan participants and Paycor Plan assets that will transfer to the Plan are not known at this time.

NOTE C. FAIR VALUE MEASUREMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The accounting standards related to fair value measurements include a hierarchy for information and valuations used in measuring fair value that is broken down into three levels based on reliability, as follows:

Level 1 valuations are based on quoted prices in active markets for identical instruments that the Plan has the ability to access.

Level 2 valuations are based on quoted prices for similar, but not identical, instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; or other significant observable inputs besides quoted prices.

Level 3 valuations are based on information that is unobservable and significant to the overall fair value measurement.

The carrying value of cash approximates its fair value due to the short maturity of this financial instrument. Notes receivable from participants are valued at the principal amount plus accrued interest, which approximates fair value. Mutual funds and Paychex common stock, which is the sole investment in the ESOP Fund, are stated at their approximate fair value based on quoted market prices in active markets.

Collective investment trusts ("CITs") are valued at either fair value, if the trust's