Non-Current Liabilities

Client Fund Obligations

Paychex Client Fund Obligations increased by 14.7% to $5.60B in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 31.8%, from $4.25B to $5.60B. Over 4 years (FY 2021 to FY 2025), Client Fund Obligations shows an upward trend with a 7.3% CAGR. This is a positive signal — higher values indicate stronger performance for this metric.

Analysis

StatementBalance Sheet Statement
SectionNon-Current Liabilities
CategoryMarket Position
SignalHigher is better
VolatilityModerate
First reportedQ1 2015
Last reportedQ4 2025

How to read this metric

Growth in this liability generally correlates with an increase in the volume of payroll services processed for clients.

Detailed definition

This represents the liability for funds collected from clients for payroll taxes and other obligations that are held by...

Peer comparison

Standard for payroll processors and PEOs.

Metric ID: non_current_liabilities_client_fund_obligations

Historical Data

20 periods
 Q1 '21Q2 '21Q3 '21Q4 '21Q1 '22Q2 '22Q3 '22Q4 '22Q1 '23Q2 '23Q3 '23Q4 '23Q1 '24Q2 '24Q3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25
Value$3.67B$3.70B$3.84B$4.34B$3.82B$3.31B$3.35B$4.47B$4.29B$5.68B$5.63B$6.24B$3.87B$3.84B$3.90B$4.25B$4.87B$4.95B$4.88B$5.60B
QoQ Change+0.9%+3.7%+12.9%-11.9%-13.3%+1.2%+33.4%-3.9%+32.2%-0.9%+10.9%-38.0%-0.6%+1.3%+9.2%+14.5%+1.7%-1.3%+14.7%
YoY Change+4.0%-10.6%-12.7%+3.1%+12.4%+71.5%+67.9%+39.7%-9.9%-32.3%-30.8%-31.9%+25.8%+28.7%+25.4%+31.8%
Range$3.31B$6.24B
CAGR+9.3%
Avg YoY Growth+11.4%
Median YoY Growth+8.2%

Frequently Asked Questions

What is Paychex's client fund obligations?
Paychex (PAYX) reported client fund obligations of $5.60B in Q4 2025.
How has Paychex's client fund obligations changed year-over-year?
Paychex's client fund obligations increased by 31.8% year-over-year, from $4.25B to $5.60B.
What is the long-term trend for Paychex's client fund obligations?
Over 4 years (2021 to 2025), Paychex's client fund obligations has grown at a 7.3% compound annual growth rate (CAGR), from $3.67B to $4.87B.
What does client fund obligations mean?
The amount of client money held by the company to be paid out for payroll taxes and related obligations.