Paychex today announced a collaboration with PayPal to integrate PayPal Direct Deposit into its Paychex Flex® Perks digital marketplace. Beginning next month, employees of companies using Paychex Flex can elect to receive payroll funds via PayPal up to two days earlier than standard direct deposit schedules. The new feature requires minimal setup through the existing Paychex Flex mobile app and web portal. Paychex projects that over 200,000 employees will enroll in the program during its first year, potentially reducing payroll processing inquiries by up to 15% and lowering customer support costs by an estimated $1.2 million annually.

Paychex’s momentum continues to be fueled by expanding SaaS adoption, the recent $3.5 billion acquisition of Paycor, and the rollout of AI-driven HR tools. The company now expects FY26 revenues to increase by 16.5%, up from prior guidance of 14.0%, driven by 23% growth in software subscription fees and a 10% rise in professional services revenue. On the earnings front, non-GAAP diluted EPS is forecast to grow by 19%, supported by improved operating leverage and a projected 200 basis-point improvement in adjusted operating margin. Management highlighted a backlog of $1.1 billion in contracted recurring revenue, reflecting strong customer retention and upsell activity.