First Research US Industry Profile

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Payroll Services
SIC Codes: 8721
NAICS Codes: 541214
Last Quarterly Update: 5/16/2022
Companies in this industry generate paychecks, payroll reports, and tax filings for clients. Major US-based companies include ADP, Ceridian, Insperity, and Paychex, and others include Neeyamo (India), Nethris (Canada), and Populis Servicos (Brazil).
The global payroll services market is expected to grow by about $6 billion at a compound annual growth rate (CAGR) of about 5.72% from 2020 to 2025, according to Technavio. More than half of the growth in the industry will come from North America.
The US payroll services industry includes about 5,700 establishments (single-location companies and units of multi-location companies) that generate annual revenue of about $22 billion.
Professional employer organizations (PEOs), which may also provide payroll services, are covered further in a separate industry profile.
Competitive Landscape
Demand for payroll services is driven by employment. The profitability of individual companies depends on the efficient use of information technology and effective marketing. Large companies can better compete for business from customers who operate from multiple locations. Small companies can compete by serving local or regional markets. The US industry is concentrated: the 50 largest companies account for about 70% of industry revenue.
Companies in this industry may compete with other providers of outsourced human resources (HR) management services, including professional employer organizations (PEOs), business process outsourcing (BPO) firms, or financial institutions. Companies may also compete with organizations that have in-house payroll services, typically conducted through their accounting or HR departments.
Products, Operations & Technology
Major services include full-service payroll services (about 95% of industry revenue), bookkeeping and compilation services, human resources management ... plus:
Sales & Marketing
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Finance & Regulation
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Regional & International Issues
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Human Resources
Also includes the following chapters:
Quarterly Industry Update
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Industry Indicators
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Business Challenges
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Trends and Opportunities
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Call Preparation Questions
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Financial Information
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Industry Forecast
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Industry Websites
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Glossary of Acronyms

Historical Profiles (PDF format)

02/07/2022
12/20/2021
09/20/2021
06/14/2021
03/15/2021
12/07/2020
08/24/2020
05/27/2020
02/10/2020
03/04/2019
11/26/2018
08/27/2018
05/28/2018
02/26/2018
11/20/2017
08/21/2017
05/22/2017
02/20/2017
11/14/2016
08/15/2016
05/16/2016
02/15/2016
11/09/2015
08/10/2015
05/11/2015
02/16/2015
11/17/2014
08/25/2014
06/02/2014
03/10/2014
12/02/2013
09/09/2013
06/17/2013
03/25/2013
12/17/2012
09/24/2012
07/09/2012
04/16/2012
12/19/2011
09/26/2011
06/13/2011
03/14/2011