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2018 Market Analysis & Industry Outlook: Payroll Services

Overview: the U.S. Payroll Services Industry

This section provides answers to key questions about the industry:

  1. What is the total market size (industry revenue)?
  2. What is the industry outlook?
  3. Market Analysis: Is the market growing or declining, and how quickly?
  4. Are long-term forecasts positive or negative?
  5. What is the average company size in the industry?
  6. How many companies are in the industry?

Market Size & Industry Statistics

The total U.S. industry market size for Payroll Services: Industry statistics cover all companies in the United States, both public and private, ranging in size from small businesses to market leaders. In addition to revenue, the industry market analysis shows information on employees, companies, and average firm size.

Investors, banks, and business executives use growth rates and industry trends to understand the market outlook and opportunity.

market size 2018
Charts and graphs can be copied to Microsoft Word and Powerpoint presentations.

Statistics 2012        2013        2014        2015        2016        2017
Market Size
(Total Sales/Revenue)

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Total Firms
Total Employees
Average Revenue Per Firm
Average Employees Per Firm
Statistics Source: U.S. Census, AnythingResearch Market Analysis

Market Forecast

Market forecasts show the long term industry outlook and future growth trends. The following five-year demand forecast projects both short-term and long-term trends.

market forecast

Forecast / Industry Outlook 2017 2018 2019 2020 2021 2022
Market Forecast ($ millions)
Projected Industry Growth Rate (%)
Source: AnythingResearch Economic Analysis

Product & Services Breakdown

Research products and services in the Payroll Services industry generating sales. Note that products are broken into categories with different levels of classification.

Product DescriptionNumber of Companies Sales ($ millions) Percent of Total Sales

Industry Total

Payroll Accounting Services

Full-Service Payroll Services

Payroll Services Sold Separately

U.S. Geographic Distribution: Revenue Statistics by State

Market Size by State ($ millions) indicates how the industry's competition is distributed throughout the country. State-level information can identify areas with higher and lower industry market share than average.

U.S. map by state

Income Statement (Average Financial Metrics)

Financial metrics provide a snapshot view of a benchmark "average" company. Key business metrics show revenue and operating costs. The data collected covers both public and private companies.

Industry AveragePercent of Sales
(Industry Benchmark)
Total Revenue

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Operating Revenue
Cost of Goods Sold
Gross Profit

Operating Expenses
Pension, profit sharing plans, stock, annuity
Rent paid on business property
Charitable Contributions
Domestic production activities deduction
Compensation of officers
Salaries and wages
Employee benefit programs
Taxes and Licenses
Bad Debts
Other Operating Expenses
Total Operating Expenses
Operating Income
Non-Operating Income
EBIT (Earnings Before Interest and Taxes)
Interest Expense
Earnings Before Taxes
Income Tax
Net Profit
Source: AnythingResearch Analysis of U.S. federal statistics

Financial Ratio Analysis

Financial ratio information can be used to benchmark how a Payroll Services company compares to its peers. Accounting statistics are calculated from the industry-average for income statements and balance sheets.

Profitability & Valuation RatiosIndustry Average
Company valuation can be measured based on the firm's own performance, as well as in comparison against its industry competitors. These metrics show how the average company in the Payroll Services industry is performing.
Profit Margin
Gross Profit Margin, Operating Profit Margin, and Net Profit Margin. Show company earnings relative to revenues.
Return on Equity (ROE)
Return on Equity (ROE) is net income as a percentage of shareholders' equity. Shareholders' Equity is defined as the company's total assets minus total liabilities. ROE shows how much profits a company generates with the money shareholders invested (or with retained earnings).
Return on Assets (ROA)
Return on Assets (ROA) is net income relative to total assets. The market research on Payroll Services measures how efficiently the company leverages its assets to generate profit. ROA is calculated as Net Income divided by Total Assets.

Liquidity RatiosIndustry Average
Bankers and suppliers use liquidity to determine creditworthiness and identify potential threats to a company's financial viability.
Current Ratio
Measures a firm's ability to pay its debts over the next 12 months.
Quick Ratio (Acid Test)
Calculates liquid assets relative to liabilities, excluding inventories.

Efficiency Ratios - Key Performance IndicatorsIndustry Average
Measure how quickly products and services sell, and effectively collections policies are implemented.
Receivables Turnover Ratio
If this number is low in your business when compared to the industry average in the research report, it may mean your payment terms are too lenient or that you are not doing a good enough job on collections.
Average Collection Period
Based on the Receivables Turnover, this estimates the collection period in days. Calculated as 365 divided by the Receivables Turnover
Inventory Turnover
A low turnover rate may point to overstocking, obsolescence, or deficiencies in the product line or marketing effort.
Fixed-Asset Turnover
Generally, higher is better, since it indicates the business has less money tied up in fixed assets for each dollar of sales revenue.

Compensation & Salary Surveys for Employees

Compensation statistics provides an accurate assessment of industry-specific jobs and national salary averages. This information can be used to identify which positions are most common, and high, low, and average annual wages.

TitlePercent of WorkforceBottom Quartile Average (Median) SalaryUpper Quartile
Management Occupations 6%

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Chief Executives0%
General and Operations Managers2%
Business and Financial Operations Occupations 49%
Financial Specialists 46%
Accountants and Auditors 37%
Accountants and Auditors 37%
Tax Examiners, Collectors and Preparers, and Revenue Agents 7%
Tax Preparers 7%
Office and Administrative Support Occupations 37%
Financial Clerks 17%
Bookkeeping, Accounting, and Auditing Clerks 10%
Bookkeeping, Accounting, and Auditing Clerks 10%
Secretaries and Administrative Assistants 7%
Secretaries and Administrative Assistants 7%
Secretaries and Administrative Assistants, Except Legal, Medical, and Executive 5%
Other Office and Administrative Support Workers 6%
Source: Bureau of Labor Statistics

Payroll Services Industry Market Share [PREMIUM]

Largest companies in the industry and related industries, with private company revenue estimates.

CompanyAddressRevenue Estimate

Innovation News

  • Cast & Crew Payroll trademarks "HTG DIRECT+" - Computer software for use in enabling access to an external portal through which employers can access employment documents and payroll information; Computer application software for mobile phones, portable media players, handheld, and desktop computers - 02/27/2018
  • X-Pay LLC D/B/A Balance Point trademarks "BALANCE POINT" - Human capital services - 02/16/2018
  • Paycom Payroll trademarks "PAYCOM PAY" - Downloadable MP3 files and podcasts in the field of human resources management and technology; Downloadable computer software for use in the field of human resources management and technology - 01/26/2018
  • Easypak patents Container With Self-aligning Lid - 10/26/2017
  • F3 & Associates patents Local Positioning System For Augmented Reality Applications - 09/07/2017
  • Namely raises $3 million in funding. - 01/05/2017
  • Patriot Software raises $40 million in funding. - 12/27/2016
  • Pro Unlimited patents System And Method For Managing Action Items - 11/17/2016
  • Zenpayroll Dba Gusto raises $60 million in funding. - 10/12/2016

  • Top Innovators

    CompanyInnovation Score
    F3 & Associates7
    Trinet HR Iii
    Cast & Crew Payroll

    Additional companies, details and innovation scoring in the full report.

    Latest Industry News

    • Sage Payroll Essentials - 10 Jan 2018 Kathy Yakal The Sage Group has been in the software business for more than 35 years, and its flagship products are its accounting and payroll services. The company's Payroll Essentials Plus service is reasonably priced, and its report and ... (01/10/2018)
    • Cuomo facing heavy lift with payroll tax proposal - Durant also cautioned that the payroll tax plan put forward by Cuomo is "immensely complicated." In another maneuver responding to changes in the federal tax code, Cuomo said this week that the state's utility watchdog, the Public Service Commission ... (01/10/2018)
    • Norwegian Cruise Line Extends Agreement With Brightwell Payments To Deliver Positive Crew Payroll Experience Worldwide - SVP Client Services and Implementations, Brightwell Payments. "Last year brought opportunities for us to take part in Norwegian's success, including its continued expansion into the China market. We look forward to continuing to help simplify payroll for ... (01/10/2018)
    • ATO beefs up internal processes after Plutus Payroll scandal - The Australian Taxation Office says internal fraud and integrity controls have been beefed up as part of its response to the Plutus Payroll scandal ... Elbrus investigation into breaches of the public service code of conduct returned to work last year ... (01/10/2018)
    • NiYO raises $13.2M to digitize payroll and employee benefits in India - That’s why NiYO plans to offer basic payroll software for free in tier-two and tier-three locations as a way to put potential customers in the right shape to use its core services. Bagri, who spent more than 15 years working at banks including Standard ... (01/10/2018)
    • Big Tax Game Hunting: Employer-Side Payroll Taxes - While most of these people probably can and should pay more in taxes, this tax increase was explicitly designed to make it more expensive for progressive states to provide services like health ... tax with an employer-side payroll tax. (01/09/2018)
    • Paychex Expands Solutions Designed to Streamline Payroll for Restaurant Owners and Employees - "We use Paychex for payroll, reporting, and direct deposit – and our service has been wonderful. It takes a lot of pressure off, as it's another aspect of the business that you don't have to worry about. They help me achieve my goals every week." (01/09/2018)
    • The benefits of offering cloud payroll services - Accounting firms and payroll bureaus are increasingly moving into the cloud to offer clients a more flexible and streamlined payroll and HR service. Many believe that payroll isn’t a profitable service due to the complexity of the work, the manual ... (01/09/2018)
    • StaffKeep Streamlines Payroll Onboarding For QuickBooks Users - becoming what it says is the first payroll onboarding solution on the platform. StaffKeep announced this week that QuickBooks users can access its services through the App Store to streamline payroll onboarding. The company facilitates online completion of ... (01/05/2018)
    • Square Payroll - Square Payroll checks all the basic boxes for paying your staff, while offering an exceptional user experience. But this nascent service lacks the depth and customizability of its competitors, and it's not available in all states. While best known for its ... (01/04/2018)

    Government Contracts

    In 2016, the federal government spent a total of $11,602,410 on Payroll Services. It has awarded 80 contracts to 13 companies, with an average value of $892,493 per company.   

    Top government vendors:

    CompanyFederal ContractsTotal Award Amount

    Segments classified within this market research report

    This industry market research report includes companies whose primary business is any of the following:
    Talent payment services, Payroll processing services, etc.

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