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Current State of the Industry | ||
Market Size (industry trends) | ||
Market Forecast (5-year projection) | ||
Products/Services Breakdown | ||
Revenue per State | ||
Financial Metrics | ||
Salary & Compensation Statistics | ||
Public Company Information | ||
Key Private Companies | ||
Government Vendors | ||
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2024 U.S. Industry Statistics & Market Forecast - Payroll Services
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.
Statistics | 2019 2020 2021 2022 2023 | |
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Market Size (Total Sales/Revenue) |
Order at top of page | |
Total Firms | ||
Total Employees | ||
Average Revenue Per Firm | ||
Average Employees Per Firm | ||
Average Revenue Per Employee |
Market Forecast
Market forecasts show the long term industry outlook and future growth trends. The following extended five-year forecast projects both short-term and long-term trends.
Forecast / Industry Outlook | 2024 | 2025 | 2026 | 2027 | 2028 | |
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Market Forecast ($ millions) | ||||||
Projected Industry Growth Rate (%) |
Industry Insights
The Payroll Services industry has been evolving rapidly due to several trends that affect the way organizations manage their payroll systems. One of the major trends is the increased use of technology to manage payroll processes. Many organizations have adopted cloud-based payroll systems that are more efficient and cost-effective than traditional on-premise solutions.Another important trend is the growing demand for compliance with labor laws and regulations. There are numerous state and federal regulations that companies need to comply with, and failure to do so can lead to costly penalties and legal issues. As a result, more companies are turning to payroll service providers to ensure compliance and avoid financial risks.
Data security is also a crucial trend in the payroll industry. Organizations that manage sensitive employee information must ensure that data is protected from unauthorized access, breaches, and cyber-attacks. As a result, payroll service providers are investing in advanced security technologies and providing clients with secure data storage and protection.
Finally, there is a growing trend towards customization of payroll services. As organizations become more diverse, they require payroll services that can accommodate their unique needs. This has led to an increase in the number of service providers that offer customized payroll solutions. These providers offer tailored services that meet the specific requirements of each client, such as automated payroll processing, tax filing, employee self-service portals, and more.
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 Description | Number of Companies | Sales ($ millions) | Percent of Total Sales |
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Industry Total |
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Payroll Accounting Services |
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Full-Service Payroll Services |
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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.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 Average | Percent of Sales (Industry Benchmark) | |
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Total Revenue | Order at top of page |
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Operating Revenue | ||
Cost of Goods Sold | ||
Gross Profit | ||
Operating Expenses | ||
Pension, profit sharing plans, stock, annuity | ||
Repairs | ||
Rent paid on business property | ||
Charitable Contributions | ||
Depletion | ||
Domestic production activities deduction | ||
Advertising | ||
Compensation of officers | ||
Salaries and wages | ||
Employee benefit programs | ||
Taxes and Licenses | ||
Bad Debts | ||
Depreciation | ||
Amortization | ||
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 Net Income | ||
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 Ratios | Industry Average |
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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. |
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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). |
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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 Ratios | Industry Average |
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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. |
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Quick Ratio (Acid Test) Calculates liquid assets relative to liabilities, excluding inventories. |
Efficiency Ratios - Key Performance Indicators | Industry Average |
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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. |
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Average Collection Period Based on the Receivables Turnover, this estimates the collection period in days. Calculated as 365 divided by the Receivables Turnover |
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Inventory Turnover A low turnover rate may point to overstocking, obsolescence, or deficiencies in the product line or marketing effort. |
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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.Title | Percent of Workforce | Bottom Quartile | Average (Median) Salary | Upper Quartile |
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Management Occupations | 10% | Order at top of page |
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Chief Executives | 0% | |||
General and Operations Managers | 2% | |||
Operations Specialties Managers | 6% | |||
Business and Financial Operations Occupations | 48% | |||
Business Operations Specialists | 7% | |||
Financial Specialists | 41% | |||
Accountants and Auditors | 32% | |||
Accountants and Auditors | 32% | |||
Tax Examiners, Collectors and Preparers, and Revenue Agents | 7% | |||
Tax Preparers | 7% | |||
Office and Administrative Support Occupations | 30% | |||
Financial Clerks | 15% | |||
Bookkeeping, Accounting, and Auditing Clerks | 9% | |||
Bookkeeping, Accounting, and Auditing Clerks | 9% |
Payroll Services Competitor Landscape & Key Companies [PREMIUM]
The most influential companies in the Payroll Services industry and adjacent industries either have large market share or are developing new business models and methods that could disrupt the status quo. We look at leading and emerging companies in the Payroll Services industry and adjacent sectors:Market Leaders: Direct Competitors Companies with the largest market share, focused in this industry |
Market leaders: Diversified Competitors Largest companies that have diversified operations in this and other industries |
Innovators: Direct Competitors Innovative, Emerging, and Disruptive Companies that may influence the future direction of the industry. |
Innovators: Diversified Competitors Innovators and Disruptors in adjacent industries that may also affect the Payroll Services industry. |
Source:
Innovation News
- Jan 25, 2024: Paycom Payroll trademarks "P PAYCOM CENTER" - Arena services
- Dec 20, 2023: Payrollcentric trademarks "PAYROLLCENTRIC" - Payroll processing services
- Dec 13, 2023: Puzzl Group raises $15 million in funding.
- Dec 06, 2023: Ceridian HCM trademarks "MAKES WORK LIFE BETTER" - Training in the field of human resources, payroll, time and attendance, and employee scheduling and employee benefits; educational services
- Mar 23, 2023: Turn2 Specialty Companies patents Breathing Systems And Methods For Making And Using Such Systems
- Mar 16, 2023: Cast & Crew Payroll patents Systems And Methods For Improved Payroll Administration In A Freelance Workforce
- Jan 30, 2023: Storage Cap Capital 2 raises $100 million in funding.
- Jan 30, 2023: Storage Cap Capital 2 raises $28 million in funding.
- Aug 06, 2020: Freedompay patents Point Of Sale Client Integration Platform
Recent Federal Contracts for Payroll Services- Feb 20, 2024: STATE STREET CORPORATION (Boston, MA) awarded $10,002,574
- Feb 15, 2024: MISCELLANEOUS FOREIGN AWARDEES (Washington, DC) awarded $74,360
- Feb 14, 2024: PALISADE-HERITAGE JV LLC (Valrico, FL) awarded $960,000
- Jan 17, 2024: PAYCOM PAYROLL, LLC (Oklahoma City, OK) awarded $1,070,067
- Jan 16, 2024: GESAM SRL (Milano, MILANO) awarded $17,112
- Jan 09, 2024: ESCIENCE & TECHNOLOGY SOLUTIONS, INC. (Landover, MD) awarded $246,915
- Feb 20, 2024: STATE STREET CORPORATION (Boston, MA) awarded $10,002,574
- Feb 15, 2024: MISCELLANEOUS FOREIGN AWARDEES (Washington, DC) awarded $74,360
- Feb 14, 2024: PALISADE-HERITAGE JV LLC (Valrico, FL) awarded $960,000
- Jan 17, 2024: PAYCOM PAYROLL, LLC (Oklahoma City, OK) awarded $1,070,067
- Jan 16, 2024: GESAM SRL (Milano, MILANO) awarded $17,112
- Jan 09, 2024: ESCIENCE & TECHNOLOGY SOLUTIONS, INC. (Landover, MD) awarded $246,915
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