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          1. Payroll Services Industry Profile

            Report Page Length: 10-12
            Last Quarterly Update: 8/24/2020
            SIC Codes: 8721
            NAICS Codes: 541214
            Chapters Include:
            Industry Overview Trends & Challenges Industry Forecast
            Quarterly Industry Update Call Prep Questions Website & Media Links
            Business Challenges Financial Information Glossary & Acronyms
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            Excerpt from Payroll Services Industry Profile

            Companies in this industry generate paychecks, payroll reports, and tax filings for clients. Major companies include ADP, Ceridian, Insperity, and Paychex, all based in the US, as well as Canada's Nethris (a part of Groupe CGI), Brazil's Populis Serviços, and India's Neeyamo.

            The US is the world's primary market for payroll services. Global growth in the industry is driven by workforce expansion and by the adoption of more complex payroll processes that incorporate cloud-based software and aspects of other HR services, according to IHS. Countries such as Argentina, Brazil, Canada, Chile, and Mexico are increasingly adopting payroll services for public sector projects due to their proximity to the US, according to Technavio. India is a major growth market for the industry.

            The US payroll services industry includes about 5,900 establishments (single-location companies and units of multi-location companies) that generate annual revenue of about $30 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 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 more than 70% of industry revenue; the four largest ...

             
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