PAYC
Paycom Software Inc.
Is PAYC Halal?
Online payroll and HR technology with excellent financial ratios.
What You Should Know
Paycom provides comprehensive cloud-based HR and payroll software. Business is halal, minimal debt, exceptional Sharia compliance. Its March 31, 2026 Form 10-Q reports $4,821.8 million of assets, $675.0 million of interest-bearing debt, $2,403.7 million of cash including funds-held-for-clients cash, $374.8 million of available-for-sale securities, $51.3 million of receivables and $571.9 million of quarterly revenue. Debt/assets is 14.00%, liquidity/assets is 57.62%, receivables-plus-cash/assets is 50.91%, and disclosed interest on funds held for clients is 4.86% of revenue; liquidity and receivables fail the examined asset-based screens despite the qualitative software activity.
⚠️ Concerns
- •Interest on funds held for clients
- •Client-funds investment and custody structure
- •Liquidity/assets 57.62% exceeds examined limits
- •Receivables-plus-cash/assets 50.91% exceeds examined limits
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
675 / 4,821.8
2,778.5 / 4,821.8
2,455 / 4,821.8
27.8 / 571.9
- Financial
- Fails
- Overall
- Fails
Debt/assets is 14.00%, liquidity/assets is 57.62%, receivables-plus-cash/assets is 50.91% and disclosed interest income is 4.86% of revenue; liquidity and receivables exceed the examined limits.
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 57.62% and receivables-plus-cash/assets is 50.91%, above the examined MSCI limits; client-funds balances are included in the filed total-assets denominator.
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 57.62%, above the examined Malaysia limit; this is a calculation against SAC ratios, not an official classification.
- Financial
- Not calculated
- Overall
- Incomplete
A properly licensed and reproducible historical market-cap series is not stored; filing-based asset ratios remain documented.
Business-activity disclosure
Paycom provides cloud payroll and human-capital-management software. The core software activity is generally permissible, while client-funds investment operations and product end uses require separate review.
Limitation: The filing identifies client-funds interest revenue but does not provide a universal prohibited-activity numerator across every product workflow or customer use.
Purification
Paycom discloses $27.8 million of interest on funds held for clients, but does not prescribe a scholar-approved purification percentage; the disclosed amount is not treated as a complete prohibited-revenue numerator.
Inputs, assumptions and primary sources
- Amounts are USD millions from Paycom's March 31, 2026 Form 10-Q.
- Interest-bearing debt is the $675.0 million long-term debt balance; operating lease liabilities are excluded.
- Cash includes $153.9 million of corporate cash plus $2,249.8 million of funds-held-for-clients cash; $374.8 million of client-funds available-for-sale securities is tracked separately. The matching $2,624.7 million client-funds obligation is disclosed on the balance sheet.
- Accounts receivable are $51.3 million, quarterly revenue is $571.9 million and interest on funds held for clients is $27.8 million.
- Payroll and HR software are generally permissible, but client-funds custody and interest income require separate qualitative review; the filing does not provide a universal prohibited-activity revenue numerator.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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