PAYX
Paychex Inc.
Is PAYX Halal?
Payroll services — permissible HR and business software.
What You Should Know
Paychex's February 28, 2026 filing shows debt/assets 28.29%, liquidity/assets 35.54%, receivables plus cash/assets 21.56%, and interest income/revenue 3.24%. Payroll and HR services are generally permissible, but corporate fixed-income investments, client funds, insurance and retirement products create material qualitative and quantitative concerns.
⚠️ Concerns
- •Liquidity screen fails at 35.54% of assets
- •Client-fund securities are restricted and excluded from unrestricted liquidity
- •Interest on funds held for clients
- •Insurance and retirement products require review
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-02-28; calculated 2026-07-14.
4,954.1 / 17,511.4
6,223.3 / 17,511.4
3,776.3 / 17,511.4
56.8 / 1,752.1
- Financial
- Fails
- Overall
- Fails
Liquidity is 35.54% of total assets, above the examined 33.333% limit. Debt is 28.29%, receivables plus cash is 21.56%, and disclosed interest income is 3.24%.
- Financial
- Fails
- Overall
- Fails
Liquidity is 35.54% of total assets, above the examined 33.33% limit; debt and receivables plus cash are below their limits. This is not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Identifiable liquidity is 35.54% of total assets, above the examined 33% limit, while debt is below 33%. This is a calculation against SAC ratios, not an official classification.
- Financial
- Not calculated
- Overall
- Not calculated
A properly licensed and reproducible 24- or 36-month issuer market-cap history is not stored, so market-cap methods are not estimated from a current spot price.
Business-activity disclosure
Paychex provides payroll, human-capital management, PEO, insurance and retirement-administration services. Payroll and HR services are generally permissible, but client-fund investment income, insurance and retirement products require qualitative review.
Limitation: The filing does not provide a reproducible prohibited-revenue numerator for insurance, retirement products, client-fund investment activity or customer industries.
Purification
Disclosed interest on funds held for clients is $56.8 million, or 3.24% of quarterly service revenue, but ZakatInvest does not prescribe a fixed purification percentage and the mixed service screen remains incomplete.
Inputs, assumptions and primary sources
- Debt uses $4,954.1 million of long-term debt including the $400 million current portion; the cited balance sheet reports no short-term borrowings.
- Cash uses $1,742.5 million of cash and cash equivalents. Corporate available-for-sale debt securities of $4,480.8 million are included; $5,610.9 million of funds held for clients is restricted client money and is excluded from unrestricted securities.
- Accounts and unbilled receivables combine $1,435.0 million of accounts and notes receivable with $598.8 million of PEO unbilled receivables. Quarterly service revenue is $1,752.1 million.
- Interest on funds held for clients is $56.8 million, or 3.24% of quarterly service revenue; no universal purification rate is prescribed here.
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.
Similar Stocks
Want to screen more assets?
Use our interactive Halal Checker to screen any stock, ETF, or crypto instantly.
Go to Halal Checker →