07-05-2014, 10:35 PM
(07-05-2014, 11:17 AM)rnsmth Wrote: PAYX will benefit from the continued employment recovery and, when interest rates do increase it will benefit from the float - interest earned from the cash balances that back paychecks that have not yet been deposited.
Can't tell you the exact amount but I think more importantly, the float on withheld taxes that are not immediately deposited in the Treasury. Depending on the size of the employer, some are deposited within 3 days but for many small businesses, they're not required to be deposited until the end of the quarter. I can't remember if they do it monthly or quarterly for the quarterly payers that that's a significant time they hold the money.
Many paychecks are direct deposit nowadays.