BReports
ARNES
U.S. Payroll Services
Industry (NAICS 541214)
n Market Reports
n Industry Trends
n Demographic Data
Edition 2010
© C. Barnes & Co.
Payroll Services Industry
(NAICS 541214)
TABLE OF CONTENTS
Users' Guide
Industry Definition and Related Industries
Industry Establishments, Sales & Employment Trends
Industry Ratios
Establishments, Firms & Payroll
Sub-Industries - 2009 Estimated Industry Sales ($Millions)
Sub-Industries - 2009 Estimated Number of Establishments
Sub-Industries - 2009 Estimated Number of Employees
5-Year Trend - Estimated Industry Sales ($Millions)
5-Year Trend - Estimated Number of Establishments
5-Year Trend - Estimated Number of Employees
2010 U.S. States - Estimated Number of Establishments
2010 U.S. States - Estimated Industry Sales ($Millions)
2010 U.S. States - Estimated Number of Employees
2011 U.S. States - Estimated Number of Establishments
2011 U.S. States - Estimated Industry Sales ($Millions)
2011 U.S. States - Estimated Number of Employees
2010 U.S. Metropolitan Areas - Estimated Number of Establishments
2010 U.S. Metropolitan Areas - Estimated Industry Sales ($Millions)
2010 U.S. Metropolitan Areas - Estimated Number of Employees
2011 U.S. Metropolitan Areas - Estimated Number of Establishments
2011 U.S. Metropolitan Areas - Estimated Industry Sales ($Millions)
2011 U.S. Metropolitan Areas - Estimated Number of Employees
Definitions and Terms
© 2010 Barnes Reports: U.S. Payroll Services Industry 1
Payroll Services Industry
(NAICS 541214)
USERS' GUIDE
The Barnes Reports are the leading publications on U.S. industries and estimates and forecasts
on sales and employment demographics. As a way of making the most of this information, we have
included a few suggestions and tips to aid you in processing and using this information.
Managers, planners, and market researchers use this information for a variety of activities:
• Sizing markets and segments – You can estimate the size of the regional markets you sell in
and your company’s market penetration into that market. You can do the same with the market
segments in which you participate.
• Sales territory potential – You can estimate your market penetration and also the market potential
in any regional area or market segment.
• Sales forecasting – With the estimates on the size of the industry, market researchers supporting
a sales force can then estimate and forecast the future size of the industry.
• Advertising strategies – You can use this information for forecasting and estimating sales potential
and target advertising campaigns.
• Competitive analysis – You will use the information to locate your possible competitors (if it is
not already known), to estimate their size, growth and strengths and weaknesses and to see what
market segments in which they participate.
We recognize that many managers today are asked to provide detailed analysis of their markets,
sales territories, distribution channels, and product placements. We have organized these reports in a
logical format making your market analysis and research tasks easy to accomplish.
Copyright © 2010 By C. Barnes & Co.
Printed in USA
All rights reserved. This publication may not be reproduced, stored in any information or retrieval system
or transmitted in whole or in part, in any form or by any means - electronic, mechanical, photocopying,
recording or otherwise - without the express written permission of C. Barnes & Co.
Note: Every effort has been made to verify and ensure the accuracy of the information within this
publication. However, if any errors exist in this publication C. Barnes & Co. disclaims any liability for
any loss or damage to any party as a result of the information or errors in this publication.
© 2010 Barnes Reports: U.S. Payroll Services Industry 2
Payroll Services Industry
(NAICS 541214)
Industry Definition and Related Industries
NAICS 541214: Payroll Services. This industry comprises
establishments (except offices of CPAs) engaged in the following without also
providing accounting, bookkeeping, or billing services: (1) collecting information
on hours worked, pay rates, deductions, and other payroll-related data from their
clients and (2) using that information to generate paychecks, payroll reports, and
tax filings. These establishments may use data processing and tabulating
techniques as part of providing their services.
Related Industries
Offices of Certified Public Accountants
Tax Preparation Services
Management Consulting Services
U.S. Census Categories
NAICS 541214 – Payroll Services is:
34% comparable to SIC 7819 – Talent Payment
18% comparable to SIC 8721 – Payroll Services
Sub-Industries
Payroll accounting service
© 2010 Barnes Reports: U.S. Payroll Services Industry 3
Payroll Services Industry
(NAICS 541214)
Industry Establishments, Sales & Employment Trends
Year Percent Chg. Year-to-Year
2007 2008 2009 2010 2011 07-08 08-09 09-10 10-11
Establishments 5,213 5,496 5,379 5,495 5,525 5.4% -2.1% 2.2% 0.5%
Sales ($Millions) 33,343 35,650 33,191 33,844 34,273 6.9% -6.9% 2.0% 1.3%
Employment 306,051 322,564 315,680 322,519 324,262 5.4% -2.1% 2.2% 0.5%
Industry Ratios
Year Percent Chg. Year-to-Year
(Industry Averages) 2007 2008 2009 2010 2011 07-08 08-09 09-10 10-11
Sales ($M)/Estab. 6.40 6.49 6.17 6.16 6.20 1.4% -4.9% -0.2% 0.7%
Sales ($)/Emp. 108,945 110,522 105,143 104,936 105,697 1.4% -4.9% -0.2% 0.7%
Emps. per Estab. 58.7 58.7 58.7 58.7 58.7 0.0% 0.0% 0.0% 0.0%
Establishments, Firms & Payroll
Employee Size of Firm or Establishment
2009 1-4 5-9 10-19 20-99 100-499 500+ Total
Emps. Emps. Emps. Emps. Emps. Emps.
Firms 1,757 562 431 758 449 254 4,210
Establishments 2,211 713 615 1,097 537 161 5,377
Payroll ($000) 212 134 247 1,246 2,579 15,805 20,222
* Firms (total company) are represented by employee size of firm.
Establishments (individual locations) are represented by employee size of establishments.
"Total establishments" do not include "unknown employees" so will not match "total establishments" in other parts of the report.
© 2010 Barnes Reports: U.S. Payroll Services Industry 4
Payroll Services Industry
(NAICS 541214)
Sub-Industries – 2009 Estimated Industry Sales ($Millions)
Total
Sub-Industries Sales
Payroll accounting service $33,191.5
Sub-Industries – 2009 Estimated Number of Establishments
Total
Sub-Industries Establishments
Payroll accounting service 5,379
Sub-Industries – 2009 Estimated Number of Employees
Total
Sub-Industries Employment
Payroll accounting service 315,680
© 2010 Barnes Reports: U.S. Payroll Services Industry 5
Payroll Services Industry
(NAICS 541214)
5-Year Trend – Estimated Industry Sales ($Millions)
Employee Size of Establishment Total
Year 1-4 5-9 10-19 20-49 50-99 100-249 250-499 500-999 >1000 Un- Industry
Emps. Emps. Emps. Emps. Emps. Emps. Emps. Emps. Emps. known Sales
Emps.
2007 321 276 536 1,705 1,715 4,862 6,570 6,640 10,585 132 33,343
2008 344 296 574 1,823 1,833 5,199 7,026 7,100 11,319 137 35,650
2009 320 275 534 1,697 1,707 4,841 6,541 6,611 10,538 127 33,191
2010 326 281 545 1,731 1,740 4,936 6,670 6,741 10,745 130 33,844
2011 330 284 551 1,753 1,763 4,998 6,754 6,826 10,882 131 34,273
5-Year Trend – Estimated Number of Establishments
Employee Size of Establishment Total
Year 1-4 5-9 10-19 20-49 50-99 100-249 250-499 500-999 >1000 Un- Establish-
Emps. Emps. Emps. Emps. Emps. Emps. Emps. Emps. Emps. known ments
Emps.
2007 2,143 691 596 682 381 374 146 83 73 45 5,213
2008 2,259 728 628 719 402 394 154 88 77 47 5,494
2009 2,211 713 615 704 393 386 151 86 75 46 5,377
2010 2,259 728 628 719 402 394 154 87 77 47 5,494
2011 2,271 732 632 723 404 396 155 88 77 48 5,523
5-Year Trend – Estimated Number of Employees
Employee Size of Establishment Total
Year 1-4 5-9 10-19 20-49 50-99 100-249 250-499 500-999 >1000 Un- Employ-
Emps. Emps. Emps. Emps. Emps. Emps. Emps. Emps. Emps. known ment
Emps.
2007 6,429 4,146 8,344 21,824 23,241 49,742 44,530 50,298 94,681 2,816 306,051
2008 6,778 4,371 8,797 23,008 24,502 52,440 46,945 53,026 99,817 2,880 322,564
2009 6,633 4,278 8,609 22,517 23,979 51,322 45,944 51,895 97,688 2,816 315,680
2010 6,777 4,370 8,795 23,005 24,498 52,433 46,939 53,019 99,803 2,880 322,519
2011 6,814 4,394 8,843 23,130 24,632 52,719 47,195 53,308 100,347 2,880 324,262
© 2010 Barnes Reports: U.S. Payroll Services Industry 6
Payroll Services Industry
(NAICS 541214)
U.S. States – Estimated Number of Establishments
Year: 2010
Employee Size of Establishment Total
Area Name 1-4 5-9 10-19 20-49 50-99 100-249 250-499 500-999 >1000 Un- Estab-lish-
Emps. Emps. Emps. Emps. Emps. Emps. Emps. Emps. Emps. known ments
Emps.
U.S. Total 2259 728 628 719 402 394 154 87 77 47 5494
Alabama 28 13 8 9 4 0 2 3 0 1 70
Alaska 9 2 1 0 0 0 0 0 0 0 13
Arizona 46 9 11 13 5 7 2 2 1 1 98
Arkansas 14 6 5 3 0 0 0 0 0 0 28
California 279 73 74 54 35 56 18 14 32 6 640
Colorado 46 13 11 4 5 6 3 2 1 1 93
Connecticut 25 3 4 8 6 4 0 1 0 0 53
Delaware 13 5 1 3 0 0 1 0 0 0 23
Di