Paychex Inc. (NASD: PAYX) reported revenue rose 7% in its fiscal second quarter ended Nov. 30, down from 9% year-over-year revenue growth in both its fiscal first quarter and the fiscal fourth quarter of 2015. The Rochester, NY-based firm, which provides payroll processing, professional employer organization services and other services, reported net income rose 7% in the fiscal second quarter.

The company reports PEO revenue in its “human resource services” division, where first-quarter revenue rose 12% in the first fiscal quarter.

Paychex HR Services — which includes its administrative services organization as well as PEO revenue —  is the largest revenue stream in the company’s “human resource services” division. Strong demand for Paychex HR Services resulted in double-digit year-over-year growth in the number of client worksite employees, according to the company

Payroll services revenue rose 3%. Advance Partners contributed approximately 1% to this growth. Paychex last year acquired Advance Partners, a provider of payroll funding and outsourcing services to the staffing industry.

Quote

“While the presidential election brought discussion about the future of healthcare reform, and a delay was initiated for the Department of Labor’s Overtime Rule, we continued to experience solid retention of our ACA product clients and increased growth of our time and attendance solutions,” said President and CEO Martin Mucci. “We have a long history and proven track record of educating and assisting our clients with navigating changes in the regulatory landscape, and we expect this expertise to be in demand more than ever during this time of policy changes.”

Guidance

Payroll service revenue is anticipated to increase in the range of 3% to 4% for the fiscal year ending May 2017. Human resource services revenue is expected to increase in the range of 12% to 14%. This is unchanged from guidance issued in the company’s first-quarter report.

Share price and market cap

Shares in Paychex fell 0.26% in late morning trading to $61.77. The company had a market cap of $22.34 billion, according to Yahoo.