Paychex Inc. (NASD: PAYX), a provider of payroll processing and professional employer organization services, reported revenue rose 9 percent to $639.0 million in its fiscal fourth quarter ended May 31. However, the Rochester, N.Y.-based firm reported it reclassified certain PEO direct costs as operating expenses rather than a reduction in service revenue because of a new health insurance offering in its PEO division. Excluding the adjustment, Paychex’s fourth-quarter revenue rose 5 percent.

The company reports PEO operations as part of its “human resource services” division that also includes other revenue. Human resource services revenue rose 22 percent in the fourth quarter to $234.3 million. Excluding the adjustment, human resource services revenue rose 10 percent. Paychex offers its HR Solutions services as either a PEO, where is serves as co-employer, and as an administrative service organization where it does not.

Fourth-quarter net income rose 18.1 percent to $145.9 million.

Full-year revenue rose 8 percent to $2.52 billion; it was up 6 percent excluding the PEO adjustment. Human resource services revenue rose 18 percent in the full year to $878.9 million; it rose 12 percent excluding the adjustment.

Net income for the full year was $627.5 million, up 10 percent from the prior year.

Paychex shares fell 2.92 percent in early afternoon trading to $40.90. The company had a market cap of $14.87 billion.