<![CDATA[
<table border="0" cellpadding="0" cellspacing="0" width="100%" align="center" summary="2007 Annual Report no frames">
<tr class="HeaderEmail">
<td id="LogoDiv" rowspan="2">
<a target="_blank" href="http://www.paychex.com"><img border="0" src="http://www.shareholder.com/shared/dynamicdoc/PAYX/2001/logo1.gif" alt="logo"></a>
</td><td id="TitleDiv" rowspan="2">
<h1 id="DocTitle">2007 Annual Report</h1>
<div id="NavArrows">
<img src="http://www.shareholder.com/visitors/dynamicdoc/v3/images/rew_off.gif" width="14" height="14" alt="First Page" border="0">
<img src="http://www.shareholder.com/visitors/dynamicdoc/v3/images/prev_off.gif" width="14" height="14" alt="Previous Page" border="0">
<span id="PageLabel">
Cover
</span>
<a href="http://www.shareholder.com/visitors/dynamicdoc/document.cfm?documentid=2001&companyid=PAYX&Page=2" class="button"><img src="http://www.shareholder.com/visitors/dynamicdoc/v3/images/next_on.gif" width="14" height="14" alt="Next Page" border="0"></a>
<span style="display:none;">|</span>
<a href="http://www.shareholder.com/visitors/dynamicdoc/document.cfm?documentid=2001&companyid=PAYX&Page=84" class="button"><img src="http://www.shareholder.com/visitors/dynamicdoc/v3/images/ffwd_on.gif" width="14" height="14" alt="Last Page" border="0"></a>
</div></td>
<td colspan="2">
<form id="SectionSelect" name="SectionSelect" action="http://www.shareholder.com/visitors/dynamicdoc/document.cfm?documentid=2001&companyid=PAYX" method="post">
<label for="Sections">Table of Contents</label>
<br><select class="FormFields" name="Page" id="Sections" size="1">
<option value="1" selected>Cover</option>
<option value="2">Corporate Overview</option>
<option value="2">Financial Highlights</option>
<option value="3">Letter to Shareholders</option>
<option value="6">Products and Services</option>
<option value="11">SEC Form 10-K</option>
<option value="12">Table of Contents</option>
<option value="13">PART I</option>
<option value="13">Item 1. Business</option>
<option value="20">Item 1A. Risk Factors</option>
<option value="22">Item 1B. Unresolved Staff Comments</option>
<option value="22">Item 2. Properties</option>
<option value="22">Item 3. Legal Proceedings</option>
<option value="23">Item 4. Submission of Matters to a Vote of Security Holders</option>
<option value="23">PART II</option>
<option value="23">Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchase</option>
<option value="25">Item 6. Selected Financial Data</option>
<option value="25">Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations</option>
<option value="41">Item 7A.Quantitative and Qualitative Disclosures About Market Risk</option>
<option value="43">Item 8. Financial Statements and Supplementary Data</option>
<option value="72">Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure</option>
<option value="72">Item 9A. Controls and Procedures</option>
<option value="73">Item 9B. Other Information</option>
<option value="73">PART III</option>
<option value="73">Item 10. Directors, Executive Officers and Corporate Governance</option>
<option value="74">Item 11. Executive Compensation</option>
<option value="74">Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matt</option>
<option value="74">Item 13. Certain Relationships and Related Transactions, and Director Independence</option>
<option value="74">Item 14. Principal Accounting Fees and Services</option>
<option value="75">Item 15. Exhibits and Financial Statement Schedules</option>
<option value="77">Signatures</option>
<option value="78">Eleven-Year Summary of Selected Financial Data</option>
<option value="80">Board of Directors and Officers</option>
<option value="81">Stockholder Information</option>
<option value="82">Primary Locations</option>
<option value="83">Faces of Paychex</option>
<option value="83">2007 Recognition</option>
<option value="84">Back Cover</option>
</select>
<input class="FormFields" type="image" src="http://www.shareholder.com/visitors/dynamicdoc/themes/D/Go.gif" alt="Go" value="Go">
</form>
</td>
</tr>
<tr class="HeaderEmail">
<td>
<form id="Search" name="Search" action="http://www.shareholder.com/visitors/dynamicdoc/document.cfm?documentid=2001&companyid=PAYX" method="post">
<label for="keyword">Search</label><br><input class="FormFields" maxlength="100" name="keyword" id="keyword" size="10" type="Text" value="type keyword here">
<input type="image" src="http://www.shareholder.com/visitors/dynamicdoc/themes/D/Search.gif" alt="Search" value="Search" class="FormFields"></nobr>
</form></td>
<td><form id="Jump" name="Jump" action="http://www.shareholder.com/visitors/dynamicdoc/document.cfm?documentid=2001&companyid=PAYX" method="post">
<label for="EmailGoTo">Go to page</label><br><input class="FormFields" maxlength="15" id="EmailGoTo" name="EmailGoTo" size="4" type="Text" value="1">
<input type="image" src="http://www.shareholder.com/visitors/dynamicdoc/themes/D/GoToPage.gif" alt="Go to page" value="Go to page" class="FormFields">
</form>
</td>
</tr><tr>
<td colspan="4" align="center" id="DisplayPage"><a href="http://www.shareholder.com/visitors/dynamicdoc/document.cfm?documentid=2001&companyid=PAYX&page=2"><img name="DisplayPage" src="http://www.shareholder.com/shared/dynamicdoc/PAYX/2001/page_1.jpg" border="2" alt="Cover" longdesc="http://www.shareholder.com/visitors/dynamicdoc/v3/../page_longdesc.cfm?CompanyID=PAYX&documentID=2001&PIN=&Page=1"></a>
<span style="display:none;">[<a href="../page_longdesc.cfm?CompanyID=PAYX&documentID=2001&PIN=&Page=1">D</a>]</span></td>
</tr>
</table>
]]>