<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE AUGUST
31, 1998 CONSOLIDATED FINANCIAL STATEMENTS AND RELATED NOTES TO CONSOLIDATED
FOR FINANCIAL STATEMENTS OF PAYCHEX, INC., AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.  ON MAY 22, 1998, PAYCHEX, INC.,
DISTRIBUTED A THREE-FOR-TWO STOCK SPLIT EFFECTED IN THE FORM OF A 50% STOCK
DIVIDEND TO STOCKHOLDERS OF RECORD AS OF MAY 8, 1998.  THEREFORE, ALL
APPLICABLE AMOUNTS FOR THE PRIOR YEAR INCLUDED IN THIS SCHEDULE AFFECTED BY
THE STOCK SPLIT HAVE BEEN ADJUSTED.
</LEGEND>
<CIK> 0000723531
<NAME> PAYCHEX, INC.
<MULTIPLIER> 1,000
       
                                                  
<PERIOD-TYPE>                   3-MOS                   3-MOS
<FISCAL-YEAR-END>                          MAY-31-1999             MAY-31-1998
<PERIOD-START>                             JUN-01-1998             JUN-01-1997
<PERIOD-END>                               AUG-31-1998             AUG-31-1997
<CASH>                                          49,519                  53,316
<SECURITIES>                                 1,329,555<F1>           1,066,627<F1>
<RECEIVABLES>                                   78,091                  58,724
<ALLOWANCES>                                         0                       0
<INVENTORY>                                          0                       0
<CURRENT-ASSETS>                             1,461,125               1,181,930
<PP&E>                                         154,940                 131,509
<DEPRECIATION>                                  91,954                  75,973
<TOTAL-ASSETS>                               1,530,957               1,244,334
<CURRENT-LIABILITIES>                        1,168,860                 969,796
<BONDS>                                              0                       0
<PREFERRED-MANDATORY>                                0                       0
<PREFERRED>                                          0                       0
<COMMON>                                         1,634                   1,086
<OTHER-SE>                                     355,353                 268,620
<TOTAL-LIABILITY-AND-EQUITY>                 1,530,957               1,244,334
<SALES>                                              0                       0
<TOTAL-REVENUES>                               281,787                 218,583
<CGS>                                                0                       0
<TOTAL-COSTS>                                  178,383                 135,942
<OTHER-EXPENSES>                                     0                       0
<LOSS-PROVISION>                                     0                       0
<INTEREST-EXPENSE>                                   0                       0
<INCOME-PRETAX>                                 44,604                  32,545
<INCOME-TAX>                                    13,203                   9,471
<INCOME-CONTINUING>                             31,401                  23,074
<DISCONTINUED>                                       0                       0
<EXTRAORDINARY>                                      0                       0
<CHANGES>                                            0                       0
<NET-INCOME>                                    31,401                  23,074
<EPS-PRIMARY>                                      .19                     .14
<EPS-DILUTED>                                      .19                     .14
<FN>
<F1>SECURITIES - Includes amounts related to Electronic Network Services
investments with a balance at August 31, 1998 and 1997 of $1,110,205 and
$920,565, respectively.
</FN>