EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Chad Richison, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Paycom Software, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 5, 2016	By:	/s/ Chad Richison
		Chad Richison
		Chief Executive Officer
		(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Craig E. Boelte, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Paycom Software, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 5, 2016	By:	/s/ Craig E. Boelte
		Craig E. Boelte
		Chief Financial Officer
		(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), each of the undersigned officers of Paycom Software, Inc. (the “Company”), does hereby certify, to such officer’s knowledge, that:

The Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 (the “Form 10-Q”) of the Company fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company as of, and for, the periods presented in the Form 10-Q.

Date: May 5, 2016	By:	/s/ Chad Richison
		Chad Richison
		Chief Executive Officer
		(Principal Executive Officer)
Date:May 5, 2016	By:	/s/ Craig E. Boelte
		Craig E. Boelte
		Chief Financial Officer
		(Principal Financial Officer)

The foregoing certification is being furnished as an exhibit to the Form 10-Q pursuant to Item 601(b)(32) of Regulation S-K and Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) and, accordingly, is not being filed as part of the Form 10-Q for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

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Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 27, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Trading Symbol	PAYC
Entity Registrant Name	Paycom Software, Inc.
Entity Central Index Key	0001590955
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		59,926,434

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Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 72,075	$ 50,714
Accounts receivable	2,580	2,354
Prepaid expenses	4,793	3,531
Inventory	736	1,093
Income tax receivable		6,743
Current assets before funds held for clients	80,184	64,435
Funds held for clients	1,125,619	696,703
Total current assets	1,205,803	761,138
Property and equipment, net	66,990	58,858
Deposits and other assets	866	1,286
Goodwill	51,889	51,889
Intangible assets, net	3,081	3,484
Deferred income tax assets, net	3,003
Total assets	1,331,632	876,655
Current liabilities:
Accounts payable	5,694	4,899
Income tax payable	6,582
Accrued commissions and bonuses	1,784	8,687
Accrued payroll and vacation	5,237	2,898
Deferred revenue	3,994	3,726
Current portion of long-term debt	900	886
Accrued expenses and other current liabilities	11,983	9,735
Current liabilities before client funds obligation	36,174	30,831
Client funds obligation	1,125,619	696,703
Total current liabilities	1,161,793	727,534
Deferred income tax liabilities, net		641
Long-term deferred revenue	26,825	25,310
Net long-term debt, less current portion	24,650	24,856
Total long-term liabilities	$ 51,475	$ 50,807
Commitments and contingencies
Stockholders' equity:
Common stock, $0.01 par value (100,000,000 shares authorized, 57,138,157 and 57,119,873 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively)	$ 571	$ 571
Additional paid in capital	72,597	71,135
Retained earnings	45,196	26,608
Total stockholders' equity	118,364	98,314
Total liabilities and stockholders' equity	$ 1,331,632	$ 876,655

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Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	57,138,157	57,119,873
Common stock, shares outstanding	57,138,157	57,119,873

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Consolidated Statements of Income (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues
Recurring	$ 88,904	$ 54,351
Implementation and other	1,222	871
Total revenues	90,126	55,222
Cost of revenues
Operating expenses	10,785	7,471
Depreciation and amortization	1,186	810
Total cost of revenues	11,971	8,281
Administrative expenses
Sales and marketing	28,662	21,229
Research and development	3,860	1,867
General and administrative	15,206	11,984
Depreciation and amortization	1,723	1,323
Total administrative expenses	49,451	36,403
Total operating expenses	61,422	44,684
Operating income	28,704	10,538
Interest expense	(311)	(332)
Other income, net	34	33
Income before income taxes	28,427	10,239
Provision for income taxes	9,839	4,244
Net income	$ 18,588	$ 5,995
Earnings per share, basic	$ 0.32	$ 0.11
Earnings per share, diluted	$ 0.31	$ 0.11
Weighted average shares outstanding:
Basic	57,132,909	54,749,951
Diluted	58,362,040	56,562,661

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Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities
Net income	$ 18,588	$ 5,995
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,909	2,133
Amortization of debt issuance costs	32	13
Stock-based compensation expense	1,223	254
Deferred income taxes, net	(3,644)	(101)
Changes in operating assets and liabilities:
Accounts receivable	(226)	1,110
Prepaid expenses	(1,262)	(1,092)
Inventory	423	(523)
Deposits and other assets	420	(119)
Accounts payable	(1,170)	(515)
Income taxes, net	13,325	4,288
Accrued commissions and bonuses	(6,903)	(3,512)
Accrued payroll and vacation	2,339	1,578
Deferred revenue	1,783	1,439
Accrued expenses and other current liabilities	2,111	2,188
Net cash provided by operating activities	29,948	13,136
Cash flows from investing activities
(Increase) decrease in funds held for clients	(428,916)	68,994
Decrease in restricted cash		371
Purchases of property and equipment	(8,363)	(2,502)
Net cash provided by (used in) investing activities	(437,279)	66,863
Cash flows from financing activities
Principal payments on long-term debt	(224)	(464)
Increase (decrease) in client funds obligation	428,916	(68,994)
Payment of debt issuance costs		(12)
Net cash provided by (used in) financing activities	428,692	(69,470)
Net increase in cash and cash equivalents	21,361	10,529
Cash and cash equivalents
Beginning of period	50,714	25,144
End of period	$ 72,075	$ 35,673

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Organization and Description of Business

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Organization and Description of Business

1. ORGANIZATION AND DESCRIPTION OF BUSINESS

Description of Business

Paycom Software, Inc. (“Software”) and its wholly owned subsidiaries (collectively, the “Company”) is a leading provider of comprehensive, cloud-based human capital management (“HCM”) software delivered as Software-as-a-Service. Unless we state otherwise or the context otherwise requires, the terms “we”, “our”, “us” and the “Company” refer to Software and its consolidated subsidiaries.  

We provide functionality and data analytics that businesses need to manage the complete employment life cycle from recruitment to retirement. Our solution requires virtually no customization and is based on a core system of record maintained in a single database for all HCM functions, including talent acquisition, time and labor management, payroll, talent management and human resources (“HR”) management applications.

Follow-On Public Offering

On January 21, 2015, we closed our follow-on public offering, whereby 6,422,750 shares of our common stock were sold to the public by certain selling stockholders at a public offering price of $22.50 per share.  The Company did not receive any proceeds from the sale of these shares.

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Our significant accounting policies are discussed in “Note 2. Summary of Significant Accounting Policies” in our audited consolidated financial statements for the year ended December 31, 2015, included in the Annual Report on Form 10-K that was filed with the Securities and Exchange Commission (“SEC”) on February 22, 2016.

Basis of Presentation

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the SEC regarding interim financial statements that permit reduced disclosure for interim periods.  In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments necessary to fairly present our consolidated balance sheets as of March 31, 2016 and December 31, 2015, our consolidated statements of income for the three months ended March 31, 2016 and 2015 and our consolidated statements of cash flows for the three months ended March 31, 2016 and 2015.  Such adjustments are of a normal recurring nature.  The information in this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K that was filed with the SEC on February 22, 2016.  The results of operations for the three months ended March 31, 2016 are not necessarily indicative of the results expected for the full fiscal year.

Adoption of New Pronouncements

We adopted on a retrospective basis the recently issued guidance by the Financial Accounting Standards Board (“FASB”) Accounting Standards Update No. 2015-03, “Interest – Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). ASU 2015-03 requires companies with debt issuance costs related to a recognized debt liability to present such issuance costs in the consolidated balance sheets as a direct deduction from the carrying amount of the debt liability.  Our adoption of ASU 2015-03 resulted in a reclassification which decreased deposits and other assets by $0.1 million and decreased net long-term debt, less current portion by $0.1 million on our consolidated balance sheet as of December 31, 2015. The adoption of ASU 2015-03 had no impact on our stockholders’ equity or the results of our operations.

In June 2014, the FASB issued authoritative guidance for share-based payments which requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Accordingly, the standard was effective for us on January 1, 2016. The adoption of this standard did not have a material impact on our consolidated financial statements.

In April 2015, the FASB issued authoritative guidance for intangibles related to internally developed software.  The new guidance assists entities in evaluating the accounting for fees paid by a customer in a cloud computing arrangement.  The new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015.  Accordingly, the standard was effective for us on January 1, 2016.  The adoption of this standard did not have a material impact on our consolidated financial statements.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant estimates include income taxes, contingencies, the useful life of property and equipment and intangible assets, the life of our client relationships, the fair value of our stock-based awards and the fair value of our financial instruments, intangible assets and goodwill. These estimates are based on historical experience where applicable and other assumptions that management believes are reasonable under the circumstances. As such, actual results could materially differ from these estimates.

Employee Stock Purchase Plan

An award issued under the Paycom Software, Inc. Employee Stock Purchase Plan (the “ESPP”) is classified as a share-based liability and recorded at the fair value of the award.  Expense is recognized, net of estimated forfeitures, on a straight-line basis over the requisite service period.

Funds Held for Clients and Client Funds Obligation

As part of our payroll and tax filing application, we (i) collect client funds to satisfy their respective federal, state and local employment tax obligations, (ii) remit such funds to the appropriate taxing authorities and accounts designated by our clients, and (iii) manage client tax filings and any related correspondence with taxing authorities.  Amounts collected by us from clients for their federal, state and local employment taxes earn interest during the interval between receipt and disbursement, as we invest these funds in demand deposits, money market funds and certificates of deposit. The interest earned from these investments is included in the consolidated statements of income as other income, net. These investments are shown in the consolidated balance sheets as funds held for clients, and the offsetting liability for the tax filings is shown as client funds obligation.  The liability is recorded in the accompanying balance sheets at the time we obtain the funds from clients.  The client funds obligation represents liabilities that will be repaid within one year of the balance sheet date.

As of March 31, 2016 and December 31, 2015, the funds held for clients were invested in demand deposits, certificates of deposit and money market funds and classified as a current asset in the accompanying balance sheets as these funds are held solely to satisfy the client funds obligation.

Recently Issued Accounting Pronouncements

In May 2014, the FASB issued authoritative guidance which included a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. In April 2015, the FASB proposed a one year deferral of the effective date of the new revenue recognition standard for public and non-public entities reporting under U.S. GAAP and on July 9, 2015, the FASB approved the one year deferral.  The effective date of the amended standard will begin in periods beginning after December 15, 2017.  We are currently evaluating the impact that the standard will have on our consolidated financial statements.

In July 2015, the FASB issued authoritative guidance which simplifies the measurement of inventory.  Under the new guidance, an entity should measure inventory (as defined within the scope of the guidance) at the lower of cost or net realizable value.  The new guidance applies to all inventory except inventory measured using last-in, first-out (LIFO) or the retail inventory method.  Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predicable costs of completion, disposal and transportation.  The new guidance is effective for public companies for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years.  Accordingly, the standard is effective for us on January 1, 2017.  We do not anticipate that the adoption of this standard will have a material impact on our consolidated financial statements.

In January 2016, the FASB issued authoritative guidance for the accounting for financial instruments. The amendments in this guidance require all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments in this guidance also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, the amendments in this guidance eliminate the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. The new guidance is effective for us for fiscal years, and interim periods within those years, beginning after December 15, 2017 and early adoption is permitted. We are currently evaluating the impact that the standard will have on our consolidated financial statements.

In February 2016, the FASB issued authoritative guidance for the accounting for leases.  The purpose of the update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet as well as providing additional disclosure requirements related to leasing arrangements.  The new guidance is effective for us for fiscal years, and interim periods within those years, beginning after December 15, 2018, though early adoption is permitted.  We are currently evaluating the impact that the standard will have on our consolidated financial statements.

In March 2016, as part of its initiative to reduce complexity in accounting standards, the FASB issued authoritative guidance for the accounting for stock compensation. The new guidance involves several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, forfeitures, classification of awards as either equity or liabilities, and classification on the statement of cash flows   The new guidance is effective for us for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, and early adoption is permitted.  We are currently evaluating the impact that the standard will have on our consolidated financial statements.

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Property and Equipment, Net

3 Months Ended

Mar. 31, 2016

Property Plant And Equipment [Abstract]

Property and Equipment, Net

3. PROPERTY AND EQUIPMENT, NET

Property and equipment and associated accumulated depreciation and amortization were as follows:

	March 31,			December 31,
	2016			2015
Property and equipment
Buildings	$	30,214		$	28,154
Software and capitalized software costs		16,103			13,959
Computer equipment		13,497			11,346
Rental clocks		9,138			8,750
Furniture, fixtures and equipment		5,808			5,464
Vehicles		421			421
Leasehold improvements		363			358
		75,544			68,452
Less: accumulated depreciation and amortization		(27,399	)		(24,894	)
		48,145			43,558
Land		8,993			8,993
Construction in progress		9,852			6,307
Property and equipment, net	$	66,990		$	58,858

In 2015, we began the construction of a third building/processing center and additional parking at our headquarters.  Included in the construction in progress balance at March 31, 2016 and December 31, 2015 is $0.5 million and $0.4 million in retainage, respectively.

Depreciation and amortization expense for property and equipment, net, was $2.5 million and $1.7 million for the three months ended March 31, 2016 and 2015, respectively.

We capitalize interest incurred for indebtedness related to construction of our principal executive offices.  For the three months ended March 31, 2016, we incurred interest costs of $0.3 million, less than $0.1 million of which was capitalized.  For the three months ended March 31, 2015, we incurred interest costs of $0.3 million, none of which was capitalized.

We capitalize computer software development costs related to software developed for internal use in accordance with Accounting Standards Codification (“ASC”) Topic 350-40.  During the three months ended March 31, 2016 and 2015, we capitalized $1.7 million and $0.8 million of computer software development costs related to software developed for internal use, respectively.

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Goodwill and Intangible Assets, Net

3 Months Ended

Mar. 31, 2016

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net

4. GOODWILL AND INTANGIBLE ASSETS, NET

Goodwill represents the excess of cost over our net tangible and identified intangible assets.  We had goodwill of $51.9 million as of March 31, 2016 and December 31, 2015. We have selected June 30 as our annual goodwill impairment testing date and determined there was no impairment as of June 30, 2015. For the year ended December 31, 2015 and for the period ended March 31, 2016, there were no indicators of impairment.

All of our intangible assets are considered to have finite lives and, as such, are subject to amortization. The components of intangible assets were as follows:

	March 31, 2016
	Weighted Average Remaining			Accumulated
	Useful Life	Gross		Amortization			Net
	(Years)
Intangibles:
Customer relationships	1.3	$	13,997	$	(12,247	)	$	1,750
Trade name	6.3		3,194		(1,863	)		1,331
Total		$	17,191	$	(14,110	)	$	3,081

	December 31, 2015
	Weighted Average Remaining			Accumulated
	Useful Life	Gross		Amortization			Net
	(Years)
Intangibles:
Customer relationships	1.5	$	13,997	$	(11,897	)	$	2,100
Trade name	6.5		3,194		(1,810	)		1,384
Total		$	17,191	$	(13,707	)	$	3,484

The weighted average remaining useful life of our intangible assets was 3.5 years as of March 31, 2016.  Amortization of intangible assets for both the three months ended March 31, 2016 and 2015 was $0.4 million.  

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Funds Held for Clients and Client Funds Obligation

3 Months Ended

Mar. 31, 2016

Accounts Payable And Accrued Expenses [Abstract]

Funds Held for Clients and Client Funds Obligation

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Long-Term Debt, Net

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Long-Term Debt, Net

5. LONG-TERM DEBT, NET

As of the dates indicated, our long-term debt consisted of the following:

	March 31,			December 31,
	2016			2015
Net term note to bank due May 30, 2021	$	25,550		$	25,742
Total long-term debt (including current portion)		25,550			25,742
Less: Current portion		(900	)		(886	)
Total long-term debt, net	$	24,650		$	24,856

As of March 31, 2016, our outstanding indebtedness consisted of a term note under the 2021 Consolidated Loan due to Kirkpatrick Bank (the “2021 Consolidated Loan”).  The 2021 Consolidated Loan matures on May 30, 2021.  Under the 2021 Consolidated Loan, interest is payable monthly and accrues at a fixed rate of 4.75% per annum.  The 2021 Consolidated Loan is secured by a mortgage covering our headquarters and certain personal property relating to our headquarters.

The 2021 Consolidated Loan includes certain financial covenants, including maintaining a fixed charge coverage ratio of EBITDA to fixed charges (defined as current maturities of long-term debt, interest expense, rent expense and distributions), as defined in the agreement, of greater than 1.2 to 1.0, which is measured on a quarterly basis. We were in compliance with all of the covenants as of March 31, 2016.

On May 13, 2015, we entered into a loan agreement with Kirkpatrick Bank to finance the expansion of our headquarters (the “Construction Loan”).  The Construction Loan allows for the borrowing of a maximum aggregate principal amount equal to the lesser of (i) $11.0 million or (ii) 80% of the appraised value of the constructed property.  We did not have any outstanding borrowings under the Construction Loan as of March 31, 2016.  The Construction Loan matures on the earlier of the completion of construction or November 13, 2016, with variable interest accruing at the greater of (i) the prime rate, plus 50 basis points or (ii) 4.0%.  At maturity, the outstanding principal balance of the Construction Loan, if any, will be automatically converted to a 78-month term loan.  The term loan will accrue fixed interest at the prevailing 7/20 London Interbank Offered Rate swap interest rate that is in effect as of the commencement date, plus 225 basis points.  

As of March 31, 2016 and December 31, 2015, the carrying value of our total long-term debt, including current portion, was $25.6 million and $25.7 million, respectively, which approximated its fair value as of both dates. The fair value of fixed rate long-term debt is estimated based on the borrowing rates currently available to us for bank loans with similar terms and maturities.      

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Employee Savings Plan

3 Months Ended

Mar. 31, 2016

Compensation Related Costs [Abstract]

Employee Savings Plan and Employee Stock Purchase Plan

6. EMPLOYEE SAVINGS PLAN AND EMPLOYEE STOCK PURCHASE PLAN

Our employees that are over the age of 21 and have completed ninety (90) days of service are eligible to participate in our 401(k) plan. We have made a Qualified Automatic Contribution Arrangement (“QACA”) election, whereby we make a matching contribution for our employees equal to 100% of the first 1% of salary deferrals and 50% of salary deferrals between 2% and 6%, up to a maximum matching contribution of 3.5% of salary each plan year. We are allowed to make additional discretionary matching contributions and discretionary profit sharing contributions. Employees are 100% vested in amounts attributable to salary deferrals and rollover contributions. The QACA matching contributions will be 100% vested after two years of employment from the date of hire. The discretionary contributions vest 100% after two years of employment from the date of hire. Matching contributions amounted to $1.0 million and $0.7 million for the three months ended March 31, 2016 and 2015, respectively.

The ESPP allows, at the beginning of each offering period, eligible employees to elect to contribute, through payroll deductions, up to 10% of their compensation, subject to an annual per employee maximum, to purchase shares of the Company’s common stock at a price of 85% of the fair market value of the shares on the exercise date.  Each offering period of the ESPP lasts six months and the maximum number of shares that may be acquired by a participant during each offering period is 2,000 shares. The shares reserved for purposes of the ESPP are shares we purchase in the open market.  The maximum number of shares of the Company’s common stock that may be acquired by participants under the ESPP is 2,000,000 shares.  During the three months ended March 31, 2016, eligible employees purchased 60,267 shares of the Company’s common stock under the ESPP.  Compensation expense related to the ESPP is recognized on a straight-line basis over the requisite service period.  Our compensation expense related to the ESPP was $0.2 million for the three months ended March 31, 2016.

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Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

7. FAIR VALUE OF FINANCIAL INSTRUMENTS

Our financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, funds held for clients, client funds obligation and long-term debt. The carrying amount of cash and cash equivalents, accounts receivable, accounts payable, funds held for clients and client funds obligation approximates fair value because of the short-term nature of the instruments.

We did not have any financial instruments that were measured on a recurring basis at either March 31, 2016 or December 31, 2015. 

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Earnings Per Share

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Earnings Per Share

8. EARNINGS PER SHARE

Basic earnings per share is based on the weighted average number of shares of common stock outstanding for the period. Diluted earnings per share is computed in a similar manner to basic earnings per share after assuming the issuance of shares of common stock for all potentially dilutive shares of restricted stock whether or not they are vested.

In accordance with ASC Topic 260 “Earnings Per Share”, the two-class method determines earnings for each class of common stock and participating securities according to an earnings allocation formula that adjusts the income available to common stockholders for dividends or dividend equivalents and participation rights in undistributed earnings.  Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, are included in computing earnings per share pursuant to the two-class method.  The outstanding restricted shares of stock that were issued on July 8, 2015 are considered participating securities.

The following is a reconciliation of net income and the shares of common stock used in the computation of basic and diluted earnings per share:

	Three Months Ended
	March 31, 2016			March 31, 2015
Numerator:
Net income	$	18,588		$	5,995
Less:  income allocable to participating securities	$	(232	)	$	-
Income allocable to common shares	$	18,356		$	5,995
Add back:  undistributed earnings allocable to participating securities	$	232		$	-
Less:  undistributed earnings reallocated to participating securities	$	(227	)	$	-
Numerator for diluted earnings per share	$	18,361		$	5,995
Denominator:
Weighted average common shares outstanding		50,315,455			50,315,455
Adjustment for vested restricted stock		6,817,454			4,434,496
Shares for calculating basic earnings per share		57,132,909			54,749,951
Dilutive effect of unvested restricted stock		1,229,131			1,812,710
Shares for calculating diluted earnings per share		58,362,040			56,562,661
Earnings per share:
Basic	$	0.32		$	0.11
Diluted	$	0.31		$	0.11

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Stockholders' Equity and Stock-Based Compensation

3 Months Ended

Mar. 31, 2016

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stockholders' Equity and Stock-Based Compensation

9. STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

On January 1, 2014, we issued shares of restricted common stock (“2014 Restricted Stock”) under the Paycom Software, Inc. 2014 Long-Term Incentive Plan (the “LTIP”) that were subject to either time-based vesting conditions or market-based vesting conditions.  Shares of 2014 Restricted Stock with time-based vesting conditions vest based on various schedules through 2018.  The market-based vesting conditions were based on our total enterprise value exceeding certain specified thresholds.  Compensation expense related to the issuance of 2014 Restricted Stock with time-based vesting conditions was measured based on the fair value of the award on the grant date and is recognized over the requisite service period on a straight-line basis.  Compensation expense relating to the issuance of 2014 Restricted Stock with market-based vesting conditions was measured based on the fair value of the award on the grant date and recognized on a straight-line basis over the vesting period based on the probability that the vesting conditions would be met.  For 2014 Restricted Stock with market-based vesting conditions, 50% of the shares vested upon reaching a total enterprise value of $1.4 billion on December 1, 2014 and the remaining 50% of the shares vested upon reaching a total enterprise value of $1.8 billion on March 2, 2015.  Our total compensation expense related to 2014 Restricted Stock was less than $0.1 million for the three months ended March 31, 2016 and $0.3 million for the three months ended March 31, 2015.

There was $0.2 million of total unrecognized compensation cost, net of estimated forfeitures, related to unvested shares of 2014 Restricted Stock with time-based vesting conditions outstanding as of March 31, 2016.  The unrecognized compensation cost is expected to be recognized over a weighted average period of 1.7 years as of March 31, 2016.

On July 8, 2015, we issued an aggregate of 741,931 shares of restricted stock to each of our executive officers and certain non-executive employees (“2015 Restricted Stock”) under the LTIP, of which 477,200 shares were subject to market-based vesting conditions and 264,731 shares were subject to time-based vesting conditions.  The fair value of each share of 2015 Restricted Stock with market-based vesting conditions was estimated on the grant date using a Monte Carlo simulation model.  This model considers a range of assumptions related to volatility, risk-free interest rate, expected life and expected dividend yield.  Expected volatilities used in the model are based on historical volatilities of comparable guideline companies until a sufficient trading history in our common stock exists.  We are required to estimate forfeitures and only record compensation costs for those awards that are expected to vest. 

Shares of 2015 Restricted Stock with market-based vesting conditions will vest 50% when we reach a total enterprise value of $2.65 billion and 50% when we reach a total enterprise value of $3.5 billion.  Shares of 2015 Restricted Stock with time-based vesting conditions vest over periods of three or five years.  Compensation expense for 2015 Restricted Stock awards with time-based vesting conditions was measured based on the fair value of the underlying shares of restricted stock on the grant date (which was equal to the closing price of our common stock of $33.33 on the grant date) and will be recognized over the requisite service periods on a straight-line basis.  Compensation expense for 2015 Restricted Stock awards with market-based vesting conditions was measured based on the fair value of the underlying shares of restricted stock on the grant date, which was $21.76 or $27.24 depending on the enterprise value target.  Compensation expense for 2015 Restricted Stock with market-based vesting conditions will be recognized on a straight-line basis over the requisite service period of 2.3 to 4.2 years.  Our total compensation expense related to 2015 Restricted Stock was $1.3 million for the three months ended March 31, 2016.  There was $13.3 million of unrecognized compensation cost, net of estimated forfeitures, related to unvested shares of 2015 Restricted Stock outstanding as of March 31, 2016.  The unrecognized compensation cost is expected to be recognized over a weighted average period of 2.0 years as of March 31, 2016.

We capitalized stock based compensation costs related to software developed for internal use of $0.1 million and less than $0.1 million for the three months ended March 31, 2016 and 2015, respectively.

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Related-Party Transactions

3 Months Ended

Mar. 31, 2016

Related Party Transactions [Abstract]

Related-Party Transactions

10. RELATED-PARTY TRANSACTIONS

For the three months ended March 31, 2016 and 2015, we paid rent on our Dallas office space in the amounts of $0.1 million. The Dallas office building is owned by 417 Oakbend, LP, a Texas limited partnership. Our Chief Sales Officer owns a .01% general partnership interest and a 10.49% limited partnership interest in 417 Oakbend, LP.

In accordance with the terms of the Registration Rights Agreement dated as of December 30, 2013, we paid registration and related expenses incurred by certain parties and others in the aggregate amount of $1.3 million in connection with the registration of shares of common stock in a follow-on secondary offering in January 2015.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2016

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

11. COMMITMENTS AND CONTINGENCIES

Employment Agreements

We have employment agreements with certain of our executive officers. The agreements allow for annual compensation, participation in executive benefit plans, and performance-based cash bonuses.

Legal Proceedings

We are involved in various legal proceedings in the ordinary course of business. Although we cannot predict the outcome of these proceedings, legal matters are subject to inherent uncertainties and there exists the possibility that the ultimate resolution of these matters could have a material adverse effect on our business, financial condition, results of operations and cash flows.

Operating Leases and Deferred Rent

We lease office space under several noncancellable operating leases with contractual terms expiring from 2016 to 2021. Minimum rent expenses are recognized over the lease term. The lease term is defined as the fixed noncancellable term of the lease plus all periods, if any, for which failure to renew the lease imposes a penalty on us in an amount that a renewal appears, at the inception of the lease, to be reasonably assured. When a lease contains a predetermined fixed escalation of the minimum rent, we recognize the related rent expense on a straight-line basis and record the difference between the recognized rent expense and the amount payable under the lease as a liability. As of March 31, 2016 and December 31, 2015, we had $0.9 million and $0.8 million, respectively, recorded as a liability for deferred rent.

Rent expense under operating leases for the three months ended March 31, 2016 and 2015 was $1.3 million and $1.1 million, respectively.

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Income Taxes

3 Months Ended

Mar. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

12. INCOME TAXES

The provision for income taxes is based on a current estimate of the annual effective income tax rate adjusted to reflect the impact of discrete items.  Significant management judgment is required in estimating operating income in order to determine our effective income tax rate.  The estimated effective income tax rate was 34.61% and 41.45% for the three months ended March 31, 2016 and 2015, respectively.  The lower effective income tax rate for the three months ended March 31, 2016 is primarily a result of the Section 199 qualified production activities deduction and the research and development tax credit.

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Subsequent Events

3 Months Ended

Mar. 31, 2016

Subsequent Events [Abstract]

Subsequent Events

13. SUBSEQUENT EVENTS

     On April 15, 2016, we issued 847,928 shares of restricted common stock to certain of our executive and non-executive employees under the LTIP.  Certain shares of restricted common stock are subject to market-based vesting conditions and certain shares of restricted common stock are subject to time-based vesting conditions.  Market-based restricted common stock will vest 100% if the Company reaches a total enterprise value of $2.65 billion within six years of the date of grant.  Time-based restricted common stock will vest over periods of three or five years.

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Organization and Description of Business (Policies)

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Business Description

Description of Business

Paycom Software, Inc. (“Software”) and its wholly owned subsidiaries (collectively, the “Company”) is a leading provider of comprehensive, cloud-based human capital management (“HCM”) software delivered as Software-as-a-Service. Unless we state otherwise or the context otherwise requires, the terms “we”, “our”, “us” and the “Company” refer to Software and its consolidated subsidiaries.  

We provide functionality and data analytics that businesses need to manage the complete employment life cycle from recruitment to retirement. Our solution requires virtually no customization and is based on a core system of record maintained in a single database for all HCM functions, including talent acquisition, time and labor management, payroll, talent management and human resources (“HR”) management applications.

Follow-On Public Offering

Follow-On Public Offering

On January 21, 2015, we closed our follow-on public offering, whereby 6,422,750 shares of our common stock were sold to the public by certain selling stockholders at a public offering price of $22.50 per share.  The Company did not receive any proceeds from the sale of these shares.

Basis of Presentation

Basis of Presentation

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the SEC regarding interim financial statements that permit reduced disclosure for interim periods.  In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments necessary to fairly present our consolidated balance sheets as of March 31, 2016 and December 31, 2015, our consolidated statements of income for the three months ended March 31, 2016 and 2015 and our consolidated statements of cash flows for the three months ended March 31, 2016 and 2015.  Such adjustments are of a normal recurring nature.  The information in this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K that was filed with the SEC on February 22, 2016.  The results of operations for the three months ended March 31, 2016 are not necessarily indicative of the results expected for the full fiscal year.

Adoption of New Pronouncement

Adoption of New Pronouncements

We adopted on a retrospective basis the recently issued guidance by the Financial Accounting Standards Board (“FASB”) Accounting Standards Update No. 2015-03, “Interest – Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). ASU 2015-03 requires companies with debt issuance costs related to a recognized debt liability to present such issuance costs in the consolidated balance sheets as a direct deduction from the carrying amount of the debt liability.  Our adoption of ASU 2015-03 resulted in a reclassification which decreased deposits and other assets by $0.1 million and decreased net long-term debt, less current portion by $0.1 million on our consolidated balance sheet as of December 31, 2015. The adoption of ASU 2015-03 had no impact on our stockholders’ equity or the results of our operations.

In June 2014, the FASB issued authoritative guidance for share-based payments which requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Accordingly, the standard was effective for us on January 1, 2016. The adoption of this standard did not have a material impact on our consolidated financial statements.

In April 2015, the FASB issued authoritative guidance for intangibles related to internally developed software.  The new guidance assists entities in evaluating the accounting for fees paid by a customer in a cloud computing arrangement.  The new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015.  Accordingly, the standard was effective for us on January 1, 2016.  The adoption of this standard did not have a material impact on our consolidated financial statements.

Use of Estimates

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant estimates include income taxes, contingencies, the useful life of property and equipment and intangible assets, the life of our client relationships, the fair value of our stock-based awards and the fair value of our financial instruments, intangible assets and goodwill. These estimates are based on historical experience where applicable and other assumptions that management believes are reasonable under the circumstances. As such, actual results could materially differ from these estimates.

Employee Stock Purchase Plan

Employee Stock Purchase Plan

An award issued under the Paycom Software, Inc. Employee Stock Purchase Plan (the “ESPP”) is classified as a share-based liability and recorded at the fair value of the award.  Expense is recognized, net of estimated forfeitures, on a straight-line basis over the requisite service period.

Funds Held for Clients and Client Funds Obligation

Funds Held for Clients and Client Funds Obligation

As part of our payroll and tax filing application, we (i) collect client funds to satisfy their respective federal, state and local employment tax obligations, (ii) remit such funds to the appropriate taxing authorities and accounts designated by our clients, and (iii) manage client tax filings and any related correspondence with taxing authorities.  Amounts collected by us from clients for their federal, state and local employment taxes earn interest during the interval between receipt and disbursement, as we invest these funds in demand deposits, money market funds and certificates of deposit. The interest earned from these investments is included in the consolidated statements of income as other income, net. These investments are shown in the consolidated balance sheets as funds held for clients, and the offsetting liability for the tax filings is shown as client funds obligation.  The liability is recorded in the accompanying balance sheets at the time we obtain the funds from clients.  The client funds obligation represents liabilities that will be repaid within one year of the balance sheet date.

As of March 31, 2016 and December 31, 2015, the funds held for clients were invested in demand deposits, certificates of deposit and money market funds and classified as a current asset in the accompanying balance sheets as these funds are held solely to satisfy the client funds obligation.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

In May 2014, the FASB issued authoritative guidance which included a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. In April 2015, the FASB proposed a one year deferral of the effective date of the new revenue recognition standard for public and non-public entities reporting under U.S. GAAP and on July 9, 2015, the FASB approved the one year deferral.  The effective date of the amended standard will begin in periods beginning after December 15, 2017.  We are currently evaluating the impact that the standard will have on our consolidated financial statements.

In July 2015, the FASB issued authoritative guidance which simplifies the measurement of inventory.  Under the new guidance, an entity should measure inventory (as defined within the scope of the guidance) at the lower of cost or net realizable value.  The new guidance applies to all inventory except inventory measured using last-in, first-out (LIFO) or the retail inventory method.  Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predicable costs of completion, disposal and transportation.  The new guidance is effective for public companies for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years.  Accordingly, the standard is effective for us on January 1, 2017.  We do not anticipate that the adoption of this standard will have a material impact on our consolidated financial statements.

In January 2016, the FASB issued authoritative guidance for the accounting for financial instruments. The amendments in this guidance require all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments in this guidance also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, the amendments in this guidance eliminate the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. The new guidance is effective for us for fiscal years, and interim periods within those years, beginning after December 15, 2017 and early adoption is permitted. We are currently evaluating the impact that the standard will have on our consolidated financial statements.

In February 2016, the FASB issued authoritative guidance for the accounting for leases.  The purpose of the update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet as well as providing additional disclosure requirements related to leasing arrangements.  The new guidance is effective for us for fiscal years, and interim periods within those years, beginning after December 15, 2018, though early adoption is permitted.  We are currently evaluating the impact that the standard will have on our consolidated financial statements.

In March 2016, as part of its initiative to reduce complexity in accounting standards, the FASB issued authoritative guidance for the accounting for stock compensation. The new guidance involves several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, forfeitures, classification of awards as either equity or liabilities, and classification on the statement of cash flows   The new guidance is effective for us for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, and early adoption is permitted.  We are currently evaluating the impact that the standard will have on our consolidated financial statements.

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Property and Equipment , Net (Tables)

3 Months Ended

Mar. 31, 2016

Property Plant And Equipment [Abstract]

Schedule of Property and Equipment and Associated Accumulated Depreciation and Amortization

Property and equipment and associated accumulated depreciation and amortization were as follows:

	March 31,			December 31,
	2016			2015
Property and equipment
Buildings	$	30,214		$	28,154
Software and capitalized software costs		16,103			13,959
Computer equipment		13,497			11,346
Rental clocks		9,138			8,750
Furniture, fixtures and equipment		5,808			5,464
Vehicles		421			421
Leasehold improvements		363			358
		75,544			68,452
Less: accumulated depreciation and amortization		(27,399	)		(24,894	)
		48,145			43,558
Land		8,993			8,993
Construction in progress		9,852			6,307
Property and equipment, net	$	66,990		$	58,858

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Goodwill and Intangible Assets, Net (Tables)

3 Months Ended

Mar. 31, 2016

Goodwill And Intangible Assets Disclosure [Abstract]

Components of Intangible Assets

All of our intangible assets are considered to have finite lives and, as such, are subject to amortization. The components of intangible assets were as follows:

	March 31, 2016
	Weighted Average Remaining			Accumulated
	Useful Life	Gross		Amortization			Net
	(Years)
Intangibles:
Customer relationships	1.3	$	13,997	$	(12,247	)	$	1,750
Trade name	6.3		3,194		(1,863	)		1,331
Total		$	17,191	$	(14,110	)	$	3,081

	December 31, 2015
	Weighted Average Remaining			Accumulated
	Useful Life	Gross		Amortization			Net
	(Years)
Intangibles:
Customer relationships	1.5	$	13,997	$	(11,897	)	$	2,100
Trade name	6.5		3,194		(1,810	)		1,384
Total		$	17,191	$	(13,707	)	$	3,484

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Long-Term Debt, Net (Tables)

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

As of the dates indicated, our long-term debt consisted of the following:

	March 31,			December 31,
	2016			2015
Net term note to bank due May 30, 2021	$	25,550		$	25,742
Total long-term debt (including current portion)		25,550			25,742
Less: Current portion		(900	)		(886	)
Total long-term debt, net	$	24,650		$	24,856

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

The following is a reconciliation of net income and the shares of common stock used in the computation of basic and diluted earnings per share:

	Three Months Ended
	March 31, 2016			March 31, 2015
Numerator:
Net income	$	18,588		$	5,995
Less:  income allocable to participating securities	$	(232	)	$	-
Income allocable to common shares	$	18,356		$	5,995
Add back:  undistributed earnings allocable to participating securities	$	232		$	-
Less:  undistributed earnings reallocated to participating securities	$	(227	)	$	-
Numerator for diluted earnings per share	$	18,361		$	5,995
Denominator:
Weighted average common shares outstanding		50,315,455			50,315,455
Adjustment for vested restricted stock		6,817,454			4,434,496
Shares for calculating basic earnings per share		57,132,909			54,749,951
Dilutive effect of unvested restricted stock		1,229,131			1,812,710
Shares for calculating diluted earnings per share		58,362,040			56,562,661
Earnings per share:
Basic	$	0.32		$	0.11
Diluted	$	0.31		$	0.11

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Organization and Description of Business - Additional Information (Detail) - Public Offering [Member]	Jan. 21, 2015 USD ($) $ / shares shares
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Common stock issued, shares | shares	6,422,750
Offering price per share | $ / shares	$ 22.50
Proceeds from sale of common stock under public offering | $	$ 0

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Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions	Dec. 31, 2015 USD ($)
Net Long-Term Debt, Less Current Portion [Member]
Summary Of Significant Accounting Policy [Line Items]
Change in adoption of recent accounting pronouncements on other assets and long term debt	$ 0.1
Deposits and Other Assets [Member]
Summary Of Significant Accounting Policy [Line Items]
Change in adoption of recent accounting pronouncements on other assets and long term debt	$ 0.1

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Property and Equipment, Net - Schedule of Property and Equipment and Associated Accumulated Depreciation and Amortization (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 75,544	$ 68,452
Less: accumulated depreciation and amortization	(27,399)	(24,894)
Property and equipment, net	66,990	58,858
Buildings [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	30,214	28,154
Software and Capitalized Software Costs [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	16,103	13,959
Computer Equipment [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	13,497	11,346
Rental Clocks [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	9,138	8,750
Furniture, Fixtures and Equipment [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	5,808	5,464
Vehicles [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	421	421
Leasehold Improvements [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	363	358
Excluded Land and Construction in Process [Member]
Property Plant And Equipment [Line Items]
Property and equipment, net	48,145	43,558
Land [Member]
Property Plant And Equipment [Line Items]
Property and equipment, net	8,993	8,993
Construction in Progress [Member]
Property Plant And Equipment [Line Items]
Property and equipment, net	$ 9,852	$ 6,307

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Property and Equipment, Net - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Property Plant And Equipment [Line Items]
Retainage amount included in construction in progress	$ 500,000		$ 400,000
Depreciation and amortization	1,723,000	$ 1,323,000
Interest cost paid	300,000	300,000
Interest costs capitalized	100,000	0
Computer software development costs capitalized	1,700,000	800,000
Property and Equipment [Member]
Property Plant And Equipment [Line Items]
Depreciation and amortization	$ 2,500,000	$ 1,700,000

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Goodwill and Intangible Assets, Net - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Jun. 30, 2015	Dec. 31, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill	$ 51,889,000			$ 51,889,000
Goodwill impairment amount	$ 0		$ 0	$ 0
Weighted average remaining useful life	3 years 6 months
Amortization of intangible assets	$ 400,000	$ 400,000

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Goodwill and Intangible Assets, Net - Components of Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Finite Lived Intangible Assets [Line Items]
Weighted average remaining useful life	3 years 6 months
Gross	$ 17,191	$ 17,191
Accumulated amortization	(14,110)	(13,707)
Net	$ 3,081	$ 3,484
Customer Relationships [Member]
Finite Lived Intangible Assets [Line Items]
Weighted average remaining useful life	1 year 3 months 18 days	1 year 6 months
Gross	$ 13,997	$ 13,997
Accumulated amortization	(12,247)	(11,897)
Net	$ 1,750	$ 2,100
Trade Name [Member]
Finite Lived Intangible Assets [Line Items]
Weighted average remaining useful life	6 years 3 months 18 days	6 years 6 months
Gross	$ 3,194	$ 3,194
Accumulated amortization	(1,863)	(1,810)
Net	$ 1,331	$ 1,384

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Funds Held for Clients and Client Funds Obligation - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2015
Accounts Payable And Accrued Expenses [Line Items]
Maximum holding period for funds collected from clients	120 days
Minimum [Member]
Accounts Payable And Accrued Expenses [Line Items]
Disbursement period of funds collected from clients	1 day
Maximum [Member]
Accounts Payable And Accrued Expenses [Line Items]
Disbursement period of funds collected from clients	30 days

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Long-Term Debt, Net - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Schedule Of Capitalization Longterm Debt [Line Items]
Total long-term debt (including current portion)	$ 25,550	$ 25,742
Less: Current portion	(900)	(886)
Total long-term debt, net	24,650	24,856
2021 Consolidated Loan [Member]
Schedule Of Capitalization Longterm Debt [Line Items]
Net term note to bank due May 30, 2021	25,550	25,742
Total long-term debt (including current portion)	$ 25,550	$ 25,742

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Long-Term Debt, Net - Additional Information (Detail) - USD ($)		3 Months Ended
	May. 13, 2015	Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Total long-term debt, including current portion		$ 25,550,000	$ 25,742,000
Construction Loan [Member]
Debt Instrument [Line Items]
Loan, principal amount	$ 11,000,000
Construction loan, outstanding borrowings	$ 0
Construction loan, percentage of appraised value of constructed property	80.00%
Construction loan, maturity date description		The Construction Loan matures on the earlier of the completion of construction or November 13, 2016, with variable interest accruing at the greater of (i) the prime rate, plus 50 basis points or (ii) 4.0%
Debt Instrument, floor interest rate	4.00%
Construction Loan [Member] | Term Loan [Member]
Debt Instrument [Line Items]
Construction loan, maturity date description		At maturity, the outstanding principal balance of the Construction Loan, if any, will be automatically converted to a 78-month term loan.
Maturity period of term loan	78 months
Prime Rate | Construction Loan [Member]
Debt Instrument [Line Items]
Debt instrument basis spread on variable rate	0.50%
London Interbank Offered Rate L I B O R | Construction Loan [Member] | Term Loan [Member]
Debt Instrument [Line Items]
Debt instrument basis spread on variable rate	2.25%
2021 Consolidated Loan [Member]
Debt Instrument [Line Items]
Debt instrument maturity date		May 30, 2021
Debt instrument, interest rate		4.75%
Debt instrument, restrictive covenants		Maintaining a fixed charge coverage ratio of EBITDA to indebtedness (defined as current maturities of long-term debt, interest expense, rent expense and distributions), as defined in the agreement, of greater than 1.2 to 1.0
Total long-term debt, including current portion		$ 25,550,000	$ 25,742,000
2021 Consolidated Loan [Member] | Minimum [Member]
Debt Instrument [Line Items]
Debt coverage ratio of indebtedness		120.00%

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Employee Savings Plan and Employee Stock Purchase Plan - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Defined Contribution Plan Disclosure [Line Items]
401(k) eligibility minimum service period	90 days
401(k) description of plan contributions	Contribution for our employees equal to 100% of the first 1% of salary deferrals and 50% of salary deferrals between 2% and 6%, up to a maximum matching contribution of 3.5% of salary each plan year.
Employee vested percentage in salary deferrals and roll over contributions	100.00%
Minimum period for vesting 100% contributions	2 years
Minimum period for vesting of discretionary contributions	2 years
Matching contribution amount	$ 1.0	$ 0.7
Employee Stock Purchase Plan [Member]
Defined Contribution Plan Disclosure [Line Items]
Employees Company's common stock shares purchase limit percentage	10.00%
Maximum number of shares that may be acquired by a participant	2,000
Share of common stock purchase maximum	2,000,000
Purchase of shares of common stock	60,267
Compensation expense related to ESPP	$ 0.2
After Two Years Of Employment [Member]
Defined Contribution Plan Disclosure [Line Items]
Matching contributions, vesting percentage	100.00%
One Hundred Percent Match For Percent Of Participants Contribution [Member]
Defined Contribution Plan Disclosure [Line Items]
Employer contribution percentage	100.00%
Percentage of salary deferrals	1.00%
50% Matching Contribution [Member]
Defined Contribution Plan Disclosure [Line Items]
Employer contribution percentage	50.00%
Minimum [Member]
Defined Contribution Plan Disclosure [Line Items]
401(k) eligible age of employee	21 years
Minimum [Member] | 50% Matching Contribution [Member]
Defined Contribution Plan Disclosure [Line Items]
Percentage of salary deferrals	2.00%
Maximum [Member]
Defined Contribution Plan Disclosure [Line Items]
Percentage of salary deferrals	3.50%
Maximum [Member] | Employee Stock Purchase Plan [Member]
Defined Contribution Plan Disclosure [Line Items]
Purchase price of common stock expressed as a percentage of its fair market value	85.00%
Maximum [Member] | 50% Matching Contribution [Member]
Defined Contribution Plan Disclosure [Line Items]
Percentage of salary deferrals	6.00%

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Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Numerator:
Net income	$ 18,588	$ 5,995
Less: income allocable to participating securities	(232)
Income allocable to common shares	18,356	5,995
Add back: undistributed earnings allocable to participating securities	232
Less: undistributed earnings reallocated to participating securities	(227)
Numerator for diluted earnings per share	$ 18,361	$ 5,995
Denominator:
Weighted average common shares outstanding	50,315,455	50,315,455
Adjustment for vested restricted stock	6,817,454	4,434,496
Shares for calculating basic earnings per share	57,132,909	54,749,951
Dilutive effect of unvested restricted stock	1,229,131	1,812,710
Shares for calculating diluted earnings per share	58,362,040	56,562,661
Earnings per share:
Basic	$ 0.32	$ 0.11
Diluted	$ 0.31	$ 0.11

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Stockholders' Equity and Stock-Based Compensation - Additional Information (Detail) - USD ($)				3 Months Ended
	Jul. 08, 2015	Mar. 02, 2015	Dec. 01, 2014	Mar. 31, 2016	Mar. 31, 2015
Software and Capitalized Software Costs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Capitalized compensation cost				$ 100,000
Vest 50% upon reaching a total enterprise value of $1.4 billion [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Market-based vesting percentage, restricted shares			50.00%
Total enterprise value			$ 1,400,000,000
Vest 50% upon reaching a total enterprise value of $1.8 billion [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Market-based vesting percentage, restricted shares		50.00%
Total enterprise value		$ 1,800,000,000
2014 Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost related to unvested restricted stock				200,000
Unrecognized compensation expected to be recognized					1 year 8 months 12 days
2015 Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense recognized				1,300,000
Total unrecognized compensation cost related to unvested restricted stock				$ 13,300,000
Unrecognized compensation expected to be recognized				2 years
2015 Restricted Stock [Member] | LTIP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued	741,931
2015 Restricted Stock [Member] | Market-based Vesting Conditions [Member] | LTIP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued	477,200
2015 Restricted Stock [Member] | Time-based Vesting Conditions [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards grant date fair value	$ 33.33
2015 Restricted Stock [Member] | Time-based Vesting Conditions [Member] | LTIP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued	264,731
2015 Restricted Stock [Member] | Vest 50% when Company reaches a total enterprise value of $2.65 billion [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Market-based vesting percentage, restricted shares	50.00%
Total enterprise value	$ 2,650,000,000
Share-based compensation award vesting period	2 years 3 months 18 days
Restricted stock awards grant date fair value	$ 21.76
2015 Restricted Stock [Member] | Vest 50% when Company reaches a total enterprise value of $3.5 billion [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Market-based vesting percentage, restricted shares	50.00%
Total enterprise value	$ 3,500,000,000
Share-based compensation award vesting period	4 years 2 months 12 days
Restricted stock awards grant date fair value	$ 27.24
Maximum [Member] | Software and Capitalized Software Costs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Capitalized compensation cost					$ 100,000
Maximum [Member] | 2014 Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense recognized				$ 100,000	$ 300,000
Maximum [Member] | 2015 Restricted Stock [Member] | Time-based Vesting Conditions [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation award vesting period	5 years
Minimum [Member] | 2015 Restricted Stock [Member] | Time-based Vesting Conditions [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation award vesting period	3 years

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Related-Party Transactions - Additional Information (Detail) - 417 Oakbend, LP [Member] - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Related Party Transaction [Line Items]
Payments for rent	$ 0.1	$ 0.1
Registration and related expenses	$ 1.3
Registration rights agreement date	Dec. 30, 2013
Chief Sales Officer [Member]
Related Party Transaction [Line Items]
General partnership ownership interest in related party, percentage	0.01%
Limited partnership interest in related party, percentage	10.49%

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Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Other Commitments [Line Items]
Liability for deferred rent	$ 0.9		$ 0.8
Operating lease rent expense	$ 1.3	$ 1.1
Minimum [Member]
Other Commitments [Line Items]
Operating lease expiration year	2016
Maximum [Member]
Other Commitments [Line Items]
Operating lease expiration year	2021

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Income Taxes - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Estimated effective income tax rate	34.61%	41.45%

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Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - Restricted Stock [Member] $ in Millions	Apr. 15, 2016 USD ($) shares
Subsequent Event [Line Items]
Shares issued | shares	847,928
Vest 50% when Company reaches a total enterprise value of $2.65 billion [Member]
Subsequent Event [Line Items]
Market-based vesting percentage, restricted shares	100.00%
Total enterprise value | $	$ 2,650
Restricted common stock, expiration period	6 years
Minimum [Member]
Subsequent Event [Line Items]
Time-based restricted stock, vesting period	3 years
Maximum [Member]
Subsequent Event [Line Items]
Time-based restricted stock, vesting period	5 years