How Payroll Companies Make Money Before You Get Paid

Your employer sends money to pay you. A few days later, your salary appears in your bank account. But what happens to that money in between? In this video, we follow the hidden journey behind a paycheck and explain how payroll companies earn money through processing fees, additional services, and interest on client funds temporarily held before payments are completed. ADP reported moving more than $3.3 trillion in client funds during fiscal 2025. It also held an average client-funds balance of approximately $37.6 billion and earned about $1.19 billion in interest from those funds. We also examine why payroll depends on trust, what “float” means, and a documented criminal case showing what can happen when payroll-tax money is misused. This video is for educational purposes. The financial figures are based on company filings, and the AccuPay case is based on information published by the United States Department of Justice.