XML 57 R41.htm IDEA: XBRL DOCUMENT
v3.26.1

Income Taxes (Tables) | 12 Months Ended
--- | ---
Jun. 30, 2026
Income Tax Disclosure [Abstract] |
Schedule of income before income taxes | Income before income taxes for the year ended June 30, 2026 consisted of the following:
Domestic | $ | 382,102
Foreign | 5,201
Total | $ | 387,303 |
Schedule of income tax expense (benefit) | Income tax expense for the years ended June 30, 2024, 2025 and 2026 consisted of the following:
| Year Ended June 30,
| 2024 |  | 2025 |  | 2026
Current taxes |  |  |  |  |
Federal | $ | 30,900 |  |  | $ | 65,188 |  |  | $ | 13,040 |
State and local | 11,524 |  |  | 18,918 |  |  | 20,609 |
International | — |  |  | 999 |  |  | 1,002 |
Deferred taxes: |  |  |  |  |
Federal | 26,438 |  |  | (4,072) |  |  | 75,459 |
State and local | 1,387 |  |  | 940 |  |  | 8,425 |
International | — |  |  | (37) |  |  | (973) |
Total income tax expense | $ | 70,249 |  |  | $ | 81,936 |  |  | $ | 117,562 |
Schedule of tax rate reconciliation by applying the U.S. federal income tax rate to pretax income | Income tax expense differed from the amounts computed by applying the U.S. federal income tax rate of 21% for the year ended June 30, 2026 to pretax income as a result of the following:
| Year Ended June 30,
| 2026
U.S. federal statutory tax rate | $ | 81,333 |  |  | 21.0 | %
State and local income taxes, net of federal income tax effect (i) | 24,707 |  |  | 6.4 |
Foreign tax effects | (1,064) |  |  | (0.3) |
Effect of cross-border tax laws | 283 |  |  | 0.1 |
Tax credits |  |  |
Research and development tax credits | (9,518) |  |  | (2.4) |
Other credits | (233) |  |  | (0.1) |
Changes in unrecognized tax benefits | 1,234 |  |  | 0.3 |
Non-taxable or non-deductible items |  |  |
Stock-based compensation | 18,318 |  |  | 4.7 |
Other non-deductible expenses | 2,502 |  |  | 0.7 |
Effective tax rate | $ | 117,562 |  |  | 30.4 | %
(i) State taxes in California, Illinois, Florida and Pennsylvania made up the majority (greater than 50%) of the tax effect in this category. Income tax expense differed from the amounts computed by applying the U.S. federal income tax rate of 21% for the years ended June 30, 2024 and 2025 to pretax income as a result of the following:
| Year Ended June 30,
| 2024 |  | 2025
Income tax expense at statutory federal rate | 21.0 | % |  | 21.0 | %
Increase (reduction) in income taxes resulting from: |  |  |
Research and development credit and other credits | (2.9) |  |  | (2.0) |
Non-deductible expenses | 0.7 |  |  | 0.5 |
Change in valuation allowance | (0.5) |  |  | — |
Stock-based compensation expense | 2.7 |  |  | 1.8 |
State and local income taxes, net of federal income tax benefit | 4.3 |  |  | 5.1 |
Other | 0.1 |  |  | 0.1 |
| 25.4 | % |  | 26.5 | %
Schedule of income taxes paid by jurisdiction | (d) Income Taxes Paid The summary of income taxes paid by jurisdiction for the year ended June 30, 2026:
| Year Ended June 30,
| 2026
Federal | $ | 13,100 |
State and local income taxes |
California | 3,657 |
Florida | 2,723 |
Other states | 13,023 |
Foreign taxes | 652 |
Total income taxes paid | $ | 33,155 |
The amount of cash taxes paid by the Company during the years ended June 30, 2024 and 2025 was $47,619 million and $86,100, respectively.
Schedule of tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at June 30, 2025 and 2026 are presented below.
| June 30,
| 2025 |  | 2026
Deferred tax assets: |  |  |
Operating lease liabilities | $ | 14,457 |  | $ | 13,150
Accrued expenses | 23,101 |  | 24,191
Stock-based compensation | 25,970 |  | 19,524
Net operating loss carryforwards | 20,471 |  | 16,352
Federal and state tax credits | 16,196 |  | 16,116
Research and development costs | 60,611 |  | 4,723
Other | — |  | 1
Total deferred tax assets | 160,806 |  | 94,057
Valuation allowance | (232) |  |  | (2,954) |
Net deferred tax assets | 160,574 |  | 91,103
Deferred tax liabilities: |  |  |
Deferred contract costs | (134,448) |  |  | (145,341) |
Operating lease right-of-use assets | (9,400) |  | (8,328)
Intangible assets | (20,269) |  | (20,184)
Depreciation | (8,976) |  |  | (12,098) |
Other | (2,286) |  |  | — |
Total deferred tax liabilities | (175,379) |  |  | (185,951) |
Net deferred tax liabilities | $ | (14,805) |  |  | $ | (94,848) |
Schedule of unrecognized tax benefits | As of June 30, 2025 and 2026, the Company’s liabilities for unrecognized tax benefits, which would impact the Company’s effective tax rate if recognized, are presented below. The Company will include applicable penalties and interest when the benefit is recognized:
| Year Ended June 30,
| 2025 |  | 2026
Unrecognized tax benefits at beginning of the year | $ | 2,435 |  |  | $ | 3,306 |
Additions for current year tax positions | 848 |  |  | 1,022 |
Additions for tax positions of prior periods | 23 |  |  | 212 |
Unrecognized tax benefit at end of year | $ | 3,306 |  |  | $ | 4,540 |

X
- Definition Schedule of income taxes paid by jurisdiction + References No definition available. + Details
Name: | pcty_ScheduleOfIncomeTaxesPaidByJurisdictionTableTextBlock
Namespace Prefix: | pcty_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-9 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-2 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12A -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12A Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 217 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-217 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-15A + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration