| Term | Detail |
|---|---|
| Initial term | 36 monthsCity of Decatur, Alabama (opens in a new tab) · Contract or terms · The initial term is set in each proposal. In the City of Decatur, Alabama proposal finalized on 8/20/2026 it runs to 11/15/2029 (about 3 years). The FY2025 10-K says many clients can cancel with 30 days' notice, but Paycom's current agreement ties the term to the proposal and adds an early termination fee. |
| Automatic renewal | Renews for 36 monthsCity of Decatur, Alabama (opens in a new tab) · Contract or terms · The agreement renews automatically for the renewal term written in the proposal (3 years in the 2026 public proposal). |
| Notice to avoid renewal | 90 daysCity of Tomball, Texas (opens in a new tab) · Contract or terms · |
| Early termination fee (ETF) | If you leave before the term ends, or stop using Paycom as your only payroll provider, you pay your average monthly Paycom fees of the last six months times the months left in the term. If you never run a first payroll, the fee is the average monthly fee of your proposal times 36. It does not apply if you leave because of a material breach by Paycom that it doesn't cure after written notice.City of Tomball, Texas (opens in a new tab) · Contract or terms · |
| How the ETF is calculated | 100% of the remaining monthly software fees for each month left in the term. |
| Right to raise prices | Paycom may change its pricing during the term with prior written or electronic notice (General Terms and Conditions, section 14), and it may amend the agreement at any time by electronic notice; using the service after that counts as acceptance. Some signed versions of the agreement cap increases during the initial term (for example 0% in year 1, 2% in year 2 and 4% after that), but the cap depends on your contract.Paycom (opens in a new tab) · Vendor website · |
| Trial period | 0 daysPaycom (opens in a new tab) · Vendor website · No free trial: Paycom sells after a meeting and a custom quote. |
This is general information about published contracts, not legal advice: read your own contract and check with a lawyer before you sign.