Online Payroll software

Updated: June 18, 2021

2021. Payroll automation startup Pento raises $15.6M



Danish payroll automation startup Pento has raises $15.6M. The startup claims 700 companies are using it including tech firms Pleo and Cuvva; large hospitality brands (Honest Burgers); and retail and e-commerce brands (Lacoste, Beauty Pie). Pento replaces spreadsheets, etc. and gives them cloud-based tools, real-time calculations, transparency, and online and telephone support. The larger startup in the space is Payfit, which has raised upward of $208.4 million to do something that lots of companies find quite painful. But Payfit does a lot of other things as well, potentially leaving it exposed.


2021. Figure raises $7.5M to help startup employees better understand their compensation



Figure, the data-driven platform that aims to help companies structure their compensation plans and transparently communicate them to candidates, has raised $7.5 million in seed funding. Figure's mission is to improve workflows and transparency around pay, particularly equity. Another goal of Figure’s is to help create a more fair and balanced process about decisions around pay and equity so that there’s less inequality out there. Pointedly, it aims to remove some of the biases that exist around those decisions by systematizing the process.


2021. PayFit raises $107 million for its payroll and HR platform



French startup PayFit, that is building a payroll and HR software-as-a-service platform, has raised a $107 million series D funding round. It lets you manage your payroll from a web browser and automate as many steps as possible. For instance, you can configure to automate payslip generation, export your payroll data to your accounting software and get a list of payments you need to make when it comes to pensions, health insurance, etc.


2020. Finch raises $3.5M to build out its HR and payroll-focused API business



Finch, a startup that is looking to liberate HR and payroll data has raised $3.5M. Finch connects customers to payroll and HR data via an API, offering both a free version of its product to entice developers, and a paid version of the product that is priced either as a pay-as-you-go service, or with a SaaS-like pricing provision. There are three core buckets where Finch can have a role: financial software, inside the lending and insurances spaces, and supporting the burgeoning HR and benefits software market.


2020. Everee raises a $10M Series A to scale its worker-friendly payroll software service



Everee, a SaaS startup focused on payroll, announced that it has closed a $10 million Series A. Everee handles payroll with a neat twist. Instead of paying workers merely every two weeks, the service offers more flexible payout options. Its lower-cost service lets workers select twice-weekly, every two weeks or monthly payouts. Its more expensive service lets workers cash out their earnings on a daily or weekly basis, as well. Everee also does what you’d expect from a payroll service, like onboarding, timecard management and the rest. I was a little surprised by its price point, which starts at $15 per worker per month for its cheaper service ($10 per month with more employees), but the company told me that it’s priced largely in line with competition.


2019. Payroll software for small business Gusto raised $200M


SMB payroll startup Gusto raises $200M Series D. The new infusion of capital will be used for scaling the company’s product and team. While Gusto’s central product is payroll, it intends to develop two other products in the coming years as the company scales. One arc is fintech features like Flexible Pay, a product that allows employees to receive their unpaid wages in advance, with the goal of reducing reliance on usurious payday lenders. The other product arc is healthcare and helping SMBs offer insurance benefits to their employees. The company crossed the 100,000 customer barrier in the past year, out of an estimated six million small businesses in the United States.


2019. Zoho released payroll software Zoho Payroll



Zoho's new cloud service Zoho Payroll is intended to simplify payroll one location at a time. It's already supporting the payroll needs of US businesses in the states of California and Texas, with plans to expand to other states soon. Zoho Payroll helps you to process payroll quickly and pay your employees on time, every time. Distribute accurate gross-to-net pay-slips including a thorough breakdown of earnings, taxes, allowances, and deductions. Enjoy complete flexibility to pick your payroll routine, apply custom one-time or recurring deductions, share password-protected payslips, and pause pay runs for employees on unpaid leaves. Zoho Payroll comes with a comprehensive collection of features priced affordably at ₹50 per employee per month, billed annually for a minimum of 20 employees. Mobile app for employees are available on iOS and Android platforms for free.


2018. ADP acquired workforce management service WorkMarket



Payroll provider ADP acquired WorkMarket, a startup that specializes in workforce management software that operates across a wide range of employees and contractors. The software aims to create a kind of unified interface for managing an extended workforce that can include a variety of workers with different employment status, from contractors and freelancers to full-time employees. WorkMarket includes payment systems, management for extended employee networks, as well as a marketplace for piecing together a workforce that can fill the gaps for a company that’s looking to operate outside of the traditional range that full-time employees might operate. For ADP, it would seem to give the company that traditionally specializes in payroll another tool to convince enterprises to use it as part of a larger system of workforce products.


2015. Zenefits launched own payroll platform


Cloud-based HR service Zenefits has launched its own payroll system (after paycheck services giant ADP cut the company off earlier this year). Zenefits also partnered with another service - ZenPayroll, but it switched its moniker to Gusto in September and rolled out a bunch of free HR services that looked very similar to Zenefits. The new Zenefits payroll system runs in two modes. One is free, fully automated service integrating automatic payments with any updates and changes to employee deductions for health, retirement, and other benefits. There’s also a pro mode for those who like to tinker a bit on the backend. Zenefits Payroll Pro starts at $25 per month, plus $4 per employee per month on an annual contract. The new system will also integrate with Quickbooks and Xero.


2015. ZenPayroll rebrands as Gusto and takes on Zenefits



Payroll startup ZenPayroll changed its name to Gusto and is moving beyond payroll, into benefits such as health insurance and workers’ compensation. The addition and subsequent rivalry is a punch in the gut to cloud HR benefits company Zenefits –


2015. Square launched payroll service for small businesses


Mobile payment startup Square has launched Square Payroll, software for businesses to pay and track taxes and other costs for both hourly and salaried employees. The product is priced at $20 per month, with $5 per employee on top of that. In terms of payroll software, Square is positioning itself — at least for now — as a fairly simple product. It includes timecards, taxes, and the ability to track and pay both salaried and hourly workers, and its price is all-in. Square Payroll is entering a pretty crowded market, competing against the likes of Intuit’s Quick Books, ADP, Paychex and others. A few, like Wave Accounting, offer some but not all the same features: Wave, for example, doesn’t handle tax payments or tax filings — they estimated tax liabilities. It is also less expensive. It starts with two base tiers of $10 and $15 plus $4 per each employee.


2015. Payroll giant ADP cut off Zenefits small business clients



Corporate payroll company ADP cut off Zenefits small business clients using the ADP RUN payroll system from sharing data with Zenefits, because Zenefits was, “pulling sensitive information, including unmasked Social Security numbers and employee banking information, in a manner that did not comply with ADP’s standards for data security.” Zenefits called out ADP for being unfair and said that this action came without warning to its clients. Zenefits offers HR services to small and medium businesses and works with several third-party partners to provide things like payroll and insurance. ADP is one of many companies Zenefits integrates with to provide payroll processing for these businesses.


2015. Cloud-based payroll service ZenPayroll scores $60 Million



Cloud-based payroll processing startup ZenPayroll has closed on a $60 million Series B round, led by Google Capital. ZenPayroll mainly serves the small business market that would otherwise need to process payments and direct deposits manually. It offers an easy-to-use, cloud-based interface that allows it to take on industry incumbents Paychex and ADP. While Paychex and ADP have upgraded to the cloud in recent years, allowing them to make it easier for their own customer bases to handle payroll online and through mobile platforms, ZenPayroll’s recent raise allows it to take on larger businesses currently served by Paychex and ADP.


2015. Xero launched cloud payroll service in US



Cloud accounting startup Xero announceding a new product that will extend it further into the back-office by offering up cloud-based payroll and tax software. Xero Payroll was designed to target the more than 5 million small businesses in the U.S. that have fewer than 20 employees. For those employers, many of which outsource it to third-party providers, payroll can end up being a significant expense, between $200 and $500 per month. In addition to the cost of outsourcing, there is also the potential for human error and fines based on incomplete or incorrect information. The product provide SMBs with the same type of cloud-based platform that it’s created for accounting, but make it available to help employees get paid and electronically file state and federal payroll taxes.


2013. Xero Launches New Features and Plans for a Payroll Solution

Xero, the cloud-based accounting solution for small business, has added a collection of new features. They include Xero Touch - a new version of its Apple mobile operating system recently updated for iOS7. It allows users to check bank transactions, invoice, check with an accountant and more directly from a smartphone. Xero Files is a new drag and drop application. It lets you add invoices, transactions, expense receipts, fixed assets, contracts and just about any other kind of files into Xero. You can then attach them to related files and documents making them easy to find, the company says. Xero Purchase Orders now allows you to put together purchase orders for your business in the same way you can already put together invoices on Xero. Pricing starts at $19 per month for small businesses depending on the number of invoices and payments being processed.