ZenPayroll, a Web-based payroll processor targeting specifically smaller businesses, says a recent round of funding has helped it take its service nationwide.
The company has raised $60 million in funding from Google Capital, with participation from other new investors, including Emergence Capital Partners and Ribbit Capital.
The Silicon Valley startup’s total funding is now pegged at $86.1 million.
The new funding bolsters ZenPayroll’s efforts to compete against rival offerings from companies such as Paychex and Intuit. The company claims it offers simpler payment processing solutions at lower fees than its rivals, especially for businesses with fewer than 100 employees.
ZenPayroll, which launched in 2012, says it processes billions of dollars in annual payroll for more than 10,000 small businesses across 47 states, plus the District of Columbia. ZenPayroll has taken some time to expand state by state due to differences in local regulations. The company expects to be supporting clients nationwide by the end of April.
In the official release announcing the new funding, ZenPayroll CEO and co-founder Joshua Reeves explains:
“We are building a future where everyone can reach their fullest potential at work. That mission is part of everything we do, from designing the product to serving our customers to growing our team. We are excited to benefit from the talent, passion and strategic expertise of Google’s technology and product leaders.”
ZenPayroll says it allows you to be up and running on its system in minutes. With new hires, you email them a link that enables them to directly enter their information into the system. Employees can directly donate to charities. ZenPayroll also handles withholdings, such as for 401k and health insurance. Employees access their pay stubs online via a link you email them.
On its website, ZenPayroll lists key reasons why people switch to its service from rival self-service systems.
For example, ZenPayroll says it handles all tax payments and filings, with no action required by you.
It provides safeguards — such as its use of online “tips” — to stop you from entering the wrong information, noting that “most payroll fines are due to incorrect data entry.”
The company also touts its San Francisco-based support team as a key benefit of its system over its rivals.
ZenPayroll has some low up-front fees, so it’s an ideal payroll solution for small companies with tight budgets for payroll help. The service charges $25 per month, plus $4 for each employee per month.
Image: ZenPayroll
