SAN DIEGO--(BUSINESS WIRE)--Payroll Integrations, the technology company that’s reimagining how employers support employees’ financial well-being through benefit automation, today announced the close of its $20 million Series A funding round. The funding was led by Arthur Ventures, a Minneapolis-based growth equity firm with deep expertise in B2B software.
Nearly every employer (96%) feels responsible for the financial wellness of their employees. But, as companies introduce new financial wellness offerings and expand employees’ benefit options, they also introduce more complex and time-intensive administrative work. This is because payroll providers and benefit platforms are typically reliant on time-intensive, legacy processes defined by spreadsheets and manual file uploads and data. To support employees’ financial well-being, employers need to be able to seamlessly onboard employees to benefit programs and quickly make accurate deferral changes and plan updates.
Payroll Integrations integrates payroll providers and benefit platforms to establish a direct two-way connection. The company’s proprietary technology captures employee census and payroll data directly from the payroll companies, extracts relevant information, and converts the data into a structured, ready-to-use format for their clients. This enables simpler processing and fewer errors in employees’ benefit plans, in a fraction of the time–saving employers 100+ hours per year. Payroll Integrations’ integration platform as a service (iPaaS) was built specifically for the benefit space, offering a deep level of expertise and understanding around industry nuances to drive more efficient results.
Payroll Integrations currently works with 4,000+ companies to connect payroll with retirement, HSA and other employer-sponsored benefit plans for over one million employees. The company works with 70% of the payroll provider landscape, including ADP, Paychex and Quickbooks Online, as well 90% of the largest 401k providers, such as Empower, Transamerica, Principal, Voya and John Hancock.
With the funding, Payroll Integrations will expand its product line and relationships with payroll companies and benefit platforms to further employees’ financial wellness journey through data connectivity. Payroll Integrations will also invest in its operations to meet the rapid adoption of its technology.
“Both the payroll market and employee benefits market have been slow to embrace new technologies, often relying on manual processes or complex custom integrations to exchange data,” said Doug Sabella, CEO of Payroll Integrations. “We have spent the last seven years doing the heavy lifting for benefits recordkeepers – building integrations with the largest and most widely-used payroll companies in the U.S. – so that they can offer their customers a seamless employee benefits experience, without the headache of manually tracking payroll and census changes each pay period.”
Arthur Ventures’ investment in Payroll Integrations is validation of the company’s ability to enable employers to run their business more effectively, and as a result, support employees’ financial well-being.
Arthur Ventures has raised over $1.1B and currently has an extensive portfolio, including benefit companies such as Everything Benefits, VBA Software and When I Work.
“Employers are trending towards more holistic financial wellness offerings and personalized benefit plan options for employees, introducing more administrative complexity and nuance for employers,” said Ryan Kruizenga, General Partner at Arthur Ventures. “Payroll Integrations is well-positioned as the go-to solution to reduce the administrative burden on employers and recordkeepers, whether for retirement plans, HSA plans, or other employer-sponsored benefit plans.”
Payroll Integrations was founded in 2016 by Co-Founders Doug Sabella and Andrew Hallengren and is based in San Diego.
About Payroll Integrations:
Payroll Integrations is the technology company that’s reimagining how employers support employees’ financial well-being through benefit automation. Their integration platform is used by more than 4,000 businesses to connect payroll with retirement, HSA and other employer-sponsored benefit plans for over one million employees. Payroll providers including ADP, Paychex, Quickbooks Online and others use Payroll Integrations to seamlessly connect with 401k benefit providers such as Empower, Transamerica, Principal, VOYA and John Hancock. Payroll Integrations is backed by Arthur Ventures and headquartered in San Diego.