Check raised $35 million for its payroll as an API solution. Check was built to integrate into SaaS and HR systems, claiming that its “API-first embedded payroll service for vertical SaaS and HR companies makes it possible for businesses to run payroll in the software platform they use on a day-to-day basis, instead of syncing data to a standalone payroll provider. This provides a radically better user experience, while also unlocking a powerful new revenue stream for vertical SaaS and HR platforms.”
Check is looking to do to payroll what Stripe has done for payments by embedding themselves and becoming a standard for developers along with an improved employee and employer experience. In their announcement, Check claims to have been working with “customers that collectively power over 100k small businesses.”
I’m looking forward to watching Check try to tackle the payroll challenge in a new way. A quick search on the founders shows that they crossed paths at Google and Oyster (acquired by Google), and they’ve attracted investment from Stripe and Thrive.
Here’s the thing about payroll – it’s tougher than it seems from outside the “HR trenches.” Payroll regulations differ from city to city, state to state, province to province, and country to country. Providing a compliant solution in payroll isn’t just about solving the problem today, it’s about being able to react to regulations that change with ordinances and laws.
The payroll category saw $206 million of the $5 billion invested globally in HR technology during 2020. Details on the investments by category are in our latest full report.
Check looks like one to keep an eye on.