[US] JPMorgan partners with Gusto for embedded payroll services

In the US, JPMorgan Chase will offer small and medium businesses embedded payroll services powered by Gusto, Banking Dive reports.

Tomer London - co-founder and chief product officer of Gusto - announced the news in a September 14 company blog post.

Chase Payment Solutions will reportedly use Gusto Embedded, an application programming interface customised for any business software platform to combine payments, banking and payroll, with a single sign-in via chase.com.

According to Mr London, Chase Payment Solutions’ payroll offering - powered by Gusto Embedded - would help to simplify the process of running payroll, calculating and withholding taxes, filing with the right agencies and creating employee pay stubs. Employees of Chase Payment Solutions’ customers are able to self-onboard, access paystubs and access tax documents via a secure company portal. 

The combination of payroll process and financial operations is intended to save business owners time, he added. 

“There is a big trend underway, I think with more companies focused on small business that’s a wonderful thing — a segment that’s been underserved for a long time,” Josh Reeves - Gusto CEO - said in an interview with CNBC. 

“So the way this works, is basically a partner like Chase payment solutions can now broaden their offering. They can launch their own payroll product powered by Gusto. And the reason why we’re excited about this is it enables us to reach more small and medium-sized businesses,” he said.

Payroll is not solely about money movement but also about tax rules and compliance, Mr Reeves explained. There are rules at county, city and state levels apart from those the IRS has in place. These are coupled with documentation, filings and reporting, which small businesses typically do by hand, leading to mistakes and consequent fines.

Using modern technology and software can help to minimise these problems, Reeves said.

Gusto reportedly serves over 300,000 small and medium-sized businesses across the US. Gusto Embedded enables bank, vertical SaaS and fintech partners to leverage Gusto’s payroll API and embed payroll directly into their platforms. It currently serves dozens of partners that, in turn, serve more than 500,000 businesses collectively. 

The fintech’s partners using Gusto Embedded can launch their payroll products without having to build them from scratch, Mr Reeves said.

Gusto Embedded was introduced in 2021.

Gusto has processed over two-thirds of a trillion dollars in payroll for several employers across the country, over the past 10 years, according to Mr London.

In 2021, Gusto acquired Symmetry Software; a technology firm that calculates payroll taxes for companies of all sizes to offer advanced payroll infrastructure faster.

Source: Banking Dive

(Links and quotes via original reporting) 

In the US, JPMorgan Chase will offer small and medium businesses embedded payroll services powered by Gusto, Banking Dive reports.

Tomer London - co-founder and chief product officer of Gusto - announced the news in a September 14 company blog post.

Chase Payment Solutions will reportedly use Gusto Embedded, an application programming interface customised for any business software platform to combine payments, banking and payroll, with a single sign-in via chase.com.

According to Mr London, Chase Payment Solutions’ payroll offering - powered by Gusto Embedded - would help to simplify the process of running payroll, calculating and withholding taxes, filing with the right agencies and creating employee pay stubs. Employees of Chase Payment Solutions’ customers are able to self-onboard, access paystubs and access tax documents via a secure company portal. 

The combination of payroll process and financial operations is intended to save business owners time, he added. 

“There is a big trend underway, I think with more companies focused on small business that’s a wonderful thing — a segment that’s been underserved for a long time,” Josh Reeves - Gusto CEO - said in an interview with CNBC. 

“So the way this works, is basically a partner like Chase payment solutions can now broaden their offering. They can launch their own payroll product powered by Gusto. And the reason why we’re excited about this is it enables us to reach more small and medium-sized businesses,” he said.

Payroll is not solely about money movement but also about tax rules and compliance, Mr Reeves explained. There are rules at county, city and state levels apart from those the IRS has in place. These are coupled with documentation, filings and reporting, which small businesses typically do by hand, leading to mistakes and consequent fines.

Using modern technology and software can help to minimise these problems, Reeves said.

Gusto reportedly serves over 300,000 small and medium-sized businesses across the US. Gusto Embedded enables bank, vertical SaaS and fintech partners to leverage Gusto’s payroll API and embed payroll directly into their platforms. It currently serves dozens of partners that, in turn, serve more than 500,000 businesses collectively. 

The fintech’s partners using Gusto Embedded can launch their payroll products without having to build them from scratch, Mr Reeves said.

Gusto Embedded was introduced in 2021.

Gusto has processed over two-thirds of a trillion dollars in payroll for several employers across the country, over the past 10 years, according to Mr London.

In 2021, Gusto acquired Symmetry Software; a technology firm that calculates payroll taxes for companies of all sizes to offer advanced payroll infrastructure faster.

Source: Banking Dive

(Links and quotes via original reporting)