Simple, Cloud-Based Payroll App ZenPayroll Debuts API

YC-backed ZenPayroll, the startup that offers an easy to use, cloud-based payroll application, has released its API, which allows third-party software providers to integrate data from their offerings into the payroll app.

ZenPayroll, which has a list of all-star investors, is disrupting a space that incumbents like ADP and Paychex have dominated for some time. The startup offers a much simpler, cloud-based way to automate all payroll tax calculations and payments, as well as provide direct deposit to employees. And the application allows for filing of all payroll-related government documents paperlessly.

As founder Joshua Reeves tells me many legacy payroll applications have been walled, which doesn’t allow for data to be imported into these apps from other sources like timekeeping, expenses or sales and inventory software. With ZenPayroll’s API, these applications will be able to send this data, including hours worked, tips, bonuses, commissions, reimbursements, directly to the payroll app automatically without having to manually import the information.

What’s a practical use of the API? A point-of-sale system which sets employee compensation based on who sells the most products or a workforce management tool that can give spot bonuses and organize vacation plans without needing to do any of the compliance & regulatory reporting.

Now processing over $150 million in annual payroll, ZenPayroll has broader ambitions of making payroll less of a silo, especially for small businesses. Much of this will rely on creating an ecosystem around its platform, and having time tracking, sales, and expense input software companies integrate the API. Already, WhenIWork, Deputy, NimbleSchedule and Namely have used the API, while others such as Expensify, Vend, Bench and BambooHR are planning to, so ZenPayroll is off to a good start.