Payroll

The average small business spends hours on payroll-related tasks each pay period. The work involves reconciling data from one system to another, munging spreadsheets, and sometimes even manually correcting time cards. It gets even more complex when there are industry-specific rules, tips, and payment schemes. Often the person toiling over this drudgery is the business owner, but it’s not uncommon for a larger merchant to have two full-time employees just to calculate payroll. 

Much of the needed data can reside within Vertical SaaS Vendors’ (VSVs) software. A payroll offering enables merchant business owners to complete this process in minutes instead of hours. In industries with complex labor practices and payment schemes (including almost any type of hourly work), the integrated offering is even more compelling. With a solution that connects to the rest of the software that merchants already use to manage their business, you’ll be positioned to give them full visibility into labor costs and provide them with clear insight into their overall business economics. 

Payroll represents an opportunity for a VSV to create a new revenue stream, increase stickiness for the overall platform, reduce the cost of acquiring new customers, and add value for its customers by solving for universal pain points. It’s also a great control point—embedded payroll removes the need ​​for customers to export employee hours, bank info, or other data to third party processors who will often try to provide competing financial services to both the merchant employer and employee. By embedding payroll, a VSV can offer additional value-add services including: