TLDR
- Companies with remote employees demand state compliance support built into their payroll platforms.
- Payroll platforms must weigh adding a costly internal offering vs. risking alienating prospective customers.
- Vertical SaaS tools built on Rollfi's technology will soon feature embedded state compliance solutions powered by AbstractOps.
The problem for companies with remote employees
In each US state, if you hire a remote employee, have a physical foothold, or reach certain transaction thresholds, you’ll likely be required to file a number of state registrations and annual reports.
Each state has multiple agencies with various rules and regulations, making registration both time consuming and extremely aggravating.
Worse, if filed late or incorrectly, companies can face thousands of dollars in fines, or blocked payroll.
As a result, when evaluating their payroll stack, leaders at these companies are prioritizing solutions that include state compliance support.
"I would rate it pretty high now knowing how much work goes into compliance and what the impact was taking it off," says Jessica Krane, VP of People at FloatMe. "I would almost maybe consider it a deal breaker if we were looking at a different payroll platform from our current one. It's a beast."
The problem for payroll platforms
Many payroll platforms face a no-win situation.
Offering state compliance assistance internally can quickly put a drain on operating efficiency.
Staff must learn payroll tax nuances across 50 states and over 200 agencies.
These agencies are notoriously complex, lack APIs, and often require phone calls and paper filings.
This human-intensive approach consumes valuable time and resources, and risks diverting focus away from core operations.
However, failing to offer at least some sort of assistance might be even more risky.
According to Kirubha Perumalsamy, Founder and CEO at Rollfi "A lot of first time founders don’t even realize you need to register in every state you hire a W2 in! I certainly didn’t. You can't expose end-users who don't have the time or knowledge to deal with remote employee compliance. They'll choose another solution."
How the Rollfi x AbstractOps partnership solves
In the coming weeks, payroll platforms built on top of Rollfi's technology will have access to natively embedded state compliance technology powered and managed by AbstractOps.
As remote work and cross-state operations continue to rise, these payroll providers will be better positioned to:
- Differentiate: avoid losing potential customers who don't have registration bandwidth.
- Without overhead: end-users leverage the embedded workflows, AbstractOps handles the delivery.
"It's a win-win for the payroll providers, and their customers" says AbstractOps CEO Kristin Bass. "There's so much expertise required to get compliant and stay compliant without sinking hours per week. This partnership makes the process turnkey for Rollfi's customers to deliver a critical solution to their end users."
About Rollfi
Rollfi provides the fastest way for Banks, Vertical SaaS companies, Accounting Firms, and Fintechs to integrate payroll and benefits into their offerings through our white-label solutions and robust APIs. By leveraging Rollfi’s infrastructure, businesses can unlock new revenue streams, increase customer retention, and access valuable payroll data insights. With rapid deployment and comprehensive coverage, Rollfi transforms your platform into a one-stop-shop for essential services, driving growth and enhancing customer satisfaction.
For more details, visit Rollfi.
About AbstractOps
Leaders growing remote companies use AbstractOps to eliminate the stress, uncertainty, and financial risk of state compliance. Over the past five years, AbstractOps combination of technology + human guidance has helped hundreds of individual operators, and the company has recently expanded its capabilities to serve vertical SaaS technology providers, payroll platforms, outsourced HR and accounting consultancies, and PEOs.
For more details, visit AbstractOps.