ZenPayroll, which offers an SaaS service to deal with the niceties of paying employees — tax calculations, filings, actual payment — now has $20 million in Series A funding to add more features, cover more geographies and hire staff.
The funding comes from General Catalyst Partners and Kleiner Perkins Caufield & Byers. This money comes atop $6.1 million in seed funding that included contributions from the CEOs of Yelp, Box, Dropbox and Yammer as well as some money from Salesforce.com and Google Ventures.
ZenPayroll has some big elephants in its sights. Intuit is one. ZenPayroll CEO Joshua Reeves (pictured above, second from left) characterized Intuit’s online payroll capability as old technology resulting from Intuit’s 2009 acquisition of PayCycle. By contrast, he said, ZenPayroll has a thoroughly modern, mobile-accessible and API-centric software worldview. It also supports e-sign, e-fax, and e-file technology.
Looming even over Intuit is payroll giant ADP, which pioneered the whole idea of payroll-as-a-service years ago and is worth more than $35 billion. Of course, ADP and its large rival Paychex are older incumbents and thus ripe for disruption, in Silicon Valley speak.
ZenPayroll is part of a new wave of SaaS companies taking on the hum-drum-but-critical processes needed to run a business. Other players include Zenefits for automating employee benefit sign-up processes (clearly the “zen” thing is catching) and Expensify for expense accounts.