PayCycle
A provider of on-demand payroll services for small businesses and the accounting professionals who serve them.
| Date | Investors | Amount | Round |
|---|---|---|---|
| N/A | €0.0 | round | |
| investor | €0.0 | round | |
| investor | €0.0 | round | |
| investor investor investor investor investor | €0.0 | round | |
$170m | Acquisition | ||
| Total Funding | 000k | ||
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PayCycle, established in 1999, positioned itself as a key player in the on-demand payroll services sector, catering specifically to small businesses and the accounting professionals who support them. The company was founded by René Lacerte and Martin Gates, two individuals with a shared history at Intuit where they were instrumental in guiding the QuickBooks brand into the payroll services market. Recognizing the complexities and costs associated with traditional payroll management, they launched PayCycle with a vision to offer a more streamlined and affordable online solution.
The company's core business revolved around a 'Do-It-With-You' (DIWY) technology platform, an online service designed to guide users through the entire payroll workflow. This process encompassed everything from initial setup and calculating paychecks to handling tax filings and generating year-end W-2 forms. PayCycle's revenue model was subscription-based, providing its software-as-a-service (SaaS) solution to a client base primarily composed of small businesses across the United States. The service aimed to eliminate the need for paper-based systems by automating calculations, managing direct deposits, and ensuring compliance with federal and state tax regulations.
In a significant milestone, PayCycle was acquired by Intuit in 2009 for approximately $170 million. This acquisition integrated PayCycle's online payroll technology and customer base into Intuit's existing suite of small business products, effectively becoming the foundation for what is now known as Intuit Online Payroll. Founder René Lacerte later went on to establish Bill.com, a platform focused on automating business payment processes, further leveraging his expertise in financial technology for small and medium-sized businesses. Martin Gates also transitioned to a role at Intuit following the acquisition, continuing his work in the payroll technology space.
Keywords: online payroll, small business, SaaS, payroll processing, tax compliance, accounting professionals, financial technology, direct deposit, W-2 generation, business services