Pay contractors, reimburse co-founders, and submit 1099s, JUSTWORKS

HR processes including Payroll, Compliance and Benefits didn't undergo much change for several decades and had inherent issues. We have seen how the technology companies started innovating in and around HR processes – SuccessFactors (acquired by SAP for $3.4 B), Workday and the success of the Cloud and SaaS based companies is exemplary. Handling benefits was costly, involved paperwork I-9s, W-2s, and was overall complex to do especially for contractors. Justworks allows to pay contractors, reimburse co-founders, and submit 1099s without breaking a sweat.

Justworks online payroll and benefits platform was launched on 16th October, 2013. Justworks says that their platform makes it simple to manage payroll and HR. It enables businesses to easily manage payroll while offering large-company benefits and ensuring legal compliance.

Justworks was Co-Founded in October 2012 by Issac Oates (CEO) and Iris Ramos. The company received a total funding of $1 Mn through investors Index Ventures and Daring Journey Ventures in October 2013. Justworks is headquartered in New York, USA.

This video gives you an overview of Justworks:

About their platform:

  • The self-service dashboard at makes it easy to on-board employees within minutes.
  • Justworks puts the whole hiring process online and making it simple for employees to easily fill out forms. This removes the need for fax machines or scanners.
  • It offers direct deposit and processes payments for salaried employees, contractors & hourly workers. Payments can be made on a one-time or recurring basis.
  • Companies can utilize Justworks to offer full dental, medical and vision coverage at affordable price points.
  • Justworks files required taxes, processes payments, files for workers' comp and handles other complex legalities for its users.

'We believe that a comprehensive solution for the basic business needs relating to hiring should be simple and affordable,' said Isaac Oates. 'When I started my first business, I found it incredibly challenging to onboard new employees and it was difficult to know how to do it the right way. Iris Ramos and I started Justworks to make the process of hiring simple, so that new businesses can hire and scale faster.'

Justworks has 3 plans: starter, standard and premier. The starter plan allows you to pay contractor payments for free and Justworks handles your 1099s at the end of the year. The standard plan offers payroll, worker’s comp and additional compliance and reporting for $39 a month for the first employee and $5 a month for each additional employee. The premier plan offers the basic plan plus access to medical, vision, dental and 401K. The cost is $75 per employee per month.

Another company operating in this space is cloud service provider, ZenPayroll which was founded by entrepreneurs from Stanford University. According to its CEO Joshua Reeves, the ZenPayroll’s customers are managing approximately $150 Mn in annual payroll using the service. The company has raised $6.1 Mn in funding from Y-Combinator and other individual investors.

Justworks can file more than 5,000 different types of taxes at the federal, state and local levels. The company is licensed in nearly 50 states, including Texas, New York, Massachusetts & California. Justworks plans to be nationwide in 2014.