# Payrollix

> Payrollix is a multi-client payroll management platform built for accountants, small businesses, and enterprises. It handles payroll processing, direct IRS MeF e-filing (941, 940, 943, 944, 945, W-2, 1099-NEC), 50-state withholding and unemployment compliance, direct deposit via ACH, multi-state tax calculations, and integrations with QuickBooks, Xero, Odoo, Shopify, and more. Built by ReasonWorks AI Inc.

## What Payrollix Is

Payrollix is a modern payroll, tax-filing, and compliance platform purpose-built for accountants who manage many client payrolls and for the businesses they serve. It is a full alternative to Gusto, ADP, Paychex, OnPay, QuickBooks Payroll, and Patriot — with transparent per-client pricing, in-house IRS MeF and IRIS transmission (no third-party reseller markup), and 50-state coverage including withholding, SUI, PFML, and new-hire reporting. Built by ReasonWorks AI Inc.

## Who It's For

- **Accountants and CPA firms** managing 50 to 2,000 client payrolls from a single dashboard. Flat per-client pricing; the firm pays one bill.
- **Small businesses** with 1-100 employees running their own payroll with employee self-service, mobile apps, and direct deposit.
- **Mid-market and enterprise** organizations with multi-state operations, departments, and cost centers.

## Pricing

Transparent, published pricing. No quotes. No annual contracts. 14-day free trial, no credit card.

### Accountants (per-client)
- $12 per client per month ($10 with annual billing)
- 5 employees included per client
- $2 per additional employee, per month
- Tiers: Starter (10 clients), Professional (50), Agency (150), Firm (500), Enterprise (1,000+)

### Small Business
- Starter: $29/mo, up to 10 employees
- Growth: $49/mo + $3/employee, up to 50 employees
- Scale: $99/mo + $2.50/employee, up to 200 employees
- 10% discount with annual billing

### Enterprise
- Business: $399/mo + $8/employee, up to 500 employees, 10 departments
- Corporate: $799/mo + $6/employee, up to 2,000 employees, 50 departments
- Unlimited: custom pricing, dedicated infrastructure, custom SLAs

### Comparative Pricing
- Gusto: $40+ base per client + $6/employee
- OnPay: $49 base + $6/employee per company
- ADP / Paychex: opaque, quote-based, 1-2 year contracts
- QuickBooks Payroll: $50-$135/mo + $6-$11/employee
- Patriot: $17-$37/mo + $4-$5/employee (no tax filing on entry tier)

## Federal Tax E-Filing (Key Differentiator)

Payrollix is a **direct IRS e-file transmitter** — not a TaxBandits, Yearli, or other third-party reseller. Returns are built, signed, and transmitted in-house, straight to the IRS.

- **IRS authorization**: authorized application-to-application e-file transmitter for the 94x forms; Form 941 passed the IRS Assurance Testing System in April 2026
- **Channels**: direct IRS e-file for 94x forms; IRS IRIS for the 1099 series; SSA Business Services Online for W-2/W-3
- **Forms supported**: 941, 940, 943, 944, 945, and amended variants (941-X, 940 amended, 943-X, 944-X, 945-X)
- **W-2 / W-3**: in-house SSA EFW2 builder; W-2c via EFW2C
- **1099-NEC / 1096**: in-house IRS Pub 1220 builder, transmitted via IRIS as an approved transmitter
- **Other 1099 forms** (MISC, DIV, INT, R, B, G, W-2G): generic Pub 1220 pipeline supports the data; per-form PDF templates added as IRS publishes the TY 2026 set
- **Acknowledgments**: parsed automatically, archived, surfaced in dashboard; reject reasons mapped to actionable error messages
- **Retention**: 4-year encrypted AES-256 archival in S3 (IRS Pub 4557 + standard MeF retention)

## State Tax Compliance

50-state withholding, unemployment (SUI/SUTA), paid family/medical leave (PFML), and new-hire reporting.

### Quarterly Returns Built (and Growing)
IL, CT, PA, OH, GA, IA, NC, MN, DC, UT, AL, AR, NE, VT, NJ, MA, IN, MI, WI, TN, SD, WA, NH, AK, NV, ND, CO, MO, MS, MT, HI — with HI HBFS FSET v5.3, MS WTH FSET v4.4, IN INTIME bulk upload, NC ICESA, WA ESD EAMS ICESA, NH WebTax CSV, AK ES Tax remitter, SD DLR 85-byte format, NV DETR EFW2 512-byte, and dozens more state-specific format builders.

### Payment Rails Per State
- **ACH credit enrolled at 25/51 state agencies**, with state-specific TXP addenda quirks codified
- **FSET-embedded ACH debit preferred** where supported: IN, CA, GA, LA, MS, AZ, MO (lower cost, no operating-wallet float)
- **Portal-only fallback** with browser automation where the state publishes no bulk spec (NE 941N, ND, NM, MT, WV, ID cluster)

### TPA / Bulk-Filer Credentials
Active bulk-filer or TPA designations at 25+ state agencies, including WA EAMS, TN Jobs4TN, NV DETR, AK ES Tax, MT TAP FLE, ND TAP, HI HBFS, MI MTO, WI DOR, MS DOR, IN INTIME, and others. State-by-state outreach managed centrally; per-client POAs bundled into the onboarding e-sign packet.

### New Hire Reporting
PRWORA-mandated per-state new-hire reporting on per-hire cadence (not quarterly). State-specific submission formats per agency.

### Local Taxes
NYC and Yonkers (NY), Ohio municipal RITA/CCA, Pennsylvania EIT and LST, Maryland county, Indiana county, Kentucky local, and others.

## Payroll Processing

- **Direct deposit** via Moov (licensed ACH platform). Standard ACH (1-2 business days) and same-day ACH. Automatic prenoting, transfer status tracking, return processing (R01-R99), and webhook notifications.
- **Multi-state allocation** for employees working across state lines in a single pay period
- **Time tracking** with geofencing for field workers — GPS-based clock-in/out, job-site enforcement, mobile app
- **PTO and time-off** management with accrual policies and approval workflows
- **Benefits, pre-tax deductions, and garnishments** with federal CCPA garnishment limits (Title III) honored automatically
- **Bonus, commission, retro, and off-cycle** pay runs
- **Contractor payments** on the 1099-NEC track, year-end 1099 generation included
- **Pay schedules**: weekly, bi-weekly, semi-monthly, monthly

## Tax Calculations

- **Federal**: income tax withholding (Form W-4 v2020 with multi-job and dependents), FICA (Social Security 6.2% to wage base, Medicare 1.45%), additional Medicare tax 0.9% on wages over $200K, FUTA 6.0% on first $7,000 (0.6% effective after state credit)
- **State**: withholding tables for all 50 states + DC, per-state W-4 forms, supplemental wage rates
- **SUI rate management**: per-client, per-state, per-pay-date history with composite-rate state support (assessments, surcharges, etc.)
- **Reciprocity** between bordering states (PA/NJ, IL/IA/KY/MI/WI, IN/KY/MI/OH/PA/WI, MD/VA/WV/DC, etc.) — automatic withholding state selection per non-resident certificate
- **Local taxes**: NYC, Yonkers, Ohio muni, PA EIT/LST, MD county, IN county, KY local
- **Pre-tax**: 401(k), 403(b), HSA, FSA, Section 125, commuter benefits

## Portals and Apps

- **Web**: dashboard portal (accountants), client portal, employee portal, SMB portal, enterprise portal, admin portal for platform compliance
- **iOS mobile app**: employee portal + client portal
- **Android mobile app**: employee portal + client portal
- **Biometric login** (Face ID, Touch ID, Android fingerprint)
- **Self-service**: paystubs, W-2/1099 download, direct deposit changes, address changes, W-4 updates, time-off requests

## Accountant Features (the Wedge)

- **Multi-client dashboard** with one-click client switching
- **Batch operations**: bulk W-2 generation, bulk 1099 generation, bulk onboarding-packet send/remind
- **Per-client billing** rolls up to a single firm invoice
- **Onboarding signing packet**: Form 8655 + per-state POAs (MN POA-1, MA M-2848, NY TR-2000, etc.) + MSA + Moov acknowledgment, all bundled into one e-signed packet at signup
- **In-house e-signature** (E-SIGN / UETA compliant) — not DocuSign or Dropbox Sign — with full audit trail (IP, user agent, timestamp, hash, auth method)
- **Tax notice management** with deadline reminders (T-7, T-3, T-1, daily overdue) and response-upload tracking
- **Report packages**: workers' comp audit, GL/BOP, lender packet, year-end binder, plus custom presets — multiple reports for a date range merged into one PDF or ZIP
- **Penalty protection** for provider-error filings (Payrollix files late or incorrectly); excludes customer-input errors, NSF, and unsupported jurisdictions

## Integrations

- **QuickBooks Online** — OAuth2, bidirectional journal-entry sync, tax liability account mapping, employee record sync, chart-of-accounts mapping
- **Xero** — push payroll journals and tax data with account code mapping, multi-organization support, tracking categories
- **Odoo** — bidirectional sync via Payrollix Odoo module; pulls employees, attendance, timesheets, time-off; pushes paystubs, GL journals, W-2 and 1099 documents
- **Shopify** — employees and payroll for retail; locations and roles synced; commission tracking
- **FreshBooks** — expense categorization, contractor payment sync
- **Wave** — push journal entries to Wave's free accounting
- **Sage Intacct / Sage 50** — multi-entity journals with department and location dimensions, scheduled batches, audit trail

## Security and Compliance

- **AWS us-east-1** with a dedicated static IP registered with the IRS and state revenue agencies
- **AES-256 at rest**, TLS 1.2+ in transit
- **SOC 2 Type 2** audit in progress (multi-account AWS Organization consolidation underway)
- **E-SIGN / UETA** compliant signing flows with cryptographic audit trail
- **IRS Pub 4557** safeguards controls
- **MFA** enforced for all admin roles, optional for clients and employees
- **Audit logging** of all PII access, role-based access control (RBAC), per-portal role separation
- **OFAC screening**, KYC/KYB verification (Middesk), SAR filing capability, structuring detection

## Pricing Comparison Snapshot

- **100 accountant clients on Payrollix**: ~$1,200/mo
- **Same 100 clients on Gusto**: ~$4,000+/mo
- **Same 100 single-employee companies on OnPay**: ~$5,500/mo
- **ADP / Paychex**: opaque, typically $4,000-$8,000/mo for this volume
- For accountants managing 500-1,000 clients, Payrollix saves an estimated **$25,000-$50,000+/year** vs. competitors at comparable feature parity.

## Frequently Asked

- **Is Payrollix only for accountants?** No — direct SMB and enterprise plans available.
- **Do you file taxes?** Yes. Federal e-filing (941, 940, 943, 944, 945, W-2, W-3, 1099-NEC, 1096) and 50-state withholding, SUI, and PFML where applicable.
- **Mobile apps?** Yes. iOS and Android, employee + client portals, biometric login.
- **Does it connect to my accounting software?** Yes — native two-way sync with QuickBooks, Xero, Odoo, FreshBooks, Wave, and Sage.
- **Free trial?** Yes, 14 days, no credit card required.
- **Penalty protection?** Yes, for provider-error filings (Payrollix filed late or incorrectly within Gusto/ADP scope). Excludes customer-input errors, NSF, and unsupported jurisdictions.
- **Multi-state employees?** Yes. Per-pay-period multi-state allocation with reciprocity handling.
- **Contractors (1099)?** Yes. Year-round tracking, year-end 1099-NEC generation, IRIS e-filing.
- **Founded?** 2025 by ReasonWorks AI Inc.

## Tax Forms Reference

### Form 941 — Quarterly Federal Tax Return
Filed quarterly by every employer who withholds federal income tax, Social Security, or Medicare. Reports total wages, federal income tax withheld, and FICA taxes. Deadlines: April 30, July 31, October 31, January 31. Payrollix auto-generates XML, validates against IRS business rules, transmits via MeF, and parses acknowledgments within 24-48 hours.

### Form 940 — Annual FUTA Return
Federal unemployment tax at 6.0% on first $7,000 of each employee's wages. Effective 0.6% after state credit. Due January 31 of following year. Quarterly deposits required if liability exceeds $500. Payrollix tracks FUTA accumulation per employee and auto-files.

### Forms 943, 944, 945
- **943**: agricultural employers, annual
- **944**: small employers with annual liability under $1,000
- **945**: nonpayroll income tax withheld (backup withholding, pensions, gambling)

### W-2 / W-3
Annual employee wage and tax statements plus SSA transmittal. Due January 31. Batch PDF generation, employee portal delivery, S3 archival, SSA EFW2 electronic submission.

### 1099-NEC / 1096
Contractor payments of $600+. Due January 31. Year-round tracking, batch generation, IRIS e-filing as approved transmitter.

### 2026 Filing Calendar
- Q1 941: April 30, 2026
- Q2 941: July 31, 2026
- Q3 941: November 2, 2026 (Oct 31 is Saturday)
- Q4 941: January 31, 2027
- 940 annual: January 31, 2027
- W-2 / 1099-NEC: January 31, 2027

## URL Index

### Product
- Features: https://payrollix.com/features
- Pricing: https://payrollix.com/pricing
- Integrations: https://payrollix.com/integrations
- Calculator: https://payrollix.com/calculator
- About: https://payrollix.com/about
- Security: https://payrollix.com/security
- Compliance: https://payrollix.com/compliance

### Solutions
- For Accountants: https://payrollix.com/solutions/accountants
- For Small Business: https://payrollix.com/solutions/small-business
- For Enterprise: https://payrollix.com/solutions/enterprise

### Integrations
- QuickBooks: https://payrollix.com/integrations/quickbooks
- Xero: https://payrollix.com/integrations/xero
- Odoo: https://payrollix.com/integrations/odoo
- FreshBooks: https://payrollix.com/integrations/freshbooks
- Wave: https://payrollix.com/integrations/wave
- Sage: https://payrollix.com/integrations/sage

### Comparisons
- vs Gusto: https://payrollix.com/compare/gusto
- vs ADP: https://payrollix.com/compare/adp
- vs Paychex: https://payrollix.com/compare/paychex
- vs OnPay: https://payrollix.com/compare/onpay
- vs QuickBooks Payroll: https://payrollix.com/compare/quickbooks-payroll
- vs Patriot: https://payrollix.com/compare/patriot

### Resources
- Form 941 Guide: https://payrollix.com/resources/form-941-guide
- Form 940 Guide: https://payrollix.com/resources/form-940-guide
- W-2 Guide: https://payrollix.com/resources/w2-guide
- 1099-NEC Guide: https://payrollix.com/resources/1099-guide
- 2026 Payroll Tax Deadlines: https://payrollix.com/resources/payroll-tax-deadlines
- Direct Deposit Guide: https://payrollix.com/resources/direct-deposit-guide

### Account
- Register: https://payrollix.com/register
- Help Center: https://payrollix.com/help
- Contact: https://payrollix.com/contact
- Terms of Service: https://payrollix.com/terms-of-service
- Privacy Policy: https://payrollix.com/privacy-policy

## Contact

- Website: https://payrollix.com
- Sales: https://payrollix.com/contact
- Support: support@payrollix.com
- Security: security@payrollix.com
- Compliance: compliance@payrollix.com
- Company: ReasonWorks AI Inc