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5 min read

JustWorks New Payroll Solution Launches

justworks new payroll solution is a strategic move
5 min read

JustWorks New Payroll Solution Launches

Justworks new payroll solution launches and targets small and medium-sized businesses, offering scalable, flexible payroll services and marking a strategic expansion in the company’s product offerings.

Key Takeaways

  • Justworks has diversified its offerings by launching a standalone payroll solution, primarily catering to small and medium-sized businesses, a move that indicates a strategic expansion beyond its traditional PEO services.

  • The new payroll service is designed to be scalable and flexible, accommodating the unique needs of smaller businesses, and includes comprehensive payroll features like salaried and hourly payroll, contractor payments, and tax filings.

  • This launch places Justworks in direct competition with other major PEOs and payroll service providers, signaling a shift towards more versatile and adaptable solutions in the PEO industry.

Justworks, a major Professional Employer Organization (PEO), has recently introduced a standalone payroll solution, expanding its services beyond its traditional offerings. This new product is aimed at small and medium-sized businesses (SMBs) and offers a flexible, scalable solution for payroll management.

justworks new payroll solution is a strategic move


Key Features of Justworks Payroll:

  1. Target Audience: The payroll solution is specifically designed for SMBs, providing a tailored service that meets the unique needs of this segment.
  2. Service Expansion: This launch marks a significant expansion for Justworks, which previously offered bundled services including payroll, compliance, HR, and employee benefits administration.
  3. Scalability: The payroll solution caters to smaller clients who may not require the full range of PEO services initially but seek a scalable payroll technology.
  4. Comparison with Competitors: Justworks is now positioned alongside other PEOs like ADP TotalSource and Paychex, offering scalable solutions that accommodate business growth without requiring a technology shift.
  5. Standalone Product: This is Justworks’ first new standalone product since the company’s inception in 2012.
  6. Market Position and History: Justworks has been known for its robust technology platform and customer support, primarily serving US-based clients in white-collar industries.
  7. Flexibility for Clients: The product is designed to offer flexibility, particularly for businesses not ready for the full PEO co-employment model.
  8. Service Availability: Currently available in 11 states, with plans for nationwide expansion.
  9. Pricing: The solution is priced at $50 per month plus $8 per employee per month.
  10. Services Offered: Includes a comprehensive range of payroll services, such as payroll for salaried and hourly employees, contractor payments, and tax filings.
  11. Client Accessibility: The product caters to businesses of all sizes, including those with only one employee or contractor-only businesses.
  12. Industry Exclusions: Certain industries like cannabis, gambling, and adult entertainment are not eligible for the payroll solution.
  13. Company Background: Justworks is based in New York and operates nationwide.

Payroll Only Services: Advantages and Disadvantages

Payroll-only services have become increasingly popular for small businesses, offering a streamlined approach to managing employee pay without the burden of additional HR tasks. However, before diving in, it’s important to weigh the pros and cons to determine if it’s the right fit for your company.


  • Cost-effective: Compared to full-service HR solutions, payroll-only services like Justworks new payroll solution are typically more affordable, with predictable monthly fees based on employee count. This can be a significant advantage for startups and small businesses with limited budgets.
  • Efficiency and accuracy: Payroll providers have the expertise and technology to handle complex calculations and tax filings, ensuring timely and accurate payroll processing. This frees up your time and resources to focus on core business activities.
  • Reduced compliance burden: Staying compliant with ever-changing employment laws and tax regulations can be a daunting task. Payroll-only services take care of the heavy lifting, minimizing your risk of penalties and fines.
  • Scalability: As your business grows, your payroll needs can change. Payroll-only services can easily adapt to accommodate an increasing number of employees without requiring additional investment in software or personnel.
  • Improved employee satisfaction: Timely and accurate payroll processing is essential for employee morale and retention. Payroll-only services can help ensure your employees receive their paychecks on time and without errors.


  • Limited functionality: Payroll-only services focus solely on payroll processing and do not offer other HR services, such as benefits administration, onboarding, or performance management. For businesses needing comprehensive HR support, additional solutions may be required.
  • Data security concerns: Entrusting your sensitive employee data to a third-party provider can raise concerns about security breaches. Thoroughly research the provider’s security measures and track record before making a decision.
  • Lack of customization: Payroll-only services may not offer the same level of customization as in-house payroll solutions. This can be a drawback for businesses with unique payroll requirements or complex pay structures.
  • Potential integration challenges: Integrating a payroll-only service with your existing accounting or HR software may require additional effort and technical expertise.
  • Loss of control: Outsourcing payroll means giving up some control over the process. This can be concerning for some business owners, especially those who prefer to handle sensitive information internally.

Ultimately, the decision of whether or not to use a payroll-only service depends on your specific needs and budget. Weighing the advantages and disadvantages carefully will help you determine if this approach is the right fit for your small business.

Contextual Analysis of Justworks New Payroll Solution:

This move by the company – i.e. Justworks new payroll solution – is significant in the PEO industry. It represents a strategic shift towards offering more flexible, scalable solutions that can adapt to the varying needs of small and medium-sized businesses. By introducing a payroll-only option, Justworks is acknowledging the diverse requirements of its potential clientele, some of whom may not be ready for or interested in the full suite of PEO services.

This development also highlights the increasing competition in the PEO and payroll service industry, where businesses are looking for more tailored solutions that can grow with them. Justworks’ decision to offer a standalone payroll service puts them in direct competition with other major players in the industry that have historically offered similar scalable solutions.

For employers in the EOR/PEO industries, this move by Justworks demonstrates the evolving nature of the market and the need for providers to continually adapt their services to meet the changing demands of businesses, especially those in the SMB segment.

Demonstrably, Justworks new payroll solution is a strategic addition to their service offerings, addressing the needs of a wider range of businesses and positioning themselves as a more versatile player in the competitive PEO landscape.


Justworks' new payroll solution is a significant expansion from its bundled services of payroll, compliance, HR, and benefits administration. This standalone product is specifically tailored for small and medium-sized businesses, offering a scalable solution for payroll management. Unlike their traditional full-service PEO offerings, this solution provides flexibility for businesses that may not require a comprehensive PEO package, allowing them to choose a service that specifically addresses their payroll needs.

Justworks' payroll solution is positioned to compete with similar offerings from other major PEOs like ADP TotalSource and Paychex. It stands out due to its focus on scalability and flexibility, catering to the evolving needs of small and medium-sized businesses. This approach allows Justworks to offer services that can grow with the business, a key factor for companies that may start with simpler needs but require more comprehensive solutions as they expand.

The Justworks payroll solution is designed to be accessible to businesses of various sizes, including very small businesses with only one employee or those that rely solely on contractors. However, it excludes certain industries such as cannabis, gambling, and adult entertainment. Currently available in 11 states, Justworks plans to expand this service nationwide, reflecting its intent to cater to a broad market within the U.S.

Article By
Managing Editor
Milly is an international lawyer and tech entrepreneur who has advised companies on expanding globally for over 5 years. She is an advocate of remote hiring and regularly consults on future of work matters. Milly founded RemotePad to help employers learn more about building and growing international teams.