OnPay: HR & Payroll Software Inspired by Family Business

The Genesis of OnPay: From Family Business to HR Tech Leader

Jesse Burgess began working within his family’s payroll company in 2007. He promptly identified that the company’s payroll staff of six were hampered by tasks that were both repetitive and lacking in variety.

Consequently, he focused on developing automation tools to optimize these workflows.

Expanding Beyond Family Needs

After several years, Burgess recognized a broader market opportunity. He envisioned extending the utility of the tools he’d created for his family’s enterprise to other businesses.

In 2011, this vision materialized with the launch of OnPay, a startup dedicated to the development of payroll solutions, alongside software designed to streamline HR and benefits administration.

OnPay’s Current Offerings

Currently, OnPay delivers a suite of applications to businesses. These tools facilitate the management of payroll deductions and taxes, team oversight, and the selection of crucial employee benefits.

These benefits include health insurance, workers’ compensation coverage, and 401(k) plans.

OnPay’s platform integrates with various third-party HR and compliance systems, enabling seamless data synchronization across applications, such as accounting software.

The Rise of HR and Payroll Software

An increasing number of companies are embracing HR and payroll software to overcome inefficiencies related to paperwork. A recent Business.com survey revealed that 50% of small business HR professionals utilize cloud-based software for HR management.

Furthermore, 69% of survey respondents indicated that HR software reduced their payroll processing time, while 25% reported enhanced legal compliance.

Market Growth and Potential

The global market for HR payroll software was valued at approximately $23 billion in 2021, according to Allied Market Research.

Projections suggest this market could exceed $55 billion by 2031, demonstrating substantial growth potential.

Recent Funding and Future Plans

OnPay has experienced growth aligned with this market expansion. The company announced on Tuesday that it has secured over $100 million in new funding.

This includes a $63 million Series B funding round spearheaded by Carrick Capital Partners, alongside a debt facility provided by MC Credit Partners (the size of which remains undisclosed).

Burgess stated that the new capital will be used to “scale its capabilities,” invest further in product development, and accelerate the company’s market entry strategy.

Leadership Perspective

“This funding signifies a pivotal moment for OnPay and acknowledges the diligent efforts of our team,” Burgess elaborated in a press release.

“We are eager to broaden our service offerings and foster significant growth for the businesses that depend on us for their payroll and HR needs.”