NEW EPISODE OF PAYROLLIN'

In the latest episode of Payrollin', Matt Vaadi explores how AI, automation, and outsourcing are transforming payroll and business operations. He discusses how ADP and Justworks are using these technologies to boost efficiency and reduce costs, and introduces his new business venture, Outsourced Scale, which is revolutionizing operations with virtual assistants and automation.

Matt also shares insights from 100 Million Leads by Alex Hormozi and Built to Sell by John Warrillow, offering strategies for scaling businesses and refining messaging during tough economic times. Tune in to learn how these tools and lessons can help businesses not just survive, but thrive, even in challenging conditions.

Prefer audio? Listen on Spotify here.

TOP 5 HEADLINES YOU SHOULD KNOW

1. Tech Industry Continues 2025 Layoff Trend, Affecting Payroll Teams

Tech companies have cut over 51,000 jobs in 2025 as of May 1st, with April alone seeing 23,486 layoffs across firms like Meta, Intel, and Google, who are citing AI integration as a factor in restructuring payroll and HR divisions.

2. Engage PEO Acquires Axios HR in Strategic Expansion

Engage PEO has completed its acquisition of Axios HR in a significant Buyout/LBO transaction finalized on March 3, 2025. This strategic move strengthens Engage PEO's position in the human resource and workforce consulting sector and expands its service capabilities for small and mid-sized businesses across the United States.

3. PEO Industry Consolidation Accelerates in Q2 2025

Industry analysts report that PEO market consolidation continues to gain momentum in 2025, with larger players acquiring regional providers to expand geographic footprints and service capabilities. This trend reflects the maturing market where scale and comprehensive service offerings are becoming increasingly important competitive factors.

4. Remote Work Premium Pushes Salaries Higher

By March 2025, U.S. companies were offering an average salary of $82,037 for fully in-person roles, representing a 33% increase from $59,085 in 2023. This significant wage growth reflects the premium employers are willing to pay for on-site workers, while hybrid roles averaged $59,992 and fully remote positions offered $75,327.

5. Industry Leadership Focusing on AI Integration

PEO and payroll industry executives are increasingly prioritizing artificial intelligence integration, with several major providers announcing leadership initiatives focused on implementing AI for payroll automation, compliance monitoring, and strategic workforce analytics capabilities.

INSIGHT FROM THE AGENCIES

DOL Issues Worker Classification Field Assistance Bulletin 2025-1 Why it matters:

Released on May 1, this new guidance supersedes prior directives on employee vs. independent contractor classification. Notably, the DOL has instructed investigators not to apply the 2024 final rule's analysis in current enforcement matters while it remains under review, creating temporary breathing room for payroll bureaus managing contractor classifications. → [READ MORE]

IRS Announces 2026 HSA Contribution Limits Why it matters:

Starting in 2026, HSA contribution limits will increase to $4,400 for self-only health coverage (up from $4,300 in 2025) and $8,750 for family coverage (up from $8,550). With 77% of business leaders now integrating HSAs with payroll systems, these changes will require payroll software updates for the coming year. → [READ MORE]

New York State Department of Taxation Introduces Streamlined Filing Requirements Why it matters:

March 2025 marked the implementation of streamlined withholding tax and wage reporting forms in NY, requiring employers to file all parts of Form NYS-45 as a single return. For payroll providers handling New York clients, the changes include mandatory separate reporting of state, NYC, and Yonkers tax withholding for each employee. → [READ MORE]

TECH SPOTLIGHT: AI-POWERED AUTOMATION

This week's tool and process to help you grow.

THE PROBLEM:

Manual client onboarding drains resources as staff copy data between systems, send repetitive emails, and recreate standard documents—delaying revenue and creating a poor first impression.

WHY IT MATTERS:

This inefficiency costs more than time. Revenue recognition stalls, manual errors create compliance risks, and competitors using automation gain a significant edge in client experience.

THE SOLUTION:

Make (formerly Integromat) automates your entire onboarding workflow with zero coding. Connect forms to your payroll system, CRM, and email platform through a visual interface. New client data automatically flows to all systems, triggers welcome materials, and prepares compliance documents.

Quick Stats:

• Implementation: 4 hours

• Cost: $16-29/month

• Time saved: 5-8 hours per client

• Cut onboarding time and boost NPS 

COMPETITIVE INTELLIGENCE CORNER

TriNet Launches Enhanced HR Plus Offering

TriNet has modernized its service suite with the release of an enhanced HR Plus offering, a more robust Administrative Services Organization (ASO) solution designed specifically for small and medium-sized businesses. Key additions include a redesigned, more intuitive payroll application, the launch of TriNet Marketplace with pre-integrated business solutions, and a new AI-powered Learning Management system featuring over 1,000 training modules.

Deel Introduces Advanced Compliance Hub for Global Payroll

Deel has unveiled its innovative Compliance Hub, providing real-time access to the latest regulatory updates and risk warnings across all international markets. The platform delivers actionable compliance alerts and comprehensive guidance to enhance global payroll management, addressing the increasing challenge of cross-border payroll data compliance that 50% of organizations plan to invest more in during 2025.

Rippling Accelerates Payroll Innovation

Rippling continues to lead payroll innovation with significant enhancements to its unified employee graph architecture, enabling more seamless handling of complex payroll scenarios. Industry analyst Holger Mueller of Constellation Research has identified payroll as "a key sector for innovation" in 2025, with Rippling's approach to handling complex human decisions in payroll garnering particular attention.

This newsletter is provided for informational purposes only and does not constitute legal or financial advice.

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