Perfect Payday was started in 2012 by two entrepreneurs who saw how difficult it was for small businesses to organize and manage payments to their employees and contractors. It wasn't uncommon for local restaurants and clothing boutiques to have file cabinets full of pay stubs and tax forms that frequently got misplaced or went missing. Business owners often spent more than 20 hours each month issuing reimbursements, authorizing payments, filing taxes, and completing paperwork for contractors or new employees.
Eric and Max set about building an online application that would digitize all of a company's records, automate paychecks, calculate and pay or deduct necessary taxes, and give employees easy access to their personal account information. Perfect Payday uses modern web technologies, including a Rails web stack to deliver a clean, simple, and efficient interactive web experience.
Customers praise Perfect Payday for being cost-effective and easy to use. Business owners can quickly set up the application, enter their company and employee details, and automatically process their payroll, which frees up time to focus on their own businesses and customers.
Last December, they closed a $24 million Series A funding round with a valuation of $120 million. The leadership team announced plans to expand their offerings to large businesses with an enterprise solution that includes integration with leading bank-office products.
Perfect Payday charges $50 per month plus $10 per person per month for use of their application. Their clients range in size from 2 people up to 200, but the average contract is for 100 employees. Sales are made as annual contracts and customers pay upfront for the first 12 months.
“Perfect Payday got me and my business up and running in less than an hour. The whole set-up was incredibly simple, from entering my employees’ bank information to organizing all of my tax responsibilities. My assistant and I used to spend half a day going through forms and approval for each pay period. Using Perfect Payday has cut my time spent on payroll by 70% at just half the cost of my previous system.”
–Jack Abernathy, partner and lead attorney at KAT Associates
“As I grew my event planning business, I had employees in multiple states, who each, in turn, had to manage and invoice multiple local vendors. Perfect Payday made it possible for my planners to stay organized, not lose anything through the cracks, and focus their energy on what we love to do—create beautiful experiences and memories for our customers.”
–Jeanette Granger, owner of Sealed with a Kiss Wedding Planners