Mosey obtains new funding to assist businesses in adhering to payroll regulations

In light of the epidemic, it’s safe to say that remote and hybrid work are here to stay. However, it has created problems from an HR standpoint. For example, organisations with workers in various states experience difficulties in establishing the accounts essential for payments. Others, worried about the repercussions of disobedience, allow ambiguous rules to govern how business is conducted on a daily basis. Most organisations would not allow staff to work in regions where the company has not yet been incorporated for tax reasons, a recent Deloitte analysis indicated.

Keeping a business in compliance with many tax and labour regulations is a never-ending problem that has no simple fix. However, Alex Kehayias argues that his 2021 start-up Mosey gets close. Using a database of reporting standards for all 50 states, Mosey gives clients automation solutions to enable U.S.-based organisations recruit remote labour and remain compliant.

This is a critical issue for the future of work since it means separating where we work from where we live. “Multi-state compliance is tough for many organisations, but it has huge potential to enhance access to opportunity,” Kehayias said. Watershed, Mystery, Common Room, and Coda, ReCharge, and Rallybio are just a few of the fast-growing firms that we work with. Retooling the back office for remote work is happening in almost every sector, and our clients are doing the same.”

As a result of today’s 18 million Series A round, which was led by Canaan and included Gusto, SemperVirens, and Charge, Mosey has now raised a total of 21 million. According to Kehayias, the money will be put to good use expanding the Mosey staff, growing the platform, and forming new collaborations.

Focus on compliance

When Kehayias founded Mosey, he had previously worked as an engineering manager at Stripe and as a product manager at Morgan Stanley. He designed and led the Stripe Atlas platform for early-stage entrepreneurs, which addresses accounting hurdles like as incorporation and tax filing in exchange for a monthly charge.

Legal, financial and human resources advisors are often employed by most businesses to help them meet their compliance obligations. In multistate cases, this rapidly becomes prohibitively costly. Each state, save those that do not levy an income tax, has its own set of standards for corporations to follow when it comes to withholding income taxes. Complicating matters further is the presence of a company during a pandemic in an area that has adopted a temporary respite.

According to one estimate, corporate tax compliance in the United States costs 2 billion annually.

“The pandemic accelerated the move to remote work, and employee demand for location flexibility has never been higher. Out-of-state hiring increased from 35% before the pandemic to 62% in 2022, and office occupancy rates have stagnated,” Kehayias said. “Yet, the rules and regulations for hiring and managing remote employees are complicated and changing quickly … The industry is quickly moving from remote work enablement to remote work permanence. That means a great deal of change across HR, payroll and tax.”

Tax responsibilities may be automatically “recalculated” by integrating with payroll providers and government authorities on a regular basis. Mosey displays the needs in each location for payroll, registration and taxes for HR staff to create employer and tax accounts automatically. Whenever new requirements or deadlines are set, the system notifies the user through email.

If you’re in charge of a company that operates in numerous countries, you’ll want to consider using Mosey since it may lessen your risk and cut your compliance costs at the same time (e.g., penalties, fines, and enforcements). In order to free up our customers’ time, Mosey employs a variety of automation techniques, allowing them to recruit workers from wherever the best talent can be found.

Even under the best of conditions, the tax law is byzantine. Startups like Deel, which in April 2021 received 156 million at a 1.2 billion valuation, will be a tough competitor, as well. There are a slew of other contenders, including Symmetrical.ai, Multiplier, Collective, and Remote, the latter of which was valued at over 3 billion in April 2022.

Customers like Calm, Tatari, and Coda, according to Kehayias, are taking notice of Mosey, and the platform is gaining momentum.

According to PitchBook, venture capitalists pumped over 1.4 billion into HR IT businesses in January, despite the economic slump. This is fantastic news for HR software startups everywhere.

The crew is tiny, but it’s expanding quickly. There is still a lot more work to be done before we can keep up with demand, Kehayias remarked. With our legal and tax colleagues, we guarantee that we are constantly up-to-date, and that companies can rely on us to handle such an essential issue.