Xero (ASX:XRO) announced a strategic alliance with a leading full service US payroll platform, Gusto, which ensures its business will offer a full-service payroll solution.
The deal with see Gusto integrate with Xero’s platform in the US with Gusto to provide customer access to full-service payroll in all 50 states.
Ultimately, it allows Xero to better service the US market, as Gusto handles all aspects of payroll on behalf of the small business owner, including all federal, state and local payroll taxes.
But, as a consequence it cease its US-payroll product, and will see a NZ$16.2 million non-cash impairment, in its first half of the 2019 finanical year.
Shares in Xero (ASX:XRO) are trading 0.44 higher at $45.50.