Xero US strategic alliance to bolster payroll offering

Company News

by Jessica Amir

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. 

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.