Mosey provides fresh capital to help companies comply with payroll regulations

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It’s clear that remote and hybrid work isn’t going anywhere — the pandemic has forever changed the way many companies do business. But from the point of view of HR there were obstacles. For example, with respect to payroll, multi-state businesses face barriers to opening the required payroll accounts. Others—fearing the consequences of non-compliance—allow vague rules to govern daily activities. Recent Deloitte report found that just over half of companies do not allow employees to work in places where the company is not yet incorporated for tax purposes.

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There is no single solution to the perennial problem of ensuring that a company complies with multiple tax and labor laws. But Alex Kehayas claims that Moses, the company he founded in 2021, is coming close. Mosey offers customers automation tools designed to help U.S. companies remotely recruit and comply using a database of reporting requirements for all 50 states.

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“The decoupling of where we work and where we live is one of the most important issues to be addressed for the future of work. It has huge potential to improve access to opportunities, but many businesses are currently struggling because multi-state compliance is too difficult,” Kehayas told TechCrunch in an email interview. “Our clients are fast growing businesses ranging from early stage startups like Watershed, Mystery, Common Room to large companies like Coda, ReCharge, Rallybio. Nearly every industry is being transformed by remote work, and our clients are retooling the back office.”

Laying the groundwork for future growth, Mosey today closed an $18 million Series A round led by Canaan, bringing the startup’s total to $21 million. Kehayas says the funding will be used to expand Mosey’s team, scale the platform, and forge new partnerships.

Conformity Focus

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Prior to founding Mosey, Kehayas was a product manager at Morgan Stanley and a technical manager at Stripe, where he led the new user experience team. While at Stripe, Kehajas created and led Stripe Atlas, an early-stage startup platform that—for a fee—handles accounting blockages, including registration and tax returns.

Kehayas notes that most companies rely on a combination of legal, financial and HR advisors to figure out and manage their compliance requirements. However, this quickly becomes costly when multiple states are involved. With the exception of states that do not have an income tax, each of them has its own rules for withholding income tax, which must be followed by companies. Things get more complicated if employees spend short periods of time in other states or if the business is located in a state that has a temporary reprieve for the duration of the pandemic.

One source binds total cost corporations to comply with US income tax of $2 billion.

“The pandemic has accelerated the transition to remote work, and the need for location flexibility has never been greater. Out of state hiring increased from 35% before the pandemic to 62% in 2022as well as office occupancy has not changedKehayas said. “However, the rules and regulations for hiring and managing remote workers are complex and changing rapidly… The industry is rapidly moving from enabling remote work to permanent remote work. This means big changes in HR, payroll and taxes.”


Image Credits: Moses

Mosey’s solution is to integrate with payroll providers and government agencies to “recalculate” tax liabilities on a regular basis. HR employees can use the platform to automatically open accounts for employers and tax authorities – Mosey shows each location’s requirements for payroll, registration, and taxes. It also sends alerts and reminders when new requirements are added and deadlines are approaching.

“Mosey’s rationale for senior executives is simple: reduce the risk associated with working in multiple jurisdictions (such as sanctions, fines, and enforcement actions) and reduce compliance costs through the use of technology,” Kehayas said. “Mosey uses many types of automation to make things easier for our customers, [providing] opportunity to hire wherever there is talent.”

Mozey has something to work on – the tax code, even under the most favorable circumstances, looks Byzantine. In addition, the startup is facing stiff competition from companies like Deel. raised $156 million at a $1.25 billion valuation in April 2021. Other competitors include, Factor, Team as well as Remotethe latter of which was valued at over $3 billion as of April 2022.

But Kehayas says the platform is gaining momentum, with Mosey’s early adopters including Calm, Tatari and Koda.

Another piece of good news is that funding for HR tech startups has remained solid despite the economic downturn, with more than $1.4 billion invested by VCs in HR startups in January. according on the Pitchbook.

“We are a small team, but we are growing fast. We continue to build the products and systems needed to scale with observed demand,” said Kehayas. “We are also working very closely with our legal and tax partners to ensure that we are always up to date and that businesses can trust us with such an important issue.”

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