Accounting software company Xero has inked a deal with US payroll platform Gusto and has pulled the pin on the development of its own payroll product.
As a consequence of stopping its own US payroll product, Xero will incur a NZ$16.2 million non-cash impairment of assets. The adjustment would be recognised in the first half of the 2019 financial year.
Xero said the move would allow the company to redeploy resources in other markets and projects.
The company said the alliance allows Xero to better serve the US market with a full-service payroll offering that meets the needs of customers working across 50 US states, each with different payroll tax requirements.
Source: NZ Herald