Have you heard of a company called Pinwheel? If you're not yet familiar with them, you'll probably be interested to know that they are a company that expedites employee payroll by connecting the task of payroll itself to everything else, including how much money comes in versus how much goes out and everything about each specific employee. They've been in business for quite a few years now, but it's surprising how many people have never heard of them. If you're curious about learning more, here are 20 things about them that might impress you.
1. Most major corporations use their services
When you think of virtually any major corporation, you can almost bet that they utilize this company’s services to some degree. As a matter of fact, almost every corporation that you would readily be familiar with upon hearing its name uses them. Granted, some of them utilize more of their products than others, but almost everyone has gotten on board in one capacity or another.
2. Their system works great for direct deposits
It probably won't come as any surprise to learn that their system works very well for anyone who is receiving their paycheck via direct deposit. This is because it can sometimes be difficult to set up direct deposit if you are a relatively small business and you're trying to do it on your own. Every bank is different, so some are easier to set up than others. Obviously, the easiest thing is to let an outside company handle the situation so that business owners don't have to deal with it at all. That's exactly what happens here. Since most people get paid via direct deposit these days, this is one service that almost all of the company's clients choose to utilize straightaway.
3. The system has loads of data about employees
This one might make you feel a little uneasy. Depending on how many products a particular customer decides to use, the company can (and often does) keep a wealth of information about specific employees. According to them, it helps when dealing with things like verifying employment or handling taxes. As far as a lot of employees are concerned, it's just one more place where all of their information is stored digitally and that means one more opportunity for someone else to steal that information. Nevertheless, it is a common practice of the company.
4. They also store income data
Obviously, they also store a lot of data about employee income. They don't just make a direct deposit into an employee's account. Instead, they store all of that information so that they can track how much that particular individual has made over the course of their employment with a particular client. As previously mentioned, this information is often used for tax purposes and that necessitates keeping detailed income data on each individual.
5. They can tailor their services to fit their customer’s needs
You've probably already figured it out by now, but they can tailor their services to fit the needs of each of their clients. Some larger corporations want practically every product the company offers and others only a basic package that allows them to utilize direct deposit or verify payment history for a particular employee.
6. The company uses software add-ons to customize their products
One of the ways that the company stays relevant is to use software add-ons in order to customize their products. This is accomplished by using certain software to instantly update many of the products that they provide to their clients, thereby reducing downtime. It also serves as an important means of patching any potential security issues that might crop up as well as troubleshooting.
7. Many customers use their information for insurance purposes
Believe it or not, a lot of their customers use the information stored by the company for insurance underwriting purposes. That's because information about each employee can be gathered very quickly. Furthermore, the company is able to provide their clients information about the number of employees that they have on hand at any given point in time as a whole and they can do so in a matter of minutes.
8. They also handle employee verification
Since they have so much information about employees, it really shouldn't come as any surprise that they typically handle issues surrounding employment verification. As a matter of fact, it's not outside the realm of possibility for them to be able to track an employee's history throughout their career, provided that they have always worked for a client served by the company or that their information has been transferred over at some point in time.
9. Everything is funneled through a single source
One of the things that makes it easier for individual employers is that all the information is funneled through a single source. This means that they can go through this particular company if they ever need to obtain information about a particular employee. Instead of having to go through one source for payroll and another for insurance underwriting and still another for employee verification, it's all handled in the same place. This makes it a lot easier and also streamlines operations considerably.
10. They allow employees to link their paychecks directly to some of their bills
This may or may not come as a comfort to a lot of employees, but it's now possible for employees who want to do so to link their paychecks directly to some of their bills so that payments come directly out of that check before they ever even see it. For some, it's a matter of convenience. For others, it's a bit unnerving to provide that much information, especially when it comes to dealing with their paycheck.
11. They have leadership from a number of big-name financial companies
One of the things that has made this company so successful is that they have people working for them in positions of leadership that have decades of experience in the financial sector. In fact, a lot of people who are now working for this particular corporation used to work for major financial institutions.
12. They’re constantly updating their security
It shouldn't come as any surprise that they have to update their security almost constantly. Considering the fact that they're dealing with personal information as well as handling the paychecks of countless numbers of employees, it only stands to reason that this would be an absolute necessity. Otherwise, it would be easy to hack into the system in order to steal personal information and perhaps even wipe out the bank accounts of everyone involved. This is especially true when you consider the fact that employees' Social Security numbers are stored in this system along with all of their bank account information. As such, the system has several layers of security and those encrypted layers are always being updated in order to provide the highest level of security possible.
13. They currently handle paychecks for roughly 70% of working adults
Surprisingly, the company handles about 70% of all of the payroll information for individuals working full or part-time in the United States. That's saying quite a lot. You could almost say that the company has a monopoly on the situation.
14. They’ve only completed their second round of funding
Despite the fact that the company has been operating for several years (since 2008), they still conduct regular rounds of fundraising. In fact, they just completed the second round of fundraising for the current fiscal year. There aren’t really that many companies that still conduct fundraising like this after being in business for so long. The difference here is that things are always changing with regard to technology and security. That necessitates the need for almost constant fundraising in order to keep up with it all.
15. They’re based in New York
It probably won't come as any surprise to you that the company is based in New York City, either. As a matter of fact, they have frequently stated that this is a location that allows them to access employees that can work out of their physical headquarters whenever needed, all while allowing them to actively serve their clients that are scattered in various places throughout the entire country. In some cases, they're also serving clients based around the world. As a matter of fact, they're becoming more and more of a global force with each passing day.
16. They typically have between 50 and 100 employees
It is considered common knowledge by many that in order to be involved in this particular line of work, it takes a fair amount of employees. That said, it probably doesn't take as many as you might think. Currently, they typically have anywhere from 50 to 100 employees that work with them at any given time. Some of those individuals work directly out of their headquarters and others work remotely. Obviously, they will undoubtedly add to this number as they continue to grow and add additional clients. It is worth noting that they operate with a minimum amount of overhead and they don't typically hire more people than they need. Since they're in a unique situation where virtually all of their business is handled online and can be accessed through the cloud, they don't need as many people as they would if they had to physically chase down all of this information.
17. They’ve received $77 million in funding this fiscal year
The very idea that they received $77 million in funding for this fiscal year and they've only completed their second round of fundraising says quite a lot about how much their investors believe in them. Granted, there are other companies out there that have received more in funding through roughly the same time span, but there are also plenty they haven't received anywhere near this amount. All in all, it costs a lot of money to update the technology that is required to keep everyone's information safe and readily accessible, hence the reason that they have raised so much thus far. It will be interesting to see how much they eventually raise as they move through their next two rounds of fundraising in order to complete this fiscal year.
18. They currently have 22 active investors
Another thing that speaks volumes about the quality of their work as well as their reputation is the number of active investors that they currently have. A lot of companies only have a few investors at any one time. It's actually rather rare to see a company that has 10 or more. This particular company has 22 people that are currently actively involved. The very idea that you would be able to get that many investors to participate in a single round of fundraising is a long shot, to say the least. Clearly, the company's reputation speaks for itself.
19. A lot of fintech companies use their services
It’s interesting to note that a surprising number of fintech companies utilize their services on a regular basis. Why are there so many of these companies that go straight to them without even looking twice at the competition. It all comes back to the fact that they have been in business longer than many of their competitors and they have a stellar reputation.
20. There are plenty of new banks that use them, too
When you think about most financial institutions, you probably don't really think about them utilizing a company like this in order to keep tabs on the financial information of the people who are actually working there. However, it is a common business practice. As a matter of fact, one of the biggest sectors of potential new clients for this particular company are the newer types of banks that are starting to dot the financial landscape. They look at things other than their customers’ credit scores in order to provide loans, so on and so forth. They're typically referred to as neobanks. In reality, they provide all of the same potential services as any other bank, only without making it so difficult to get a loan. They also tend to change things up when it comes to fees that customers will have to pay. In short, they're there to serve the customer as opposed to worrying about their own bottom line. Therefore, it only makes sense that they would use a company like this to keep track of all of the information for their own employees.
Written by Allen Lee
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