Nivelo

Nivelo is a software platform that helps payroll operators handle finance and payment tasks more efficiently. It provides a complete solution, allowing payroll operators to quickly and securely process payroll for their clients and their employees. It also serves as a connection between traditional and innovative payment methods, supporting operators with secure and faster payment options.

Problem

Safe money movement in the payroll space is necessary, not just a bonus. Normally, it was almost impossible to move money quickly (using originators, third-party senders, banking payment providers). Although services like Zelle and Venmo allow for almost instant person-to-person money transfers, payroll operators usually use the ACH network, which takes several days for debiting, settlement, and crediting to clients and their employees. Even with the RTP standard and the recent introduction of FedNow, payments still have risks (returned payments, incorrect account information, fraudulent actors). In addition to the general risks, there are also overhead costs of running payroll for client companies, including onboarding new customers (KYB and account verification), tax filings, auditing/reconciliation, and having to use multiple platforms/services for different stages of the payroll lifecycle. All of this makes payroll a complicated and costly operation for small and medium-sized payroll operators.

Goals

Mitigate risk and enable fast, safe payments; reduce operational overhead; automatically identify and programmatically solve issues around payroll debits and credits; and allow a high level of configurability to allow for the exact needs of each prospective Nivelo customer.

• Onboard and verify new payroll clients

• Parse ACH files into readable and modifiable objects for processing

• Detect errors and alerts before processing and provide actionable recommendations

• Issue management and notifications for any errors, alerts or returns after processing

• Configuration of automated workflows and exception handling for individual clients/client employees

Results

ACH Parsing

An ACH file is a text file that consisting of a number of different pieces of information and instructions created via a payroll provider’s software of choice. We needed to parse this file into our user interface, allowing us to show any errors and alerts that Nivelo finds and allowing the user to modify the instructions before sending it to their payment provider.

Issue Management

The team realized early on that issue management was going to be an integral part of the platform. Payroll operations employees needed to have visibility into issues with their payroll runs, both before and after processing, and onboarding new clients.

The ability to create rules and exceptions for individual clients and cases is also planned for in the future but not included in the MVP.

Onboarding + Employer Management

When a payroll operator starts working with a new client employer, they typically check the business and account information using a third-party service (also known as Know Your Business - KYB). Once the employer is confirmed, they are added to the operator's system and can begin making transactions. At Nivelo, we offer all the necessary KYB services, including the ability to keep a list of trusted employers (for existing clients of an operator). If any issues arise during the KYB process, we notify the payroll company. Once the verification is done, the employer becomes active on the Nivelo platform, allowing us to monitor all their transactions. Additionally, we offer the option to bring specific employers on board for Nivelo-exclusive services like preventing insufficient funds (NSF prevention) and having automated backup funding if they are do not have the funds to cover a payroll run.