Intuit bolsters payroll services with Prestwick acquisition

Intuit bolsters payroll services with Prestwick acquisition

Summary: Forthcoming integration will enable small and midsize business to calculate workers' compensation premiums every pay period, instead of making big prepayments.


One perceived weakness in Intuit's vast lineup of financial and business management applications for small businesses has been the payroll services component of its lineup. Still, the division has approximately 1 million customers.

Well, this week, the company moved to beef up its offerings in this area with a definitive agreement to acquire Prestwick Services, a billing company in Sudbury, Mass., that will make it easier for SMBs to manage workers' compensation payments over time. 

Specifically, the new features and integration that will be made possible through this union will allow owners and managers to calculate workers' comp insurance premiums in real time during every pay period rather than forcing them to estimate them ahead of time -- a process that usually requires them to make large-sum prepayments. (Not so fun with cash flow.)

Prestwick's technology platform, Trupay, will become part of the Intuit Employee Management Solutions division. It currently works with plans from 15 major carriers. 

"Our drive has always been to make running a business simpler," said Adam Black, founder of Prestwick, in a statement about the deal. "Intuit's expertise in doing just that, coupled with our Trupay technology, will enable workers' compensation insurance carriers to better serve their small business clients with flexible payment options while retaining the benefits of existing client-agent relationships."

The transaction is scheduled to close by Jan. 31 (the end of Intuit's second fiscal quarter). There's no word on when the integrated service will be available.

Topic: SMBs

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  • Intuit needs to fix the bugs in Quicken

    I'm really tired of duplicated downloaded transactions that force me to laboriously have to go on search and destroy mission every time I try to update my accounts. I sure do miss Microsoft Money. Say what you will about its UI, but at least it did the basics correctly. I switched to MS Money many years ago because I got tired of every Quicken release having the same bugs as the one before. Then, when MS quit supporting Money, I switched back to Quicken only to find that every release has the same bugs as the one before. Intuit's QC is pathetic.
    Sir Name