Services · Mobile app development · Payroll apps
Codeeo delivers payroll software development USA employers, payroll service bureaus and HR software companies use when a packaged product no longer fits. We build the gross to net engine, federal and state withholding, Form 941 and W-2 reporting, state unemployment filings, direct deposit files and an employee pay app, all driven by where each person lives and works. You get one payroll you can audit line by line, change when a state changes its rules, and own outright.
We have no US office and work with American clients remotely, with discovery, design reviews and test sign-off held by video call. Our team of 80+ sits in Dubai, Riyadh and Karachi, has delivered 200+ projects across the UAE and the US, and is rated 4.7 from 23 Google reviews.
200+ companies across the US and the UAEFrom a first store to a listed developer
Core capabilities
American payroll is two systems stacked on top of each other. The federal layer is the same everywhere: income tax withholding from Form W-4, Social Security and Medicare under FICA, federal unemployment tax reported on Form 940, quarterly Form 941 returns, deposits through EFTPS, and W-2 and W-3 filings with the Social Security Administration each winter. The state layer is where the work multiplies. Most states tax wages and publish their own withholding methods, a handful do not, some cities and school districts add local taxes, and every state runs its own unemployment insurance program and new hire registry.
A national employer feels all of this at once when a remote hire signs on from a new state, when a manager relocates, or when a store opens in a city with its own minimum wage. Overtime under the Fair Labor Standards Act sets a federal floor, and several states add daily overtime or different exemption tests on top. The capabilities below are the national core we build first. State and local rules are kept in versioned tables rather than code, so a change in one state becomes a configuration update you can test, not a rewrite.
Each employee carries a resident state and one or more work states. The engine applies the right withholding method for each, handles reciprocity agreements between neighboring states, credits for tax paid elsewhere, and local taxes where they exist. States without a wage income tax simply switch that layer off for the people they cover.
Every paycheck is withheld for the places the employee actually lives and works.
Quarterly Form 941 totals reconcile to the payroll register before they leave the system, and Form 940 builds from the same wage records. At year end the system produces W-2 forms for employees, the W-3 transmittal and the electronic file for the Social Security Administration, with corrections handled through W-2c rather than edits to history.
Federal returns tie back to individual paychecks without spreadsheet work.
Each state's quarterly wage report is generated in the format that agency accepts, with taxable wage bases tracked per state and per employee. New hires are reported to the right state registry on time, and multi-state workers are assigned to one unemployment state using the standard localization tests.
State filings go out on schedule from one source of truth.
Hours, salary, overtime under the Fair Labor Standards Act, shift differentials, bonuses and commissions flow into gross pay. Pre-tax deductions such as Section 125 cafeteria plans, health savings accounts and 401(k) deferrals are applied in the order each tax requires, because a deduction can be pre-tax for federal income tax and still taxable for FICA.
Net pay is explainable down to each deduction and its tax treatment.
Child support income withholding orders, IRS levies, student loan wage garnishments and state creditor garnishments are stored with their priority, limits and remittance details. The engine applies federal consumer credit protection limits and the stricter state rules where they apply, then produces payment records for each agency.
Court and agency orders are honored in the right order every pay period.
Pay goes out through Nacha formatted ACH files sent to your bank, with split deposits, prenotes and off cycle runs. Pay card and earned wage access options can be added where your states allow them, along with positive pay files for any checks still printed.
Employees are paid on payday through the method they chose.
A mobile app and web portal where staff view pay stubs, update their W-4 and state withholding forms, change bank details with verification, and download W-2 forms. Every change is logged with who made it and when it takes effect.
Routine pay questions are answered by the employee, not the payroll desk.
Independent contractors are paid through the same platform and reported on Form 1099-NEC, with W-9 collection and backup withholding flags. Classification questions stay with your advisers, but the system keeps contractor and employee records clearly separate.
One platform pays everyone, while employees and contractors stay distinct.
Applicable large employers must report health coverage offers on Forms 1094-C and 1095-C. The system tracks hours to measure full time status, records offers and affordability codes month by month, and produces the forms and IRS electronic file from the same records used for deductions.
Coverage reporting comes from payroll data instead of a separate project each January.
Each run posts journal entries to your accounting system by department, location and cost center. Sensitive data such as Social Security numbers and bank accounts is encrypted, masked by role and logged on every view, which supports the breach notification duties every state now places on employers.
Finance closes faster and auditors can trace any figure back to its source.
Who this is for
Off the shelf payroll works well until the business stops looking like the average customer it was designed for. The signals are familiar: manual adjustments every run, a spreadsheet beside the payroll system, or a product roadmap held back because payroll belongs to someone else. These are the four situations we see most often across the country, and each one shapes the first release differently. When you compare a payroll software development company USA buyers shortlist, ask how it will handle your hardest pay group, not your simplest one.
Companies with remote staff in many states, plus field teams or stores in several metro areas, need withholding, unemployment and local tax decisions made per person rather than per office. We start with the employee record, the work location history and the state tables, because that is where most multi-state errors begin, and build the run and reporting on top.
Work location history matters as much as the home address.
A bureau needs one platform that runs many client companies, each with its own federal employer identification number, state accounts, pay schedules and approval steps. We build tenant separation, bulk processing, client approval portals and filing calendars across every client, so the bureau team sees what is due next rather than chasing deadlines company by company. Client onboarding templates let the bureau add a new company and its state accounts in a consistent, checked sequence.
When your customers ask for payroll inside the product they already use, you can embed it rather than send them elsewhere. We design the payroll engine as a service with clear APIs, so your scheduling, time or HR features feed it directly, and the tax rules stay maintainable as you add customers in new states. Partner facing documentation is written alongside the code, so your own engineers can extend the engine.
Union contracts, prevailing wage jobs, tipped staff, piece rates and multiple overtime rules can defeat a packaged product. We model those rules explicitly and test them against your past pay registers, so the new system reproduces correct historic results before it takes over a live payroll.
Your historic registers become the test suite.
How we work together
Most clients begin with a fixed scope first release that covers their current states and pay groups, followed by a retainer that keeps tax tables and rules current and adds states as the business grows. Bureaus and software companies building payroll into a product often prefer a dedicated team that stays with the platform long term. Custom payroll software development USA teams can take over later is the goal, so documentation and handover are scheduled from the start. Whichever route you choose, scope, responsibilities and review points are written down before work starts, and all meetings run by video call.
A defined build with a deadline
We agree what the product has to do, write it down with a price and a date, and build exactly that. Changes are priced before they are made, not discovered on the invoice.
A product that keeps evolving
Named engineers who work your hours, join your standups and stay on the codebase. You direct the backlog; we own the quality of what ships.
Something live that needs looking after
A monthly block of hours for improvements, fixes and the small requests that otherwise wait months. Unused hours carry for a quarter.
Technology
The stack is chosen around precise decimal arithmetic, strong audit logging and the systems you already run, such as your HR platform, time clocks, benefits carriers and accounting software. Our payroll software developers USA clients work with favor tools your own team can maintain after handover, and document the tax rule tables so an internal analyst can read them.
01Mobile
02Data and cloud
03Marketing and tracking
A tax engine, filings, payments and an employee app, built around your states.
The core is gross to net calculation with federal, state and local withholding, quarterly Form 941 and state unemployment reports, W-2 and 1099-NEC at year end, and Nacha direct deposit files. Around that sit the employee pay app, manager approvals, garnishment handling and general ledger posting. Which states and pay rules go into the first release is decided in discovery, based on where your people actually are today.
Schedule a free consultation and get a written recommendation, with costs, before you commit to anything.
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