Mercury launches payroll service for business customers

Mercury has launched Mercury Payroll, adding payroll to its financial software for business customers.

The product brings employee and contractor payments into the same system where Mercury users already manage banking, cards, invoicing, bill pay, accounting and spending controls. It also includes benefits administration, payroll tax filing and compliance support across all 50 US states.

Payroll is a significant recurring cost for most businesses, yet it often sits outside the main finance stack. That can leave founders and finance teams using separate providers for wage payments, tax setup, state registrations and reconciliations, with employee data and cash management split across different systems.

Mercury is positioning the service as a way to close that gap. Existing customers can use information Mercury already holds, including employer identification and entity details, to set up a first payroll run in less than 15 minutes, according to the company. New hires can enter their own tax forms and direct deposit details.

The product supports W-2 payroll for employees and 1099 payments for US contractors. Employers can also issue bonuses and other one-off payments directly from a Mercury account.

AI tools

A central part of the launch is Mercury Command, the company's AI agent, which handles routine payroll tasks through natural-language prompts. Users can ask it to update an employee's salary, add overtime hours to a payroll run, create recurring reimbursements, deductions or earnings, and issue bonuses, Mercury said.

Mercury Payroll will also file and remit federal and state payroll taxes, prepare W-2 and 1099 forms at year-end, manage unemployment claims and review correspondence from state agencies. Mercury added that its internal team registers companies in new states as they hire staff.

The launch reflects a broader trend in financial software, as providers try to bring treasury, accounting, payments and administrative work into fewer systems. For founders and smaller businesses, payroll remains one of the most operationally sensitive processes because errors can affect staff pay, tax submissions and benefits enrolment.

The payroll service includes access to health insurance, health savings accounts, flexible spending accounts, individual coverage health reimbursement arrangements and commuter benefits. It also offers 401(k) options through Human Interest or through a self-managed plan.

The service is available to eligible US-based Mercury business customers at no cost through the end of 2026. After that, pricing will be $100 a month plus $50 a month for each person paid in that month.

Customer base

Mercury said it serves more than 450,000 customers. Adding payroll expands a product suite that already spans banking-related services, expense management, invoicing, accounting and bill payments. It also suggests Mercury wants to deepen its role in day-to-day financial operations rather than remain only a place where businesses hold and move money.

That matters because payroll ties directly to cash management. Employers need to know not only how much they owe staff and tax authorities, but also when money will leave their account, how that timing aligns with contractor payments, and whether benefits deductions and reimbursements have been applied correctly.

By integrating payroll with its other finance tools, Mercury is seeking to give customers a single view of those obligations. Command can work across the wider Mercury platform, allowing founders to analyse their financial position and take action using plain-language requests, according to the company.

The payroll software market is crowded, with incumbent providers already offering tax filing, benefits administration, and employee onboarding. Mercury's pitch is that it embeds those tasks inside a broader finance platform used by startups and other businesses, rather than asking customers to connect another external payroll provider.

"Hiring your first employee is one of the biggest moments in building a company, but what comes immediately after, like setting up payroll, taxes, benefits, and compliance is far more complicated than it needs to be," said Immad Akhund, Co-founder and Chief Executive Officer of Mercury. "In 2026 with AI we can make what was toil for entrepreneurs as easy as a quick chat. We're launching Mercury Payroll so paying your team can feel as simple as moving money in Mercury."