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Online PEO receives $6 million investment

October 10, 2014

Justworks, a New York-based provider of technology-based PEO services, raised $6 million in Series A funding let by Thrive Capital with additional participation from Index Ventures.

The company offers a free “starter” package for managing independent contractor payments and 1099 filings. It’s premier package, which includes 401(k), HR concierge, salary payments via direct deposit and workers’ comp coverage, is $75 per month plus healthcare benefits costs, according to the company.

Today’s announcement brings total funding at Justworks to $7 million.

Available in 43 states, Justworks has plans to expand to the rest of the country by the end of the year. More than 2,000 companies use its platform.

Justworks founder and CEO Isaac Oates formerly served as a senior product manager at Amazon and as VP, special projects, at Etsy. Thrive Capital is an investor in Instagram, and Index Ventures is an investor in Dropbox, Skype and SoundCloud.