Every provider in our directory is checked before the listing goes live. We verify in one of two ways: a KYB software check, or a manual check done by hand. Here is what we look at, in plain English.
Two ways to verify
Rechecked every 12 months
Verification is never for sale
Start here
What the Verified badge means
Verified means we confirmed the provider is a real, active business, and that the main details on the listing match the records we checked.
Verified covers this
The company is registered with the state and its filing is active.
The legal name, tax ID, and address all match the public record.
The business is reachable at the phone number and address on file.
The owners and officers pass a sanctions and watchlist screen.
Claims on the listing match the documents the provider sent us.
Not covered by the badge
It is not a score for service quality. That is what the PayrollModo Rating is for.
It is not a promise that the provider fits your business.
It is not a financial audit, and it is not a credit check.
It is not legal, tax, or accounting advice.
It is not a guarantee of future performance.
Two ways to verify
The two ways we verify a provider
Most providers are cleared by KYB software. When the software cannot confirm a business, a person on our team verifies it by hand. Either way, the file has to meet the same standard.
Way 1: KYB software check
KYB stands for Know Your Business. It is the same kind of screening a bank runs before it opens a business account. The software checks a provider against official and commercial databases, then returns a match report. When every key detail matches and nothing is flagged, the software check is the verification.
What it pulls from:
State business registries and corporate filings
Federal tax ID (EIN) matching
Address, phone, and domain data
Owner and officer records
Sanctions and watchlist screening, including OFAC
Bankruptcy, lien, and judgment records
This is the route for most providers, because their records already sit in databases the software can reach.
Way 2: Manual verification
Software cannot confirm every business. Newer companies, small firms, and unusual business structures often leave thin records behind. In those cases a reviewer on our team verifies the provider by hand, using documents and direct contact.
What a reviewer does:
Pulls the state filing and reads it in full
Opens every document the provider sends
Calls or emails the business at the number on record
Reads the website, the terms, and the privacy policy
Checks the listing against the proof, claim by claim
Reads public reviews and complaint records
This is the route when the software cannot confirm a business, and any time a file needs a second look.
A flagged software result is not a rejection. It sends the file to manual verification, where a person reviews it and asks the provider to explain the gap.
The checklist
What we look at
Twelve checks stand between an application and a live listing. Both ways of verifying look at the same list. Some checks are pass or fail. Others decide which badges a provider earns.
Legal registration
We pull the entity record from the state where the business is formed. The legal name, the formation date, and the status all have to check out, and the status has to be active.
Required
Federal tax ID
We match the federal tax ID, or EIN, to the legal business name. If the two do not match, the review stops until the provider explains the gap.
Required
Address and phone
We check that the address is a real place of business and that the phone reaches the company. Mail drops, empty suites, and dead numbers get flagged for review.
Required
Owners and officers
We compare the owners and officers a provider names to public filings. Then we screen those names against sanctions and watchlists, including the OFAC list.
Required
Years in business
We only accept a years in business claim when the registration date backs it up. The 5, 15, and 30 year badges come straight from that record.
Badge
Website and domain
We check who owns the domain, how long it has existed, whether the site is secure, and whether the contact details, privacy policy, and terms are real and current.
Required
Licenses and registrations
Where the service calls for it, we ask for proof. That can mean IRS e-file provider status, a reporting agent setup on Form 8655, or a state level registration.
Where it applies
How client tax money is held
Payroll firms hold client money for taxes. We ask how those funds are held, which bank partner is used, and whether the provider carries a bond for them.
Required
Insurance
We ask for a current certificate of insurance. For payroll work that usually means errors and omissions coverage, and cyber liability coverage on top of it.
Required
Security and audits
The SOC 2 badge is only awarded when we see the report itself or a letter from the auditor. A security claim on a website is never enough on its own.
Badge
Claims on the listing
We test what the listing actually says. States served, services included, pricing, contract terms, and support hours all get checked against the proof on file.
Required
Public record and feedback
We read reviews across public sources and check complaint records, including the Better Business Bureau, state agencies, and the CFPB complaint database.
Ongoing
Some checks decide whether a provider is listed at all. Others decide which badges show on the listing. See what each badge means.
Step by step
How a listing gets approved
Every provider runs through the same path. Only the middle step changes, depending on which of the two ways clears the business.
The provider applies
The provider sends its legal name, tax ID, business address, owners, and a full description of the services it runs. Missing fields stop the file right there.
Way 1: KYB software check
The file goes through KYB software first. It pulls the records and returns a match report, flagging mismatched names, bad addresses, closed filings, and watchlist hits.
Way 2: Manual verification, when needed
If the software cannot confirm the business, or flags something, a reviewer takes over. They request documents, contact the company, and check the records by hand.
Listing claims check
Whichever way cleared the business, we still walk the listing line by line. Every claim about states, services, pricing, and terms has to be backed by something real.
Decision
The provider is verified, sent back for more proof, or turned down. We tell the provider which one it is and why, so they can fix a gap and come back.
Recheck
We recheck every listing at least once every 12 months. We also recheck sooner when a provider changes its details or when a user reports a problem.
Verification is not permanent. A badge lasts only as long as the facts behind it hold up.
The business registration lapses, or the company closes.
A document expires and the provider does not replace it.
A claim on the listing turns out to be wrong.
We see a pattern of serious complaints that go unanswered.
The provider stops responding to us during a recheck.
Ownership changes and the new owners have not been screened.
Seeing something on a listing that looks wrong? Tell us about it and we will look into it.
Questions
Common questions about verification
What are the two ways you verify a provider?
The first way is a KYB software check, which matches a provider against business registries, tax records, and watchlists. The second way is manual verification, where a person on our team confirms the business using documents and direct contact. We use the manual route when software cannot confirm a business, or when a file needs a closer look.
What does KYB mean?
KYB stands for Know Your Business. It is the same kind of screening a bank runs before it opens a business account. The software checks registration records, tax IDs, addresses, owners, and watchlists to confirm a company is real and active.
Does a Verified badge mean the provider is good?
No. Verified means the business is real, active, and that the details on its listing match the records we checked. Service quality is a separate question, and that is what the PayrollModo Rating covers.
Can a provider pay to be verified?
No. A provider either meets the standard or the badge is not awarded. No payment changes that, and no payment keeps a badge in place once a provider stops qualifying.
How long does verification take?
Most reviews finish within a few business days once we have every document. Files with missing paperwork or unclear records take longer, because we hold the listing until the gap is closed.
How often are providers checked again?
At least once every 12 months. We also recheck sooner when a provider updates its listing, changes ownership, or when a user reports something that looks wrong.
What if I find a mistake on a listing?
Tell us. Send the provider name and what looks wrong through our contact page. We review every report, and we correct or pull a listing when the report checks out.
Ready to find your payroll provider?
Compare vetted providers and get real quotes side by side. It is free, and there is no obligation to switch.