Powered by CHAP AI™

Payroll has no governance layer. That is the problem PSE solves.

ADP runs payroll. UKG runs payroll. Nobody validates compliance before it finalizes. PSE is the control plane that closes that gap — ensuring every payroll outcome is compliant, explainable, and provable before payroll closes.

Request a DemoHow CHAP AI works
We don't compete with your payroll vendor. We govern it.
Enterprise-Grade Security
Audit-Ready Documentation
Multi-State Coverage
Daily Regulatory Monitoring

Built by practitioners. Governed by compliance logic.

1,200+Employee records validated per payroll cycle
500+Compliance rules in the CHAP AI engine
50State + federal jurisdictions monitored
30+Regulatory and enforcement sources tracked daily

ADP processes your payroll. UKG tracks your time. Dayforce manages your workforce. None of them govern the output.

Built for payroll teams in compliance-intensive industries

Healthcare
#1 in DOL back-wage recovery
Transportation & Logistics
High overtime exposure
Real Estate & Property
Multi-state classification risk
Retail & Hospitality
Tip & minimum wage violations
Financial Services
IRC §6656 deposit exposure
Manufacturing
Multi-state, shift-work complexity
Staffing & Workforce
Worker classification risk
Home Health & Care
FLSA exemption complexity
Services

The governance and audit intelligence layer for enterprise payroll.

Payroll Processing

Multi-state payroll execution with pre-run compliance validation. Every cycle governed, every decision documented.

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Tax & Compliance

Federal, state, and local statutory checks applied continuously. When regulations change, CHAP AI updates the same day.

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Workforce Analytics

Labor cost exposure, overtime liability, and compliance posture — visible in real time, not buried in a quarterly deck.

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Benefits Integration

Benefits deduction reconciliation — PSE audits payroll deduction reports against benefit elections to identify discrepancies.

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System Integration

Connect payroll to your HRIS and workforce management platforms with pre-built integrations and custom APIs.

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Strategic Advisory

Payroll structure optimization, entity setup guidance, and compliance posture strategy for growing organizations.

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CHAP AI™

The compliance brain behind every payroll run.

CHAP = Compliance and Human Approval Processor
It is a Compliance and Human Approval Processor — an AI intelligence layer that analyzes payroll scenarios against federal and state regulations, surfaces findings for human review, and produces audit-ready determinations. Every determination requires a named human approver before any action is taken.
How CHAP AI Works
D
Detect
Scans timecard and payroll data for statutory violations, policy exceptions, and anomalies.
F
Flag
Surfaces issues with severity levels and the specific regulation or policy that triggered the flag.
E
Explain
Plain-language rationale for every flag — what’s wrong, why it matters, and what clears it.
D
Document
Timestamped evidence of what was checked, what passed, and what was flagged. Audit-ready by default.
chap-ai scan --pre-run
OvertimeFLSA §207
Min wageCA Lab §1182
Meal breakCA Lab §512
Split shiftIWC Order 4
Sick leaveCA Lab §246
Scan completed 09:14:22 PST4/5 Passed
Full CHAP AI documentation
Early Access
CHAP Guard — Chrome Extension
CHAP AI delivered directly into your payroll system. Real-time compliance badges, inline violation alerts, and contextual explanations — right where you work.
UKGADP

Industry exposure data

The compliance risk your payroll process is already carrying

Numbers from IRS enforcement data, DOL WHD, and EY payroll research — not estimates.

IRC §6656
0%
Maximum deposit penalty rate
The IRS four-tier penalty escalates from 2% for deposits 1–5 days late to 15% after the first IRS delinquency notice. One missed semi-weekly deposit on a $500K payroll costs up to $75,000.
Source: IRC §6656(b)(1); IRS Notice 746 (Rev. 12-2024)
IRS / EY
0%
Of employers make payroll errors
1 in 3 businesses has an active payroll error in any given period. EY research finds the average employer makes 15 corrections per payroll run at $291 per correction.
Source: IRS employer compliance study; EY Payroll Operations Survey, 2024
DOL WHD FY2024
$0M
Recovered by DOL in FY2024 alone
The DOL Wage & Hour Division recovered $149.9M in FLSA back wages for 125,000+ workers in FY2024 — $127M from overtime violations. Civil penalties up 100%+ since FY2014.
Source: DOL WHD FY2024 Statistical Release; HRMorning, Jan 2025
PayrollOrg 2024
0%
Of payroll teams cite compliance as #1 challenge
In the 2024 "Getting the World Paid" survey, 63% of payroll professionals named compliance as their single greatest challenge — above vendor management, integrations, and staffing.
Source: PayrollOrg (PAYO) "Getting the World Paid" Survey, 2024

All statistics reflect publicly available enforcement data and third-party payroll research. Sources available on request. PSE uses these benchmarks to calibrate CHAP AI detection thresholds — not as guaranteed customer outcomes.

Compliance intelligence

What the enforcement data tells payroll teams

“Your payroll vendor processes transactions. It does not tell you whether those transactions are legally correct. That is the gap PSE closes.”
15%

The penalty rate on an unpaid deposit once the IRS sends its first notice

Under IRC §6656, a four-tier escalation means a single late deposit moves from a 2% nuisance to a 15% penalty without a single late payroll to employees. The error is invisible until the IRS notice arrives, typically 60–90 days after the pay period.

IRS IRC §6656IRS Notice 746 (Rev. 12-2024) · IRS Internal Revenue Manual 20.1.4
How CHAP AI addresses this
  • Pre-run deposit schedule validation against your pay frequency and liability thresholds before payroll commits
  • Automatic detection of semi-weekly vs. monthly depositor status mismatches — the most common §6656 trigger
  • Audit-ready deposit schedule documentation generated automatically for each pay period
Estimate your exposure
$1,296 avg

Back wages per affected employee recovered by DOL WHD in FY2023

In FY2023, the DOL Wage & Hour Division recovered $212M in back wages across 163,000 workers. For a 500-person employer that's a potential $648,000 exposure per investigation cycle. Overtime miscalculation and split-shift violations remain the leading triggers.

DOL WHD FY2023DOL FY2023 Statistical Release · Bitner Henry Insurance Group, 2024
How CHAP AI addresses this
  • Real-time FLSA §207 overtime calculation validation against actual hours worked — not just entered hours
  • Split-shift and meal-break violation detection aligned to applicable state IWC orders before payroll runs
  • Three-year audit trail of all wage decisions accessible for any WHD investigation
Estimate your exposure
120 hrs/yr

Lost to payroll compliance issue resolution per employer, per year

EY research found companies spend an average of 29 hours resolving litigation and 91 hours managing compliance issues annually. Separately, 14% of businesses faced compliance litigation related to payroll errors in the prior 12 months.

EY Payroll SurveyErnst & Young Global Payroll Operations Survey · via Lano, 2024
How CHAP AI addresses this
  • Every flag includes the specific statute, plain-language explanation, and recommended correction — eliminating research time
  • Pre-run detection means issues resolve before payroll commits, not after a notice or audit request
  • Automated documentation produces audit-ready records on demand with zero additional effort
Estimate your exposure
Get Started

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See how CHAP AI catches compliance issues before they cost you — in a personalized walkthrough of the platform.

Personalized walkthrough
Tailored to your payroll workflow
30-minute session
Quick overview with live Q&A
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