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Paylocity

Cloud HCMFounded 1997
Reviewed by Swet Parvadiya
Company data updated: November 2026

Founders

Who Founded Paylocity?

Steve Sarowitz · Founded 1997 · HQ today: Schaumburg, Illinois, United States

Who founded Paylocity?

Paylocity was founded by Steve Sarowitz in 1997. It is now led by Toby Williams.

Founders
Steve Sarowitz
Founded
1997
Headquarters
Schaumburg, Illinois, United States
Number of founders
1
Current CEO
Toby Williams
Where was Paylocity founded?
Paylocity was founded in Schaumburg, Illinois, United States in 1997.
When was Paylocity founded?
Paylocity was founded in 1997.
Who started Paylocity?
Paylocity was founded by Steve Sarowitz.
How old is Paylocity?
Paylocity is 29 years old as of 2026.

Founding Story

In 1997, Steve Sarowitz recognized that traditional payroll service bureaus suffered from rigid technology and poor customer service. He founded Paylocity to combine cutting-edge software with dedicated, personal client support. In the years following its founding, Paylocity navigated complex technical evolutions, transitioning from legacy computational architectures to modern distributed cloud environments. This technological resilience enabled the organization to capture compounding market share, establish deep regulatory trust with institutional clients, and build an enduring corporate foundation. In the decades following its initial founding, Paylocity navigated rapid technological evolutions, transitioning from early legacy compute paradigms to modern distributed multi-tenant cloud environments. This sustained engineering focus allowed the company to survive cyclical macroeconomic contractions, outpace legacy incumbents, and establish deep institutional trust with demanding enterprise and public sector buyers. Through disciplined capital allocation, continuous internal innovation, and targeted strategic initiatives, Paylocity built an enduring competitive moat anchored by proprietary technology, deep domain knowledge, and sticky enterprise workflows that resist technological disruption. In the decades following its initial founding, Paylocity navigated rapid technological evolutions, transitioning from early legacy compute paradigms to modern distributed multi-tenant cloud environments. This sustained engineering focus allowed the company to survive cyclical macroeconomic contractions, outpace legacy incumbents, and establish deep institutional trust with demanding enterprise and public sector buyers. Through disciplined capital allocation, continuous internal innovation, and targeted strategic initiatives, Paylocity built an enduring competitive moat anchored by proprietary technology, deep domain knowledge, and sticky enterprise workflows that resist technological disruption. In the decades following its initial founding, Paylocity navigated rapid technological evolutions, transitioning from early legacy compute paradigms to modern distributed multi-tenant cloud environments. This sustained engineering focus allowed the company to survive cyclical macroeconomic contractions, outpace legacy incumbents, and establish deep institutional trust with demanding enterprise and public sector buyers. Through disciplined capital allocation, continuous internal innovation, and targeted strategic initiatives, Paylocity built an enduring competitive moat anchored by proprietary technology, deep domain knowledge, and sticky enterprise workflows that resist technological disruption.

Role at Paylocity

Steve Sarowitz founded Paylocity in 1997 with a vision to combine leading-edge technology with unmatched customer service. He served as CEO until 2017 and remains Chairman of the Board, active in philanthropic and entrepreneurial ventures.

Paylocity: CEO & Leadership History

Full timeline →

Toby Williams

Chief Executive Officer

Ryan Gorman

Chief Financial Officer

Michael Haske

Vice Chairman & Former CEO

Ted Colbert

Chief Technology Officer

Katy Smith

Chief Marketing Officer

Keep researching Paylocity

Who Founded Paylocity? FAQ

What makes Paylocity's cloud HCM and payroll platform unique in the modern enterprise software market?

Paylocity distinguishes itself by combining core payroll and HR administration with an intuitive, consumer-grade mobile-first user experience, the built-in Community social collaboration hub, and advanced spend management capabilities acquired via Airbase, ensuring high employee engagement and streamlined enterprise back-office workflows.

How does Paylocity generate its recurring revenue and maintain strong financial growth?

Paylocity generates revenue primarily through SaaS subscription fees based on employee headcount, ancillary module adoption (such as talent acquisition, time and attendance, and spend management), and interest income earned on client funds held prior to tax and payroll disbursement, supporting sustained multi-year revenue expansion.

What role did Steve Sarowitz play in the founding and scaling of Paylocity?

Steve Sarowitz founded Paylocity in 1997 in Schaumburg, Illinois, serving as CEO until 2017 and establishing a culture centered on exceptional customer service, dedicated support pods, and continuous technological innovation that propelled the company into a publicly traded S&P mid-cap leader.

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Content is for informational purposes only. Not financial advice. Data sourced from SEC filings, annual reports, and public records. See our full disclaimer and methodology.