> have to assume management is getting paid off some way to subject themselves to an inferior and more expensive custodian

I’ve done a startup that tried to run ADP for payroll. It was a mess.

Lots of startups avoid that problem by using Gusto. And until recently, Gusto integrated better with Guideline than other providers. So that’s what one got. No kickback needed.

(Like, constellation of shitty products users are locked into helped make Larry Ellison the world’s richest man.)

ADP seems to have a half dozen or more discrete variations on their payroll product, each with their own weird quirks. I’ve experienced some that were perfectly adequate. Some of them being trash also seems plausible.