Zenefits
PayrollCloud-based HR platform for small to medium businesses with benefits administration.
Overview
Zenefits is a cloud-based HR platform designed for small to medium-sized businesses, offering an all-in-one solution for HR administration, benefits management, payroll, time tracking, compliance, and employee onboarding. The platform is particularly known for its strong benefits administration capabilities and transparent, affordable pricing starting with a free tier for basic HR. Zenefits aims to simplify HR management for companies without dedicated HR staff.
Pros & Cons
Pros
- ✓Free Essentials plan provides basic HR, onboarding, and employee self-service at no cost
- ✓Strong benefits administration with access to health insurance marketplace and enrollment tools
- ✓Transparent, affordable pricing with clear tiers starting at $8 per employee per month
- ✓User-friendly interface with minimal learning curve for small business owners
- ✓Quick implementation (1-2 weeks) allows businesses to get up and running fast
- ✓Mobile app provides convenient access for employees and managers on the go
Cons
- ✗Customer support quality inconsistent, with many users reporting slow response times
- ✗Payroll functionality requires partnering with third parties, adding complexity
- ✗Limited advanced features compared to enterprise HRIS platforms
- ✗Reporting and analytics capabilities are basic
- ✗Platform has had past compliance issues that have damaged reputation
- ✗Integration options more limited than competitors like Gusto or Rippling
Who Should Use This?
Best For
- →Small businesses (5-100 employees) seeking affordable, all-in-one HR solution
- →Startups wanting free basic HR tools through the Essentials tier
- →Companies prioritizing benefits administration and enrollment
- →Organizations with straightforward HR needs without complex workflows
- →Businesses wanting quick implementation and ease of use over advanced features
Not Ideal For
- →Companies requiring best-in-class payroll with direct processing (not third-party)
- →Large or mid-sized businesses (200+ employees) needing advanced capabilities
- →Organizations requiring robust reporting, analytics, and customization
- →Businesses needing responsive, high-quality customer support
- →Companies in highly regulated industries concerned about compliance reputation
Key Features
Implementation
Zenefits implementation is quick and straightforward, typically taking 1-2 weeks from signup to full deployment. The process includes account setup and company information entry (1-2 days), employee data import (2-3 days), benefits marketplace exploration and selection (3-5 days), integration setup with payroll and accounting tools (2-3 days), and employee onboarding and training (3-5 days). Zenefits provides self-service setup guides, video tutorials, and email support.
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Quick Info
Zenefits offers transparent tiered pricing: Essentials (Free for basic HR and onboarding), Growth ($8 per employee per month for time tracking, PTO, scheduling, performance), Zen ($14 per employee per month adds compliance, advisory services, wellness programs), and Enterprise ($27 per employee per month adds advanced features). Payroll is add-on through TriNet at $6 per employee per month. A 50-person company using Growth + Payroll would pay $700/month ($8,400 annually).
📋 Implementation Guide
Step-by-step guide to implementing Payroll software
View Guide BelowOpen Full Guide PageImplementing Payroll Software
Critical guide to implementing payroll software without disrupting employee payments.
Implementation Steps
Understand all payroll requirements and plan transition timing.
Key Tips:
- Review all federal, state, and local tax requirements
- Document current payroll process and frequency
- Identify all deductions (benefits, garnishments, etc.)
- Plan go-live date (start of quarter preferred)
- Notify employees of upcoming changes
- Get buy-in from finance/accounting team
Common Mistakes to Avoid
- ×Not running parallel processing - too risky to go straight to live
- ×Choosing end-of-year for go-live - tax reporting nightmare
- ×Missing obscure deductions or garnishments
- ×Not verifying bank account numbers - payments go to wrong accounts
- ×Insufficient testing of tax calculations - penalties are severe
- ×Not having a rollback plan - leaves you stranded if issues occur
Best Practices
- Always start at beginning of quarter for clean tax reporting
- Run at least 2 parallel payrolls before going live
- Over-communicate with employees about changes
- Keep old payroll system active for 1 quarter after cutover
- Create detailed audit reports comparing old vs new
- Have your accountant review configuration before go-live
- Build in buffer time - process payroll 2 days early at first
- Document everything for compliance and audit purposes
Frequently Asked Questions About Zenefits
Common questions about Zenefits, including pricing, features, integrations, and who should use it.