Overview of Gusto vs Zenefits
Gusto and Zenefits are prominent SaaS platforms for businesses seeking streamlined payroll, HR management, and benefits administration. Gusto focuses on automating payroll and simplifying onboarding, particularly for small and mid-sized businesses. Zenefits offers a broader HR toolset that includes time tracking, scheduling, and benefits, with payroll available as a paid add-on. Each platform emphasizes compliance and employee self-service, but their feature depth and pricing structures differ—key distinctions for buyers considering Gusto vs Zenefits.
- Gusto centers on easy automated payroll and built-in onboarding.
- Zenefits provides a comprehensive HR platform, but payroll costs extra.
- Both offer compliance help, but approach it differently.
- Pricing structures and core features vary by platform and plan.
| Feature | How Gusto handles it | How Zenefits handles it | Best for |
|---|---|---|---|
| Payroll | Automated payroll included in base (Forbes Advisor) | Requires paid add-on (The SMB Guide) | Gusto |
| HR management | HR tools included, more basic (Cloudwards) | Comprehensive HR suite (TechRadar) | Zenefits |
| Benefits administration | Benefits tools included (Forbes Advisor) | Extensive benefits management (TechRadar) | Zenefits |
| Time tracking | Not publicly specified | Included (TechRadar) | Zenefits |
| Employee self-service | Included (Cloudwards) | Included (The SMB Guide) | Both |
| Onboarding | Built-in onboarding tools (Cloudwards) | Included in HR platform (The SMB Guide) | Gusto |
| Mobile app | Not publicly specified | Not publicly specified | Not publicly specified |
| Compliance | Payroll tax filing compliance tools (Forbes Advisor) | Automated compliance notifications for ACA, HR (Forbes Advisor) | Both (different approaches) |
| Integrations | Not publicly specified | Not publicly specified | Not publicly specified |
| Pricing | $40/mo base + $6/user (Forbes Advisor) | Starts $8/employee/mo; extra fee for payroll (Forbes Advisor) | Depends on use case |
Pricing Comparison
Gusto pricing starts at $40 per month plus $6 per user, with core payroll features included in the base fee (Forbes Advisor, TechRadar). Zenefits plans begin at $8 per employee per month but do not include payroll in the base plan—adding payroll comes with an extra charge (Forbes Advisor, The SMB Guide). Some Zenefits features are only available with higher-tier subscriptions. For businesses prioritizing included payroll, Gusto’s base plan is more comprehensive, while Zenefits appeals to those seeking lower upfront costs or à la carte HR capabilities.
Payroll Features and Management
Gusto offers robust automated payroll processing and compliance support for tax filing straight out of the box (Forbes Advisor, Tech.co). Its built-in onboarding tools simplify adding new team members. In contrast, Zenefits makes payroll a paid add-on module, not included in the starting plan (The SMB Guide). Businesses needing seamless, recurring payroll find a stronger match with Gusto. Zenefits users can add payroll functionality but must factor in additional fees.
Human Resources Management Capabilities
Zenefits stands out for its comprehensive HR management suite. Features cover time tracking, employee scheduling, and benefits administration within a unified platform (TechRadar). Gusto, while equipped with basic HR tools and onboarding, is more limited in advanced HR capabilities compared to Zenefits (Cloudwards). If your operation values a one-stop HR solution with scheduling and detailed time tracking, Zenefits is the stronger fit.
Benefits Administration
Both platforms provide benefits administration, but Zenefits is noted for more extensive benefits management with automation around compliance tasks (TechRadar). Zenefits helps automate and notify administrators of Affordable Care Act (ACA) and HR law requirements (Forbes Advisor). Gusto includes benefits tools with its payroll-centric approach, prioritizing ease-of-use over the depth seen in Zenefits’ benefits features.
Security and Compliance Support
Gusto addresses compliance with built-in tools for payroll tax filing (Forbes Advisor, Tech.co), reducing manual paperwork and the risk of errors. Zenefits takes a broader HR compliance approach with automated notifications for ACA and additional HR regulations (Forbes Advisor, Tech.co). Both platforms offer valuable support for small and medium organizations needing to navigate HR, payroll, and legal requirements, but with slightly different focuses.
Ease of Use and Employee Experience
Gusto is credited for its simple, intuitive interface and streamlined onboarding experience (Cloudwards). Employee self-service features are available on both platforms—letting team members manage personal data and view pay stubs independently (Cloudwards, The SMB Guide). Reviews emphasize Gusto’s focus on usability, while Zenefits earns points for consolidating multiple HR functions.
Integrations, Mobile, and Support
Public sources do not specify details about integrations or mobile apps for either Gusto or Zenefits. Employee self-service is present on both. Customer support options and responsiveness are not publicly specified beyond standard service channels. If integration or third-party app connectivity is critical, you may need to evaluate both platforms directly.
Choosing the Right Platform
Select Gusto if your top priorities are automated, easy payroll and straightforward onboarding at a predictable price. Gusto excels for organizations that want tax-compliance built-in without compared add-on costs. Choose Zenefits if your business requires deep HR toolsets (including time tracking and scheduling) and customizable benefits administration. Zenefits may be more cost-effective for larger teams needing broad HR features—but keep in mind the extra charge for payroll. Compliance support is strong on both platforms, though Zenefits goes further for HR regulations outside payroll.
Conclusion
The decision between Gusto and Zenefits depends on your company’s size, needs, and budget structure. Gusto works best for businesses prioritizing payroll automation and basic HR features in a single subscription. Zenefits suits organizations seeking robust HR management, benefits, and compliance beyond payroll, willing to pay extra for additional payroll capabilities.
FAQs
Which is better for payroll: Gusto or Zenefits?
Gusto is a stronger choice for payroll since it offers automated processing and tax compliance in its base plan. Zenefits requires an extra fee for payroll.
Does Zenefits offer integrated benefits administration like Gusto?
Yes, Zenefits includes extensive benefits management in its platform, often with more automation and compliance features than Gusto.
How do Gusto and Zenefits compare on security and compliance?
Both have compliance tools: Gusto focuses on payroll tax filing, while Zenefits covers ACA and broader HR regulations. Both are oriented toward small and midsize businesses.
Can Gusto and Zenefits handle time tracking and attendance?
Zenefits includes time tracking. For Gusto, public information about time tracking is not specified.
What integrations are available with Gusto vs Zenefits?
Integration details are not publicly specified for either platform in reviewed sources.
Is customer support better on Gusto or Zenefits?
Publicly available sources do not specify differences in customer support quality.
Are there key differences in pricing between Gusto and Zenefits?
Yes. Gusto charges a monthly base plus per-user fee with payroll included. Zenefits charges per employee and requires an added-cost payroll module.