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Zenefits launches free payroll software for small businesses

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Re: Zenefits launches free payroll software for small businesses

#21
post #16

Has anyone done a breakout comparison of Zenefits vs Gusto (/zenpayroll)? There has to be quite a few companies who have benefits with Zenefits and payroll in Gusto; wondering what's ideal moving forward.

I would love to see this as well.

A salesperson from Gusto (fka Zenpayroll) who we use for payroll sent me multiple emails about switching to Gusto for benefits, so I emailed, "Hey - We're currently running everything through Zenefits. Are there any advantages to switching over?" and I never heard a response.

Could have been a mistake (i.e. forgot to respond), a bad salesperson, etc. but not having any differentiators makes the decision tough on my end.

Re: Zenefits launches free payroll software for small businesses

#22
post #4

I don't know much about this industry, but this seems like a hilarious response to the ADP lawsuit. When your partner/competitor screws you really hard, launching a free product that performs the most important function of their very expensive product line is just about the most satisfying form of vengeance I can think of. Also, I hate Intuit Payroll (and it's cost me a small fortune due to deadlines being missed and…

Pretty sure the ADP fiasco was likely an understanding by ADP that zenefits was working on this already.

Payroll/Benefits is long overdue for disruption.

Re: Zenefits launches free payroll software for small businesses

#23
Does it support businesses who mainly only work with contractors including helping to create 1099's to send out? Don't see anything about it on the page.

After leaving Quickbooks for a contractor based business, I've been looking for a solution for 1099 work outside of "do it by hand" which I can and am prepared to do, but it takes a long time.

Re: Zenefits launches free payroll software for small businesses

#24
post #21
post #16

Has anyone done a breakout comparison of Zenefits vs Gusto (/zenpayroll)? There has to be quite a few companies who have benefits with Zenefits and payroll in Gusto; wondering what's ideal moving forward.

I would love to see this as well. A salesperson from Gusto (fka Zenpayroll) who we use for payroll sent me multiple emails about switching to Gusto for benefits, so I emailed, "Hey - We're currently running everything through Zenefits. Are there any advantages to switching over?" and I never heard a response. Could have been a mistake (i.e. forgot to respond), a bad salesperson, etc. but not having any differentiator…

Same - I'm actually starting the process of switching over the Gusto simply because I wanted to consolidate the services I was using, but now I'm having second thoughts since Zenefits is free. So far I much prefer the Gusto/zenpayroll interface, so I'll probably keep going forward with Gusto and only switch back if I run into any frustrations.

Re: Zenefits launches free payroll software for small businesses

#25
post #16

Has anyone done a breakout comparison of Zenefits vs Gusto (/zenpayroll)? There has to be quite a few companies who have benefits with Zenefits and payroll in Gusto; wondering what's ideal moving forward.

Zenpayroll & Gusto customer here. Looks like the biggest difference will be that Zenefits is free for payroll if you use them for everything else (vs Gusto at $29 base + 6/person per month). I wonder if Gusto will extend a similar pricing model for those who use Gusto for benefits.

But Zenefits handles more than just benefits for us. It's a fully-featured HR platform, which makes employee on-boarding super simple. I wonder if Gusto will go that direction, because I'm so tied to Zenefits right now I can't imagine living without it.

Re: Zenefits launches free payroll software for small businesses

#26
post #23

Does it support businesses who mainly only work with contractors including helping to create 1099's to send out? Don't see anything about it on the page. After leaving Quickbooks for a contractor based business, I've been looking for a solution for 1099 work outside of "do it by hand" which I can and am prepared to do, but it takes a long time.

Zenefits definitely supports Contractor Payments, if you sign up, look for the "contractors" card to get started.

edit: to be clear, this is a separate product from payroll.

Re: Zenefits launches free payroll software for small businesses

#28
post #21
post #16

Has anyone done a breakout comparison of Zenefits vs Gusto (/zenpayroll)? There has to be quite a few companies who have benefits with Zenefits and payroll in Gusto; wondering what's ideal moving forward.

I would love to see this as well. A salesperson from Gusto (fka Zenpayroll) who we use for payroll sent me multiple emails about switching to Gusto for benefits, so I emailed, "Hey - We're currently running everything through Zenefits. Are there any advantages to switching over?" and I never heard a response. Could have been a mistake (i.e. forgot to respond), a bad salesperson, etc. but not having any differentiator…

I sent the same email to them, but I did get a response:

We're fundamentally different than Zenefits in a few very important ways, so accessing all of Gusto's features still makes sense: 1) Payroll is your system of record in your back office and quite simply, we believe computers follow rules a lot better than humans do. Zenefits functions on a “hub-and-spoke” model… they’re the hub, we’re the spokes. But that's already an outdated functionality-- there should be no spokes when it comes to payroll and benefits—they are really just one single hub functioning in unison. Removing the spokes and human operations that Zenefits uses removes the opportunity for error.

2) We’re a customer service organization, not a sales organization. With the technology comes the vital human touch—you’ve got your dedicated Care Team trained to support your benefits just like you have a Care Team trained to support specific payroll needs.You also have your dedicated and experienced Benefits Advisor for business and benefits strategy planning. This way, you can go to one partner for all your back-office needs rather than using an intermediary to control several different disjointed resources.

3) Because it’s all in one place, you get one beautifully simple experience for your entire team—administrators/managers and regular employees. That means onboarding your employees' payroll and benefits in one place while we help you navigate the confusing world that is US Health Care Reform. Basically, we love you as a customer and we want the best product experience for you. That happens when you use the full Gusto platform to combine payroll, benefits, and compliance.

It wasn't very convincing to me, and I think it might be an even harder sell now that Zenefits is launching payroll. I love both companies but I definitely would prefer to have everything integrated in one platform.

Re: Zenefits launches free payroll software for small businesses

#29
How does Zenefits handle if a Employer paid check does not match the Zenefits charged amount? ie: reconciliation portion.

Employee X terminated, check is $22.8k instead of $23k.

Employee Y has three policies for a single benefit, but only two get paid through the employer.

Is this all automagically handled by the UI in a simple 'SSN or Policy' amount does not match for these three records, how do you want to apply the $30? 'No record found for Employee X, reason for non-payment?' Does Zenefits handle managing/forwarding that to all to the carriers?

(disclaimer: I work in insurance)

Re: Zenefits launches free payroll software for small businesses

#30
I know this is now "industry standard" but I hate the practice of quoting a yearly price as if it were a monthly price. There is a meaningful difference between $120/year (where you pay once, upfront, for the full year) and $10/month (where you pay each month).

Note here that they quote $4/month/employee in the "Pro" plan, but the prices are actually $48/year/employee or $6/month/employee. There is no $4/month plan.

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