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Read More Jul 10, 2023 Filed under: Accounting, Bookkeeping, Invoicing, Small Business
Zenefits Review 2023: Is Zenefits A Good Payroll & HR Software Option?
With its intuitive interface, employee-friendly mobile app, and focus on simple compliance, Zenefits is a solid contender in the world of online payroll systems.
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Expert Analyst & Reviewer
UPDATED
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Zenefits
| Total Rating | 4.0 |
|---|---|
| Pricing | Good |
| Features | Good |
| Customer Service | Fair |
| Integrations | Good |
| Reviews | Good |
Payroll Processing Time
2-4 DaysPricing
Starting at $8/month per employee + $6/month per employeeBusiness Size
Small-large businesses with 1+ usersZenefits At A Glance
- Zenefits is cloud-based human capital management (HR) and benefits administration (BA) systems for small to large-sized businesses.
- With its robust feature set, including a mobile app, employee management, payroll processing, compliance support, and much more, Zenefits is a solid contender for small businesses that are growing.
- If you only need payroll software, Zenefits isn’t the best option. However, the software’s payroll functionality is on par with most leading online payroll programs.
Pros
- Easy to use
- Transparent pricing
- Robust mobile app
- Built-in HR
- Rich feature set
Cons
- Mediocre customer service
- Not for very small businesses
- Integrates poorly with other systems
Table of Contents
What Is Zenefits?
Zenefits is cloud-based human resources and employee management business software that also offers payroll and benefits administration solutions for small to large-sized businesses.
This easy-to-use software boasts an intuitive interface, employee-friendly mobile app, and focus on simple compliance, all aimed at creating a powerful HR/BA solution.
Zenefits Pricing
| Zenefits Plans | Price | When To Use |
|---|---|---|
| Essentials | $8/month per employee | If you need strong HR and employee management tools for your small business |
| Growth | $14/month per employee | If you need dedicated HR and hiring tools to manage your business growth |
| Zen | $21/month per employee | If you need compliance support and enhanced employee management tools |
Zenefits has three different base plans and three add-on services. You’ll pay anywhere from $8-$21/month per employee for Zenefits base plans and from $5-$8/month per employee in addition to the base price for add-on services, including payroll, benefits administration (with your own broker), and advisory services.
Zenefits operates under a subscription-based pricing model with rates that are on par with the industry standard. However, each base plan and add on requires a five employee minimum, so while businesses with fewer than five employees can use Zenefits’ services, they’ll be paying for at least five employees by default.
Zenefits offers a free trial and a free 14-day demo version on top of salespeople-free rate calculators.
Zenefits Essentials Plan
The Zenefits Essentials plan costs $8/month per employee and includes:
- Integrations
- Mobile app access
- Hiring and onboarding assistance
- Employee record-keeping
- Employee directory
- Company record-keeping
- Time and scheduling package
- Mobile PTO requests/geotracking
- Compliance alerts
- Access to mobile app for employees
Zenefits Growth Plan
The Zenefits Growth plan costs $14/month per employee and includes everything from the Essentials plan, plus:
- Compensation management
- Custom salary-based reports
- Real-time salary comparison data
- Performance management suite
- A full suite of performance reviews
- Goal setting and tracking
- One-on-one meeting management
- Customizable review forms
Zenefits Zen Plan
The Zenefits Zen plan costs $21/month per employee and includes everything from the Growth plan, plus:
- Well-being management
- Employee-triggered relevant wellness training
- Well-being content
- People Hub (company social networking feed)
- Engagement surveys
Extra Zenefits Costs & Fees
| Zenefits Extra Costs | Price |
|---|---|
| Payroll | $6/month per employee |
| Advisory Services | $8/month per employee |
| Benefits Administration (Using Your Own Broker) | $5/month per employee |
| Health Benefits (Zenefits' Broker) | Variable |
Zenefits’ base pricing doesn’t cover its add-on services, including payroll, advisory services (HR and payroll), and benefits administration. If you opt for any of these additional services, you’ll need to pay anywhere from $5-$8/month per employee.
If your business needs either payroll services or professional HR or payroll advising, it may be worth looking for other payroll software options. Adding these to Zenefits’ base price can cause the software’s cost to become burdensome, especially for smaller businesses.
Is Zenefits Easy To Use?
Zenefits is cloud-based, sleek, sports a social-media coolness, and functions with a simple and intuitive interface. Zenefits has all the capabilities of clunkier HR programs, but it runs very smoothly.
Small business owners with years of HR experience (or those who have SaaS experience) might find Zenefits gets the job done, but it doesn’t give much flexibility around how to use/implement features.
Zenefits Features
| Feature | Availability |
|---|---|
| Auto-Schedule Payroll | |
| Payroll Tax Support | |
| Bonus Payroll | |
| Off-Cycle Payroll | |
| Employee Management | |
| Paid Time Off | |
| Time Tracking | |
| Reporting | |
| HR Support | |
| Onboarding Support | |
| Benefits Administration |
Zenefits has all the tools your business needs to run payroll, handle benefits administration, track time, manage payroll taxes, and more. The software’s features are robust and can compete with other options on the market. However, Zenefits may not be a good match for business operations with very complex payroll and HR needs.
HR managers who are used to robust customization might find that there’s a bit more hand-holding, stay-in-the-lines type of management. That’s awesome for small businesses growing into HR or starting to offer benefits and streamlined services, but it may not meet the needs of larger businesses.
Payroll Processing
Although Zenefits only offers payroll as an add-on service, its features are on the same level as other top payroll software contenders.
Here’s a look at Zenefits’ most notable payroll features:
- Unlimited payroll runs
- Direct deposit
- Multiple pay rates and schedules
- Mobile pay stub access
- Garnishments
- General ledger reporting
- Tips reporting
- Automatic salary changes
- Time and attendance sync
- Deductions
- Off-cycle payroll
- Payroll run reminders
- Bulk editing
- Pay contractors and employees
- Create custom payroll codes
- Payroll reports
- State and federal payroll tax filing
- New-hire reporting
- Payroll compliance tools
Employee Management & PTO
Zenefits has many features to help you manage your employees and contractors from a single interface. Additionally, the software allows you to manage time off for your employees with just a few clicks.
Zenefits employee management and PTO features include:
- Lifetime employee account access
- Employee directory and company org chart
- Employee mobile app
- Set and manage PTO policies
- PTO balance calculator
- Secure document storage
Time Tracking
Keeping track of hours worked is essential to running payroll. Any great payroll solution has a quality time-tracking feature that integrates well with other time-tracking programs, and Zenefits is no different.
The software’s time-tracking features include:
- Create and manage work schedules
- PTO support
- Blackout certain dates
- Monitor clocking
- New schedule alerts
- Employee clocking via mobile app or desktop
- Geolocation and geofencing
- Timecard fraud protection
- Break and time off compliance tools
Payroll Tax Support
Zenefits is a full-service payroll, which means that it will calculate, withhold, and pay the IRS its share of taxes. The company will also expertly handle employee and contractor tax forms.
Here’s a look at the tax support features you can expect from Zenefits:
- 1099 filing
- W-2 filing
- Form 940 and 941 filing
- Auto-calculation, filing, and paying federal and state payroll taxes
- Unemployment tax payments
- Set tax deposit schedules
- e-Signing
- Employee access to tax forms
Reporting
Zenefits calls its reporting system “Business Intelligence.” This system contains a ton of built-in reports based on various business categories, including time and attendance, payroll, HR, and more.
The following features are a part of Zenefits’ reporting system:
- 57 built-in reports
- Report customization
Benefits Administration
If you already work with a broker, there is an extra fee to facilitate the union of your benefits administration with the program. If you do not yet offer benefits, Zenefits can set you up with a broker.
Here’s what you can expect from Zenefits’ benefits administration features:
- Zenefits benefits marketplace
- Health, vision, and dental insurance (all states except Hawaii)
- HSAs and FSAs
- 401(k) retirement accounts
- Life insurance
- Disability insurance
- Supplemental benefits
Zenefits Customer Service
| Zenefits Support | Availability |
|---|---|
| Phone Support | |
| Email Support | |
| Support Tickets | |
| Live Chat | |
| Dedicated Support Representative | |
| Knowledge Base or Help Center | |
| Videos & Tutorials | |
| Company Blog | |
| Social Media |
Typically, Zenefits receives decent scores in customer service and support. You can talk to a real human from 7 AM-4 PM PST Monday-Friday.
Zenefits stays consistent with other SaaS payroll services in that customers have a hard time finding someone who can answer specific tax questions or problems. It has a D- Better Business Bureau rating but is not accredited through the site — and the bulk of the complaints are customer-service-related.
Zenefits Integrations
Zenefits has a solid foundation of integrations already available — it partners with top payroll-related apps (such as QuickBooks Time and Truework) — and it has an API available.
With 44 integrations available for productivity, applicant tracking, performance management, health and wellness, financial, legal, and accounting, Zenefits works hard to incorporate the programs you already love.
Zenefits Reviews
Zenefits has a D- rating with the Better Business Bureau but averages solid scores on other review sites. Zenefits replies to every negative review on the BBB, and filing a complaint appears to speed up a solution if you’ve been stuck feeling unsatisfied. On Capterra, Zenefits has a 4.2/5 rating with 792 reviews.
On TrustRadius, Zenefits earned a paltry 6/10, and a vast majority of complaints centered around poor customer support. Conversely, customers were very satisfied with Zenefits’ features and services.
Negative Zenefits Reviews & Complaints
- Poor third-party integrations
- Difficult to terminate contracts
- Poor customer support
Positive Zenefits Reviews
- Easy to use
- Accessible
- Convenient mobile app
Is Zenefits Secure?
Despite the company’s struggles in its early years, Zenefits doesn’t have a history of data breaches.
Here’s a look at Zenefits’ security features:
- Two-factor authentication
- End-to-end encryption
- AWS platform
- SOC II certification
- Regular vulnerability assessments
- In-house data management
- Data backups
Final Verdict: Is Zenefits Worth It?
| Zenefits Review | |
|---|---|
| Business Size | Small to large-sized businesses with at least 1 employee |
| Pricing | Starting at $8 per month per employee + $6/month per employee |
| Choose If You Need |
|
Merchant Maverick’s final verdict is that Zenefits is a really good HR platform with a simple payroll add-on, but it wouldn’t be our first choice until some payroll growing pains are worked out.
For small businesses seeking both payroll and HR features, Zenefits offers a cost-effective and feature-rich option. If sleek usability and an easy-to-navigate system are your top priorities, Zenefits is a decent option. It is easy for both employees and administrators, and everything is in one location. You can sign up for a free demo of Zenefits to see if this HR option is right for your business.
Small businesses that may not be looking for a full HR platform yet could explore other payroll options. Start here to learn more about other payroll providers and resources:
Zenefits FAQs
Davina Ward
Expert Analyst & Reviewer
Davina joined Merchant Maverick in 2022, covering small business payroll and accounting. She began writing for small businesses in 2018 and has since gained expertise in the SaaS industry. She earned her Bachelor’s of Arts in English Literature from SUNY Geneseo in 2018. She currently resides in New York.
View Davina Ward's professional experience on LinkedIn.
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The Merchant Maverick Seal of Approval 🏆
Zenefits |
|---|
After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Zenefits for yourself.
The Merchant Maverick Seal of Approval 🏆
Zenefits |
|---|
After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Zenefits for yourself.
Organization Name: CrossFit Old School
Great platform. Horrible customer service.
This comment refers to an earlier version of this review and may be outdated.