Selecting a human resource (HR) platform is no easy task. Since it involves managing one of your company's biggest assets, your people, the decision shouldn’t be made lightly. To make the selection process easy for you, we present Gusto HR software and Zenefits as the standout options. Both software are among the highly rated HR platforms used by some of the prominent names in the industry.  

Let’s find out which one is the better option for your business in this comprehensive Gusto Vs Zenefits comparison article. We will compare their features and pros and cons. 

Gusto Vs Zenefits At A Glance

Feature 

Gusto 

Zenefits 

Payroll 

Automates payroll, taxes, and deductions with global team support and tax filings 

Ensures accurate payroll processing and tax compliance, focusing on domestic payroll 

Benefits Administration 

Streamlines benefits and integrates with payroll for automatic deductions 

Offers a wide range of benefits and simplifies enrollment, focusing on compliance 

Talent Management 

Supports hiring, onboarding, performance reviews, and goal tracking 

Includes applicant tracking, performance management, and development tools 

Time And Attendance 

Integrates time tracking, scheduling, and PTO with payroll, ensuring compliance 

Provides real-time tracking and mobile clock-ins for both remote and on-site employees 

Reporting 

Customizable reports on payroll, benefits, and workforce metrics with compliance alerts 

Advanced reporting with customizable dashboards and real-time data for payroll and benefits 

What Is Gusto?

Gusto is a cloud-based platform that simplifies HR processes for small—and medium-sized businesses. It consolidates payroll, benefits, talent management, and compliance tools into a single system, eliminating the need for using different solutions. 

The software handles payroll calculations, direct deposits, and tax filings while ensuring compliance with federal and state regulations. It also supports employee benefits administration, allowing businesses to offer health insurance, retirement plans, and other perks seamlessly integrated into payroll. 

Unique Features Of Gusto 

  • Onboarding: Gusto offers a digital platform for new hire documentation and orientation. It allows employees to complete essential tasks, such as filling out tax forms and signing employment agreements, directly online.
  • Workers’ Comp: The software integrates workers' compensation insurance into its platform, automatically syncing coverage costs with payroll. It helps businesses ensure compliance with state requirements by facilitating policy management and renewals.

Who Are The Main Users Of Gusto? 

The software caters to the unique requirements of small and mid-sized businesses across various industries and sectors, such as: 

  • Construction 
  • Retail 
  • Healthcare 
  • Dentistry 
  • Real estate 

Pros And Cons Of Gusto 

Pros 

  • Supports automated tax filing and direct deposits, saving time and ensuring accuracy
  • Offers an intuitive employee self-service portal
  • Easy and hassle-free process to set up due to guided implementation

Cons 

  • The geofencing feature doesn’t always capture the exact location
  • Updating changes takes a long time after users have updated their payment schedule

What Is Zenefits?

Also known as TriNet, Zenefits is an all-in-one HR platform that offers core HR functions like onboarding, payroll, benefits administration, and time tracking within a single, intuitive interface. The platform is designed to simplify complex processes, allowing companies to manage employee documentation, compliance, and benefits with ease.  

It also supports employee self-service for tasks like onboarding and benefits selection, reducing administrative burden and errors. Furthermore, its focus on accessibility through a mobile app ensures that employees and managers can perform essential tasks anytime, improving overall productivity. 

Unique Features Of Zenefits 

  • Expense Management: Zenefits offers expense management services assisting businesses in tracking and managing employee expenses. This reduces manual entry work and streamlines approval workflows.
  • Talent And Organizational Consultation: Through this service, Zenefits provides resources to help companies attract and retain talent. It offers tools and strategic insights into organizational development, assisting businesses to align their HR practices with industry trends to build strong, effective teams.
  • Risk Mitigation: Zenefits helps businesses navigate compliance and mitigate HR risks by offering features that ensure adherence to labor laws and industry-specific regulations.

Who Are The Main Users Of Zenefits? 

Zenefits suits different requirements of companies of all sizes across various industries and sectors, including: 

  • Manufacturing 
  • Education 
  • Life sciences 
  • Marketing and advertising 
  • Financial services 

Pros And Cons Of Zenefits 

Pros 

  • Enables users to e-sign documents
  • Offers a clean, user-friendly interface for both employees and managers
  • Supports integrations with a broad range of third-party applications and systems

Cons 

  • Reaching a customer care agent often takes a long time
  • Doesn’t allow users to send donations directly from their paychecks

Gusto Vs Zenefits – Key Features Comparison

Payroll 

Gusto automates calculations for wages, taxes, and benefits deductions while ensuring compliance with federal, state, and local regulations. It supports multiple payment methods, including direct deposits and paper checks, and accommodates various pay schedules. Employees benefit from easy access to their pay stubs, W-2s, and tax forms via a secure online portal, fostering transparency and efficiency.

A standout aspect of Gusto’s payroll system is its global team support, which makes it easier for businesses to manage remote or international employees. Features, such as automatic tax filings, garnishment management, and detailed payroll reporting further reduce administrative burdens and enhance accuracy.

Zenefits offers a payroll system that ensures accurate and timely payroll processing, helping businesses stay compliant with federal, state, and local tax regulations. From calculating wages and deductions to handling direct deposits and payroll tax filings, the software offers a comprehensive solution that removes the administrative burden from employers.

With its payroll expertise, businesses can focus on their core operations while ensuring their employees are compensated efficiently and reliably. Beyond just processing payroll, Zenefits also offers tools to help businesses manage payroll-related tasks such as year-end tax reporting, employee pay stubs, and compliance with wage laws.

Winner: Gusto takes the win for payroll due to its additional features like global team support, automatic tax filings, and garnishment management. These features add significant value for businesses managing remote or international employees.

Benefits Administration 

Gusto's benefits administration streamlines the process of offering employee perks like health insurance, retirement plans, and commuter benefits. Its platform provides tailored recommendations based on company size and location, simplifying decision-making for employers.

Once benefits are selected, Gusto integrates them directly with payroll, ensuring deductions are automatically calculated and reducing administrative overhead. Employees can use Gusto’s user-friendly interface to compare, select, and manage their benefits, helping them to make informed choices about their healthcare and financial future.

Zenefits' benefits administration features give businesses access to a broad range of top-tier employee benefits, including health, dental, and vision insurance, retirement plans, and additional perks such as wellness programs and voluntary benefits. Additionally, it simplifies the enrollment process, making it easy for employees to select and manage their benefits options through a centralized, user-friendly interface.

The platform also provides decision-support tools to help employees make informed choices about their benefits. For employers, Zenefits handles the administrative tasks associated with benefits management, including compliance with the Affordable Care Act (ACA) and other regulations.

Winner: Zenefits stands out in benefits administration by offering a broader range of employee perks, including health, dental, vision, retirement plans, and voluntary benefits like wellness programs. It also excels in compliance management, including handling ACA requirements, which is crucial for businesses.

Talent Management 

Gusto supports talent management through features that facilitate hiring, onboarding, and employee development. The platform enables businesses to create job postings, manage applicant pipelines, and streamline new hire processes. Once employees are onboarded, Gusto’s tools support performance reviews, goal tracking, and regular feedback, ensuring alignment with business objectives.

Zenefits' talent management solution helps businesses effectively attract, retain, and develop their workforce. The platform includes tools for applicant tracking, performance management, and employee development, enabling companies to create a streamlined and structured approach to talent management.

Using this feature, companies can optimize their recruitment process and ensure they attract the right candidates for each role.

Winner: While Zenefits provides structured tools for applicant tracking and performance management, Gusto’s emphasis on performance reviews and goal alignment makes it a more complete solution for managing the employee lifecycle from hire to development.

Time And Attendance 

Gusto integrates time tracking and attendance tools that allow employees to clock in and out using various devices. The system automatically syncs time data with payroll, reducing the risk of errors and saving managers time. It also supports scheduling, overtime tracking, and PTO management, ensuring compliance with labor laws while providing full visibility into workforce availability.

The time and attendance feature in Zenefits makes workforce management more efficient and accurate. The platform enables businesses to track employee hours, manage schedules, and monitor attendance in real time. With features like automated time tracking and mobile accessibility, employees can clock in and out seamlessly, whether they are working on-site or remotely.

Winner: Zenefits offers real-time tracking and mobile accessibility. However, Gusto’s additional features, like overtime tracking and direct payroll syncing, provide a more holistic solution for time and attendance management.

Reporting 

Gusto's reporting capabilities provide actionable insights into payroll, benefits, and workforce metrics. Employers can generate customizable reports to track expenses, benefits utilization, and tax obligations, enabling better financial planning.

The system also includes compliance alerts to help businesses stay on top of regulatory changes and avoid penalties. Additionally, Gusto offers tools to gauge employee sentiment and engagement through surveys and feedback collection.

Zenefits offers advanced reporting tools that generate detailed reports on payroll, benefits, compliance, and workforce metrics, enabling companies to make data-driven decisions. Its customizable dashboards allow businesses to access the information most relevant to their needs, whether it’s tracking employee performance, analyzing payroll costs, or monitoring benefits enrollment trends.

With real-time reporting capabilities, managers can stay informed about key HR data and act quickly to address any issues.

Winner: Zenefits edges out Gusto in reporting with its advanced and customizable dashboards, which allow businesses to access detailed data on payroll, benefits, compliance, and workforce metrics.

Final Verdict – Which HR Software Takes The Lead?

On the whole, both these platforms offer advanced functionality, making them suitable for companies with diverse requirements. Gusto excels in Payroll, Talent Management, and Time and Attendance, delivering powerful and user-friendly solutions that simplify processes, reduce administrative burdens, and provide essential tools for employee engagement and compliance. 

On the other hand, Zenefits shines in Benefits Administration and Reporting, providing a comprehensive range of benefit options alongside advanced compliance support and detailed reporting tools.  

The ultimate decision when choosing between Gusto vs Zenefits depends on your company’s size and requirements. So, carefully weigh your options and make an informed choice.