Choosing the right payroll and HR software can significantly impact your business operations and employee satisfaction. Both Gusto and Zenefits stand as industry leaders offering robust solutions for managing your workforce. These platforms have evolved from their original specialties-Gusto began as a payroll service while Zenefits started with benefits administration-into comprehensive HR ecosystems. This detailed comparison examines their features, pricing structures, and capabilities to help you determine which solution best fits your business needs.

How Do Pricing Structures Compare?

Understanding the cost implications of each platform helps businesses make financially sound decisions. Gusto offers a transparent pricing model starting with a base fee of $49 per month plus $6 per employee monthly on its Simple plan. For businesses without W-2 employees, Gusto provides a contractor-only option at $35 monthly plus $6 per contractor, charged only when payments are processed.

Zenefits takes a different approach with pricing starting at $8 per employee monthly with no base fee. However, they require a minimum of five employees, meaning smaller businesses still pay for five even if they have fewer staff members. Their base package includes fundamental HR tools but notably excludes payroll and benefits administration, which come as add-ons: payroll for an additional $6 per employee monthly and benefits administration at $5 per employee monthly (waived if using a Zenefits broker).

For a direct comparison, a five-employee company would pay approximately $79 monthly with Gusto's Simple plan, which includes payroll. The same company using Zenefits would pay $40 for the base HR package plus an additional $30 for payroll, totaling $70 monthly. As employee count increases, Zenefits generally becomes more expensive than Gusto, especially when incorporating additional services like recruiting features ($35 monthly) and advisory services ($8 per employee monthly).

Which Pricing Plan Offers Better Value?

The value proposition differs based on your business priorities:

• Gusto advantages: Includes payroll in all plans, offers straightforward pricing with no hidden fees, and provides essential services in the base price
• Zenefits advantages: More affordable initial entry point, comprehensive HR features across all plans, and modular pricing allowing customization
• Cost considerations: Gusto may appear more expensive initially but includes more features in base plans, while Zenefits' add-ons can quickly increase total investment

Growing businesses with complex HR needs might find Zenefits' comprehensive approach more valuable despite potential higher costs. Smaller companies with straightforward requirements may benefit from Gusto's inclusive pricing model that prevents unexpected expenses.

What Makes Their Payroll Processing Different?

Payroll processing capabilities represent a critical differentiator between these platforms. Gusto, with its payroll-first heritage, offers a streamlined system that allows businesses to run payroll with minimal effort. The platform's AutoPilot feature provides true "set-it-and-forget-it" functionality that runs payroll automatically on schedule-a significant advantage for busy business owners.

Zenefits offers comparable tax calculation and filing services but lacks the complete automation that Gusto provides. Instead, Zenefits sends reminders to run payroll rather than handling it automatically. Both platforms support multiple pay rates and schedules across different states and provide unlimited payroll runs monthly, offering flexibility for businesses with varied payment needs.

A significant distinction emerges in international capabilities: Gusto supports payments to international contractors in over 80 countries, while Zenefits lacks this functionality. For businesses with global talent, this represents a substantial advantage for Gusto. Additionally, Zenefits offers payroll only as an add-on service to their HR platform (unless you purchase their highest-tier plan), potentially increasing costs for businesses prioritizing payroll functionality.

Key Payroll Features Comparison

When examining specific payroll capabilities, several important differences emerge:

• Automation level: Gusto offers full automation with AutoPilot while Zenefits provides reminders without automatic processing
• Tax management: Both handle federal, state, and local taxes, but Gusto's system integrates more seamlessly with payroll processing
• International support: Gusto supports contractor payments in 80+ countries; Zenefits focuses exclusively on domestic payroll
• Reporting options: Zenefits provides more robust payroll reporting including general ledger reporting, payroll timeline reporting, and labor distribution analysis

Businesses prioritizing payroll efficiency and international capabilities will likely find Gusto's specialized expertise in this area provides a distinct advantage despite potential higher costs compared to Zenefits' add-on model.

How Do HR Tools Compare?

Both platforms offer comprehensive HR toolsets that extend far beyond basic employee record-keeping. Gusto provides employee self-service features, allowing new team members to onboard themselves while maintaining confidentiality of sensitive information. A particularly valuable feature is Gusto's lifetime employee access, which ensures former employees can always access their W-2s and benefits information without contacting anyone from the company-even years after departure.

Zenefits delivers a similarly robust HR toolkit with employee self-service for onboarding, benefits, paystubs, and more. The platform stands out with its integrated employee time tracking and scheduling features, which seamlessly connect with its HR, benefits, and payroll modules. Unlike Gusto, Zenefits includes built-in scheduling functionality, allowing shift managers to create and modify shifts while sending push notifications to employees once schedules are finalized.

For hiring and onboarding, both platforms offer valuable tools though with different approaches. Gusto's Plus and Premium plans provide applicant tracking, job postings, and customizable workflows, while Zenefits includes job posting and onboarding tools in all packages but requires an additional JazzHR add-on (starting at $35 per month) for access to advanced recruiting tools and applicant tracking systems.

Employee Management Capabilities

The platforms differ significantly in how they approach employee management:

• Gusto strengths: Intuitive onboarding, lifetime document access for former employees, and personalized welcome experiences for new hires
• Zenefits strengths: Comprehensive scheduling tools, advanced compliance features for regulated industries, and more robust mobile access
• Integration differences: Gusto integrates with nearly 200 software tools at no additional cost, while Zenefits offers approximately 50 integrations with some notable gaps

For businesses prioritizing scheduling alongside time tracking, Zenefits holds an advantage, while those primarily concerned with payroll integration and third-party software connectivity might prefer Gusto's approach.

What About Benefits Administration?

Benefits administration represents a crucial component of both platforms, with each offering distinct approaches. Gusto provides comprehensive medical, dental, and vision benefits across all 50 states, partnering with top-tier networks like Humana, BlueCross BlueShield, and United Healthcare. Their licensed health insurance brokers assist businesses in balancing cost and coverage to find optimal plans within budget constraints.

Zenefits supports benefits administration in 49 U.S. states, offering medical, dental, vision, FSA, 401(k), life and disability, HSA, commuter, and supplemental benefits. Zenefits charges $5 per employee monthly for benefits administration (waived if you select one of their brokers). Their system automatically keeps pace with ACA regulations and handles compliance automatically.

A key difference lies in how benefits administration is structured. With Gusto, benefits administration is always included, and the only costs are the premiums for chosen plans. There are no setup fees for 401(k) retirement plans and 529 college savings. Zenefits' approach allows customers to retain existing benefits brokers (for an additional fee) and provides tools to help businesses without a benefits strategy create tailored packages.

Unique Benefits Offerings

Each platform offers distinctive benefits features that may appeal to different business needs:

• Gusto's unique offerings: No-cost and low-cost benefits options including commuter plans, 529 college savings plans, and the Gusto Wallet mobile app for financial wellness
• Zenefits' unique offerings: More flexible broker relationships, comprehensive compliance tools, and advanced benefits analytics
• Implementation differences: Gusto emphasizes simplicity and affordability while Zenefits focuses on customization and flexibility

Businesses with established benefits relationships might appreciate Zenefits' broker flexibility, while those seeking to implement cost-effective benefits quickly might prefer Gusto's streamlined approach.

How Does Time Management Compare?

Effective time and attendance management is crucial for accurate payroll processing and workforce optimization. Both platforms provide substantial capabilities in this area, though with distinct differences in functionality and integration. Both enable remote clock-in and clock-out capabilities through mobile and desktop applications, and both incorporate geolocation features that verify an employee's location when they start and finish work.

Gusto includes time tracking in its Plus and Premium plans, allowing employees to easily log hours and request paid time off. The system automatically syncs approved hours with payroll, eliminating manual data transfer. However, Gusto's time-tracking capabilities primarily synchronize with payroll rather than with other HR functions, which can complicate coordination between time-off benefits and approved time.

Zenefits offers more comprehensive time management functionality, with integrated employee time tracking included in all plans and seamlessly connecting with its HR, benefits, and payroll modules. A significant advantage is Zenefits' built-in scheduling tool, which allows managers to create and modify shifts while sending push notifications to employees when schedules are finalized. This tool synchronizes with time-off requests in the HR module, preventing scheduling conflicts with approved leave periods.

Advanced Time Tracking Features

The platforms differ in their approach to time tracking and management:

• Gusto focus: Seamless payroll integration, customizable PTO policies, and automatic syncing with payroll processing
• Zenefits focus: Comprehensive scheduling tools, advanced compliance features for breaks and overtime, and fraud prevention mechanisms
• Mobile capabilities: Both offer mobile time tracking, but Zenefits provides more robust mobile functionality including photo verification at clock-in

For businesses requiring robust scheduling features alongside time tracking, Zenefits provides a more integrated solution. Companies in industries with complex scheduling requirements or strict labor regulations may find particular value in Zenefits' advanced compliance tools.

Which Platform Has Better Customer Support?

Reliable customer support is essential when implementing and managing HR and payroll systems. Gusto provides full access to its sales and customer support teams via phone, email, and chat Monday through Friday during business hours. Their FAQ and Help Center remain available 24/7, and companies with more than 10 employees benefit from dedicated onboarding support.

Zenefits offers extended live phone support from 6 a.m. to 12 a.m. ET Monday through Friday, along with email and chat support. However, independent analyses suggest that over 70% of reviews mentioning phone support described it as slow and difficult to reach a representative. Moreover, customer service representatives reportedly struggle to answer even basic questions, potentially creating frustration during critical implementation phases.

Implementation experiences also differ between platforms. Gusto is recognized for its intuitive user interface and streamlined setup process, with many users reporting quick onboarding and minimal learning curve. Zenefits offers both self-service and guided product setup options, with some businesses able to implement the system within hours while others may require weeks depending on complexity.

Support Quality Considerations

When evaluating support quality, several factors stand out:

• Responsiveness: Gusto generally receives higher marks for responsive support and knowledgeable representatives
• Availability: Zenefits offers extended support hours that may benefit organizations operating across multiple time zones
• Implementation assistance: Gusto provides more comprehensive onboarding support, especially for businesses with 10+ employees
• Self-help resources: Both offer extensive documentation, though Gusto's resources tend to be more user-friendly

For businesses prioritizing responsive support and straightforward implementation, Gusto appears to offer advantages. However, Zenefits' extended support hours could benefit organizations with non-standard operating hours.

Which Platform Should You Choose?

After examining Gusto and Zenefits across multiple dimensions, several key differences emerge that can guide businesses toward the most suitable choice for their specific needs. Your decision should ultimately depend on your company's priorities, size, growth trajectory, and specific requirements.

Gusto demonstrates particular strength in payroll processing, customer support quality, and user-friendly interfaces. Its straightforward pricing structure and inclusion of essential features in the base package make it an attractive option for small businesses seeking simplicity and reliability. Companies with international contractors or those prioritizing payroll accuracy and automation would likely benefit from Gusto's specialized capabilities in these areas.

Zenefits offers advantages in comprehensive HR functionality, particularly in time tracking and scheduling, benefits administration flexibility, and advanced analytics. Despite customer service concerns, businesses with complex scheduling needs or those requiring robust reporting and analytics might find Zenefits' capabilities justify the investment. The platform's modular pricing approach allows companies to select only the features they need, potentially creating cost efficiencies for organizations with specific requirements.

Making Your Final Decision

Consider these practical steps when making your selection:

1. Evaluate your primary business needs-payroll efficiency or comprehensive HR management
2. Calculate total costs based on your employee count and required features
3. Consider your growth trajectory and how each platform scales with your business
4. Assess the importance of international contractor payments if applicable
5. Determine which user experience better aligns with your team's technical comfort level

Both platforms offer free trials or demonstrations, providing an opportunity to experience their interfaces and workflows before committing. Take advantage of these options to ensure your chosen solution meets your practical needs rather than just looking good on paper.

How to Maximize Your HR Software Investment

Selecting the right HR and payroll software represents just the first step toward optimizing your workforce management. Maximizing your investment requires thoughtful implementation, proper training, and strategic utilization of available features. Whether you choose Gusto or Zenefits, several best practices can help ensure you get the most value from your platform.

First, develop a comprehensive implementation plan that includes data migration, system configuration, and employee training. Both platforms offer implementation assistance, but your internal preparation significantly impacts success. Document your current processes and identify opportunities for improvement that your new software can address.

Second, invest time in learning advanced features beyond basic payroll and HR functions. Both Gusto and Zenefits offer sophisticated capabilities that many businesses underutilize. Schedule regular check-ins with your account representative to stay updated on new features and ensure you're leveraging all available tools.

Third, collect feedback from employees about their experience with the platform. Since both Gusto and Zenefits emphasize employee self-service, understanding user challenges and preferences helps optimize adoption and satisfaction. Use this feedback to refine your implementation and identify additional training needs.

Your HR software should serve as a strategic asset that supports business growth while reducing administrative burden. By choosing the platform that best aligns with your specific needs and following implementation best practices, you can transform workforce management from a necessary task into a competitive advantage.