Gusto Vs. Zenefits

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Gusto Vs. Zenefits
Gusto Vs. Zenefits

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Best HCM? Gusto Vs. Zenefits

You are a small business wondering how to handle your HR management, right? Since you are on a budget to hire the services of an in-house HR administrator, you can find an online tool that can resolve these issues for a reasonable price.

Here is a comparison between two HRIS solutions – Gusto vs Zenefits.

Gusto Vs. Zenefits

Gusto enjoys a leading spot in the HR software market for small businesses. It is prized for its payroll features. But that does not mean that the app is designed only for payroll, it offers some excellent HR features as well at an attractive price to cater to the needs of small-sized businesses.

On the other hand, since its launch, Zenefits has earned the reputation for providing free HR tools. The list of its free services is long, from onboarding to hiring and employee management. With these free features, the solution definitely stands apart from Gusto.

Interface – Gusto Vs. Zenefits

Gusto is easier to use than Zenefits, making it simpler to accomplish long tasks in a few clicks. On the other hand Zenefits is easy to use. The solution is well-designed and is constantly updated, but it may not be the best tool for every organization.

Gusto boasts an intuitive user interface. However, setting it up is a breeze with an eight-step guided process. The customer support reps are accessible via live chat within the interface.

Unlike Gusto, Zenefits offers online resources to help users get started. There are implementation services that provide support to users that are looking to “fine tune” their app configuration.

Gusto offers self-onboarding, which enables employees to seamlessly enter their personal details into the system. This includes all such details as social security numbers, contact information, and tax withholding information.

On the other hand, with Zenefits, HR professionals can easily begin the onboarding process for new employees by inputting data in five online fields. Forms can be completed online by new hires for benefits enrolment and to enter tax withholding information.

Package Features – Gusto Vs. Zenefits

The Zenefits HR package comprises a range of payroll features, including employee updates. It also features automated on-boarding. It is an online HR suite that houses employee data in the central cloud.

Although these features are offered by Zenefits too, Gusto is loved for most HR features, including benefits administration, payroll, and compliance capabilities.

Gusto is best suited for small and midsize businesses. Zenefits is an ideal solution for freelancers, nonprofits, small business, solo operation, and midsize business.

Deployment – Gusto Vs. Zenefits

Gusto can be deployed in the cloud and mobile. Zenefits, on the other hand, can be deployed both in the cloud and on premises.

Benefits Administration – Gusto Vs. Zenefits

Thanks to its intuitive dashboard, Gusto users can process and manage benefits. The system’s easy access to licensed advisers furthers the process. Some of the key benefits administration features with Gusto include detailed budgetary plans and employment tax reporting, among others.

On the other hand, Zenefits has earned the reputation as a specialist in simplifying benefits administration through its online portal.

The online platform gives customers the perfect portal to update details, find resources and quotes, and reduce compliance risks. As compared to Gusto, Zenefits makes it easier to understand the process of onboarding, hiring, and employee records management.

Customization – Gusto Vs. Zenefits

While Zenefits features customizable reporting, approvals, and fields, Gusto does not feature all of these capabilities. Users can generate real-time reports with Zenefits, which is not possible with Gusto.

The online HR suite of Zenefits creates a central web-based hub for employee data, connecting all HR tools and services to a user-friendly dashboard. This ensures better efficiency by reducing repetition, thanks to automation processes, which also eliminates paperwork.

Pricing – Gusto Vs. Zenefits

Gusto enjoys an edge over many HR solutions for its upfront, easy pricing. You can try out Gusto’s 30-day free trial version to see how things go at your end with the HR solution.

It offers competitive pricing, with no setup fees. You can get all features with the base package, which is available for $39 monthly subscription with $6 extra per employee. On top of it, there are no add-ons to surprise you later.

Zenefits is available with solid services for a free plan. The standard monthly plan for additional features starts at $40 per month and $6 per employee. The plan features custom fields, HR platform, and business intelligence.

There is an advanced plan, which is available for a base price of $40/month plus $9 per employee. Additionally, there is a free Lite HR plan, which comes complete with an employee directory, besides core HR appplications.

Automated Payroll Management – Gusto Vs. Zenefits

Payments can be set up and scheduled automatically with Gusto, which eliminates manual error and makes the entire process paperless.

This ensures that employees get timely payment. Besides, Gusto automates the entire process of calculation, payment, and submission of payroll taxes.

On the other hand, Zenefits automatically updates the payroll, which integrates with the existing accounting apps of a company. Zenefits has the advantage of handling taxes automatically for a company, right from processing W-2s to filing taxes.

Integration – Gusto Vs. Zenefits

Zenefits integrates with 34 popular accounting programs, while Gusto is behind with 24 integrations. However, the latter has partnered with Capital One. This partnership enables Gusto to introduce the Spark Business program that enables users to enroll for financial packages.

Security – Gusto Vs. Zenefits

Gusto is a highly secure interface that meets Payment Card Industry Data Security Standards. It has maximum certifications compared to Zenefits. Users can benefit from Gusto’s “ultra-secure web encryption.”

Gusto transfers data using 256-bit SSL, whereas Zenefits transmits data with multi-layered high-grade Transport Layer Security encryption. Gusto provides protection for account details of customers, besides storing updated backups in different secure locations. There is an option to strengthen security with an extra layer.

Zenefits uses Advanced Encryption Standard to protect customer data exchanged on the Internet. Access to the data is restricted by a two-step authentication process.

User Reviews – Gusto Vs. Zenefits

Gusto makes HR, benefits, and payroll easy, though benefits feature is available only in limited areas. Zenefits offers the advantage of paperless onboarding and compliance, besides benefits and payroll. Employee self-onboarding is a key feature of Gusto. Besides benefits, the solution provides integration assistance with the employee 401(k) accounts.

Automation of payroll tasks is easier by connecting Zenefits to HR services. This reduces the risk of repetition and manual errors while eliminating the need for paperwork. Compute, report, and file payroll taxes and forms

Gusto handles tax filings and payments. This takes away the worry from businesses about being compliant.

When it comes to picking the best from Gusto Vs. Zenefits, you may want to pick the one that best fits your business needs. What sets both solutions apart is the pricing structures. You may wish to pick Gusto for its moderate pricing scheme, which makes the solution highly affordable for small businesses.

If you are still wondering whether to pick Gusto or Zenefits, let ITQlick experts help. We will guide you in the right direction.

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Shlomi holds a Bachelor of Science (B.Sc.) in Information system engineering from Ben Gurion University in Israel. Shlomi brings 10 years of IT and IS management experience in consulting, selecting and implementing information systems for small and global companies.

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