Zenefits vs Gusto: Benefits-First vs Payroll-First
Two comprehensive HR platforms with different strengths. Here's which one wins for your business.
⚡ Quick Verdict
Choose Zenefits if:
- ✓ Benefits administration is your #1 priority
- ✓ You want broker support for benefits shopping
- ✓ You're considering PEO services (TriNet backing)
- ✓ You need comprehensive HR compliance tools
Choose Gusto if:
- ✓ Payroll ease and automation are top priorities
- ✓ You want the best employee experience
- ✓ You're a small business under 100 employees
- ✓ You prefer modern, intuitive software
At a Glance
| Feature | Zenefits | Gusto |
|---|---|---|
| Starting Price | $8-27/user/month | $40/mo + $6/employee |
| Our Score | 4.3/5 | 4.8/5 |
| Best For | Benefits-focused teams (20-500 employees) | Payroll-first needs (1-100 employees) |
| Ease of Use | 4.2/5 | 4.9/5 ⭐ |
| Payroll | ✅ Included | ✅ Best-in-class |
| Benefits Administration | ✅ Exceptional ⭐ | ✅ Very good |
| Broker Support | ✅ Yes (licensed brokers) | ❌ No |
| PEO Services | ✅ TriNet PEO available | ❌ No PEO |
| Time Tracking | ✅ Included | Add-on ($6/ee/mo) |
| Free Trial | Demo available | Limited trial |
Detailed Comparison
💰 Pricing: Tiered vs Per-Employee
Both platforms offer competitive pricing, but their structures are completely different.
Zenefits Pricing
- Essentials: $8/user/month (HR basics)
- Growth: $16/user/month (adds payroll)
- Zen: $27/user/month (full suite + compliance)
- ✅ Time tracking included in all plans
- ✅ Benefits admin included in all plans
- ⚠️ Higher tiers required for advanced features
Gusto Pricing
- Simple: $40/mo + $6/employee (payroll + basic HR)
- Plus: $80/mo + $12/employee (adds time tracking, hiring)
- Premium: Custom (adds HR advisor, compliance)
- ✅ Payroll included in all plans
- ✅ Benefits admin included
- ⚠️ Time tracking costs extra on Simple plan
Cost Comparison (50 employees):
- • Zenefits Growth: $800/month ($16 × 50)
- • Gusto Simple: $340/month ($40 + $6 × 50)
- • Winner: Gusto — Significantly cheaper for payroll-focused needs
💵 Payroll: Gusto's Strength
Gusto is a payroll-first platform. Zenefits does payroll well, but it's not their core focus.
Zenefits
- ✅ Full-service payroll (all 50 states)
- ✅ Automatic tax filing
- ✅ Direct deposit, check printing
- ✅ Contractor payments (1099s)
- ⚠️ Payroll only in Growth tier and higher
- ⚠️ Interface not as streamlined as Gusto
Gusto
- ✅ Best-in-class payroll experience
- ✅ Automatic federal, state, local tax filing
- ✅ Direct deposit (2-day), same-day option
- ✅ Contractor payments with auto-1099s
- ✅ Workers' comp admin (pay-as-you-go)
- 💡 Consistently rated #1 for payroll ease
Winner: Gusto — If payroll is your primary need, Gusto wins. It's faster, easier, and the interface is significantly better.
🏥 Benefits Administration: Zenefits' Strength
This is where Zenefits shines. Benefits administration is their core competency.
Zenefits
- ✅ Exceptional benefits admin — best in class
- ✅ Licensed broker support network
- ✅ 200+ carrier integrations
- ✅ Health, dental, vision, life, disability, 401(k)
- ✅ Benefits shopping and comparison
- ✅ Employee enrollment portal
- ✅ TriNet PEO access (better rates for small businesses)
- 💡 If benefits are complex, Zenefits is unmatched
Gusto
- ✅ Good benefits administration
- ✅ Benefits marketplace
- ✅ Health, dental, vision, life, 401(k)
- ✅ Employee self-enrollment
- ✅ Deductions auto-sync with payroll
- ⚠️ Fewer carrier integrations than Zenefits
- ❌ No broker support network
- ⚠️ Benefits are good, but not Zenefits-level
Winner: Zenefits — If benefits management is critical (especially for 50+ employees), Zenefits wins. Broker support and carrier integrations are superior.
📋 HR Tools & Compliance
Zenefits
- ✅ Comprehensive HR toolkit
- ✅ Onboarding workflows
- ✅ PTO tracking & management
- ✅ Time tracking (all plans)
- ✅ Document management
- ✅ Performance reviews
- ✅ Compliance alerts & checklists
- ✅ TriNet compliance support
- 💡 Stronger compliance tools (Zen tier)
Gusto
- ✅ Basic HR tools (onboarding, docs)
- ✅ PTO tracking
- ⚠️ Time tracking add-on (Plus tier)
- ✅ Employee directory
- ✅ Offer letters & e-signatures
- ⚠️ Performance reviews limited
- ⚠️ Compliance features basic (upgrade to Premium for HR advisor)
- ⚠️ HR tools are good but not as deep
Winner: Zenefits — More comprehensive HR and compliance tools, especially at higher tiers. Gusto keeps it simple.
🎨 User Experience & Interface
Zenefits
- ⚠️ Interface feels dated compared to modern platforms
- ✅ Functional and feature-rich
- ✅ Mobile app available (iOS/Android)
- ⚠️ Steeper learning curve for admins
- ⚠️ Ease of use rated 4.2/5 — adequate but not great
Gusto
- ✅ Best-in-class UX — modern, clean, intuitive
- ✅ Employees love it (4.9/5 ease of use)
- ✅ Excellent mobile app
- ✅ Minimal training required
- 💡 "It just works" — highest-rated for usability
Winner: Gusto (by a mile) — If employee experience and ease of use matter, Gusto dominates. Zenefits works but feels older.
📞 Customer Support
Zenefits
- ✅ Phone, chat, email support
- ✅ Broker support for benefits questions
- ⚠️ Support quality varies by tier
- ⚠️ Can be slow during peak times
- ⚠️ Support rated 4.3/5 — inconsistent
Gusto
- ✅ Chat, email, phone support
- ✅ Fast response times (<1 hour avg)
- ✅ Excellent knowledge base
- ✅ 93% of users rate support positively
- 💡 Support rated 4.8/5 — consistently excellent
Winner: Gusto — Better support quality and consistency across all tiers.
Pros and Cons
Zenefits
✓ Pros
- ✓ Best-in-class benefits administration
- ✓ Licensed broker support network
- ✓ TriNet PEO access (better benefits rates)
- ✓ Comprehensive HR & compliance tools
- ✓ Time tracking included in all plans
✗ Cons
- ✗ Interface feels dated
- ✗ More expensive than Gusto
- ✗ Payroll not as polished
- ✗ Support quality inconsistent
Gusto
✓ Pros
- ✓ Best-in-class payroll experience
- ✓ Incredibly easy to use (4.9/5)
- ✓ Employees love the interface
- ✓ Excellent customer support
- ✓ More affordable for small businesses
✗ Cons
- ✗ Benefits admin not as robust as Zenefits
- ✗ No broker support
- ✗ Time tracking costs extra
- ✗ HR/compliance tools more basic
Which One Should You Choose?
Choose Zenefits if:
- • Benefits management is your top priority (complex health plans, multiple carriers)
- • You want broker support to help shop and compare benefits
- • You're considering PEO services (TriNet backing can get better rates)
- • You have 20-500 employees and need comprehensive HR/compliance tools
- • You're willing to trade ease-of-use for more features
- • You need time tracking included in all plans
Choose Gusto if:
- • Payroll ease and automation are your primary needs
- • You're a small business under 100 employees
- • You want software that's incredibly easy to use (for you and employees)
- • Employee experience is a top priority
- • You need excellent customer support
- • You want more affordable pricing for core features
The Bottom Line
Both platforms are solid, but they excel in different areas.
Zenefits wins if benefits administration is complex and critical. The broker support and carrier integrations are unmatched. Best for mid-size teams (20-500) with benefits-heavy needs.
Gusto wins for payroll-first needs and ease of use. It's faster, cheaper, and employees love it. Perfect for small businesses (1-100) that want simple, excellent payroll.
Simple decision: If you spend more time managing benefits than payroll → Zenefits. If payroll is your headache → Gusto.