Zenefits lets you automatically calculate all taxes. And if you’re too busy or looking for help in navigating the tricky waters of corporate taxes, Zenefits can help there too, with an option to allow the software to file and pay all taxes on your company’s behalf.
Here are some other compliance services that Zenefits provides:
- Lets you report new employees to the desired state agencies
- Supports FLSA overtime compensation regulations for employees
- Incorporates FICA taxes
- Calculates COBRA payments
Similarly, Gusto enables you to automatically calculate, file and pay payroll taxes at the local, state and federal level. It automatically reports new recruits to the state government on your company’s behalf. Additional capabilities let you:
- Adjust wages complying with FLSA Tip Credit minimum wage policies
- Handle COBRA requirements for employees when they leave the company
- Help restaurants claim the FICA tip credit tax incentive
Both products have similar offerings for this feature. However, Gusto earns another win, as it provides additional features.
Compare Zenefits and Gusto Pricing Against Your Needs
Your employees may want to contribute to charitable organizations. One of the benefits of charitable contributions is that taxpayers who contribute towards approved charitable organizations get to deduct the contribution amount from their total income when computing tax liability.
If you use Gusto, your employees can make all charitable contributions straight from their paychecks, including automatic deductions. Zenefits, on the other hand, does not have this capability.
Gusto is the easy choice for this feature.
If you want to give your employees the option to request paycheck loans, Zenefits isn’t the best option, as it does not allow cashout from paychecks.
However, your employees can use their Zenefits card at all checkout counters while they make a purchase. The restriction is that if the spending exceeds an employee’s current balance for FSA, HSA, HRA or Commuter Benefits, the transaction gets declined. In such a scenario, the employee can submit a reimbursement claim.
On the flip side, Gusto lets employees borrow money between their paydays, depending on their estimated earnings. Moreover, the paycheck loan is repaid automatically by the software at zero additional interest. Only salaried and W-2 hourly employees are allowed to use the cashout feature.
Although Zenefits offers a card, it’s not as good of an option as Gusto’s paycheck lending. Comparing Gusto vs Zenefits on loan options, Gusto has the clear upper hand.
Time tracking is one of the most effective ways to establish accountability among employees. It provides a clear record of which employee completed a certain task, when it was completed and how much time they took to do so.
Gusto automatically calculates and takes into account team hours, holidays and time off, incorporating the data into payroll for streamlined tracking. Employees can clock in and out from their dashboard in real time, allowing them to add or edit at a later date. Upon manager approval, Gusto enables administrators to click and synchronize all timesheets within the organization to payroll. Another smart feature of the software is that it automatically calculates all stored wage records and overtimes.
A team-level view of time and attendance in Gusto.
The time and scheduling tools in Zenefits can automatically sync the number of hours worked, time off information and employee breaks to the payroll engine. It lets employees clock in and out via mobile and desktop apps. Additionally, administrators have the option to choose to record the employee’s clock-in location, and when employees clock in, the software can capture their image, providing fraud detection.
Gusto generally provides stronger capabilities across the most common HR modules, including time tracking. Consider Gusto the winner here.
Time Off Tracking
Sticking with the time tracking theme, let’s quickly discuss time off policies.
Zenefits enables you to choose and implement customized time off policies for employees, which can be synced with employee payroll and scheduling to ensure accuracy. It also lets workers submit requests for approval or rejection. You can also automatically calculate PTO balances using a calculator and set dates for time off blackouts to prevent employees from being absent on critical business days.
A view of employee PTO balances in Zenefits.
Gusto lets you implement custom-made time off policies as well. Employees can submit time off requests that managers can approve or disapprove. Gusto automatically tracks leave balances and accruals. Lastly, you can synchronize time off with the system’s calendar feature and payroll module.
An employee’s personal view of their PTO in Gusto.
While Zenefits and Gusto offer similar features that support time off, once again we declared Gusto the winner for the deep functionality in its time tracking module.
Compare Zenefits and Gusto Against Your Needs