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Zenefits & ZenPayroll Release Massive Updates To Help Small Businesses Secure Health Insurance

Zenefits & ZenPayroll Release Massive Updates To Help Small Businesses Secure Health Insurance

What is Zenefits?

Zenefits is one of the fastest growing companies in the United States and they offer free human resources software to small businesses. They service over 10,000 small businesses and 100,000 employees across 48 states.

Now the company is making it even easier for small businesses to access insurance that complies with healthcare law.

Zenefits’ New, Free Affordable Care Act Compliance Tool

According to updates to the Affordable Care Act (ACA), all US employers with more than 50 full-time employees must provide them with health insurance. Zenefits’ new ACA compliance tool will automatically generate and file newly required 1094-C and 1095-C IRS forms. They provide this benefit for free to customers.  Parker Conrad, Zenefits’ CEO, says:

“The biggest compliance headache about to hit small businesses is the new ACA rules coming live next year, so we decided to build this compliance tool that can take what could be burdensome and complicated and make it easier for customers.”

He goes on to highlight that Zenefits’ competitors charge implementation fees and monthly fees per employee. Zenefits’ tool is free, though, because the company makes the majority of their revenue by selling health insurance.

What is Gusto, formerly known as ZenPayroll?

ZenPayroll is a startup that’s been around for the past four years. They provide 20,000 companies across 50 states with payroll processing services.

Now they’re getting into the healthcare space and have rebranded as Gusto. With this change, the company will also offer health benefits and workers’ compensation products to customers. This puts Gusto in direct competition with Zenefits.

CEO John Reeves outlined his vision for Gusto:

“Today people are treated like ID numbers and transactions. They are not empowered to be treated like people. We want to put humans at the center.”

Gusto’s Affordable Care Act Compliance Tools

Gusto says they stay on top of every ACA statute. Their offerings are HIPAA and ERISA compliant. We assume this means that, similar to Zenefits, Gusto provides 1094-C and 1095-C filing, but it is not explicitly stated on their website.

Both Zenefits and Gusto help you secure health insurance for free, so we’re excited to see how the services differ.

If you have feedback about securing health insurance, please let us know in the comments section below or tweet us @KabbageInc!


Kabbage Team

Kabbage is here not only to provide access to the small business funding you need, but to also help you grow your business through free marketing tips, webinars, tools and more. Is there something you'd like us to cover or want to get your small business featured on our blog? Send us a note at