Zenefits Problems & Issues

Real user-reported problems, complaints, and limitations for Zenefits. Based on analysis of 15 signals.

Issues by Category

reliability4 issues

Payroll processing errors causing employees to miss paychecks

Critical payroll failures have been reported where employees didn't receive their pay on time due to bugs in the system. Users report consistent payroll discrepancies between reports and bank transactions occurring almost every pay run. One incident involved the system changing pay frequency from semi-monthly to monthly with a 200% salary error.

Frequency: 8%Sentiment: -0.9/10038 sources
Impact
10

Tax filing errors and delayed submissions

Users report frequent payroll tax errors, delayed filings, and poor support for resolving tax-related problems. Some businesses found that Zenefits failed to file annual state tax filings per contracted agreement. When submitting tax-related tickets, it can take weeks to multiple weeks to get a reply, with some users reporting the Tax team reviews tickets within 30-45 business days.

Frequency: 8%Sentiment: -0.85/10032 sources
Impact
9

Benefits enrollment glitches auto-enrolling wrong plans

Zenefits experienced a significant glitch during open enrollment that auto-enrolled many employees into wrong benefit plans, including messed-up health, dental, and vision coverage. Even when plans are selected correctly, employees encounter messages like 'no plan available in your state' or 'open enrollment period passed.'

Frequency: 6%Sentiment: -0.8/10015 sources
Impact
9

HSA contribution mishandling through required bank

Zenefits completely mishandled employer contributions to employee HSA accounts in the bank they required customers to use. This type of financial mishandling can have serious consequences for both employers and employees relying on these health savings accounts.

Frequency: 4%Sentiment: -0.85/1008 sources
Impact
9
support3 issues

Customer support wait times of 45 minutes to 3+ hours

Users consistently report extremely long wait times when contacting customer support, ranging from 45 minutes to over 3 hours on hold. Some users report waiting nearly 5 months to hear back regarding basic questions and requests. The support team operates primarily through email tickets, making urgent issues difficult to resolve quickly.

Frequency: 9%Sentiment: -0.85/10045 sources
Impact
9

No phone support - everything through email tickets

Users cannot speak with someone over the phone; everything is done through email by opening cases or tickets. To get a question answered, users must submit to a complex matrix of categories and subjects, and reviewers could rarely find the particular category they needed. Frequent changes in account managers add to the frustration.

Frequency: 8%Sentiment: -0.7/10035 sources
Impact
8

Only 30 days access to data after cancellation

When customers cancel, they only get 30 days' access to historical information. After that period, Zenefits charges $500 per year if you want to access your data. This creates significant challenges for data migration and compliance documentation.

Frequency: 5%Sentiment: -0.7/10010 sources
Impact
7
pricing3 issues

TriNet acquisition forcing expensive PEO/ASO plans

After TriNet's acquisition, the company is no longer supporting the standalone HRIS option and will only offer more expensive ASO or PEO plans. Good customer service and pricing transitioned to 'horrible customer service and the push to get everyone on their PEO platform for an insane cost' according to users.

Frequency: 7%Sentiment: -0.8/10022 sources
Impact
8

Add-on fees for payroll, benefits admin, and HR advisory

Many core features are sold as add-ons with extra fees including recruiting tools (via JazzHR), HR advisory services, benefits administration through your broker, and payroll processing unless you purchase the highest-tier plan. Implementation fees typically run 5-10% of annual software costs.

Frequency: 7%Sentiment: -0.65/10028 sources
Impact
7

Charged for more employees than actually employed

Customers report being charged for more employees than they actually have on their team. When requesting Zenefits to update their employee list, they are told they can't make the changes, resulting in significant waste of money each month on phantom employees.

Frequency: 5%Sentiment: -0.75/10012 sources
Impact
7
usability2 issues

Significant learning curve and 40+ hour setup time

Users describe a significant learning curve with the platform taking forever to get set up. Some customers report spending 40+ hours on initial setup. Navigation is not intuitive and there have been few improvements over 2 years according to reviewers.

Frequency: 7%Sentiment: -0.6/10025 sources
Impact
6

Repeated login requirements despite remember device

Users report having to log in repeatedly even though they've asked their computer and Zenefits to remember the device. This creates daily friction for HR administrators and employees who need frequent access to the platform.

Frequency: 4%Sentiment: -0.45/10011 sources
Impact
4
integrations1 issue

QuickBooks Desktop integration claims are false

Users explicitly state that claimed integration with QuickBooks Desktop is 'flat out lies.' The platform offers limited integration options with approximately 40 partner applications compared to competitors with 500+ integrations. Poor integrations with current software is a frequently cited complaint.

Frequency: 6%Sentiment: -0.75/10018 sources
Impact
7
performance1 issue

Glitchy software with recurring bugs and slow resolution

Most users report recurring bugs, confusing errors, and slow resolution for ongoing technical issues in the platform. The mobile app has been reported as immediately crashing on certain devices like Pixel 4. Reports frequently don't agree with each other, causing confusion for HR administrators.

Frequency: 7%Sentiment: -0.65/10030 sources
Impact
6
security1 issue

State compliance issues with incorrect implementation

Some customers found that things Zenefits addressed were done incorrectly and not in compliance with their state's laws. The platform has had bugs when working with state taxes, particularly noted for Washington state, creating potential legal exposure for businesses.

Frequency: 5%Sentiment: -0.8/10014 sources
Impact
8

Regret Patterns

Common reasons users regret choosing Zenefits.

Discovered payroll errors after first pay run

Users realize too late that payroll processing has critical bugs. Employees missing paychecks, incorrect tax withholdings, and discrepancies between reports and bank transactions become apparent only after going live with real payroll.

Frequency: 8%After first 1-2 pay cycles

Waited months for support on critical issue

After encountering a serious problem (tax filing error, benefits enrollment issue), users discover that support operates on weeks-to-months timelines. The realization that urgent issues cannot be escalated effectively leads to immediate regret.

Frequency: 9%After first support ticket

TriNet forced migration to expensive PEO plan

Customers who chose Zenefits for affordable standalone HRIS functionality receive notice that this option is being discontinued. The choice becomes either migrate to significantly more expensive ASO/PEO plans or find a new provider entirely.

Frequency: 7%1-2 years after signup (post-acquisition)

40+ hours spent on setup still incomplete

Despite investing significant time in platform setup, users find the system still isn't fully configured or working as expected. The learning curve is steeper than anticipated, and support cannot expedite the process.

Frequency: 6%During first 30-60 days

Realized add-ons double the effective cost

After selecting a base plan, users discover that payroll, benefits administration, recruiting tools, and advisory services are all extra. The actual cost to get full functionality is significantly higher than initial pricing suggested.

Frequency: 7%During implementation

Benefits enrollment glitch affected entire team

Open enrollment period passes with employees auto-enrolled in wrong plans due to system glitches. Correcting coverage takes weeks while employees have incorrect or no coverage, creating legal and morale problems.

Frequency: 5%During annual enrollment period

Cannot access historical data without paying $500/year

After deciding to leave Zenefits, users discover they only have 30 days to export all historical data. Beyond that window, accessing payroll records, tax documents, or employee files costs $500 annually, creating unexpected migration costs.

Frequency: 5%At cancellation

When Zenefits Breaks Down

Specific scenarios where Zenefits fails or underperforms.

Critical payroll issue requires immediate resolution

When a payroll error causes employees to miss paychecks or receive incorrect amounts, the support system cannot respond quickly enough. Tax-related tickets are reviewed in 30-45 business days, creating untenable situations for time-sensitive payroll corrections.

Company needs integrations beyond the 40 available

Businesses using specialized software for accounting (QuickBooks Desktop specifically noted), project management, or industry-specific tools find Zenefits' limited ~40 integrations insufficient. The platform becomes an isolated silo rather than a connected hub.

State-specific compliance requirements aren't met

Companies operating in states with specific HR/payroll requirements discover implementations done incorrectly and not in compliance with state laws. Washington state tax bugs have been specifically noted. Legal exposure increases without reliable compliance.

Open enrollment period with system glitches

During the critical annual benefits enrollment window, system glitches auto-enroll employees in wrong plans or show false 'no plan available' errors. The compressed timeline of open enrollment meets slow support response, creating coverage gaps.

Business outgrows standalone HRIS option

Companies that selected Zenefits for affordable standalone HR functionality face forced migration to expensive PEO/ASO plans post-acquisition. The platform that fit their needs no longer exists in the same form.

HR team needs quick answers during employee issues

When employees have urgent questions about benefits, payroll discrepancies, or time-off policies, HR cannot get quick answers from Zenefits support. The email-only, weeks-long response time makes HR look ineffective to employees.

Company needs to cancel and migrate data

Businesses deciding to leave face a 30-day window to extract all historical data. Complex payroll records, tax documents, and years of employee information must be migrated quickly or access costs $500/year indefinitely.