Zenefits Problems & Issues
Real user-reported problems, complaints, and limitations for Zenefits. Based on analysis of 15 signals.
Issues by Category
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.
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.
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.'
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.