November 17, 2015
HR software company Zenefits announced the launch of its new payroll system called Zenefits Payroll which runs itself and is totally free. There are two versions of the system: Self-Driving Mode and Pro. The payroll system will be available to businesses from January 2016. The payroll system was built in just six days after Zenefits HR software was blocked by ADP from accessing ADP's payroll system for thousands of their joint customers.
What Google’s driverless cars will do for your commute, Self-Driving Mode does for your company. It takes running and managing payroll, a wildly inefficient, manual task that wastes a lot of people’s time & energy and turns it into one you never worry about again. In Self-Driving mode, the software is deeply integrated with every employee system, from insurance to time-tracking and compliance to 401(k). Updates are made in payroll whenever information about your employees changes in Zenefits. You can set the service to run automatically every pay period too and, if you do, you can get out of the payroll-running business entirely. The self-driving mode is free for the users. The Pro version of Zenefits Payroll gives you the same great features as Self-Driving Mode, but also gives you the ability to make changes directly in payroll the way other payroll systems do.
According to company’s blog the unique features of Zenefits Payroll experience include:
- Automatic Pay Runs: Select a recurring pay run schedule once, and Zenefits automatically runs payroll moving forward. Payroll runs become completely hands-free.
- Automatic Tax Filing: Zenefits is the only free, full-service payroll provider that automatically files federal and state tax filings in all 50 states.
- Automatic Onboarding: When a new employee is hired, Zenefits automatically adds them to the payroll, enrolls them in benefits, calculates their deductions and pro-rates their first check.
- Automatic Offboarding: When an employee parts ways with the company, Zenefits automatically removes them from payroll and benefits, helps calculate their PTO accrual, administers COBRA, and finally generates and prints that employee’s final check all with the click of a mouse—something no other payroll provider does.
- Automatic Upkeep: When an employee earns a promotion, works overtime, or takes a vacation, Zenefits Payroll automatically updates itself, eliminating ongoing data entry.
- Smart Stubs: Employees can see what changes were made to their pay, when, and more importantly—why—directly on their paystubs. No longer will employees have to run to HR or business owners to ask them about changes in their payroll.
- Payroll Timeline: Managers and accountants can see a complete linear history of every payroll change made for every employee. This type of visibility is unprecedented among payroll providers.
Zenefits was launched in February 2013 by Parker Conrad (Co-founder and CEO) and Laks Srini (Co-founder). The initial capital of $372,000 was funded by Y Combinator’s Andreessen Horowitz, Yuri Milner, Garry Tan, Justin Kan and Alexis Ohanian.