I, too, have a small company and so far I'm definitely not impressed with Zenefits.
A trivial example: we have roughly fifteen contractors working for us. I had them all sign up for Zenefits so we could pay them (and track 1099's appropriately). Come the first of the month, we tried to pay the contractors, only to discover that we had a cap of $2,500 TOTAL for any given week.
This isn't mentioned anywhere obvious and caused huge problems for us. In the end, we had to Paypal everyone money at the last minute.
Next up was trying to pay a founder as the sole employee in a single state. No matter how much we try, we can't seem to figure out how to make this happen - the Zenefits software assumes that we need a tax ID for the state but the state itself insists that we don't need one (since it's a solo founder, working from his home, there is no LNI and no income tax either).
Then there were the countless issues with email addresses (an infinite loop that seemed to be caused by the fact that I used an email address with a plus symbol on it)
The support people are very nice but so far none of them have managed to actually resolve an issue for me.
I too run a small company and am a Zenefits customer. We've now done ~15 payroll runs with Zenefits and only 3 have worked without my manual intervention to fix a problem at the last minute. I don't think this will be the only lawsuit in their future.
Having used both ADP and Peak Payroll at our company in the past we have experienced a lot of manual intervention at both. Usually things get ironed out until some/any out of the ordinary change causes problems that end up taking a payroll or two to correct. Basically I'm saying that all payroll providers seem to have these problems.
We're back on ADP after our company was bought as that is what the parent company uses.
Payroll and benefits management is a classic hard problem.
Now granted, with half a billion dollars and some technical acumen major innovation is possible. But the events of this week and the bearing of the CEO paint a picture of a company that is not aware of and focused on that hard problem.
A trivial example: we have roughly fifteen contractors working for us. I had them all sign up for Zenefits so we could pay them (and track 1099's appropriately). Come the first of the month, we tried to pay the contractors, only to discover that we had a cap of $2,500 TOTAL for any given week.
This isn't mentioned anywhere obvious and caused huge problems for us. In the end, we had to Paypal everyone money at the last minute.
Next up was trying to pay a founder as the sole employee in a single state. No matter how much we try, we can't seem to figure out how to make this happen - the Zenefits software assumes that we need a tax ID for the state but the state itself insists that we don't need one (since it's a solo founder, working from his home, there is no LNI and no income tax either).
Then there were the countless issues with email addresses (an infinite loop that seemed to be caused by the fact that I used an email address with a plus symbol on it)
The support people are very nice but so far none of them have managed to actually resolve an issue for me.
Anyway, not impressed.