ZenPayroll Changes Name To Gusto, Expands Into Benefits To Compete With Zenefits And ADP
ZenPayroll, the startup that aims to make payroll painless for business owners, today announced that it’s changing its name to Gusto and plans to expand into offering employee benefits to compete with companies like Zenefits and ADP.
In the past, the company focused on the six million U.S. small businesses that have done payroll by hand. But going forward, Gusto will position itself as a one-stop-shop for all compensation based needs—including health benefits and workers’ compensation.
CEO Josh Reeves says this has been in the works for a while, and plans to eventually offer benefits even appeared in the company’s 2012 seed fundraising document.
Earlier this week, BuzzFeed reported that Zenefits is working on a system to process payroll. Between that story and this announcement, it’s clear that Gusto and Zenefits are squaring up to become rivals.
Gusto, valued at $560 million after its recent $60 million Series B, already processes billions of dollars in payroll annually and works with businesses in every U.S. state.