Gusto, formerly ZenPayroll, has launched a web-based service for its small business clients to find and setup health insurance for its employees while avoiding messy paperwork and human errors. The company says that so far, about 60% of its small business customers arrive with errors, such as a founder or employee not being covered by the plan.
In many cases, Gusto can automate the process as it already has data like employees’ salary and social security number via its existing payroll product. Gusto’s operations head Lauren Fifield refers to the service as a “Kayak for benefits.”
Gusto is a competitor to Zenefits, a well-funded startup that came under fire for taking short-cuts like allowing its sales team to sell insurance without a brokers’ license. Fifield stresses that Gusto takes compliance seriously, even offering happy hours to celebrate when employees pass their brokers’ licensing exam.