What are Zenefits Tax Levels of Service
For Administrators and Employees
Zenefits offers two levels of service when it comes to your taxes:
In Full Service, Zenefits calculates, collects, remits and files taxes for you in the appropriate jurisdiction. For Full Service, you must provide Zenefits with the necessary information to ensure you are set up properly. Federal, municipal, and local jurisdictions will always be Full Service.
In Calculate Only, Zenefits will calculate any employee/employer taxes related to a jurisdiction and display this amount in your quarterly tax package. With Calculate Only, Zenefits will not withdraw funds for the calculated taxes, remit the calculated tax amounts, file tax returns, or resolve notices for the respective tax agency. In the event that Zenefits receives any communication from the jurisdiction in a Calculate Only status, Zenefits will forward such communication for you to address directly. Calculate Only is only available for state-level jurisdictions.
If your jurisdiction includes employee taxes, your employees will have their calculated taxes deducted from their pay for the Calculate Only jurisdiction and these funds will remain in your company’s bank account. Your company will then be responsible for remitting all taxes and associated tax returns to the proper tax agency.
Note: If you actively run payroll with Zenefits, but we are missing information such as State Tax IDs, access codes, Unemployment Insurance (UI) rates, Third-Party Administrator information, or you have requested that we not file taxes for you, then Zenefits will update the level of service for that jurisdiction to Calculate Only.
To view your level of service for your Zenefits Payroll tax filing, you must first log in to Payroll and navigate to the Tax Info page under Settings. Next to each state you will see either the "Full Service" or "Calculate Only" labels.