Unsupported Features and Taxes in Zenoti Integrated Payroll

Zenoti Integrated Payroll (ZIP) is designed to support a broad range of businesses and employment needs. This article explains which features, worker types, companies, industries, taxes, and forms are not currently supported. Use this article to identify any limitations that may affect your payroll setup or compliance processes, so you can plan accordingly.

Overview

While ZIP offers extensive functionality across diverse business models, certain limitations apply due to regulatory, operational, or system-level constraints. This article details those unsupported scenarios to help you manage exceptions effectively during setup or onboarding.

Unsupported features

This section lists features, worker types, company structures and industries that ZIP does not currently support.

Unsupported worker types

ZIP does not support the following worker types unless otherwise noted:

Household employees
Non-resident aliens (Supported only if they have an SSN, but they would be under-taxed)
Government employees (including but not limited to: public school teachers and administrators, public librarians and administrators, police officers, fire fighters, city or county clerks, environmental protection officers, postal workers, public works employees in sanitation and/or water treatment, department of motor vehicles staff and more)
Railroad employees
H-2B visa workers
Employees or contractors with an address in Puerto Rico and the US Territories
ZIP doesn’t support special tax rules for American Indian employees orthose working on tribal reservations.

Unsupported company types

ZIP does not support the following company types unless otherwise noted:

Government agencies and federal contractors
Professional Employer Organizations (PEOs), or Companies migrating from certain PEO's
Nevada-based financial institutions
Companies located in Puerto Rico and the US Territories
Pass through entities
Companies with over 2,000 active or inactive workers on a single EIN
- This limit is restricted only to the onboarding part. If a company grows beyond the count of 2000 workers, Zenoti does not remove them from the platform.
- A single payroll can have a maximum of 1,500 payroll items. Read our API documentation for more information.
Employers using a common paymaster

Unsupported industries

ZIP does not support the following industry types unless otherwise noted:

Gambling such as physical locations, online gaming, lottery, games of chance, fantasy sports leagues, and so on
Marijuana sales or dispensaries
Firearms and ammunition sales
Sale of flammable and combustible substances
Drug paraphernalia used to produce or consume controlled substances, including bongs or glass pipes commonly used to consume marijuana
Adult entertainment business which either directly or indirectly provide sex-related services
Virtual currency such as Bitcoin and related services
Sales, distribution, or access to counterfeit music, movies, software, or other licensed materials without the appropriate authorization from the rights holder
Shell banks
Bearer share companies (and employers operating as such), except for those that are publicly traded on a recognized exchange