As more and more companies are flooded with administrative duties due to the Affordable Care Act, cloud-based HR and benefits systems such as Zenefits are starting to gain a substantial hold in the employer market.

Smaller employers, those under 1,000 employees, all seem to be suffering from the same problems, according to Zenefits CEO Parker Conrad. Thanks to separate systems for benefits and HR functionalities such as payroll, health care, dental care and paid-time off, Conrad says these disconnected platforms create an unnecessary, administrative layer of data entry and old-fashioned faxing.

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