'Disruptor' ZenPayroll wants to earn trust

Disruptor #26: ZenPayroll makes it easy

ZenPayroll wants businesses to use its services of onboarding employees and dealing with paperwork, co-founder and CEO Joshua Reeves said Wednesday, a day after the start-up was named No. 26 on CNBC's Disruptor 50 list..

Read More Meet the 2015 CNBC Disruptor 50 companies

"It comes back to making the life of that customer easier and if we've done it well enough, they actually drive through word of mouth a lot of our growth," Reeves said on CNBC's "Squawk Alley".

ZenPayroll focuses on helping small businesses navigate the complex payroll system and employer-employee interaction, Reeves said.

"Today in America one-third of companies get fined every year for incorrectly doing their payroll taxes." he said. "So we want to bring this peace of mind where we do all of those complex taxes, filings, payments, entirely on software, so we give peace of mind back to that business customers."

Joshua Reeves, CEO of ZenPayroll.
John Chiala | CNBC

Read MoreSquare's 'virtuous loop' is beyond payment processing

Investors in ZenPayroll include actor Jared Leto, Instagram CEO Kevin Systrom and Yelp chief Jeremy Stoppelman, according to the company's website.

The California-based start-up, which competes with companies such as ADP, offers services in 50 states and serves all types of business, from churches, bakeries to flower shops, Reeves said. He added that the potential for growth comes from the fact that everyone needs payroll services.

"Everyone has people inside their business, has to pay them, do it right," Reeves said.