a couple months ago, I asked a vendor "what is the difference btwn a paly and a zoa, beside the size" ...
just stumbled across a concise answer:
Zoanthus/Palythoa ID
The easiest way to separate these two genera (with Protopalythoa being included in Palythoa) is simple. Palythoa are in the family Sphenopidae, which take up sand and other small particles to help build their structure. Polyp, colony, coenenchyme (the "mat" tissue) and oral disk shape, as well as color, all are very flexible even within not only genera but also within species. Note that Epizoanthus and Parazoanthus also are encrusting (take up sand).
Zoanthus are in Zoanthidae (along with Isaurus and Acrozoanthus) and don't take up sand.
If you are not sure which type of zoanthid you have, take a high-res digital photo, and then zoom in. If you can see sand particles in the tissue, you aren't looking at a Zoanthus!
- jreimer on RC, Tokyo, zoanthid researcher