The Best Free Payroll Software For Small Businesses
These free payroll software options are reliable, offer solid payroll features, and best of all, have zero cost.
Davina WardA New York native, Davina earned her BA in English from SUNY Geneseo in 2018. After graduating, she began her career as a freelance writing generalist before finding a niche writing about SaaS. Davina unironically enjoys testing and reviewing software on her free time but otherwise can be found oscillating between hobbies every few weeks or so — most recently, longboarding.
Expert Analyst & Reviewer
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Free payroll software can reduce payroll expenses while making it easy to run payroll and calculate payroll taxes. While free software may not have as many features as paid payroll software, you’ve come to the right place if you’re in the market for a reliable and functional free payroll software option.
We’ve researched dozens of free payroll software options to parse the good free software from the bad so that you can easily find the perfect payroll solution for your small business.
We like ADP Payroll for its advanced employee management, strong payroll features, and great customer support. Get three months free when you sign up through our links!
The best free payroll software offers payroll basics at no cost to users. Business owners using free payroll software should be able to run payroll and manage payroll taxes with ease. Each payroll software solution on our list will include essential payroll features for free, including:
Contractor and employee payment support
Direct deposit and paper check payment options
Data export and import options
Built-in time tracking or the option to import time-tracking data from another source
Basic payroll tax support, including payroll tax calculation or form printing
The 4 Best Free Payroll Software
Free payroll software should be genuinely ‘free’ and offer all the essential features needed to run payroll, including paycheck calculation, time tracking, and deductions. The top payroll software that meets these includes Payroll4Free, HR.my, and more.
1. Payroll4Free: Best Free Payroll Software With Ample Features
Free basic service for businesses with 25 or fewer employees
Strong security features
Unlimited customer support
Cons
Windows only
Direct deposit through Payroll4Free’s own bank is not free
25-employee limit for free services
Why We Chose Payroll4Free For Small Businesses
We love Payroll4Free’s robust feature set that’s completely free for businesses with fewer than 25 employees. With Payroll4Free, small businesses can keep costs down without sacrificing tax support, employee time off management, and the ability to pay employees via check or direct deposit. As long as you don’t mind ads, the service is very generous.
Additionally, just because you’re getting a service free of charge, doesn’t mean you’re left on your own. Payroll4Free also offers extensive customer support, including US-based phone support and free account set-up.
Payroll4Free Fees
Employers that don’t want to deal with depositing and filling out payroll taxes need to pay a $25/month or $250/year fee for Payroll4Free to take care of it for them. However, Payroll4Free does offer free tools as a basic service that you can use to make this process easier.
If you don’t want to rely on your own bank to transfer direct deposit funds to your employees, you will need to pay another $25/month or $250/year for Payroll4Free to complete these transfers using their bank. You can save by bundling Payroll4Free’s tax and direct deposit services for $30/month or $300/year.
Payroll4Free Features For Small Businesses
The free version of Payroll4Free places no limits on payroll or direct deposit processing and doesn’t require upgrading to a higher-tier plan to enjoy its basic features.
Features that Payroll4Free offers at no additional cost include:
Multiple Payment Methods: Pay via direct deposit of paper check; print paystubs
Pay Multiple Worker Types: Pay your employees and contractors at no extra cost
Employee Management: Employees can view their payroll data via an employee dashboard portal and owners can manage employee time off
Tax Support: Free tax calculations and forms
Data Management: Import or export payroll data (into QuickBooks, for example; import time clock data
We love that ExcelPayroll offers a highly customizable foundation for those business owners who have the extra time, know-how, and Microsoft Excel license to get the most out of a spreadsheet-based payroll system.
Once you’ve gone through the setup, ExcelPayroll can handle some impressively advanced payroll operations, including vacation accrual, deductions, paycheck design customization, reporting, custom tax rates, payroll year closeout, and more. Business owners with complex payroll needs and a low payroll software budget will get the most out of ExcelPayroll.
ExcelPayroll Fees
ExcelPayroll itself is free to download, and you don’t need to pay any fees to use its features. Technically speaking, though, ExcelPayroll isn’t completely free since it requires that you purchase a licensed version of Microsoft Office Suite to run Excel.
Microsoft’s 365 Business plan is the cheapest of the cloud-enabled plans that offer the Microsoft Excel application and charges a monthly fee of $6.00 per user.
ExcelPayroll's Features For Small Businesses
According to its program mission, ExcelPayroll strives to create a Microsoft Excel-based payroll application that includes no monthly fees and zero costs attached to using it. Best of all, ExcelPayroll offers a full set of reliable payroll tools, including:
Payroll Tax Support: Set custom tax rates at the federal, state, and local level; print out W-2 and W-3 tax forms and data
Customizable Payroll: Set multiple pay rates and schedules, cut checks at any time, customize paycheck designs, pay out supplemental earnings, and set deductions
Employee Management: Keep up to 1,000 employees in your employee database, set employee status, and track and manage vacation time accrual
Strong Reporting: Run a wide variety of payroll reports using data entered in ExcelPayroll
ExcelPayroll Eligibility Requirements
Excel Payroll is designed for use by accounting students and very small businesses. Therefore, the creator has placed strict technical limitations on the software that prevent it from being used by larger businesses.
ExcelPayroll’s technical limitations include: limiting the software to 50 active employees, setting the maximum single-employee hourly earnings to $4807.69, and the maximum single-employee annual earnings to $450,300. Non-profits paying more than 57 active employees may reach out to the creator directly to have these limits increased or removed.
We love HR.my as a free payroll software option for small businesses, as it offers the most flexibility for growing businesses, offers a more global payroll solution, and provides an extensive array of free HR features alongside basic payroll.
With HR.my, your small business can add an unlimited number of employees, set custom access roles, manage documents, collaborate in forums, and much more. If your small business pays employees and contractors or is experiencing growth, HR.my offers a solid suite of tools that will help along the journey — without adding any financial strain.
HR.my Fees
HR.my users may opt to pay a $5/month sponsorship fee in exchange for an ad-free experience, additional file storage, one additional HR role, and early access to new features. That said, the subscription price isn’t compulsory and doesn’t gate any of the service’s core features behind a paywall.
HR.my Features Small Businesses
Hr.my accomplishes its free service through crowdfunding from its user community, so you just need to sign up to start using it. HR.my’s free features include:
Comprehensive Payroll Options: Set custom pay rates, multiple schedule options, custom deductions, set employee status, and track employee time with built-in time tracking
Employee Management: Employee self-service portal where employees can view and edit records, time off request management and tracking, expense management, document workflows, and scheduling
HR Tools: Employee collaboration forum, document storage, announcement boards, set custom access roles, and employee credential tracking
Can be integrated with other payroll services (such as ADP and QuickBooks)
Automated multi-week scheduling
Leave management
Cons
No tax filing assistance on free version
No third-party tax filings and payments allowed
No customer support
Non-transparent pricing
TimeTrex Payroll Wizard screen
Why We Chose TimeTrex For Small Businesses
We love TimeTrex’s free cloud-hosted payroll software for small businesses that are looking for a solid mix of HR and payroll features. You don’t get a lot of advanced features on TimeTrex’s free plan, but you do get access to all the essentials.
Businesses using TimeTrex can run payroll, track employee time, and manage employee data from TimeTrex’s platform. There are no limits to the number of employees you can pay on TimeTrex’s free Community plan, so the software can scale with your business.
TimeTrex Fees
Timetrex offers a plan comparison online but doesn’t include any further pricing details, so you’ll need to request a quote with them to learn more about which plan makes sense for your business.
TimeTrex supports paid plans which include additional services, such as a mobile app and on-site service in addition to its web portal support. However, customers on TimeTrex’s free plan still have access to the service’s basic features.
TimeTrex Features For Small Business
TimeTrex offers its most basic payroll features for free under its Community Edition service plan. The TimeTrex Community Edition is exclusively cloud-hosted, doesn’t require any downloads or software installations, and comes with free features such as:
Run Payroll: Pay employees and contractors via direct deposit of paper check integrated attendance and scheduling
Employee Management: track employee time and attendance, manage schedules, and manage employee time off
Payroll Tax Support: Generate tax reports, including For W-2, W-3, 1099, 940, and 941-specific reports; free payroll tax calculator (federal, state, and local taxes)
Our Methodology For Choosing The Best Free Payroll Software For Small Businesses
We evaluated six free payroll software options and selected the four best options that would empower business owners to run payroll, keep payroll records, and offer payroll tax support (built-in free payroll tax calculators and strong reporting).
We evaluated the features listed by each software to assess their quality and functionality limitations. We went through user forums and support pages to assess the quality of customer services users were given and to determine which kinds of businesses used the services offered.
We ensured that each payroll software option we selected was truly free, and took a deep dive to uncover any hidden fees users might face. We also evaluated six additional paid payroll software options that offered notable free trials or deep discounts for those readers who may also be considering a paid payroll software solution.
Why We Don't Recommend These Free Payroll Options
While the following options do offer free payroll calculator services, we don’t recommend using them as the foundation for your business’s payroll process because of the payroll tax compliance and reporting issues.
Here’s why we don’t recommend eSmart Paycheck and Paycheck Manager for use as free payroll software.
eSmart Paycheck: Free Features Limited To A Payroll Calculator
eSmart Paycheck’s free service is limited to its paycheck calculator, so it won’t function well as a payroll software. Payroll tax compliance best practices require businesses to keep extensive financial records, so we can’t recommend eSmart Paycheck as it does not allow users on its free plan to save payroll data beyond downloading and printing paychecks.
Additionally, starting from scratch every payroll run increase the chances of making an error that can cost your business time and money.
Paycheck Manager: Free Features Limited To A Payroll Calculator
Paycheck Manager has the same issues as eSmart Paycheck, in that it only offers a free payroll calculator, not a full-fledged payroll software. Not only are its free features significantly limited, but it’s also nearly impossible to easily keep payroll records.
It’s essential to keep records of your payroll data to support payroll tax compliance, which challenging to do if you’re using a paycheck calculator to power your entire payroll process. Additionally, without saved data, you’ll have to spend time manually inputting payroll data from separate paychecks to run any type of payroll reports.
Looking For A Free Payroll Software Trial?
With fewer options on the market this year when compared to last year, the sad truth is that free payroll software apps are a dying breed.
The diverse array of features, competitive pricing, scalability, and excellent customer support of most paid payroll pricing software make free payroll software with limited functionality a hard sell. If you decide that the free apps aren’t cutting it for your payroll and HR needs, there are plenty of other cost-effective options to consider.
ADP has built its reputation on customer service and support for major companies with thousands of employees. The software includes payroll processing, direct deposit, tax filing, new hire reporting, and much more. ADP is one of the most flexible payroll software options on the market because of its wide range of features that can handle the needs of businesses of all sizes across multiple industries. Read our complete ADP review to see if this payroll software is right for you.
ADP Pricing
ADP utilizes a quote-based custom pricing structure, so businesses interested in using the payroll service must reach out for a quote.
ADP’s four-tiered RUN plan is geared towards small businesses with 1-49 employees. To manage HR through payroll, you will have to upgrade above the Essential RUN plan. For growing mid-sized businesses, ADP’s extensive features and in-depth customer support could be worth the higher prices and hidden fees.
If your main priority is getting payroll taken care of without much hassle, then Gusto is a top candidate for the job. The cloud-based system can fully automate calculations and tax filing through a service called Gusto AutoPilot, which can provide 24-hour notice and ultimately submit payroll on time in case you forget.
Even Gusto’s cheapest employee payroll package lets customers manage deductions, garnishments, and additional earnings for their payroll. Employees can do some time tracking and download pay stubs within the portal, too. Gusto’s straightforward approach and attentive customer support make it a hit among small to mid-size businesses. Read our full Gusto review for more details.
Gusto Pricing
Gusto’s pricing starts at $35/month + $6/contractor for its Contractor’s-Only plan. Businesses that will be paying employees will need to upgrade to one of Gusto’s higher tier plans, which start at $40/month + $6/person.
Intuit Online Payroll’s basic coverage, Core Payroll, can tackle paycheck and tax calculation and deliver reports and next-day direct deposits. Upgrading to either Premium or Elite will bring automated payroll, greater HR support, and time-tracking features. Meanwhile, the abundance of features lends itself to larger entities and mid-size businesses with aspirations to expand.
If your business already uses Intuit QuickBooks, you’re in luck. Intuit QuickBooks and Intuit Online Payroll are a match made in payroll heaven. Read our complete Intuit Online Payroll review for more information.
Intuit Online Payroll Pricing
If your business only needs payroll services and isn’t looking to adopt the larger QuickBooks Online business management solution, QuickBooks Online Payroll starts at $45/month + $5/employee per month. If you’ll be bundling your QuickBooks Online service with QuickBooks Payroll, prices start at $75/month + $5/person per month.
As an alternative to its 30-day free trial option, QuickBooks also offers a new customer promotion that saves businesses 50% on their first three months of service.
To get the most bang for your buck on payroll and accounting, Wave is hard to beat. Of course, the accounting and payroll apps can be used separately, but the integrated nature of the two — and the fact that Wave’s accounting platform is free — can be big plusses for small businesses on a shoestring budget.
Currently, Wave only offers full-service in 14 states, though small businesses located elsewhere can opt for the cheaper self-service option. The key difference is that full-service customers can take advantage of tax filing and reporting services. Still, the self-service plan handles payroll basics at a lower cost, including direct deposit, printing checks, and calculating PTO and paychecks. Read our complete Payroll by Wave review for more information.
Wave Payroll Pricing
Wave Payroll’s self-service plan starts at $20/month + $6/active employee or contractor paid. For businesses in the 14 states that boast the full tax service option, the base price increases to $40/month with the same per-employee and contractor pricing.
Paylocity’s payroll software stands out for its capacity to integrate solutions and services, such as time tracking, performance reviews, and employee benefits alongside payroll. Paylocity’s payroll solution packs a wealth of features on top of the standard payroll calculation components, such as tax services, labor law poster updates, and a self-service mobile app for employees.
Paylocity isn’t known for offering competitive pricing to small businesses, so don’t expect deep discounts when you request a demo. But if customizability and a full-scale HR integration are what you’re after, then look no further.
Patriot Payroll: 30-Day Free Trial
Patriot Payroll is one of the most affordable software options on the market and boasts all the essential features one might expect from full-service payroll software. Patriot Payroll offers unlimited payroll runs, supports multiple pay rates and schedules, time off management, employee and contractor payments, two-day direct deposit, multiple integration options, and much more. This impressive array of features combined with the low price point makes Patriot Payroll a notable payroll software contender for businesses with up to 250 employees.
Want to know if Patriot Payroll is the right choice for your business? Read our in-depth Patriot Payroll reviews for a breakdown of the software’s pricing, features, and more.
Patriot Payroll Pricing
Patriot Payroll’s pricing starts at $17/month + $4/employee or contractor for its self-service plan. This plan is a great option for businesses with 250 or fewer employees that want a feature-packed payroll software without the added cost of full-service tax support. For those businesses that do want tax support, Patriot Payroll’s full-service plan costs $37/month + $4 per employee or contractor.
Which Free Payroll Software Is Best For Your Business?
Free payroll software can help your business save time running payroll, improve accuracy, and get payments out on time. However, getting small business payroll free of charge is a big ask. Many free payroll options have limitations in fulfilling all your tax filing and compliance needs. There are certainly more options beyond our four picks, but other free programs may lack security measures that could put your small business at risk.
If you’re going the free payroll software route, you’re not likely to get any help come tax time, and payroll taxes can pack a punch. It’s best to familiarize yourself with payroll taxes, forms, and filing deadlines before switching to any payroll software, paid or otherwise. That way, you can decide whether you prefer a full-service payroll solution that includes tax support or if you’d rather handle everything yourself.
If none of these free payroll options cut it for your business, take a look at these cheap payroll software options — these payroll software apps are still affordable but offer better features and support than free payroll software.
We like ADP Payroll for its advanced employee management, strong payroll features, and great customer support. Get three months free when you sign up through our links!
Free Payroll Software FAQs
What is the best free payroll software for small businesses?
Our pick for the best overall free payroll software is Payroll4Free, which delivers the most comprehensive array of features at no cost to small businesses. HR.my comes in a close second for the best free payroll and HR software combination.
How do I do payroll for free?
The easiest way to do payroll for free is by using free payroll software like Payroll4Free or eSmart Paycheck to calculate your business’s payroll. You can also calculate and process payroll manually with our step-by-step DIY payroll guide.
Are there free payroll apps?
Payroll4Free and TimeTrex are the most popular free payroll apps that offer downloadable software, rather than just web-based options.
Is Payroll4Free actually free?
Payroll4Free is completely free for businesses with 25 or fewer employees. Payroll4Free offers two optional paid services for businesses that are looking for payroll filing and payment services or that want to pay employees from Payroll4Free’s bank.
Is free payroll software worth it?
Small businesses that are running on a limited budget and that need tools to run payroll themselves benefit the most from using free payroll software.
That said, free software won’t have as many features or be as scalable for a growing company as a paid software app would be. If you don’t want to have to switch payroll software down the road, you should go with a payroll service like ADP or Gusto instead.
When should I upgrade to paid payroll software?
If you need well-developed features for time tracking, document management, and HR resources, you’ll probably need to purchase a paid service plan. Automation of big tasks like scheduling payroll cycles and filing tax withholding also usually come with paid payroll software, and the time you save from these automations could be more than worth the cost of upgrading from free payroll software.
Can I do small business payroll without software?
Doing your own payroll without software means you’ll need to do it manually. However, DIY payroll is completely within the realm of possibility if you take some basic steps. Take a look at Merchant Maverick’s guide to doing payroll manually even as you scale your business and continue to bring on more employees.
What is the cheapest payroll software?
Payroll by Wave and Patriot Payroll are among the cheapest payroll software options on the market. Payroll by Wave’s pricing starts at $20/month + $6 per person paid. Patriot Payroll is even cheaper with prices starting at $17/month + $4/person paid. The cheapest payroll software that’s actually free is Payroll4Free.
A New York native, Davina earned her BA in English from SUNY Geneseo in 2018. After graduating, she began her career as a freelance writing generalist before finding a niche writing about SaaS. Davina unironically enjoys testing and reviewing software on her free time but otherwise can be found oscillating between hobbies every few weeks or so — most recently, longboarding.
View Davina Ward's professional experience on LinkedIn.
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The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.
Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.
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Our Featured Payroll SolutionADP is an industry leader that our experts endorse.Our reviewers like ADP Payroll for its advanced employee management, strong payroll features, and great customer support. For a limited time, get three months free.View OfferClaim three free months