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By
Lena Borelli
Lena Borelli
Contributor
Lena is a freelance contributor to Newsweek’s small business team. A business owner herself, today she advises on business owners of all kinds on proper management, software, and tools to maximize productivity and improve their exposure. She is based in sunny Tampa Bay, Florida, and has been featured in leading publications such as TIME, Forbes, Bankrate, Digital Trends and Techopedia.
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Reviewed By
Christina Levandowski
Christina Levandowski
Contributor
Christina is a freelance editor and contributor with Newsweek’s small business team. With a passion for small business optimization and strategy, Christina has successfully launched her own business and now works to help others do the same. She has studied extensively at Arizona State University on the pre-medical track, and is now an entrepreneur, author, strategist and editor. She is based out of Los Angeles, CA.
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There are many options for payroll software out there, but many options get bogged down by hidden fees and expensive subscriptions. However, with these best free payroll software services, you can use payroll software free without a commitment or contract and leverage those free tools toward faster, more streamlined payroll in the future. The best free payroll software for small business provides all of the features you need to empower your payroll with automatic runs, employee involvement and tax compliance. It’s just a matter of where to start.
Before you run your next payroll, this is the best free payroll software for your small business.
Our Methodology
Our research is designed to provide you with a comprehensive understanding of small business services and products that best suit your needs. To help you in the decision-making process, our expert contributors compare common preferences and potential pain points, such as affordability, accessibility and credibility.
Our Picks
- Best Free Payroll Software Overall: Payroll4Free.com
- Best Free Payroll Software For Hourly Employees: Homebase Payroll
- Best Free Payroll Software For Excel Users: ExcelPayroll
- Best Free Payroll Software For International Businesses: HR.my
Best Free Payroll Software of 2024
Best Free Payroll Software Overall
Payroll4Free.com
Maximum employees
10
Payment methods
Direct deposit, paper checks
Professional tax preparation
$40/month
HR tools
✔
Integrations
✔
Why We Chose It
Payroll4Free.com is the best free payroll software overall, thanks to its all-inclusive free package. You are limited to just ten individuals, but if you are a small business, the features make it well worth it. Payroll processing is included, with payment available via direct deposit or paper check. Human resource functions add to the list of features that are all designed to help transform the way you do business, while custom reporting helps you keep an eye on the bigger picture. You can use the vacation tracking feature and reporting tool to stay on top of your business and its employees, coordinating time off with no trouble. We also love the employee portal that gives your staff a place to go when they have questions or need documentation.
There are tax forms and calculations if you prefer to file your taxes yourself, but you can also pay $40 a month, so the Payroll4Free.com team handles your tax forms and processes your direct deposit. This free software plays nicely with other programs, allowing for excellent integration. However, if you have a question, unlimited live customer service is available.
Key Features
- Employee portal
- 1099 contractors
- Tax forms
- Direct deposit or paper check
- Vacation time tracking
Pros
- Extremely user-friendly
- Popular integrations
- Professional tax prep available
Cons
- Ads
- Maximum 10 users
- No Mac software
Best Free Payroll Software For Hourly Employees
Homebase Payroll
Maximum employees
20
Payment methods
Direct deposit, paper checks
Professional tax preparation
$39/month plus $6/employee/month
HR tools
Integrations
✔
Why We Chose It
Homebase Payroll is the best free payroll software to use when you have hourly employees. It offers the basics for your payroll software with access to basic scheduling features. There are also the usual employee management features like self-onboarding, time tracking and pay notifications. Employees can log in at any time to request time off and access paystubs, W-2s and personal information. From there, Homebase automates most of the process for you. Your staff only has to clock in and out, and then it will calculate wages and taxes. It will automatically send payments to your staff, giving your employees the convenience of direct deposit. Breaks, overtime, and PTO are all automatically calculated for you. Homebase keeps you compliant with taxes, too. With each paycheck, Homebase will also calculate what you owe to the state and IRS, and it sends those payments for you, along with the appropriate tax filings. It can also process your 1099s and W-2s.
The free plan includes one location for up to 20 employees. If you need to process payroll, it is available as an add-on for $39 per month, plus $6 per employee per month.
Key Features
- Scheduling
- Time tracking
- Employee management
- Point-of-sale integration
- Payroll add-on
Pros
- Up to 20 employees
- Convenient mobile app
- Popular integrations
Cons
- Must pay additional for most payroll features
- Some mobile app bugs
- Difficult to edit staff times
Best Free Payroll Software For Excel Users
ExcelPayroll
Maximum employees
50
Payment methods
Paper checks
Professional tax preparation
HR tools
Integrations
Why We Chose It
If you love Excel, Excel Payroll is the best free payroll software you can use. It draws upon the familiar view and formula of Excel while bringing to the table the payroll features that you need to process staff pay. This is free payroll software that works for up to 50 employees, making it best for small businesses. The software is precalculated with formulas to perform the very Excel functions that you need to perform payroll for your team. You can even use the software to go back and correct payroll for past years, ensuring that your records remain accurate even in spite of error. With its full set of payroll tools, you can handle vacation time and workers’ compensation reports while you work on your accounting. You can also print a series of different forms, including W2, W3, 940, 941 and DE9 forms, plus your employee paychecks. This payroll software works with any type of computer check you use.
Excel payroll truly is free. It skips all the common fees seen with other payroll management, software, such as monthly fees and payroll fees. Installation is simple; if you already use Excel, you’ll be comforted by the classic layout of this program. There is no software to install; you simply run Excel as usual.
Key Features
- Excel Base VBA Payroll Program
- Tax form library
- Vacation accrual
- Workers’ compensation reports
- Deduction support
Pros
- Easy Excel format
- Simple check printing
- Very user-friendly
Cons
- No Mac version
- No direct deposit
- Limited support
Best Free Payroll Software For International Businesses
HR.my
Maximum employees
Unlimited
Payment methods
Paper slips
Professional tax preparation
HR tools
✔
Integrations
✔
Why We Chose It
If you do business globally, Hr.my is the best free payroll software to support you. This software is available in 67 different languages, including French, Spanish and Vietnamese, and human translation services are available for both English and Chinese. With this feature, you can ensure that even your international employees have access to the best payroll software – and in a language they can understand. Just go to the Language Editor tab to begin translating messages. Hr.my still comes with online payroll and HR services, plus an integrated leave management system and time clock. With the Selfie and Geolocation features, you can keep tabs on employees to confirm their location via Google Maps. Unlimited data storage means you can upload as many files and documents as you want for sharing, while employees receive free web accounts to access their payroll details in real time. There is also support for incident management should an issue arise.
As crowdfunded software, Hr.my remains committed to providing free payroll software for global business. This free software is available without restriction, offering access to an unlimited number of employees. Simply sign up and enjoy multi-user payroll software that is designed for international use.
Key Features
- Multilingual software
- Unlimited employees
- Online HR tools
- Unlimited data storage
- Leave and incident management
Pros
- Available in 66 languages
- In-depth HR tools
- Easy setup
Cons
- No tax filings or payments
- Some ads
- Limited customer support
Vault’s Viewpoint: Compare the Best Free Payroll Software of 2024
| Maximum employees | Payment methods | Professional tax preparation | HR tools | Integrations | |
| Payroll4Free.com | 10 | Direct deposit, paper checks | $40/month | ✔ | ✔ |
| Homebase Payroll | 20 | Direct deposit, paper checks | $39/month plus $6/employee/month | ✔ | |
| ExcelPayroll | 50 | Paper checks | |||
| HR.my | Unlimited | Paper slips | ✔ | ✔ |
Learn More About Free Payroll Software
Not all payroll software shares the same features and tools, so it is important to first understand what it is and how it works.
What Is the Best Free Payroll Software?
Payroll4Free.com remains the best free payroll software, thanks to its robust features and user-friendly format. You get the option for both paper checks and direct deposit to better serve your employees, and integrations are both generous and convenient. It is everything you need for your business wrapped in a free package. However, should you prefer some support, professional help is available to assist with your payroll.
How Does Payroll Software Work?
Payroll software is on-premise or cloud-based software that automates the process of paying your employees while helping businesses remain compliant with tax and other laws. These programs can track the number of hours worked, calculate wages and taxes, process employee payments and even file tax and other government documents on your behalf. Your staff can also use the software via an invitation to the employee portal where they can access paychecks and other employee information.
Who Is Free Payroll Software Best For?
Not everyone has an open budget for payroll software. The best free payroll software caters to the basic needs of the small business, offering limited services and access in exchange for free use. If you have a larger business or require greater support, a paid payroll software subscription may be better suited to your needs.
Types of Payroll Software
- On-premise payroll software: On-premise payroll software requires a hard install on your computer. It can then only be accessed using that device, and you are responsible for all maintenance and updates.
- Cloud-based payroll software: Cloud-based payroll software is housed online, which means you can access it from any device at any time. Changes show in real-time, so users always see the most current information.
- Full-service payroll software: Full-service payroll software is professionally managed by the software provider itself, whether it is an in-house team or a partnership with a third-party provider. With experts handling payroll, there is minimal input required by the business itself, allowing you to focus on other things.
How To Choose a Free Payroll Software
When choosing the best free payroll software for your business, these are a few factors to keep in mind.
Features
Consider what kind of features you need in a payroll system. We looked for software that provides easy access for both managers and staff alike, as well as employee onboarding, direct deposit and third-party integrations. We also considered the type of reporting and analytics available, as well as support for tax filings and other compliance.
Security
Payroll software stores a lot of personal information for your employees, so it is vital that it is protected with the right security protocols. The best payroll software includes security measures like multi-factor authentication, data encryption and PCI compliance with limited access permissions.
Customer support
Payroll can get confusing at times, so it is good to know that there is support when you need it. Check the hours and types of customer service that are available to be sure that there is someone there to help if you need it, as not all software comes with 24/7 customer support. You may also be limited in how you can contact support, with some software limited customer service to chat or email instead of phone.
Reviews
The users know the software best, so read some reviews to see what kind of experience other businesses have had with the software. When analyzing customer reviews, we looked at factors like ease of use, features and customer support to get a more well-rounded portrait of each payroll software service.
Free Payroll Software Trials
Not too many payroll software programs offer a free plan, but these payroll software services will start you off with a free trial or demo to test drive the service.
Gusto
According to Gusto, businesses save an average of five hours each month in payroll and HR processing after switching to Gusto’s services. It takes a comprehensive approach to your payroll, adding features that typically cost a lot more with other plans. To start, you get unlimited payroll each month; Gusto does not limit how many runs. It will then help with health insurance, 401(k), workers’ comp, time tracking and PTO, all without trouble. After you approve payroll, the AutoPilot feature kicks in. It will automatically file your payroll documents with the appropriate government agency. Integrations are great, too, and include popular services like Xero, Clover and QuickBooks. Pricing begins at $40 per month for the Simple plan, plus $6 per month per person, but you can get started with a free demo.
Intuit QuickBooks
Intuit QuickBooks is a familiar program for accounting, but it has excellent payroll features, too. If you already use QuickBooks Online, it is a simple matter to activate the Payroll service. This will give you access to full-service payroll with automation for both your payroll and taxes, plus next-day direct deposit and 1099 E-file and Pay. You can also find help with 401(k) plans, workers’ comp and health benefits, all within the QuickBooks ecosystem. Plus, there is a convenient employee portal, so your team has access to all of the documents they need. Get started with a 30-day free trial, then receive 50% off the first three months of your monthly subscription when you subscribe. Plans start at $23 per month, plus $6 per employee per month. There is also a free paycheck calculator you can use without a subscription.
OnPay
With over 30 years of experience, OnPay offers some of the best payroll software for small businesses, seamlessly combining payroll and HR features with industry-specific tools. Set up couldn’t be easier; an OnPoint expert will handle all of the setup for you, including data migration. With the employee self-service feature, employees can take charge of their own onboarding while completing HR paperwork and requesting PTO. Meanwhile, you can enjoy unlimited monthly pay runs with available direct deposit. OnPay will handle all federal, state and local taxes, and it guarantees all calculations for accuracy. There is also support for W-2 and 1099 forms. There is just one plan that costs $40 per month, plus a fee of $6 per person, for straightforward, all-inclusive pricing.
Frequently Asked Questions
Is Payroll4Free really free?
Payroll4Free.com is the best free payroll software for your business when you have ten or fewer people on the payroll. There is no cost to benefit from its free features like vacation time tracking, tax calculations and detailed reporting. You also have the option of paper checks or direct deposit – a choice you do not always have with free payroll software.
What Is The Best Free Payroll Software For Small Business?
As your business grows, it is important that your payroll software can grow with you. The best free payroll software for small business is HR.my. With its ability to translate 67 different languages, it is ready to embrace your global staff with messages they can read and understand, fostering better communication between your business and its employees.
Is The Best Payroll Software Free?
Even the best payroll software will have limitations when it comes to features and functionality. If you are a small business, the best free payroll software could be sufficient since you may not need multiple users and will run limited payroll. Larger businesses are likely to be better served by a paid membership from one of the best cheap payroll software services.
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Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post. We may earn a commission from partner links on Newsweek, but commissions do not affect our editors’ opinions or evaluations.
Lena Borelli
Contributor
Lena is a freelance contributor to Newsweek’s small business team. A business owner herself, today she advises on business owners of all kinds on proper management, software, and tools to maximize productivity and improve their exposure. She is based in sunny Tampa Bay, Florida, and has been featured in leading publications such as TIME, Forbes, Bankrate, Digital Trends and Techopedia.
Read more articles by Lena Borelli
