Check out our list of the best free payroll systems for small businesses. This guide also includes three affordably-priced paid options if you need more payroll features.
Best Free Payroll Software for 2022
Charlette has over 10 years of experience in accounting and finance and 2 years of partnering with HR leaders on freelance projects. She uses this extensive experience to answer your questions about payroll.
Robie has more than five years of content writing experience and specializes in writing about payroll and human resources software for small businesses.
This article is part of a larger series on Payroll Services.
The best free payroll software can calculate pay for hourly and salary workers, handle tax calculations and deductions, and print checks and pay stubs. Some of the systems even file taxes and offer direct deposits. In this guide, we reviewed six free payroll services and then narrowed it down to our top three recommendations.
- TimeTrex: Best overall free payroll software for small businesses
- Payroll4Free.com: Best for companies with 25 or fewer employees that want the option of add-on payroll tax filings
- HR.my: Best for startups needing a free multilingual platform with basic HR and payroll tools
If you need software with more functionality but aren’t ready to spend money, you should consider affordable payroll software that comes with a free trial so you can make sure it’s worth it, risk-free.
- Gusto: 30-day free trial + solid payroll with multiple direct deposit and payment options
- Paychex: Three-month free trial + dedicated payroll support
- OnPay: 30-day free trial + affordably-priced full-service payroll
Top Free Payroll Software Compared
 |  |  | |
Number of Employees Included in Free Plan | Unlimited | Up to 25 only | Unlimited |
Unlimited Pay Runs | ✔ | ✔ | ✔ |
Calculates Payroll and Taxes | ✔ | ✔ | Limited; manual tax rate entry |
Files and Pays Taxes | ✖ | Paid add-on | ✖ |
Preps Year-end Tax Forms | ✖ | ✔ | ✖ |
Free Direct Deposits | ✔ | Free if using your bank account | ✔ |
Employee Benefits Plans | ✖ | ✖ | ✖ |
Free Time Tracking and Scheduling | ✔ | ✖ | Only time tracking |
Free Performance Management Tool | ✔ | ✖ | ✖ |
Multilingual Platform | ✖ | ✖ | 66 languages |
Live Phone Support | ✔ | ✔ | ✖ |
 |  |  | |
Free trial | 30 days | Three months | 30 days |
Starting Monthly Fees | $39 + $6 per employee | $39 + $5 per employee | $36 + $4 per employee |
Unlimited Pay Runs | ✔ | ✔ | ✔ |
Calculates Payroll and Taxes | ✔ | ✔ | ✔ |
Files and Pays Payroll Taxes | ✔ | Additional fees may apply | ✔ |
Preps Year-end Tax Forms | ✔ | Additional fees may apply | ✔ |
Free Direct Deposits | ✔ | ✔ | ✔ |
Employee Benefits Plans | Limited to 39 states | ✔ | ✔ |
Time Tracking and Employee Scheduling | Time tracking included in higher tiers | Paid add-on | Via third-party software partners |
Performance Management Tools | Included in higher tiers | ✖ | ✖ |
Multilingual Platform | ✖ | Limited | ✖ |
Live Phone Support | ✔ | ✔ | ✔ |
If you need more payroll software options and are open to some that aren’t free (yet reasonably priced), check out our buyer’s guides on the best online payroll services and the best payroll software for small businesses.
When to Consider Paid Payroll Software
Unlike free payroll software, paid options come with a wider range of solutions and services to further streamline and automate processes. These features include automatic payroll tax table updates, compliance support, and access to benefits plans you can offer employees.
Many paid payroll software also remit and file federal, state, and local taxes for you, while others provide HR consultancy services if you need assistance in managing employee issues.
If you’re looking for a paid payroll platform that automatically updates payroll tax rates and files taxes (most free payroll software don’t), is easy to use, and reasonably priced, consider Gusto. It’s an all-in-one payroll and HR solution for small businesses that helps save you time and money by calculating, filing, and paying your payroll taxes automatically. It’s free for up to 30 days.
TimeTrex: Best Overall Free Payroll Software for Small Businesses
TimeTrex
Overall Score: 4.28
OUT OF 5
What We Like
- Has automatic pay runs with free direct deposits
- Offers a feature-rich free plan (comes with payroll, time tracking, scheduling, and HR management tools)
- Integrates with other payroll tools like QuickBooks, ADP, and Paychex
- Offers two software deployment options (on-site and cloud-hosted)
What's Missing
- Lacks transparent pricing; details about the free option and paid plans are difficult to find on its website
- Doesn’t handle payroll tax filings; only generates tax forms
- Has features that aren’t intuitive and look somewhat dated
TimeTrex Pricing
Free version: Open-source Community Edition with no employee minimums
Paid options*
- Three custom-priced product editions (Professional, Corporate, and Enterprise) that include additional tools like recruiting, invoicing, and expense tracking functionalities
- Pricing varies, depending on the software deployment option and number of employees (wherein fees start to decrease with 26 and more employees)
- Monthly fees for its cloud-hosted version start at $3 per employee
*Pricing is based on a quote we received
TimeTrex is our top-recommended free payroll software for small businesses because it does more than Payroll4Free and HR.my. Aside from pay processing, it has time tracking, scheduling, paid time off (PTO) monitoring, and HR management solutions that you can access at no cost. You even get an online time clock that lets your employees clock in/out through web browsers.
Scoring an overall rating of 4.28 out of 5, TimeTrex earned perfect marks in nearly all our criteria. It would have gotten a higher score if not for its limited employee payment options (only offers direct deposits and checks) and very basic payroll tax services. While it calculates federal, state, and local taxes in addition to generating tax forms (like W-2s and 1099s), TimeTrex doesn’t remit and file taxes for you.
However, users still appreciate its user-friendly platform that makes pay processing easy. If you need tax filing services, you may want to consider Payroll4Free.com, but it isn’t free—you have to pay $25 per month.
TimeTrex has “dashlet” widgets you can select if you want to view schedule summaries, real-time attendance data, alerts, and messages on its main dashboard.
TimeTrex Features
Feature-rich free tier
Even at its free level, TimeTrex grants you access to several integrated solutions designed to help you manage your workforce. You get online tools to create schedules, capture clock-ins/outs, track attendance, monitor PTO, pay employees, conduct performance reviews, and record staff information in a centralized database. This is more than what Payroll4Free.com offers (doesn’t have free HR tools) and what HR.my provides as part of its forever-free solution (doesn’t have performance reviews).
Online time tracking
TimeTrex has robust time tracking capabilities—making it one of our leading time and attendance software for small businesses. Its web browser-based time clock allows you to turn computers into employee time tracking devices. However, geofencing capabilities, facial recognition time clocks, and mobile time tracking apps aren’t included in its free Community Edition. If you require geolocation and face verification tools to prevent buddy punching, we recommend HR.my as it offers those functionalities for free.
Efficient pay processing
With TimeTrex’s efficient payroll tools, you don’t have to worry about doing payroll yourself. In addition to automatic payroll runs, it automatically calculates taxes and custom deductions like garnishments, PTO accruals, and benefits. It also offers electronic pay stubs, free direct deposits, and pay checks that you can print in several formats. However, TimeTrex doesn’t handle payroll tax payments and filings for you. If you don’t want do-it-yourself (DIY) taxes and you’re willing to pay extra, consider Payroll4Free as it offers automated tax filing services for $25 monthly.
Third-party software integrations
TimeTrex seamlessly integrates with other payroll software like QuickBooks, ADP, Paychex, Ceridian, and Sage. Note that HR.my doesn’t have this functionality, while Payroll4Free.com has limited options and connects with other software through payroll data exports and time data imports.
Custom reporting
Aside from standard payroll, HR, and employee reports, TimeTrex has built-in templates that you can customize.
Payroll4Free: Best for Companies With 25 or Fewer Employees Wanting an Add-on Payroll Tax Filing Option
Payroll4Free
Overall Score: 3.60
OUT OF 5
What We Like
- Free-forever payroll services with essential online tools (including an employee portal)
- Email and phone support with access to payroll and tax experts
- Tax filings and direct deposits (not using own bank) are affordable add-ons
What's Missing
- Free only for 25 or fewer employees; doesn’t offer a paid version if you have 26 or more employees
- Limited system compatibility (Windows only)
- Payroll software comes with ads; interface looks outdated
- New user sign up process isn’t straightforward; requires several forms and documents to create account
Payroll4Free Pricing
Free version: Payroll software free for those with 25 or fewer staff
Add-ons*
- Payroll tax payments and filings: $25 monthly
- Direct deposit transfers using Payroll4Free’s bank account**: $25 monthly
*If you get both add-ons, Payroll4Free will only charge $30 monthly.
**Direct deposit services require a security deposit equal to the highest estimated net payroll you plan to process in a seven-day period.
Payroll4Free is a popular free payroll software for businesses with 25 or fewer employees. It calculates payroll and taxes, tracks PTO accruals, prints paychecks, and provides free direct deposits if you use your own bank. The software can also handle year-end tax reports (W-2s and 1099s), providing you with pre-formatted forms to send to the government. If you want Payroll4Free.com to file your tax forms, you can pay $25 per month for that function (the other two free providers on our list do not offer this option). If you need time tracking and attendance tools included in a free payroll solution, consider either HR.my or TimeTrex.
In our evaluation, Payroll4Free earned a score of 3.6 out of 5. It would have ranked higher if it didn’t have a 25 employee limit (TimeTrex and HR.my can handle unlimited employees) and if it offered direct deposits and tax filings for free. Plus, its average user rating on third-party review sites (like G2 and Capterra) is below 4 as of this writing. Some users even said that its platform is unintuitive, often taking extra steps to complete what a paid program can do in a single click. They also don’t appreciate the ads that appear while using the tool.
Payroll4Free Features
Efficient pay processing
In addition to paying employees and calculating taxes (federal, state, and local) for free, it allows you to set up any deduction, contribution, and earning. Payroll4Free.com will automatically compute it—provided you have specified how these items should be calculated. Note that it doesn’t have the integrated time tracking tools that both TimeTrex and HR.my provide for free. You have to manually import time data into its system before you can run payroll.
Check printing setup assistance
If you prefer to pay employees via checks, Payroll4Free.com can help set up its software to add any data you want to appear on the check. You won’t get the said free service with both HR.my and TimeTrex.
Access to payroll and tax experts
Aside from unlimited customer support, Payroll4Free.com has a team of experienced payroll and tax specialists that you can contact if you have queries or need payroll advice. However, it doesn’t have the community forum that TimeTrex and HR.my offer, which allows you to get input from other business owners and HR professionals.
Custom reporting
You get custom and detailed reports, enabling you to stay up-to-date with payroll information, tax details, PTO accruals, and employee deductions. It has several reporting options, but the choices aren’t as robust as HR.my and TimeTrex—simply because these two providers’ free packages include other HR solutions, so you may run non-payroll reports.
HR.my: Best for Startups Needing Multilingual Software With Basic HR & Payroll Tools
HR.my
Overall Score: 3.45
OUT OF 5
What We Like
- Feature-rich free HR solution that includes payroll, basic HR, expense claim management, and online time clock tools
- Multilingual platform that supports up to 66 languages
- Additional paid features are only $5 per month
What's Missing
- Doesn’t file and pay payroll taxes
- User guide isn’t robust
- Lacks phone support
- Sponsorship ads appear on the dashboard and its other online tools
HR.my Pricing
Free version: Payroll software free for unlimited employees; includes free online storage
Add-on: $5 monthly sponsorship that includes ad-free web accounts, early access to new features, additional online storage, and advanced email notifications
HR.my is a free multilingual HR software that is crowdfunded. The company works with those interested in translating the software into additional languages. As of this writing, it has 66 language options—more than the free solutions we reviewed, including most paid payroll software. It has basic payroll and HR features (such as employee information management, time tracking, and expense claims) that you can use for free.
Overall, it earned 3.45 out of 5 in our evaluation, with perfect marks in pricing and popularity. What pulled its score down is the lack of custom reporting and payroll tax filing services. It also doesn’t offer phone support or have a support team. If you need help with a feature, you can visit its community forum and access its online user guide, which is more of an FAQ page but with limited information.
HR.my’s sponsorship ads appear from time to time while you’re setting up your time tracking rules and using its online features.
HR.my Features
Cloud-based software
If you’re always on the go, HR.my has a cloud-based system that you can access 24/7 and from any device (such as Windows and Mac computers, Android tablets, and the iPad). No software installation is needed—unlike TimeTrex’s free Community Edition, which you need to download.
Multilingual platform
Of the three free payroll software that we reviewed, only HR.my has a platform that’s multilingual. While its default language is English, you can change it directly from the system and choose from 66 options, which include Chinese, Korean, French, Spanish, Japanese, and Vietnamese.
Feature-rich free HR solution
HR.my doesn’t only provide free payroll tools—you also get time tracking, PTO management, expense claim management, and self-service solutions for employees. However, it doesn’t have the scheduling and performance review tools that TimeTrex offers for free.
Efficient online time clock
HR.my’s time clock solution offers geolocation tracking, facial verifications of clocking in employees, and mobile time-ins/outs for field staff. However, TimeTrex’s time tracking feature is more robust as it has a facial recognition time clock option—employees only have to stand in front of the device’s camera to clock in/out.
Solid pay processing
HR.my’s payroll tools are designed to simplify and automate employee pay processing. It has automatic pay runs and payslips, and you can remit employee salaries through direct deposits or print paychecks. What it doesn’t support are payroll tax filings and year-end reporting—you have to fill out W-2 forms yourself.
If you need help selecting from our list of best free payroll services, follow our step-by-step guide on choosing payroll services.
Alternative Free Payroll Tools
The three free payroll services that we recommend provide you with the essential pay processing tools you need. However, if you’re looking for a simple payroll calculator with check printing options, then consider Paycheck Manager. Not only does it compute employee pay, but it calculates taxes and overtime for free. A downside is that it can print only one paycheck at a time, so it’s only good for businesses with fewer than five employees.
For those who are more comfortable using spreadsheets to handle basic payroll, ExcelPayroll.org is a great alternative. With its free Visual Basic for Applications (VBA) payroll program, you don’t need to manually input formulas to calculate pay. It’s already programmed with the essential formulas and payroll tools you need, plus it keeps numbers updated for the current tax year.
We also have Excel templates for payroll that you can download for free. Check out our guide of free payroll templates, including tips on how to use them.
How We Evaluated the Best Free Payroll Software
We started our research with six providers that offer free payroll services rather than merely free trials. Then, we examined the features and ease of use, focusing on paycheck processing and tax preparation. To view our full evaluation criteria, click through the tabs in the box below.
40%
Payroll Features
20%
Pricing
20%
Ease of Use
10%
Reporting
10%
Popularity
40% of Overall Score
Having free direct deposits to pay employees is preferred, followed by the capability to run payroll on mobile, and calculate and file federal, local, and state taxes. We also considered other tax and payroll functions, such as year-end reporting and multiple employee payment options. TimeTrex earned the highest score here, followed by HR.my then Payroll4Free.
20% of Overall Score
We specifically chose payroll services with free payroll functions. However, we favored those that cover unlimited employees and offered basic HR functions on a forever-free plan. Of the top three software, the provider that didn’t get a perfect score here is Payroll4Free because its payroll service is free only for 25 or fewer employees.
20% of Overall Score
Free is no good if you have to fight the program. We looked for software with an intuitive interface, checked how easy it was to learn, and compared support options. We also considered whether it integrates with other programs or at least allowed CSV file downloads. TimeTrex received the highest score here since it has a relatively user-friendly interface, integrates with third-party software, and offers live phone support. With HR.my and Payroll4Free, you get limited integration options—plus, their platforms aren’t as user-friendly as TimeTrex.
10% of Overall Score
We gave points based on the reports available and whether you could customize them. While the three software we reviewed offer standard payroll reports, only TimeTrex and Payroll4Free have customized reporting.
10% of Overall Score
We considered online user reviews from third-party sites (like G2 and Capterra) based on a 5-star scale, wherein any option with an average of 4+ stars is ideal. Both TimeTrex and HR.my scored well under popularity, whereas Payroll4Free received an average score of 3.85 out of 5 on online review sites.
*Percentages of overall score
Bottom Line
Businesses that are on a tight budget or have limited payroll needs may find free payroll software as a way to save time and help prevent mistakes that can cost money and even legal problems. The free payroll services on our list offer online tools to make your pay processing tasks easier.
Overall, we found TimeTrex to be the best free payroll software because of its wide range of useful features that include tax calculations, automatic pay runs, and free direct deposits. Its free version provides you with efficient payroll and HR tools, while its paid tiers offer even more HR functions. Sign up for a TimeTrex plan today.
