Best Free Payroll Software 2024

Even in its free plan, Payroll4Free.com offers a robust list of features any small business can use to process payroll. Features include employee and contractor payment processing, tax calculations and forms, basic human resource (HR) management tools, 401(k) and other deduction capabilities, employee vacation time tracking, in-depth payroll reporting and an employee portal. In its free plan, companies can pay up to 25 employees.

Payroll4Free.com offers this free plan by displaying small ads inside the software, so users view them as they use the included tools. There are two services that are not provided free of charge. You can have Payroll4Free.com deposit and file your payroll taxes for you via its Payroll Tax Services. You can also pay them to use its bank to process payments via direct deposit instead of your own account. You will pay up to $40 a month for both services.

Learn more: Read our full Payroll4Free.com review.

Who should use it:

Payroll4Free.com is a great match for freelancers who hire contractors and other very small businesses. Its free plan is robust, offering the ability to process payroll on shoestring budgets. Its Payroll Tax Services, coupled with the ability to use the Payroll4Free.com bank account to process payments automatically affordably and with few risks, make Payroll4Free.com a great option for freelancers with no personal accountants.

Using eSmart Paycheck, you can prepare paychecks, calculate federal and state taxes, print checks and pay stubs and print 941 and W2 forms for free. After the first three months―which are free―charges for adding earnings and income types range from $75 for one to five employees to $450 for up to 40 employees. Depositing federal and state taxes, print state payroll forms and e-file state payroll forms require an added $20 to $35 fee.

eSmart Paycheck’s DBA, C&S Technologies, Inc. has been an IRS- and Social Security Administration (SSA)-approved payroll e-filer since 2000, making it stand out from its competitors. It can calculate, deposit and file payroll returns. However, e-file is only available in some states. To find out if your state allows e-filing of payroll taxes and so could benefit from C&S Technologies’ services, visit your state’s tax website. For example, tax.virginia.gov gives a list of all forms that can be e-filed.

Who should use it:

eSmartP aycheck is particularly useful for small companies, freelancers and sole proprietors looking for free or close to free tax IRS and SSA calculating and e-filing services and which operate in states that allow for state payroll tax e-Filing.

HR.my is primarily a human resource management software offering free unlimited payroll processing and human resources (HR) management tools. Its features and capabilities make possible the ability to add and track unlimited employee time worked, attendance, paid time off (PTO), overtime, undertime and expense accounts. You can also issue payslips automatically using the software on a weekly, semiweekly, monthly and even semimonthly basis.

HR.my makes its platform completely free through crowdfunding and paid ads shared on the platform. It offers no ability to upgrade features via paid plans. However, as its developer adds new features to the platform, you can expect to take advantage of these features for free. Planned new additions include, for example, the ability to add and track variable pay and deductions. You can request new features on the “HR.my Upcoming Features Todo List.”

Who should use it:

HR.my is best for companies with large workforces on shoestring budgets, such as nonprofit organizations.

TimeTrex is a workforce management software offering a free set of payroll management tools under its Community Edition plan. Its features include time and attendance, employee scheduling, leave, HR and payroll management. Its automation capabilities make payroll management easy. You can create automation rules to calculate garnishments, benefits, insurance, employee leave, overtime, premiums, accruals and multiple pay rates.

TimeTrex’s paid plans start at $3 per user, with a minimum of 10 users, totaling $30 per month. Paid plans add features to the Community plan’s set of features, including a mobile app software version, facial time clock recognition, Geofencing for tracking employee time on the field, document management, invoicing, customer support, accounts receivable (A/R) and talent management. You can access these features for free via TimeTrex’s free 30-day trial.

Who should use it:

TimeTrex is best for companies needing to save time with automated payroll processing tools that can be applied to employee groups, such as those receiving certain benefits or overtime.

ExcelPayroll is a payroll processing application that runs on Microsoft Excel using preformulated Excel functions. The free version includes the ability to process one to 50 employees’ payroll via check payouts. Other features include tax form printing, deduction management, vacation accrual and workers’ compensation reporting, job expense tracking, variable income tracking and payroll processing, timecard tracking and salary or hourly payroll options.

The free version only covers up to 50 active or currently paid employees, although its database can hold up to 1,000 employees. Nonprofits can exceed that limit upon request. However, for-profit companies must pay to use the software if their workforce exceeds 50 people. While the application is free, you must have already purchased Excel. State tax table updates, an add-on feature, start at $50 with renewals ranging from $40 to $500.

Who should use it:

Given its limited features and familiar interface, businesses with 50 employees or less, nonprofit organizations and students should use ExcelPayroll. Because nonprofits are allowed to remove the 50-employee limit upon request, it is an ideal free payroll software for nonprofits in particular.