Payroll is non-negotiable for a business, but buying a comprehensive, paid solution is not an option for most small businesses. Fortunately, there are many free payroll solutions designed to offer essential functionalities that an organization would need to streamline payroll.
In this guide, we will go over some of the best free payroll software for small business in 2025 and review their features, pros, and cons to help you select the right one that perfectly fits your business needs and budget.
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| Software | Best For | Main Features |
Payroll4Free.com | Basic payroll needs with tax filing for small teams | Tax calculation, direct deposit, and employee portals |
Zoho Payroll | Zoho users or small businesses using the Zoho suite | Payroll integration with Zoho tools, automated tax filing, and compliance |
Excel Payroll | Businesses are comfortable with Excel-based payroll | Excel templates, free downloadable payroll system, customizable tax forms |
HR.my | Multilingual support for global teams | Cloud-based, employee self-service, multiple language support, payroll management |
eSmart Paycheck | Companies wanting a reliable payroll calculator | Payroll calculations for hourly and full-time employees |
Paid | Organizations looking to streamline payroll and enhance employee satisfaction | ‘Early Pay’ debit cards, direct deposits, and compliance tracking |
TaxBandits | Businesses that want payroll reporting capabilities | Payroll reports and the employee portal |
PaycheckManager | Suitable for companies that want free payroll calculation capabilities | Unlimited payroll calculations |
PayrollPanda | Businesses operating in Malaysia | Free payroll, free for unlimited employees, and employee self-service |
PayEvo | Ideal for Canadian organizations looking for a simple payroll calculator | Free payroll calculations and the ability to select pay frequency |
Sumo Payroll | Small businesses needing both payroll and HR tools | Cloud-based, employee self-service, time tracking, leave management |
Payroll4Free.com is a payroll services provider that organizations can use for free as long as they are paying ten or fewer employees. The platform’s free services include payroll processing, tax calculation, vacation tracking, and reporting features.
Businesses can also send direct deposits to their employees using their bank account or pay them using paper checks. Employees can view their pay information by accessing the ‘Employee Portal’. Moreover, it ensures businesses are compliant with labor laws by calculating Federal, State, and local taxes, as well as giving access to all the essential forms.
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Zoho Payroll offers a ‘Free’ plan for companies managing ten or fewer employees. It’s an excellent solution for small businesses with its automated payroll calculation capabilities, ensuring timely payroll processing. Businesses can choose to pay employees using a number of ways, including cheque, bank transfers, or cash.
Furthermore, it comes with pay scheduling and role-based permissions, enabling businesses to streamline processes and allowing only relevant people to access compensation information.
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ExcelPayroll is a free, spreadsheet-based payroll solution that provides downloadable Excel templates. This helps small companies to have software to handle payroll without any additional cost. This is an ideal choice for those who prefer manual data management and are comfortable working in Excel. It enables you to simplify payroll calculations, tax filings, and deductions without complex systems.
Additionally, the employee data management feature centralizes employee data, including pay rates and tax withholdings, within an Excel-based system, making payroll management accessible and organized.
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HR.my is a cloud-based payroll software solution with a 100% free pricing model and multilingual support, making it suitable for small businesses with global teams. It offers features not only for payroll but also for attendance tracking, leave management, and employee self-service.
The software comes with an expense management feature that helps track and reimburse employee expenses efficiently. This ensures that all expenses are accounted for and processed promptly. Also, employees can view their pay stubs, tax documents, and update personal details via a self-service portal. This minimizes the workload for HR and enables employees to handle their information independently.
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eSmart Paycheck is a payroll calculator that is designed to help small businesses compute payroll for hourly and salaried employees. The platform also handles deductions like 401(k) contributions and organizations to access printable pay stubs and paychecks.
Users can get payroll management, payroll calculations, and check printing capabilities for free for the first three months, which is invaluable for companies that don’t have massive budgets. It allows companies to test the software in their unique workflows and determine if it’s the right solution for their needs without the risk of losing capital.
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Paid is a modern, powerful payroll solution that’s free and can prove to be extremely helpful for small businesses. The software enables employers to pay their workforce through direct deposits, handle tax filing, and track compliance. These capabilities enable owners to streamline payroll management, giving them more free time to focus on business growth.
Additionally, the platform also offers some unique features like ‘Early Pay’ debit cards, rewards programs, and tools to help set up clear PTO policies. By using these tools, businesses can enhance employee satisfaction rates while ensuring they are being paid accurately and on time.
TaxBandits is another software that aims to help business owners simplify and structure their payroll processing. Organizations can run unlimited free payrolls while ensuring accurate tax calculations with the help of their automated tools.
Moreover, employees get access to their portals, enabling them to get insights into their pay stubs and other details. This accessibility increases transparency and reduces the back-and-forth with HR and employees. Managers also gain access to comprehensive payroll reports, helping them analyze spending on different teams and make data-backed decisions.
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PaycheckManager is another online tool that offers an intuitive payroll calculator. The software supports payroll calculations for multiple locations, including California, Colorado, New York, Alaska, Kansas, and Kentucky.
Businesses can add payroll details like employee salary, name, pay cycle, marital status, and check date. The calculator then generates a clear paycheck mentioning Federal income tax, social security tax, medicare tax, and pre-tax deductions like 401(k) and IRA.
PayrollPanda is a free e-payroll software that is specifically designed for Malaysian businesses. It stands out because there’s no cap on the number of users for it to be free. Businesses can use the software and run payroll while staying compliant with Malaysian laws and requirements.
Pay slips and other important forms can be sent to employees via paper or email. Its reporting capabilities are also extensive, allowing businesses to generate payroll summaries and custom reports.
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PayEvo is an online payroll platform for Canadian businesses that offers a free payroll calculator. It’s a valuable tool for businesses that want accurate payroll estimates without committing to a paid solution. Users can calculate employee compensation for a number of provinces, including Ontario, Quebec, Alberta, and Yukon.
Employers can add in values for tax treatments, pay rates, pay frequency, and more to compute payroll with precision.
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SumoPayroll is a cloud-based payroll and human resources (HR) management system. It is designed to handle payroll, employee attendance, and leaves in one place. This is an ideal choice to streamline all sorts of payroll processes for startups or small companies, from salary calculations to pay slip generation, saving time and improving accuracy. Another great feature that makes it worth your while is leave and expense management, which will simplify leave tracking and expense reimbursements, helping businesses stay organized without complex systems. The software is free for businesses with 10 or fewer employees.
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Cons
We all know selecting the best payroll software for small businesses requires careful consideration of various factors. It is no surprise that small companies often operate with limited budgets and HR support. This is the reason we have selected software that is either completely free or offer a generous free trial period. Here are the factors that we paid attention to:
When choosing free payroll software, you should focus on features that streamline payroll tasks, reduce manual effort, and ensure compliance with tax regulations. Below are some essential features your free payroll software should include:
Managing payroll can be a cumbersome task for any business, whether it’s a large enterprise or a small company. However, for small businesses, it often becomes even more challenging due to limited time and resources. This is where free payroll software can be a game-changer, allowing you to streamline payroll processes and focus on the growth of your business. Here are some key benefits of investing in free payroll software:
In conclusion, free payroll software can provide significant benefits for small businesses, from cost savings to improved compliance and efficiency.
With so many free options available, it’s important to select the one that best fits your specific needs, whether it's automating tax filings, managing employee data, or integrating with existing systems. Each of the options mentioned above offers unique features that can help streamline your payroll processes and reduce administrative burdens.
If you’re still unsure which payroll software is the best fit for your business, feel free to contact us for personalized recommendations. We’re here to help you make the best choice for your business needs.