Best Free Payroll Software For Small Businesses (2024)

Feeling overwhelmed by all the payroll software options out there? We hear you. Choosing the best free payroll software for your small business can be tricky with so many features, pricing plans, and mixed reviews to sift through. 

But don’t worry, by the end of this article, you'll feel confident in your decision and ready to streamline your payroll process.

Here’s what we’ll cover for each payroll software:

• Key features, pros, and cons
• Pricing comparisons and free trial details
• User reviews and who each product is best for

TL;DR – What's the best free payroll software for small businesses? If you’re short on time, the best option is Checkmark Payroll. With its robust features, free trial, and integration options, it offers the most value and flexibility for small businesses.

Ready for more? Let’s dive in!

• Checkmark Payroll – Ideal for companies seeking a desktop-based payroll solution 
• OnPay Payroll — User-friendly software streamlining payroll with automatic tax filing features 
• Patriot Payroll — Best simplified payroll software with a three-step payroll process
• Payroll4Free.com – Free solution offering all the basic features
• SumoPayroll – A cloud-based software for managing payroll and HR in one place 
• TimeTrex – All-in-one platform with scheduling and time-tracking features
• Zoho Payroll — Best free payroll software for small teams
• ExcelPayroll — Free spreadsheet-based payroll software
• HR.my — Free payroll and HR solution for businesses 

Company	Best for	Main Features	Pricing
Checkmark Payroll	Desktop users who prefer an offline payroll tool	Payroll software, tax calculations, customizable reports	Free 60-day trial, paid plans available afterward
OnPay	Businesses looking for automatic tax filing and compliance	Automatic tax filings, benefits management, easy-to-use interface	Get your first month free and pay after trial
Patriot Payroll	Simplified payroll processes	3-step payroll, employee management, tax calculations	30-day free trial, affordable paid plans
Payroll4Free.com	Basic payroll needs with tax filing for small teams	Tax calculation, direct deposit, employee portals	Free for 10 or less people
SumoPayroll	Small businesses needing both payroll and HR tools	Cloud-based, employee self-service, time tracking, leave management	Free for employees less than 10
TimeTrex	Companies needing payroll, time tracking, and scheduling	Payroll, scheduling, time tracking, employee attendance tracking	30-day free trial $50/month (10 users) afterwards
Zoho Payroll	Zoho users or small businesses using Zoho suite	Payroll integration with Zoho tools, automated tax filing, compliance	14-day free trial, paid afterward
ExcelPayroll	Businesses comfortable with Excel-based payroll	Excel templates, free downloadable payroll system, customizable tax forms	Free for Excel users
HR.my	Multilingual support for global teams	Cloud-based, employee self-service, multiple language support, payroll management	Completely free

Checkmark Payroll is a versatile payroll software for small businesses. It offers a range of features that simplify payroll processing, tax management, and employee payments, making it an ideal choice for businesses looking for a reliable and efficient payroll solution. 

Additionally, Checkmark Payroll offers a free trial for 60 days, allowing you to explore its features and benefits before committing to a subscription which can be beneficial for businesses that just started out.

With the ability to run unlimited payrolls, you get the flexibility to do it for any number of employees or companies without extra charges. 

Thanks to direct deposit, you can ensure timely and secure salary disbursements. It includes built-in federal and state withholding tables, allowing businesses to generate completed tax forms like 941, W-2, and 940 without a worry.

Pros 

• Supports secure and timely salary disbursements
• Allows setup of multiple incomes and tax-exempt deductions 
• Integrates with popular accounting software

Cons

• Lacks a dedicated job costing feature separate from its accounting software ‘MultiLedger’
• Initial setup and configuration can be time-consuming 

OnPay is a full-service payroll and HR software that is designed while keeping the needs of small and medium-sized businesses in mind. 

It offers a comprehensive suite of features that streamline payroll processing, tax management, and HR tasks. This makes it an excellent choice for businesses looking for an all-in-one solution.

The software includes built-in HR tools for recruitment, onboarding, and managing employees. It helps businesses streamline their HR processes and stay organized and focused on other decision-making tasks. 

Additionally, you can manage employee benefits such as health insurance, 401(k) plans, and workers’ compensation. This feature helps small companies to attract and retain talent by providing competitive benefits packages.

Plus, you can enjoy the first month free to explore its capabilities. 

Pros 

• Comprehensive tax handling for multiple states
• Employees can onboard themselves through invitations
• Reports are well laid out and helpful in managing payroll 

Cons

• Customer service can be unresponsive
• Setting up PTO or vacation policies can be confusing

Patriot Payroll is a user-friendly platform known for its three-step payroll process. It ensures payroll operations are done efficiently and quickly. 

This software is an excellent choice for businesses with no dedicated HR team as it handles payroll management and various tasks such as onboarding, employee management, and time and attendance management. 

Its tax calculation feature ensures compliance with all laws and regulations. While it offers a paid plan, the 30-day free trial enables you to test it to see if it is the right fit for your business.

Besides this, Patriot Payroll can automatically generate journal entries for gross pay, deductions, and taxes, streamlining payroll and accounting, which is beneficial for businesses with limited resources. 

Pros 

• It handles all tax remittances and reporting 
• The software is user-friendly with a simple interface 
• Customer service is highly responsive and knowledgeable

Cons

• Navigating through reports could be improved 
• Setting up automated withdrawals can be challenging initially

Payroll4Free.com is an excellent choice for small businesses looking for a payroll platform without spending a fortune. 

The software offers free services for up to ten employees and includes basic features such as an employee portal, time tracking, and payroll calculations. 

The software comes with a tax management feature that automatically calculates federal, state, and local taxes, reducing the need for a tax professional. 

Moreover, your employees can view payroll information, download pay stubs, and manage tax forms, reducing the administrative burden on HR staff. 

It will enable you to track vacation time and provide reports to stay organized, aiding in tax preparation and business decisions. 

Pros 

• Offers advanced payroll functionalities like tax calculations and compliance tools 
• Simple setup process and easy to navigate 
• Allows employees to access their own payroll records 

Cons

• Limited customization for reports 
• Ads present in the free version 

Next on the list is the SumoPayroll, 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 payslip 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. 

Pros 

• Enables same-day salary disbursements to employees 
• Efficiently handles leave management 
• All-in-one HR and payroll platform

Cons

• Customer support may not be so responsive 
• Requires a stable internet connection 

TimeTrex is a powerful, open-source payroll software designed for small businesses searching for a full suite of payroll, scheduling, and time-tracking features. 

You can take advantage of a 30-day free trial to test the software before committing. It is a good choice as the software automates time and attendance tracking, eliminating manual timesheets and reducing payroll errors. 

You can easily manage employee schedules, shift assignments, and time-off requests, helping businesses optimize workforce productivity and reduce scheduling conflicts. 

Moreover, if you have a team with remote employees, you can definitely take advantage of its geolocation and geofencing capability that ensure accurate clock-ins and clock-outs based on employee location, preventing time fraud. 

Pros 

• Reliable and accurate time tracking 
• Excellent customer support and responsive tech team 
• Comprehensive job tracking and payroll features 

Cons

• Limited customization options for reports and invoices 
• No undo button for errors 

Next is Zoho Payroll that offers a comprehensive platform to help small businesses manage their payroll operations. 

It helps you simplify the payroll process by offering automated calculations for wages, taxes, and deductions. This saves your time and eliminates the need to have a dedicated payroll staff. 

With built-in employee management features, Zoho Payroll allows you to track attendance, manage leave, and provide employees with self-service access to payslips and tax forms.

Moreover, you can have access to customizable pay schedules. It will allow you to set up and manage different pay schedules, such as weekly, bi-weekly, or monthly. 

This flexibility ensures that payroll processing aligns with the specific needs of your business and employees, making it a cost-effective option.

You can start a 14-day free trial to explore all the features and get hands-on experience before making a commitment. 

Pros 

• Automatically calculates wages, taxes, and deductions 
• Ensures compliance with local tax laws and regulations 
• The dashboard is intuitive and easy to navigate 

Cons

• Lack of customization options 
• Requires a good internet connection to function properly

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. 

Pros 

• It doesn’t rely on an internet connection 
• There is no additional learning curve 
• Helps tax form preparations

Cons

• Offers basic features
• Requires manual input

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 have the ability to 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 own information independently.

Pros 

• Great integration capabilities
• Good time tracking and attendance system
• Mobile app for managing payroll on the go 

Cons

• The new user interface is not user-friendly 
• The dashboard lacks graphical representation

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: 

• Comprehensive Payroll Features: Managing payroll involves more than just paying employees. Businesses need tax calculation, compliance regulation, and reporting tools to stay organized and avoid costly penalties. This is why we chose the solutions that offer other features like built-in tax calculations and reporting tools 
• Ease Of Use: Small business owners don’t always have the time or technical expertise to navigate complicated systems. Keeping this in mind, we looked for software with intuitive interfaces and simple setup processes 
• HR Integration: Many small businesses prefer all-in-one solutions to handle payroll and HR needs, such as attendance tracking, leave management, and benefits administration. We picked platforms that go beyond payroll and offer integrated HR tools 
• Customization And Flexibility: Flexibility is critical, especially for businesses with unique payroll requirements. This is why we prioritized software that offers customization options, allowing you to tailor it to fit your specific requirements 
• Compliance And Tax Filing: Staying compliant with payroll regulations is essential for small businesses to avoid fines and legal complications, yet many lack the resources for comprehensive tax expertise. We’ve included software that simplifies compliance, taking this burden off the business owner's shoulders

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:

• Direct deposit
• Tax calculation and filing
• Compliance management
• Integrations
• Employee self-service portals
• Mobile access 
• Time tracking and attendance

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: 

• Time Efficiency: Payroll processing can take up a significant portion of a business owner’s time when done manually. A free software streamlines the whole process and enables them to spend less time on payroll and more on growth-focused activities 
• Increased Accuracy: Undoubtedly, manual payroll processing is prone to errors and that can lead to legal issues and dissatisfied employees. With the help of payroll software, you can ensure accurate payroll calculation and provide checks and balances before they can become problems
• Cost Savings: With a free payroll solution, small companies don't have to spend a fortune to get costly payroll services. It allows you to allocate funds for other critical areas of your business 
• Accessibility And Convenience: Since most of the software is cloud-based, you can access it any time, from anywhere. This is useful for small business owners who have to handle core tasks themselves. It gives them the flexibility to manage payroll remotely with ease

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.