Best-Free-Payroll-Software-For-Small-Businesses.avif

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.

document

Claim Your Free Trial and Simplify Payroll Management

Our Picks For Free Payroll Software For Small Businesses

Here are our top picks for businesses that want to use specialized payroll tools cost-free:

  • Payroll4Free.com – Free solution offering all the basic features
  • Zoho Payroll – Best free payroll software for small teams
  • Excel Payroll – Free spreadsheet-based payroll software
  • HR.my – Free payroll and HR solution for businesses
  • eSmart Paycheck – Ideal for calculating pay for hourly and salaried employees
  • Paid – A solid choice to simplify payroll and enhance employee satisfaction
  • TaxBandits – Suitable for businesses wanting strong reporting capabilities
  • PaycheckManager – Best for companies looking for a free, simple payroll calculator
  • PayrollPanda – A comprehensive payroll software for Malaysian businesses
  • PayEvo – A free payroll calculator for Canadian businesses
  • SumoPayroll – A cloud-based software for managing payroll and HR in one place

Comparison Table

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 

1. Payroll4Free.com

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. 

Pros

  • Generates accurate payroll reports
  • Let's businesses process direct deposits and print paper checks for free
  • Printing checks and filing reports is simple and fast

Cons

  • The user interface is a bit outdated, but it works fine
  • Pop-up ads can be annoying at times

2. Zoho Payroll

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.

Pros

  • Onboarding new employees on the company profile is easy
  • Employee is readily available and can be accessed using the platform
  • Allows users to generate pay slips with ease

Cons

  • Does not support batch payrolls
  • Multi-layer process can be improved for better functionality

3. Excel Payroll

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

4. HR.my

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.  

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

5. eSmart Paycheck

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.

Pros

  • Contractor payments and managed payroll help simplify workflows
  • Powerful and reliable tax calculation capabilities
  • Printable paychecks and pay stubs make payroll runs transparent

Cons

  • Lacks multi-state payroll capabilities
  • Employee data needs to be uploaded manually

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.

7. TaxBandits

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.

Pros

  • Completing the tax filing process is simple and takes less time
  • W2 and 1099 forms can be accessed online
  • Navigating to different sections of the software is easy

Cons

  • Filling out some forms takes a lot of time, even with high-speed internet
  • Adding details in some of the fields is challenging due to the limited character count

8. PaycheckManager

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.

9. PayrollPanda

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.

Pros

  • Employees can access their payroll slips and other details
  • Salary calculations do not require any paperwork
  • Employees can apply for their leave in a few steps

Cons

  • Generating payroll reports and pay slips takes some time
  • The mobile app lacks some of the features that are offered in the desktop version

10. PayEvo

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. 

Pros 

  • Calculating deductions is easy and helpful
  • Users can copy and paste net pay to a cheque

Cons 

  • The mobile version displays data in multiple pages instead of one, making it slightly confusing

11. SumoPayroll

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. 

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

How We Chose The Best Free Payroll Software For Small Business?

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.

What Features To Look For In Free Payroll Software For Small Business?

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

Benefits Of Free Payroll Software For Small Business

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.

Making The Final Choice: Best Free Payroll Software For Small Businesses

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.