Best Free Payroll Software for 2021

The future of business is changing at a rapid pace, and the process for managing payroll will no longer be one of its most prominent features. In this blog post you’ll learn about three different software solutions that have been designed to help businesses navigate these changes.

Payroll software that is available for free makes it simpler to process paychecks without going over budget. The best alternatives can compute compensation for hourly and salaried employees, calculate and deduct taxes, and print checks and pay stubs. Some of the software even prepares tax returns and provides direct payment options. We looked at six free payroll systems in this article and reduced it down to our best three picks.

You won’t receive free payroll software if you require software that will automatically update and submit all of your company’s payroll tax rates online. Instead, try using Gusto, a low-cost payroll software. It pays workers by direct deposit, pay card, and manual check, while free software payment choices are frequently restricted and/or charge extra for convenience. Employees may have early access to their paychecks since payroll taxes are computed, submitted, and paid online.

• TimeTrex: (Best overall) Small companies looking for free payroll software can choose TimeTrex.
• HR.my is a free HR and payroll platform for small businesses.
• Payroll4Free.com; Best free payroll platform for businesses with less than 25 employees.

The best free payroll solution for your company is determined by the demands of your employees and business.

How We Decided on the Top 3 Free Payroll Software

We began our investigation with six companies that give free payroll services rather than just free trials. Then, concentrating on paycheck processing and tax preparation, we looked at the features and simplicity of use.

TimeTrex is the best free payroll for small companies, according to our research. Its unlimited-employee plan is completely free and includes a variety of options, such as automated pay runs and direct payments, as well as scheduling and time tracking.

40% of the Total Points

The capacity to pay contractors, operate automatic payroll, and compute federal and state taxes is favored, followed by having free direct deposits to pay workers. Other tax and payroll services, such as year-end reporting and a manual check option, were also examined. HR.my and Payroll4Free.com got poor grades owing to restricted tax services or additional charges, whereas TimeTrex achieved a flawless score.

20% of the Total Points

We picked payroll providers that offered free payroll operations. However, we preferred those that covered an unlimited number of workers and provided basic HR services for free forever. Payroll4Free.com is the only one of the top three software providers that didn’t obtain a perfect grade since their payroll service is only free for businesses with 25 or fewer workers.

20% of the Total Points

If you have to battle the program to get anything for free, it’s not worth it. We sought software with a user-friendly design, as well as ease of learning and support options. We also looked at whether it could be integrated with other applications or, at the very least, download CSV files.

Because it has an easy interface, connects with third-party applications, and provides how-to manuals, TimeTrex scored flawless points in this category. HR.my and Payroll4Free.com have fewer integration choices than TimeTrex, and their systems aren’t as user-friendly.

10% of the Total Points

We awarded scores depending on the kind of reports offered and whether or not they could be customized. Only TimeTrex and Payroll4Free.com provide customizable reporting, while the other two applications we looked at give conventional payroll reports.

10% of the Total Points

On a 5-star scale, any choice with an average of 4+ stars is preferable. We looked at internet user evaluations from third-party sites (such G2 and Capterra). Payroll4Free.com obtained an average rating of 3.80 out of 5 on online review sites, whereas TimeTrex and HR.my rated well under Popularity.

TimeTrex

The Best Free Payroll Software for Small Businesses Overall

PROS

• With free direct deposits, automatic pay runs may be set up.
• Offers a free plan with a lot of features, including payroll, time tracking, scheduling, and HR management tools.
• Other payroll software, such as QuickBooks, ADP, and Paychex, are also compatible.

CONS

• Its dashboard seems to be a little out of date.
• On its website, it’s tough to locate information on the free option and premium plans, and pricing isn’t straightforward.
• Payroll tax filings are not handled by this company.

Total Points 5.00 OUT OF 5

Because it does more than Payroll4Free.com and HR.my, TimeTrex is the finest free payroll software for small enterprises. It received a perfect score of 5 out of 5 in our review and offers free time tracking, scheduling, payroll, and HR management capabilities. You may even buy an online time clock that your workers can use to clock in and out using their web browsers.

TimeTrex also calculates federal, state, and local taxes and creates tax documents (such as W-2s and 1099s). It does not, however, file your taxes for you. If you require tax filing services, Payroll4Free.com is a good option, but it’s not free—you’ll have to pay $15 every month.

In terms of user input, those that provided comments on G2 and Capterra indicated they like the automation that makes time tracking and payroll processing easier. Others have said that, although the site is simple to use, understanding how to navigate through all of its features may be difficult for new users.

TimeTrex has a payroll wizard to assist you with the process.

TimeTrex features strong time tracking tools in addition to payroll processing, making it one of our recommended time and attendance software for small organizations.

Pricing

The TimeTrex Community Edition solution, which is a downloadable open-source workforce management platform, provides free payroll software. There are no employment limitations, and you may use basic HR and payroll systems for free.

TimeTrex also offers three premium product versions (Professional, Corporate, and Enterprise) that include features such as face recognition tablet time clocks, document management, applicant tracking, invoicing, and expenditure tracking. Pricing, on the other hand, is opaque—you must contact the supplier to get an estimate.

According to the individual we spoke with, the cost is determined by the number of workers you have and the system deployment option you choose (cloud-hosted or on-site). For ten workers, you must pay $3 per employee per month for a cloud-based version of its Professional Edition. There’s also a $99.00 account activation cost.

Features

• Free tier with a lot of features: Even at the free level, TimeTrex gives you access to a lot of integrated solutions that will help you manage your workforce. Create schedules, collect clock-ins/outs, manage attendance, monitor paid time off (PTO), pay workers, conduct performance assessments, and record employee information in a single database using online tools. This is in addition to what Payroll4Free.com (which does not include free HR tools) and HR.my (which does not include performance evaluations) give as part of their forever-free solution.
• Online time tracking: With TimeTrex’s web browser-based time clock, you can transform PCs into time-tracking devices for your employees. Geofencing, face recognition time clocks, and mobile time monitoring applications aren’t available in the Community Edition, which is free. If you need geolocation and facial verification capabilities to avoid buddy punching, HR.my is a good choice since it provides these features for free.
• Payroll processing efficiency: With TimeTrex’s payroll solutions, you won’t have to worry about performing your own payroll. It calculates taxes and custom deductions like garnishments, PTO accruals, and benefits, in addition to automatic payroll runs. It also provides electronic pay stubs, free direct deposits, and paychecks in a variety of formats that you may print.
• Integrations with third-party payroll software: TimeTrex works flawlessly with QuickBooks, ADP, Paychex, Ceridian, and Sage. Payroll4Free.com provides limited choices and integrates with other applications via payroll data exports and time data imports. HR.my does not have this feature.
• Custom reporting: You have access to built-in templates that you may edit in addition to basic payroll, HR, and employee reports.

HR.my

Best for Small Businesses in Need of Basic HR and Payroll Software

PROS

• Free HR software with a lot of features
• Payroll, time clocks, and basic HR functions are all available for free on this multilingual platform.
• The cost of further premium features is simply $5 per month.

CONS

• You must be aware of the current tax tables; you are not required to submit payroll taxes.
• The dashboard is simple and seems to be out of the current.
• Customer service is limited.

Total Points 3.53 OUT OF 5

HR.my is a crowdfunded free multilingual HR software. The firm collaborates with individuals who want to translate the program into other languages. It includes basic payroll and HR tools that you may use for free (such as employee information management, time tracking, and expense claims). In our review, it received a 3.53 out of 5 ratings, with good scores for affordability (because its free payroll tool covers an infinite number of workers) and Popularity (its average rating on third-party review sites is 5 out of 5 stars).

What pulled its score down is the lack of custom reporting and phone support, plus tax calculations are done manually. You need to have the current tax tables so that you can input the percentages into its system for calculations. Similar to TimeTrex, HR.my Payroll tax filings are not handled by this company. Now, if this service is an essential feature for you and you’re willing to pay a minimal fee, Payroll4Free.com is a good option as it charges only $15 per month.

While HR.my is simple to set up, the platform seems to be somewhat rudimentary. Its user interface has also been regarded as antiquated, with some users claiming that it is difficult to use, particularly for new staff. Because it lacks support personnel, you must write a remark or message on its Facebook page if you need assistance with a function. You may also browse its online user guide, which is more of a FAQ page with minimal information, and its community forum.

This is the HR.my dashboard where you may add new workers.

Pricing

HR.my is absolutely free, with limitless storage and the ability to add an infinite number of workers. Unlike TimeTrex, which collects fees via paid tiers, HR.my offers a crowdfunding campaign to which you may contribute. You receive the following extra benefits with a $5 monthly sponsorship:

• Access to freshly created features before they are released to the general public.
• Employer and employee online accounts that are ad-free
• Employer accounts get an extra 3,500MB of file storage (or 6,000MB for an annual sponsorship) for every $5 unit of sponsorship.
• HR.my managers will get email alerts in addition to those sent to the HR.my administrator.
• Email alerts with more complex features, such as cost claims, leave requests, and announcements

Features

• HR.my provides a cloud-based system that you may use at any time and from any device if you’re constantly on the road (such as Windows and Mac computers, Android tablets, and the iPad). Unlike TimeTrex’s free Community Edition, which you must download, there is no software installation required.
• Only HR.my provides a multilingual platform out of the three free payroll software we looked at. While English is the system’s default language, you may change it straight from the system to one of 65 languages, including Chinese, Korean, French, Spanish, Japanese, and Vietnamese.
• Free HR software with a lot of features: 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.
• HR.my’s free time monitoring system has additional capabilities than TimeTrex’s free time clock, such as geolocation tracking, face verification of clocking in personnel, and mobile time-ins/outs for field staff.
• Payroll technologies from HR.my are intended to make employee pay processing easier and more automated. You can remit employee wages via direct deposits or print paychecks, and it offers automated pay runs and payslips. Payroll tax filings and year-end reporting aren’t supported, so you’ll have to fill out W-2 forms yourself.

Payroll4Free.com

It’s best for businesses with less than 25 employees.

PROS

• Payroll services that are always free and provide crucial web resources (including an employee portal)
• Email and phone assistance are available, as well as access to payroll and tax professionals.
• Tax filings and direct transfers (not using your own bank) are both inexpensive extras.

CONS

• Only employees with 25 or fewer workers are eligible for free.
• System compatibility is limited (Windows only)
• Ads are present in the payroll program, and the UI seems to be obsolete.

Total Points 3.50 OUT OF 5

Payroll4Free.com is a well-known free payroll software for companies with less than 25 workers. Payroll and taxes are calculated, PTO accruals are tracked, paychecks are printed, and free direct deposits are provided if you use your own bank. Year-end tax reports (W-2s and 1099s) are also handled by the program, which provides you with pre-formatted paperwork to transmit to the authorities. You must pay $15 each month to have Payroll4Free.com file your tax filings.

In our review, it received a 3.50 out of 5 ratings. Because its free payroll application has an employee limit, it didn’t get flawless scores like TimeTrex. Payroll4Free.com has in-app advertisements and is only compatible with machines running the Windows operating system. Furthermore, the software is not as user-friendly as commercial products, requiring additional steps to do tasks that a paid program may complete in a single click.

Payroll4Free.com

Payroll4Free.com is free to use if your company has less than 25 workers. It makes money by placing tiny adverts within the program and by charging fees for the following payroll services, which you can buy as add-ons.

• Deposits and filings of payroll taxes, including year-end reporting: $15 per month
• $15 per month for direct deposits via Payroll4Free.com’s bank.

Features

• Efficient pay processing: It enables you to set up any kind of deduction, contribution, or income in addition to paying workers and calculating taxes (federal, state, and local) for free. Payroll4Free.com will calculate it for you—as long as you specify how these elements should be computed. It’s worth noting that it lacks the integrated time monitoring capabilities that TimeTrex and HR.my both provide for free. Before you can perform payroll, you must manually enter time data into its system.
• Check printing assistance: If you prefer to pay workers via check, Payroll4Free.com can assist you in setting up its software to include whatever information you want on the check. Both HR.my and TimeTrex do not provide the aforementioned free service.
• Access to payroll and tax experts: Aside from unCustomer service is limited., 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’ll receive customized and thorough reports that keep you up to speed on payroll, tax details, PTO accruals, and employee deductions. It may have a variety of reporting options, but they aren’t as extensive as those offered by HR.my and TimeTrex, mainly because these two companies’ free packages contain additional HR solutions.

Free Payroll Software Alternatives

The three free payroll services we propose give you all of the tools you’ll need to conduct payroll. Consider Paycheck Manager if you’re seeking a basic payroll calculator with check printing possibilities. It not only estimates employee salary but also taxes and overtime for free. One disadvantage is that it can only print one paycheck at a time, making it suitable only for organizations with less than five workers.

ExcelPayroll.org is an excellent option for people who are more comfortable handling basic payroll using spreadsheets. You don’t have to manually enter formulae to compute pay using its free VBA payroll tool. It comes pre-loaded with all of the necessary calculations and payroll tools, and it maintains your data up to date for the current tax year.

Conclusion

Free payroll software may be a good option for businesses on a short budget or with minimal payroll requirements to save time and avoid costly errors and even legal issues. The free payroll services on our list include online tools to help you with your payroll processes.

Overall, we judged TimeTrex to be the finest free payroll software because of its extensive feature set, which includes tax computations, automated pay runs, and free direct transfers. Its free edition includes useful payroll and HR capabilities, while subscription plans provide even more HR features.

Frequently Asked Questions

Which is the best free payroll software?

The best free payroll software is QuickBooks.

Is there a way to do payroll for free?

Yes, there is a way to do payroll for free. You can find many websites online such as www.craigslist.com that offer these services at low prices or even completely free of charge.

What is the easiest payroll software to use?

The best payroll software is Quickbooks which has been around since 1992.