Introduction
Payroll is a critical business function that requires accuracy and compliance with various tax regulations. While it’s an essential task, managing payroll can be time-consuming and complex for small business owners. Thankfully, there are many free payroll software solutions on the market that simplify the process and remove much of the headaches associated with running payroll. This blog evaluates 15 of the top free payroll options available to help small businesses choose the right solution for their needs.
Methods of Evaluation
To evaluate and rank the top free payroll software, we considered several key factors: features and functionality, pricing and plans, ease of use, and popularity based on metrics like backlinks, traffic and keyword search trends. Features examined include payroll tax calculations, direct deposit capabilities, reporting, onboarding and support. We looked at pricing structures and limitations of the free versions. User reviews and ratings were also taken into account to understand the intuitive design and learning curve. Lastly, we leveraged AHREFS, SEMrush and Google Trends data to rank the software companies by popularity based on online presence and search interest over time.
1. QuickBooks Payroll
QuickBooks Payroll is an all-in-one payroll solution developed by Intuit, the maker of QuickBooks and TurboTax software. As the name suggests, QuickBooks Payroll seamlessly integrates with the QuickBooks accounting software to streamline payroll processing and accounting. Some key features include automated payroll tax calculations, filing of payroll tax returns, printing of pay stubs and W-2 forms.
Pros: Some key advantages of QuickBooks Payroll include:
– Integrates seamlessly with QuickBooks
– Handles all payroll tax calculations automatically
– Free 30-day trial available to test it out
– Affordable pricing for small businesses
Cons: One potential disadvantage is that the payroll functionality is limited compared to dedicated standalone payroll solutions. For example, it has fewer report customization options.
Pricing: QuickBooks Payroll pricing starts at $30/month based on the number of paid employees. Additional add-ons like filing of tax forms costs extra. There are no long term contracts.
QuickBooks Payroll is one of the most popular payroll solutions for small businesses. It currently processes payroll for over 800,000 US customers. Key stats include:
– Supports all 50 US states and many local tax requirements
– Processes over $80 billion in annual payroll
– Supports a maximum of 250 employees per company
– Over 25 years of experience in the payroll industry
2. Xero Payroll
Xero Payroll is payroll software included in Xero’s accounting software package. Xero is an online accounting software for small businesses aimed to simplify accounting and financial management. In addition to core accounting features, Xero also offers payroll processing capabilities.
Pros: Key advantages of Xero Payroll include:
– All-in-one payroll and accounting software from the same provider
– Handles complex payroll needs like payroll taxes, PTO tracking, etc.
– Suitable for both freelancers/contractors and small businesses
– Free version is very cost effective for small teams
Cons: The main disadvantage is that it only supports up to 50 employees. For larger teams, a dedicated payroll solution may be needed.
Pricing: Xero Payroll pricing starts at $0/month for the free version which supports up to 10 employees. For 11-50 employees it is $49/month billed annually. There are no long term contracts or cancellation fees.
Some key stats about Xero Payroll:
– Works for businesses with up to 50 employees
– Does payroll runs and tax filings automatically
– Integrates seamlessly with Xero accounting software
– Free version available for up to 10 employees
3. Salary.com
Salary.com offers a full-featured payroll and HR platform for businesses of all sizes. In addition to integrated payroll processing, Salary.com provides tools for compensation benchmarking, recruiting and onboarding support, performance reviews, and more. With over 25 years of experience, Salary.com aims to provide industry-leading HR expertise to help employers manage their human capital needs.
Pros: Some key advantages of Salary.com include:
– Full HR and payroll platform rather than just a standalone payroll processor
– Robust compensation benchmarking tools to help set fair salaries
– Industry-leading expertise from a company focused solely on HR and compensation
– Intuitive reporting and insights into payroll spend, turnover, and other metrics
Cons: One potential disadvantage is that as a full platform provider rather than just a payroll processor, Salary.com may have a higher total cost of ownership than some other less comprehensive options.
Pricing: Salary.com offers flexible pricing plans starting at $49 per month for basic payroll processing and going up depending on the number of employees and additional modules needed. Custom quotes are available for mid-market and enterprise solutions.
Some key stats about Salary.com include:
– Processes payroll for over 30,000 clients across industries
– Provides compensation data for over 800 job titles
– Benchmarks against salary data from over 30 million surveys
– Has a team of over 300 HR and compensation experts
4. BambooHR
BambooHR is an industry leading HR software and payroll company based in Lindon, Utah. Founded in 2008, BambooHR provides an all-in-one platform for HR, payroll, time tracking, and benefits administration. With over 25,000 customers worldwide, BambooHR aims to simplify HR management and make payroll processing seamless.
Pros: Some key advantages of BambooHR include its user-friendly interface, built-in payroll processing capabilities, 24/7 support, and affordable pricing packages. BambooHR offers an intuitive dashboard and workflow designed for both HR professionals and employees.
Cons: One potential disadvantage is that the payroll processing is only available for businesses in the United States at this time. International customers would need to pursue a separate payroll solution.
Pricing: BambooHR offers various pricing tiers starting from $6 per employee per month for basic HR services up to $12 per employee per month for advanced HR and payroll capabilities. Additional per employee pricing is available for benefits administration and time tracking modules.
Some key stats about BambooHR include: processing payroll for over 1 million employees each month, hosting over 500 integrated benefits plans, and supporting customers across 100+ countries. They have over 300 employees globally and have raised over $150 million in funding to date.
5. Bamboo HR
Bamboo HR is a leading HR software provider offering a full suite of payroll and HR tools. Founded in 2008, BambooHR serves over 20,000 customers worldwide. Their all-in-one solution handles HR, payroll, time tracking, benefits administration and more.
Pros: Some key advantages of BambooHR include:
– Full suite of HR and payroll tools to manage the entire employee lifecycle
– Free Basic plan for very small businesses with under 10 employees
– Highly configurable and customizable system to suit any business needs
– Easy onboarding, detailed reporting and analytics
Cons: One potential disadvantage is that the paid plans may be too expensive for some very small businesses with basic needs.
Pricing: BambooHR offers 4 paid plans starting from $6/employee per month for their Essentials plan up to $15/employee per month for their Premier plan. They also offer a free Basic plan with limited features for companies with under 10 employees.
Some key stats about Bamboo HR include:
– Serving over 20,000 customers globally
– Integrations with over 300+ applications including Slack, Jira and QuickBooks
– Support for all 50 US states and Canada for payroll
– Automatic tax filing and payment for easy compliance
6. Workday Payroll
Workday Payroll is a cloud-based payroll software that is part of Workday’s comprehensive Human Capital Management (HCM) platform. As one of the leading HCM software providers, Workday offers payroll alongside other HR functions like benefits administration, talent management, and more in a single unified system.
Pros: Some key advantages of Workday Payroll include:
– Intuitive, easy to use interface
– Integrated with other HR functions in Workday’s HCM suite
– Robust reporting and analytics capabilities
– Dedicated support from payroll subject matter experts
– Flexible to meet unique payroll needs across countries/industries
Cons: A potential disadvantage is the higher pricing compared to some other standalone payroll solutions, though it may provide additional value as part of Workday’s comprehensive HCM platform.
Pricing: Workday Payroll pricing is customizable based on factors like the number of employees, modules/functions needed, level of support, etc. but generally starts at $5+ per employee per month for basic payroll processing functionality.
Some key stats about Workday Payroll include:
– More than 6,000 customers worldwide across all industries
– Processes payroll for over 25 million employees globally
– Dedicated payroll specialists to assist with onboarding, ongoing support, and more
7. Wave Payroll
Wave Payroll is a cloud-based payroll software created by Wave Financial to help small businesses with their payroll needs. Wave Payroll allows businesses to manage payroll, pay employees, and file payroll taxes accurately and on time.
Pros: Some key advantages of Wave Payroll include:
– Intuitive and easy to use interface designed for small businesses
– Free support resources like online help articles and phone support included
– Automatically calculates payroll taxes and files tax forms
– Direct deposit payroll to pay employees electronically
Cons: The main disadvantage is Wave Payroll is only free for businesses with up to 25 employees. For those with more than 25 employees, paid subscription plans are required starting at $30/month.
Pricing: Wave Payroll is completely free for businesses with up to 25 employees. For those with more employees, paid plans start at $30/month for businesses with 26-100 employees.
Some key stats about Wave Payroll include:
– Free for businesses with up to 25 employees
– Over 500,000 users globally
– Integrates with Wave invoicing and accounting software
– Direct deposit payroll available
8. Paychex Flex
Paychex Flex is a leading payroll and human capital management solution developed by Paychex, a company that has been providing payroll services for over 50 years. With clients ranging from small businesses to large enterprises, Paychex Flex offers core payroll processing along with robust HR capabilities.
Pros: Some key advantages of using Paychex Flex include:
– Affordable pricing plans available for businesses of all sizes.
– Powerful payroll and HR features help simplify compliance and management.
– Robust reporting and analysis tools provide valuable business insights.
– Handles all federal and state payroll taxes and filings automatically.
Cons: One potential disadvantage is that advanced customization options may be limited compared to some competitor products geared towards very large enterprises.
Pricing: Paychex Flex offers several affordable payroll processing plans starting at $29 per month for Bronze package. Pricing increases based on number of paid employees and additional optional HR features. All plans cover full-service payroll processing, tax filing and payment. Live phone support is also included.
Some key stats about Paychex Flex include:
– Over 650,000 clients use Paychex Flex payroll and HR services.
– Processes over $1 trillion in payroll transactions annually.
– Handles payroll tax filing and payment for all 50 U.S. states.
– Offers 24/7 self-service support and live phone/chat/email assistance.
9. Zenefits
Zenefits is a leading online payroll and HR platform based in San Francisco. Founded in 2013, Zenefits offers a free payroll processing option that is integrated into their full-featured HR management software. They aim to simplify HR, benefits, and payroll management for small and medium-sized businesses.
Pros: Some key advantages of Zenefits include:
– Free base HR package for up to 50 employees
– Integrated payroll processing included
– Robust HR management platform with features like employee onboarding, time-off tracking, documentation storage
– Dedicated specialists available for onboarding, support, and payroll processing questions
Cons: One potential disadvantage is that the free version only supports up to 50 employees – businesses with more employees would need an upgraded paid package.
Pricing: Zenefits offers a free basic HR and payroll package for up to 50 employees. For larger payrolls or additional advanced features, paid subscription plans start at $8/employee/month for their ‘Premium’ tier.
Some key stats about Zenefits include:
– Over 20,000 customers across the US
– Supports payrolls of all sizes from 1 employee to thousands
– Processes over $6 billion in payroll transactions annually
– Named one of Fast Company’s ’10 Most Innovative Companies of 2015′
10. Paycor
Paycor is a leading provider of human capital management (HCM) software. Founded in 1990 and headquartered in Cincinnati, Ohio, Paycor focuses on providing HCM solutions including payroll, HR, and talent management capabilities. With over 30 years of experience in the industry, Paycor works with over 24,000 organizations of all sizes nationwide.
Pros: Key advantages of Paycor’s HCM solution include:
– Feature-rich HR and payroll software with capabilities for recruitment, onboarding, performance management, and more
– Dedicated account management teams to help customers leverage the full capabilities of the platform
– Self-service HR capabilities allowing employees to access details like pay stubs, PTO balances, and more on their own
– Mobile support for iOS and Android, allowing managers and employees to access HR functions from any device
Cons: One potential disadvantage is that Paycor is best suited for mid-sized to larger organizations due to some of their systems and setup requirements. Small businesses with fewer than 50 employees may find some of their capabilities and pricing unneeded.
Pricing: Paycor offers flexible pricing tailored to business needs. Basic payroll processing starts at $15 per month per employee. Additional HR modules like time & attendance, recruiting, onboarding, performance management, and learning management can be added on an a la carte basis or as part of one of their bundled solutions.
Some key stats about Paycor include:
– Processes payroll for over 24,000 organizations nationwide
– Serves customers across various industries including healthcare, manufacturing, and professional services
– Supports payroll and HR needs for organizations with as few as 5 employees up to those with over 50,000 employees
– Integrates with over 150+ third-party applications including accounting, ERP, and ATS systems
11. Insperity
Insperity offers a comprehensive payroll and HR solution designed to help businesses of all sizes. Founded in 1986, Insperity specializes in providing human resources and business solutions that have helped America’s best companies prosper for 30 years. With Insperity’s cloud-based solution, businesses gain access to full-service payroll processing, employee benefits administration, HR guidance, and more.
Pros: Some of the key advantages of Insperity’s payroll software include:
– Comprehensive payroll and HR solution in one place
– Free 45-day trial with no obligations
– Guidance on HR best practices and compliance laws from dedicated account managers
– Support for payroll, time and attendance, benefits, and other HR needs
Cons: One potential disadvantage is that the pricing may be higher than some other non-full-service options since Insperity handles all payroll processing and HR support services.
Pricing: Insperity’s pricing starts at $49 per employee per month for basic payroll and HR services. Additional fees apply for services like time and attendance tracking, 401k plans, and other premium offerings. The price does not include additional state or federal taxes that will be calculated and paid on the client’s behalf.
Some key stats about Insperity include:
– Processes payroll for over 100,000 businesses nationwide
– Supports companies with as few as 5 employees all the way up to those with thousands of employees
– Offers a free 45-day trial for new customers
– Dedicated HR advisors provide guidance tailored to each business’s individual needs
12. Patriot Payroll
Patriot Payroll is affordable, easy-to-use online payroll software designed specifically for small businesses. Founded in 2003, Patriot Payroll is a division of Patriot Software, a leading provider of accounting and payroll solutions. Unlike other payroll providers that focus on large enterprises, Patriot Payroll understands the unique needs of small businesses and is committed to providing a hassle-free experience.
Pros: Some key advantages of Patriot Payroll include:
– Intuitive and simple interface making it easy for non-accountants to use
– Full support from US-based payroll experts
– Integrates seamlessly with Patriot accounting software for simplified financial management
– Affordable pricing tailored for small business budgets
Cons: The main disadvantage is that premium paid features and higher employee caps require paid subscription plans.
Pricing: Patriot Payroll offers three pricing tiers:
– Free Plan: Free basic payroll for up to 10 employees
– Premium Plan: $20/month billed annually for up to 50 employees
– Elite Plan: $40/month billed annually for unlimited employees
Some key stats about Patriot Payroll include:
– Serves over 50,000 small businesses across the US
– Processes over $6 billion in annual payroll
– Offers free basic payroll for companies with 10 employees or fewer
13. Dayforce
Dayforce is a leading cloud-based HCM platform developed by Ceridian. It offers integrated payroll, HR, benefits, workforce management and talent management capabilities to organizations of all sizes. Some key features include core HR functions, real-time payroll processing, time and attendance tracking, applicant tracking and onboarding tools.
Pros: Some key advantages of Dayforce include its robust HR and payroll platform, variety of pricing plans available to suit different budget and size needs, dedicated customer support specialists, and strong reporting and analytics tools.
Cons: One potential disadvantage is that the premium pricing tiers could be cost-prohibitive for some very small businesses with limited HR or payroll needs.
Pricing: Dayforce offers several pricing tiers starting from Essentials which is suitable for small businesses with fewer than 50 employees priced at $6 per employee per month. The Premier tier is designed for mid-sized companies and starts at $12 per employee per month. The top Enterprise tier has custom quotes for large enterprises.
Dayforce currently supports over 4,000 organizations and processes payrolls for over 1 million employees globally. It offers flexible deployment options and is highly configurable to meet diverse industry and company requirements. The platform is highly scalable and reliable with over 99.99% uptime.
14. Kronos Workforce Ready
Kronos Workforce Ready is a cloud-based payroll and workforce management solution developed by UKG. Formerly known as Kronos, the software aims to simplify payroll processing, time and attendance tracking, scheduling, and HR tasks through an integrated suite of products.
Pros: Some key advantages of Kronos Workforce Ready include:
– Comprehensive workforce management capabilities including scheduling, attendance tracking and payroll processing
– Intuitive user interface that is easy for both managers and employees to use
– Robust HRIS and time and attendance tools to streamline many HR and payroll processes
– Offers a free 30-day trial to test out the full system capabilities before committing
Cons: One potential disadvantage is that the full suite of features may be overkill for some smaller businesses and the pricing could be higher than other options aimed at smaller organizations.
Pricing: Kronos Workforce Ready pricing starts at $49 per month for the essentials package and scales up based on number of employees and modules required. Additional services like implementation, training and support are also available for an extra fee.
Some key stats about Kronos Workforce Ready include:
– Used by over 7000 organizations globally
– Supports payroll for over 30 million employees
– Integrates with over 300 HR and payroll systems
15. FreeAgent
FreeAgent is cloud-based accounting software for small businesses. Founded in 2006 and based in Edinburgh, Scotland, FreeAgent serves over 30,000 customers worldwide. The software offers integrated accounting, invoicing, expenses, payroll, reports and analytics to help small businesses manage their finances.
Pros: Some key advantages of FreeAgent include:
– Powerful reporting and analytics to help track business performance
– Full-featured payroll solution to manage employee wages and taxes
– Seamless integration with other business applications like Xero and QuickBooks
– Mobile apps available to manage finances on the go
– Affordable pricing plans for small businesses
Cons: A potential disadvantage is that FreeAgent is mainly targeted at UK-based businesses, so some features may not be as applicable for businesses in other countries.
Pricing: FreeAgent offers three pricing tiers:
– Free plan for up to 2 users
– Premium plan starting at £12/month for up to 3 users
– Premium Plus plan starting at £24/month for up to 5 users
All paid plans include unlimited invoice templates, unlimited bank feeds, multi-currency support and more.
Some key statistics about FreeAgent include:
– Serves over 30,000 customers globally
– Based in the UK but serves customers worldwide
– Integrates with over 30 other accounting and bookkeeping applications
– Offers both payroll and invoicing solutions in addition to core accounting functions
Conclusion
While every business has unique payroll needs, this comprehensive evaluation of the top free payroll software options provides a great starting point for small businesses searching for the right solution. Whether you need basic payroll processing, robust HR features or dedicated support, there is an affordable or free option that can help simplify this important business function. Consider your specific needs and budget, then evaluate the top options based on the key factors discussed to select the best payroll solution for your growing company.