Content is created by CNN Underscored’s team of editors who work independently from the CNN Newsroom. CNN earns a commission from partner links on the site but the reporting here is always independent and objective. Advertiser Disclosure
- Money
- Business/ HR & Payroll
By
Karen McCandless
Kristen Coates
Jason Cother,
CNN Underscored Money
Published 1:00 AM EDT, Tue April 30, 2024
So many of the tools businesses use on a daily basis have free versions: email, project management, graphic design and productivity suites can all be accessed initially at no cost. But what about payroll software? Does free payroll software exist? And, if it does, is it a viable option for small and medium-sized businesses?
Let’s examine the top free payroll software options on the market, their pros and cons, and whether or not they’re worth it.
We receive compensation from our partners for Featured Offer placements, which impacts how and where their offer is displayed.
Featured Offers
Gusto
Monthly pricing
From $40 plus $6 per employee
Free trial
Not offered
Paychex
Monthly pricing
From $35 plus $6 per employee
Free trial
30 days
Paycor
Monthly pricing
From $99 plus $5 per employee
Free trial
14 days
SurePayroll
Monthly pricing
From $29.99 plus $5 per employee
Free trial
6 Months
Methodology
Keeping costs low is a major priority for small businesses, and one way to do that is by using as many free or low-cost software tools as possible. While some types of software overlap between free tools and paid tools (where the top or best software vendors offer a free plan with limited features alongside more fully featured paid plans), that isn’t the case for payroll software. Most well-rated payroll software options don’t offer a free forever plan.
Since the functionality of free payroll tools differs so widely, we couldn’t fairly compare them using our standard data-backed weighting approach, as certain tools would be unfairly penalized over others. In practice, this means that we haven’t assigned these products an Editors’ Score or star rating.
To build our list of the top free payroll software options, we gave the highest priority to whether or not each tool identified in our research offers a fully free option that allows you to run payroll for your small business. Once that minimum requirement was met, we compared included features and limitations to ensure that the tools included on our list are options worth exploring for small businesses determined to save money on payroll software. Since the list of truly free payroll options is limited, we also included paid tools that offer a lengthier free trial than most of their competitors (90 days compared to 30) and a free payroll calculator.
Since payroll can be complex, we recommend paying for payroll software by reducing spend in another cost area for your business. You can often find a cheap payroll option that meets your needs. If you’re determined to choose a free payroll software solution, however, you can get started with our research.
Show summary
-
Horilla
: Best free payroll option if you don’t mind open-source software
-
payroll4free
: Best if you want to start free with the option to upgrade
-
HR.my
: Best for comprehensive HR features
-
ExcelPayroll
: Best for advanced Excel users
-
Roll by ADP
: Affordable payroll software that offers a 90-day free trial
-
Paycheck Manager
: Offers a 90-day free trial
Horilla
Best free payroll option if you don’t mind open-source software
Employee limit
Unlimited
Support level
Email, documentation and community forums
Paid upgrade available
Not offered
From participating partners
Why we picked it
Horilla is an open-source free payroll software; open-source software can be used, modified and distributed by anyone. There are benefits to open-source software, such as the level of customization available and the support of a whole community of users who can help fix bugs and make improvements.
Lorem ipsum
A lot of open-source software doesn’t offer any training, help with implementation or live support once you’re up and running. But Horilla is a bit different. While it doesn’t offer live chat or phone support, you can email Horilla or ask for help on its social media platforms. If you prefer to work it out for yourself, you can search the company’s documentation, watch video tutorials or ask the community for help.
Lorem ipsum
In terms of features, Horilla offers:
- Automated tax calculations
- Payroll for different wage types and contract duration
- Deduction management
- Customizable allowances
- Pay stub generation
- Contract management
Lorem ipsum
For small businesses with limited IT and software development resources, open-source software — particularly when it’s used for a complex operation like payroll — can be too risky, since it lacks urgent, accessible support if something goes wrong. However, if you’re a tech-savvy business owner or able to devote some time and resources to getting it set up, you might be able to make Horilla work. You can try the software to decide whether it’d be right for your business, as Horilla offers a demo.
Lorem ipsum
You can also use Horilla’s other software “modules” for free. These modules include attendance and leave management, recruitment and employee management.
Pros
- Free HR functionality
- Automated tax calculations
- Ability to customize allowances and deductions
Cons
- Open-source software can have a steep learning curve
- No dedicated training or specific implementation support
- Lack of post-implementation help
payroll4free
Best if you want to start free with the option to upgrade
Employee limit
Free for up to 10 employees
Support level
Phone and email support available
Paid upgrade available
Yes, for additional employees and extra features
From participating partners
Why we picked it
Payroll4Free.com will suit the needs of a lot of small businesses with a good roster of features for a free payroll software offering, including:
Lorem ipsum
- Ability to pay 1099 contractors and W-2 employees
- Employee portal that allows employees to access and reprint pay stubs and W-2, make changes to their personal information and review vacation time
- Federal, state and local tax filing
- Reports that include tax, benefit, and accrued time off
- Ability to track and calculate vacation, sick leave and PTO
- Direct deposits to employees if using your own bank
- Integration with QuickBooks
- Unlimited customer support (via phone or email)
Lorem ipsum
While Payroll4Free’s basic package is free, you have to pay “a low monthly fee” if you want access to automatic tax filings and deposits through its Payroll Tax Service; otherwise you have to file and deposit taxes yourself. The free package doesn’t include the ability to transfer direct deposit funds to employees directly from Payroll4Free’s bank. You will pay up to $40 a month in total for both the above services.
Lorem ipsum
Payroll4Free is also only free if you’re paying up to 10 employees; you can pay more than 10 employees for an additional fee of $10 per posting for 11-25 employees. Beyond that, the service adds payees in increments of 25 at a cost of $35 per increment per posting. There are also additional fees for wire transfers. When you add them all up, it’s worth checking whether additional charges may ultimately make it more expensive for your business to use than paying a monthly or annual subscription fee for a fully featured payroll solution.
Lorem ipsum
Payroll4Free only works on devices running Windows; it doesn’t support any other operating systems. It also displays ads when you’re using the tool, which may be off-putting for some users. There isn’t an official customer support package, but you can contact the company via phone and email or by filling out a contact form.
Pros
- Employee portal
- Track vacation time
- Pay 1099 contractors
Cons
- Includes ads
- Free payroll limited to 10 employees
- Only available on Windows
HR.my
Best for comprehensive HR features
Employee limit
Unlimited
Support level
No official support available
Paid upgrade available
Not offered
From participating partners
Why we picked it
HR.my free payroll software has an impressive range of HR features but it only provides basic payroll functionality. HR.my automates the payroll process for weekly, biweekly, semimonthly, and monthly payroll periods. It enables you to pay an unlimited number of employees and provides unlimited data storage.
Lorem ipsum
HR.my’s Salary Adjustment module allows you to keep complete records of employee salary changes. You can also make deductions for different salary periods and export your payroll.
Lorem ipsum
The software’s HR functionality includes:
Lorem ipsum
- Expense management
- Leave management
- Attendance management and time clock
- An employee self-service portal
Lorem ipsum
HR.my is run by one person in their spare time and funded through sponsorships and donations via a crowdfunding campaign. This is a less stable business model than a traditional payroll software provider with a roster of employees and a structure and processes in place. As payroll is a crucial business function, you need to be able to rely on your payroll provider to not suddenly cease providing the software or go out of business. This business model means it may also not be suitable for companies in regulated industries, but small businesses on extremely tight budgets may find HR.my useful.
Lorem ipsum
There is no training, demo or customer support beyond a forum and the owner’s ability to answer messages. This is an issue if you need help learning how to use the software or if you encounter a problem and don’t know how to fix it (which could cause a delay in paying employees).
Pros
- Extensive HR functionality
- Pay an unlimited number of employees
- Track employee salary changes
Cons
- No training or onboarding
- No live support
- Unstable business model
ExcelPayroll
Best for advanced Excel users
Employee limit
Free for up to 50 employees
Support level
No live support
Paid upgrade available
Not offered
From participating partners
Why we picked it
ExcelPayroll is a free payroll solution that runs on the desktop version of Excel 2007, Excel 2010 or Excel 2013. You must have already purchased Excel to use this software and you can only use this as an add-on for Excel; it isn’t accessible any other way. If you use Windows 10, Excel 2016, Office 365 or later versions of the software, ExcelPayroll recommends either setting your computer to trust the program or downgrading your version of Windows and Excel.
Lorem ipsum
ExcelPayroll is a downloadable program that works offline, rather than cloud-based software. You can pay up to 50 active employees (although you may have 1,000 employees in your database).
Lorem ipsum
ExcelPayroll’s features include:
Lorem ipsum
- Preformulated Excel functions
- The ability to print tax-related forms such as W-2s
- Deduction and garnishment management
- Withholding and timecard functionality
- Employee vacation accrual tracking
Lorem ipsum
ExcelPayroll only offers a limited feature set and lacks some important payroll functionality, such as the ability to calculate and file local, state and federal taxes, direct deposits (you can print checks but not pay money into your employee’s bank accounts) and reporting.
Lorem ipsum
There is just one file with a list of instructions on how to enter the data into Excel and no other support. ExcelPayroll is only designed for small businesses (not medium-sized businesses), and there are limits on how many employee hours you can pay out as well as how many payroll transactions per year you can make.
Pros
- Easy to use for existing Excel users
- Ability to calculate deductions and garnishes
- Track vacation accrual
Cons
- Must already have Excel installed and may not work with later versions
- Only for companies with up to 50 active employees
- No support
Roll by ADP
Affordable payroll software that offers a 90-day free trial
Independent contractor payment support
Included
Support level
24/7 live customer service
Monthly cost after free trial
$39 base fee + $5 per employee
From participating partners
Why we picked it
Roll by ADP isn’t a free payroll solution, but it offers a 90-day free trial so you have ample time to figure out whether it offers you the payroll functionality you need. Once your trial ends, you’ll pay a base monthly subscription fee of $39 plus $5 for every employee or contractor paid. If you don’t use a certain contractor’s services/need to pay them one month, for example, you won’t pay the $5 for them that month.
Lorem ipsum
Roll by ADP is a chat-based, generative AI payroll app (IBM defines generative AI as “deep-learning models that can generate high-quality text, images and other content based on the data they were trained on”). To carry out payroll-related tasks and find out relevant information, simply send a prompt to the app’s AI-powered chatbot. You can also receive reminders about important tasks, such as when it’s time to do payroll. Roll by ADP provides examples of the sort of questions you can ask — anything from how much employees are paid to help with job descriptions and details like employee tenure. Setup also takes a chat-based approach.
Lorem ipsum
With Roll by ADP, you can also file applicable payroll taxes by sending a text message. It automates the process of calculating and filing local, state and federal taxes for all types of employees, including W-2 and 1099 workers. You also get access to same-day (for a per-transaction fee) or next-day direct deposit functionality, 24/7 live customer service, QuickBooks Online integration, garnishment tracking and off-cycle payroll payments.
Lorem ipsum
Employees and contractors can download the Roll employee portal app to receive notifications and updates on tasks and keep track of their personal information. While Roll by ADP takes a mobile-first approach (it was designed to be a mobile app), you can also use it on your computer by scanning a QR code to open it in your browser. However, it doesn’t include any HR functionality and is currently only available in the US and Ireland.
Pros
- Automated tax calculation and filing
- 90-day free trial
- Automated payroll
Cons
- Not available outside the US and Ireland
- Lack of HR functionality
- No phone support
Paycheck Manager
Offers a 90-day free trial
Independent contractor payment support
Not available
Support level
Phone, email, fax
Monthly cost after free trial
$6 per employee
From participating partners
Why we picked it
Paycheck Manager isn’t free, but you can sign up for a three-month free trial of either its Basic plan (you manage your own payroll taxes) or its Managed Service plan (where the company manages your payroll taxes). Both plans include the following features:
Lorem ipsum
- Unlimited payroll runs
- Calculate and track federal and state taxes
- Real-time update of tax liabilities and tax returns
- Print checks anytime
- Deduction management
Lorem ipsum
If you choose the Basic plan, you have to pay an additional fee for electronic payments to the IRS and state tax authorities, as well as for filing or mailing forms such as W-2s. These features are included (meaning you don’t pay the additional fees) in the Managed Service plan, along with automatic tax deposits and the ability to file returns based on paychecks. While you can “create a support issue” after you log in, there is no official customer support package on offer; you can email, call, fax or mail the company any questions. It’s important to note that there’s also no knowledge base or forum for you to find answers yourself when learning the solution or troubleshooting issues.
Lorem ipsum
After the three-month free trial elapses, the Basic package starts at $6 per month for one employee when paid monthly, while the annual subscription starts at $59 per year for one to three employees. The Managed Service plan’s monthly subscription starts at $12 plus $2 per employee per month, along with a $10 setup fee.
Lorem ipsum
The Basic plan offers limited features compared to other payroll providers, although what it does offer may be sufficient for some small businesses at an affordable price. For example, you can’t manage contractors or pay employees working abroad. There is no HR functionality, integrations or employee portal. The main advantages of Paycheck Manager lie in its unlimited payroll runs and the ability to file taxes from within the software (albeit for a fee).
Pros
- Unlimited payroll runs
- Low monthly fee
- Ability to calculate taxes
Cons
- No official customer support guarantee
- Limited functionality
- Lack of training and implementation support
eSmart Paycheck
If you want a simple and free solution to help you calculate taxes and pay employees accordingly, eSmart Paycheck’s free calculator could be just what you’re looking for. There is no sign-up process; you simply enter the relevant information into the calculator’s various fields and it will provide the results (keep in mind that eSmart Paycheck doesn’t store your results unless you register for an account).
To calculate pay information, all you have to do is add employee details, including hours, salary (flexible, hourly, monthly or annual), overtime, bonuses, commissions, deductions and local tax information. It will then calculate applicable state and federal taxes and enable you to print paychecks based on this information.
Employees can also use the calculator to work out how much tax they will pay and their take-home pay amounts. The most important thing to remember about this free option is that it isn’t payroll software at all. It’s exactly what’s advertised: a free payroll calculator. (In other words: eSmart Paycheck doesn’t pay employees or help you file applicable taxes with federal or state authorities.)
What do I need to know about free payroll software?
Free payroll software can be a good entry-level solution for small businesses with extremely limited budgets. It can provide the basic functionality — such as calculating taxes, running payroll, printing paychecks, managing deductions and tracking time and vacation — needed for a successful payroll run. However, there are some things to think about before choosing to use free payroll software:
- Training and implementation support: Is it a do-it-yourself setup process or will you have access to live help? Is it easy to figure out and use, or does it seem too complex for your technical know-how?
- Customer service: Is there a customer support guarantee, or is it offered on an ad-hoc basis? Does the provider have a phone number for in-the-moment needs, or do you have to submit an issue via email or forum and wait for a response?
- Software model: Is it open-source? If so, will you be able to get things going and solve problems once you’re up and running?
- Business model: Who runs the software provider’s operations, and is it a stable business model? Does the company have the resources to update the software and fix bugs? Does the software include ads as a way to support the free business model?
- Global payroll: Can you have employees outside of the US, or are you limited to US-only? Can you use the free payroll solution in any US state, or is it limited to certain ones?
- Scalability: Is the software only available for companies with a certain number of employees? If so,what will you do when your company grows? Can you upgrade your plan from free to paid if you need additional functionality or to pay more employees than the limit allows?
- Platform support: Do you have to download the software, or is it available online/in the cloud? What platforms and operating systems is it available on?
- Additional fees: Are all the features you need available for free or will you have to pay extra to access specific functionality (like tax filing/assistance)?
- Feature set: Does the software offer everything you need to manage your payroll or will you need to do other payroll-related activities outside of the free payroll solution?
- Future-proofing: Does the software provider keep pace with the times and update it according to new regulations?
What payroll software features should I look for?
- Automated payroll: Instead of manually clicking “run” each payroll period, this feature allows you to set the system to automatically take care of it for you. This can help you avoid delays in paying employees; you can often set this feature to run at different intervals for different groups or types of employees (such as freelancers/contractors vs. in-house team members).
- Unlimited payroll runs: If you have different types of employees (for example, hourly vs. salaried) or anticipate needing on-demand payments in addition to your set pay periods (for things like bonuses, one-time payments, etc.), you won’t want to be limited by how many times you can run payroll within a specific time period.
- Automatic tax calculations: Instead of having to manually calculate how much tax you must pay for each employee, payroll software can do it for you. While offerings vary by provider, most popular payroll software options can calculate local, state and federal taxes, though there may be state and/or pricing tier limitations. (Remember that with free payroll software, you often have to handle this on your own.)
- Automated tax filing: In addition to calculating taxes owed, many payroll solutions can automatically file taxes for you with the relevant tax authorities. Again, the availability of this feature can be limited by state and/or pricing tier (and it’s often not available at all with free payroll software).
- Reporting and analytics: To get an accurate picture of your business’s payroll and tax situation, you need reports. Most payroll software includes customizable reports and dashboards, such as compensation reports filtered by role, cost of payroll per department and overtime worked. Make sure whatever tool you choose offers reports that cover the data points that matter to your business.
- Customer support: Payroll is a crucial business function in terms of both employee satisfaction and compliance, which is why good customer support is so important. Look for software that offers email, live chat and phone support so you can get help when you need it.
- Contractor management: This means that your payroll software allows you to pay external partners, such as1099 freelancers or contractors, as well as in-house team members.
- Global payroll: If you have a distributed workforce — including even one freelancer or contractor in a non-US country, for example — you need payroll software that allows payments in their jurisdiction, meaning it complies with all local laws and regulations to ensure workers in all locations are paid properly.
- HR functionality: In addition to payroll functionality, many popular payroll solutions either include or offer HR features — such as onboarding, absence management and expense reporting — as add-ons. On the flip side, many top HR software options offer payroll functionality.
How much should I budget for payroll software?
Payroll software pricing often consists of a base fee plus a fee for each employee or contractor paid. To calculate total cost, you need to factor in the size of your workforce. For the base fee, you’ll either pay for a monthly or yearly subscription (annual pricing is often discounted). While we listed a number of free payroll software options above, due to the complexity and importance of running payroll, we advise paying for a payroll solution.
Prices vary, but Paycheck Manager’s software starts at $6 per month for one employee, although it offers a limited feature set. Roll by ADP costs $39 base fee per month per $5 per employee. This is a good starting point in understanding how you should budget for payroll software.
Explore our top cheap payroll software picks and our overall roundup of the best payroll software to find the right tool for your business.
We receive compensation from our partners for Featured Offer placements, which impacts how and where their offer is displayed.
Featured Offers
Gusto
Monthly pricing
From $40 plus $6 per employee
Free trial
Not offered
Paychex
Monthly pricing
From $35 plus $6 per employee
Free trial
30 days
Paycor
Monthly pricing
From $99 plus $5 per employee
Free trial
14 days
SurePayroll
Monthly pricing
From $29.99 plus $5 per employee
Free trial
6 Months
Frequently asked questions (FAQs)
Horilla is our pick for the best free payroll software for small businesses. It provides the widest range of features and the most comprehensive support options.
Prices for premium payroll software vary widely, but Patriot Software, for example, charges $17 plus $4 per employee per month while OnPay costs $40 plus $6 per employee per month. QuickBooks starts at $75 plus $6 per employee per month.
Carrying out even basic payroll activities like calculating taxes and deductions is time consuming and error-prone. If you want to save time, ensure accuracy and comply with all relevant laws, we recommend using payroll software.
Make a list of your must-have features and then your nice-to-have features and look for payroll software that matches your list. Consider other factors such as price, customer support and ease of use.
Paycheck Manager’s Basic software plan starts at $6 per month for one employee. A step up from that, Patriot’s Basic payroll plan costs $17 plus $4 per employee or contractor per month.
Running your own payroll is a complex operation, but payroll software is the best way to run your own payroll. Our guides to in-house payroll management and outsourcing your payroll can help.
Editorial Disclaimer: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airlines, hotel chain, or other commercial entity and have not been reviewed, approved or otherwise endorsed by any of such entities.
This content is for educational purposes only and is not intended and should not be understood to constitute financial, investment, insurance or legal advice. All individuals are encouraged to seek advice from a qualified financial professional before making any financial, insurance or investment decisions.
Note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed or may no longer be available.
