You set up the payroll system, the accounting system, you manage all the transactions by yourself and now that time comes to send an invoice. And then you see your customers sending you emails asking you to clarify the amounts they pay for services rendered by your company. It takes time to process these payments and sometimes even months just to get paid. There are situations wherein costs may increase due to changes in labor laws or hike of tax or service charge. The increase of cost causes an imbalance in your accounts which leads to delayed supply of goods and services.
To avoid this situation, it will be helpful if you could automate everything with the use of inexpensive payroll software .
TimeTrex
This free payroll software even integrates your time-tracking with your payroll to help things run more smoothly. The open-sourced community edition of TimeTrex is free to the public, though it doesn’t come with the perks of the paid version, like mobile app and facial recognition timeclock. This version of the software is developed and maintained by volunteers from all over the world, so any support you need for the software will have to come from the community online forum.
It has all of the features of regular payroll software that you’d need to run your business, despite the lack of bells and whistles. Here is a rundown:
- Time and attendance tracking accessible via a web browser for keeping track of employee hours and when they’re working.
- Scheduling features to know who is working, when, and for how long.
- One downside is that there is no tax filing feature and it won’t do your payroll taxes for you like some other options might.
- TimeTrex can integrate with other payroll providers you might have used or might want to use in the future so you can keep all of your information even if you upgrade.
This is a free option created by a community so you won’t get some of the support you might get with a paid option, but other than that, it has great reviews and users report finding it useful.
Payroll4Free.com
It’s always nice when a business’s name can describe exactly what it is that the business does. At the risk of sounding redundant, Payroll4Free is a free payroll software for small businesses. The catch is that it is only free for businesses with under 25 employees (after that, it’s $35 a month). If that’s you, you’ll get access to a nice set of features, including:
- Payment delivery via paper check or direct deposit into the business owners bank account (though you’ll have to pay an additional $12.50 per month to have paychecks deposited into individual employee accounts). Note that you can also print checks with Payroll4Free.
- The ability to pay W-2 workers (full-time employees) and 1099 workers (contractors).
- Calculation of federal, state, and local tax deductions. Payroll4Free will also file your payroll taxes for an additional $12.50 per month.
- The ability to set up benefits deductions to be calculated each payroll period.
- Time tracking of PTO and sick leave.
- An employee portal where employees can print pay stubs and W-2s, review their accrued vacation time, make changes to their personal information, and more.
- A reporting suite where you can view details on earnings, taxes, benefits, accrued time, payroll journal reports, and more.
- Integrations with a variety of accounting software, banks, and benefit companies. You can also import employee hours from a time clock file.
- Customer support via phone, email, and live chat.
Overall, Payroll4Free provides a lot of useful features for a free service. If you’re wondering how they can afford to offer all of this at no charge, it’s because Payroll4Free is paid by other vendors to place ads within its software. As long as that doesn’t bother you, this is a really nice option for businesses with fewer than 25 employees.
HR.my
HR.my offers payroll services and additional HR tools at no cost. Similar to Payroll4Free, HR.my is supported by ads, as well as some crowdfunding. There is no limit to the number of employees you can have on payroll with HR.my, and you can also use HR.my to process payroll for international employees. Here’s a complete list of what you can do with HR.my:
- Deliver payment to your employees via direct deposit, check, or cash. Payroll schedule can be set up to run monthly, semi-monthly, weekly and biweekly.
- Manually set up salary adjustments, deductions, and bonuses for each employee. HR.my cannot support any tax or benefits administration.
- Employees get access to their own HR.my account when you onboard them into the system. From here they can view and print out their most recent pay stub, clock in and out of shifts, request PTO and sick leave, and check their vacation balance. Managers also have the ability to approve or deny vacation requests.
- Use the vacation/sick leave planner to set employee schedules.
- Import timesheets, expense reports, and purchase requests for manager approval using HR.my’s Document Workflow. You can also share documents within the organization, such as the employee handbook and company policies.
- Connections to HR.my are encrypted with SSL protocol. HR.my data is secured with daily off-site backup and data export.
- There is a user guide on the HR.my website, but no other type of customer support is offered.
This is a decent small business free payroll software option for those who may work with employees based outside of the United States. You won’t get the same range of features as you would with Payroll4Free, but you can run payroll for however many employees you need, and never have to worry about paying a cent. Just be sure you stay on top of tax and benefits compliance.
Gusto.
Gusto is one of the most popular payroll software available on the market today. They are a cutting-edge SaaS offering and make old providers like ADP look like they are from the stone age. Gusto provides an intuitive and easy-to-use interface that makes the complete user experience enjoyable and hassle-free.
Plus, it’s capable of handling both general human resource management and essential administrative duties.
Best For:
Its highly user-friendly interface and administrative capabilities make it the most suitable option for small businesses.
Key Features:
- Robust Security: It offers bank-grade security with 256-bit encryption of data flowing between authorized stakeholders
- Child-support Garnishments: It automates the payments for all employees in all states except California
- Automatic Wage Adjustment: Gusto is capable to adjust wages of employees automatically to ensure minimum is paid to everyone and comply with FLSA Tip Credit minimum wage compliance
Pros:
- Automates the payroll management system and direct deposit.
- Calculates and pays off payroll taxes of employees automatically
- HR teams can integrate their payroll setup with multiple accounting tools
- It offers a free trial
- Gusto leverages a nine-step wizard to ensure the setup is easy and accurate
- Employee onboarding – HR experts can use the software to enable self-onboarding for new hires
- Offers faster processing of basic payroll data
- It allows users to save the data and start working at any point in time
Cons:
- Its customer support is not available on weekends
- There’s no option to pay from prepaid debit cards
- You need to download reports to view them especially
Cost:
Gusto offers a 30-days free trial with all the features. Its paid subscription plans start from $39 per month. Moreover, businesses need to pay $6 extra for adding a new user to the system.
Fill out their questionnaire and get started with a free trial of Gusto.
QuickBooks Payroll.
QuickBooks Payroll is one of the preferred choices of businesses of all sizes. It comes equipped with all the advanced online payroll features that can help you automate your processes.
Best For:
It’s one of the best solutions for small business owners to run payroll, and eliminate delays, inaccuracies and tax compliance.
Key Features:
- Full-Service Plan: It offers the support of dedicated in-house experts to automate and drive the payroll process completely
- Employee Self-Service Portal: This is a cost-efficient plan that enables users to customize the software as per their needs and run the entire payroll process on their own
- Tax Guarantee: It offers a no-penalty guarantee on its tax filings. It leverages real-time status tracker and built-in scheduler to notify employees of tax requirements months, weeks, and submission dates.
Pros:
- It offers automated accounting services that are taken care of by QuickBooks Online experts
- The software is capable of transferring funds in one day turnaround time to avoid unnecessary delays
- All payroll requirements and information are readily accessible on the payroll tool
- The executes accounting tasks in real-time to reflect correct payroll data all the time
- It offers hassle-free data collection and submission to the concerned authorities for efficient and reliable tax compliance
- Its advanced data-driven tools deliver smart reporting features for efficient payroll management
Cons:
- Key reports are missing
- Direct customer support is not present
Cost:
The monthly subscription starts at $7 per month and ranges up to $75 per month.
Paychex Flex: Best for Solopreneurs & Employers Needing Dedicated Payroll Support
Overall Score: 4.39 OUT OF 5
What We Like
- Flexible plans
- Payroll and HR features are integrated
- Offers dedicated payroll support
What’s Missing
- Pricing isn’t all transparent
- Payroll tax administration and year-end reporting cost extra
- Access to a dedicated payroll specialist is available only in higher tiers
Paychex Flex Pricing
- Paychex Flex Essentials: $39 per month + $5 per employee
- Paychex Flex Select: Custom-priced
- Paychex Flex Pro: Custom-priced
Paychex Plan for solopreneurs and the self-employed
- Paychex Solo: Custom-priced
Read Full ReviewVisit Paychex Flex
Paychex has a Paychex Solo package that includes payroll, startup/incorporation services, and access to retirement plan options, making it a suitable solution for one-person businesses. Paychex also has numerous tiers that are flexible and cater to companies of different sizes. And unlike Homebase Payroll, which offers payroll only in 36 states, and Gusto, which provides health insurance only in 39 states, it lets you process payroll and provide health insurance in all US states.
Paychex Flex earned a 4.39 out of 5 in our evaluation. It scored the highest in HR features and reporting capabilities, as well as in our expert review criteria in which we assess whether its ease of use, pricing, and HR/payroll tools are ideal for small to midsize businesses (SMBs). However, Paychex doesn’t have transparent pricing for all of its plans. It also charges extra for payroll tax administration and W-2/1099 filings—services that most of the providers in this guide include without extra charges.
Paychex Flex Features
- Flexible plan options: Its Paychex Solo plan is perfect for solopreneurs and the self-employed. Aside from running payroll, Paychex can help them set up their business as an employer and select a retirement plan. None of the other providers in this guide have this type of plan. Paychex offers flexible HR and payroll packages that target businesses of all sizes. And if you ever go through a growth period in which you need an HR expert but aren’t ready to hire, Paychex has a professional employer organization (PEO) service to help you manage essential day-to-day HR processes.
- Workers’ compensation and benefits management: Paychex handles workers’ compensation, and, unlike Gusto, offers health insurance in all 50 states. It also has retirement plans and garnishment payment services that include remitting the garnished wages to the appropriate agencies.
- Multiple payment options: Aside from direct deposits, Paychex supports employee payments made through pay cards and paper checks. It even offers check logo and signing services. However, if you require options that allow you to pay employees fast, Square Payroll has an Instant Payments feature while QuickBooks Payroll offers next- and same-day direct deposits.
- HR tools: Paychex Flex’s higher tiers not only come with payroll tools but several HR solutions as well. In addition to a library of HR documents and an online employee handbook builder, you are granted access to a learning management module to help you run e-training courses for your staff. Screening applicants and welcoming new hires will also be easy with its background checks and online onboarding solutions.
- Experienced customer service: During implementation, Paychex will assign you a representative to help you set up. Once its system is up and running, you get access to US-based support with experienced professionals you can contact 24/7 in case you need assistance. Live chat features, in-app help options, and how-to guides are also available.
Paychex Flex’s Drawbacks
- Pricing isn’t all transparent: The pricing details of its starter Paychex Flex Essentials plan is readily available on Paychex’s website, but the cost of its other tiers, products, and services are not transparent. While you can contact Paychex to request more information, the process of requesting a quote can be inconvenient for those who want to quickly compare the features and fees between different payroll software.
- Add-on fees for year-end reporting and payroll tax administration: Paychex can calculate, pay, and file payroll taxes for you, including year-end tax reports, but you may be charged additional fees for some of the services. If you don’t want to pay extra, consider the other providers in this list—except ADP Run, QuickBooks Payroll (local tax filings are available only in its highest tier), and Patriot Payroll (1099 tax filings cost extra if you’re under its Basic Payroll option).
Top Payroll Software Employers Can Use Free
| Payroll SoftwareWith Free Plans | Payroll Software With Free Trials | |||||
|---|---|---|---|---|---|---|
| Starting Prices | $0 | $0 | $0 | $39 + $6/employee monthly | $39 + $5/employee monthly | $45 + $4/employee monthly |
| Number of Employees Included in Free Plan | Unlimited | Up to 25 | Unlimited | N/A | N/A | N/A |
| Files and Pays Taxes | N/A | With add-on fees | N/A | ✔ | With add-on fees | Yes, but local filings available only in highest plan |
| Preps Year-end Tax Forms | ✔ | ✔ | N/A | ✔ | ✔ | ✔ |
| Benefit Options | N/A | N/A | N/A | ✔ | ✔ | ✔ |
| Modern Interface | N/A | N/A | N/A | ✔ | ✔ | ✔ |
| Live Support | ✔ | ✔ | N/A | ✔ | ✔ | ✔ |
| Free Direct Deposit | ✔ | Free if using your bank account | ✔ | ✔ | ✔ | ✔ |
| Unlimited Pay Runs | ✔ | ✔ | ✔ | ✔ | N/A | ✔ |
| Calculates Taxes and Payroll | ✔ | ✔ | Limited; manual tax rate entry | ✔ | ✔ | ✔ |
| Free Time Tracking | ✔ | N/A | ✔ | Included in higher tiers | With add-on fees | Included in higher tiers |
| Free Scheduling Tools | ✔ | N/A | N/A | N/A | Included in time tracking solution | N/A |
| Free Performance Management | ✔ | N/A | N/A | N/A | N/A | N/A |
| Multilingual | N/A | N/A | ✔ | N/A | N/A | N/A |
| TimeTrex Review | Payroll4Free Review | HR.my Review | Gusto Review | Paychex Review | QuickBooks Payroll Review |
Conclusion
When it comes to managing payroll, the solution is indeed not a free lunch. The good news is that many professional accounting firms offer payroll services at a discounted rate to small businesses, but a majority of SMBs choose existing software solutions instead of hiring a person or a firm for this task.