What is payroll software?

Payroll software offers tools that make it easier for you to manage and run payroll. Business managers and owners can enter hours worked and salary details, record paycheck deductions and calculate payment amounts for each worker.

Payroll software works well for both small and large organizations. It’s an especially great tool for businesses that don’t have an HR department or an accounting professional.

What to prioritize when choosing free payroll software

As you begin to explore free payroll software options for your business, there are certain features and capabilities to consider.

1. Employee portal

Several free payroll software companies offer a portal where employees can access pay stubs and other helpful payroll data. This can save time for your company and create a more convenient experience for your employees. Through a central portal, employees can access their records without assistance and review their payments and benefits.

2. PTO, sick and vacation leave capabilities

Payroll software can handle and manage paid time off (PTO), sick and vacation leave. This feature can help your business navigate staffing issues. It also gives quick insight into how your team is using their employee benefits.

3. Time-off requests support

Choosing payroll software with time-off request support makes it easier for your business to stay organized. It can also allow you to manage and approve time-off requests quickly.

4. Deduction capabilities

The payroll software you choose can handle deductions when running payroll. Free payroll software that includes deduction capabilities allows for more accurate payroll while supporting efficiency.

5. Multiple payment options

It’s a good idea to consider free payroll software that offers multiple payment options. Check printing is a common way to pay employees, but your staff may appreciate having their paychecks deposited directly into their bank accounts.

6. Hidden fees

Some payroll software may appear to be free or may have a free version with additional costs. As you consider payroll software options, always be sure to check into hidden costs, such as direct deposit fees.

Free payroll software tools

ExcelPayroll

Price: Completely free to use. There are no monthly costs or one-time fees to use this solution.

Key features:

• Supports check payment printing
• Allows for employee tax forms to be printed
• Offers accrual vacation and workers’ compensation reports
• Supports deductions
• Works directly with Excel, meaning you won’t have to install additional software

ExcelPayroll is a payroll solution that’s free to use. There are no monthly subscription costs or payroll fees. While other payroll software may have installation requirements, ExcelPayroll runs directly through PC Excel. As of 2026, the software uses open code, rather than embedded macros, providing improved security, easier troubleshooting and greater transparency.

To use this solution, you’ll download the provided templates and input employee information and payroll details. This is an excellent option for very small businesses that may have no budget for payroll services or payroll software.

Note that while the base software is free, state tax tables cost extra. Fees range from $50 to $100, depending on where your business operates. The software is designed for organizations with 50 employees or fewer. Additionally, it doesn’t support direct deposit.

HR.my

Price: Free to use. There are no costs, and any organization, no matter how small or large, can use this solution.

Key features:

• Costs nothing to use and doesn’t charge extra fees
• Supports unlimited users and unlimited employees
• Uses advanced data encryption and optional two-factor authentication
• Supports payroll tasks and other functions, such as expense management, time-off requests and attendance and time tracking
• Offers employee-accessible web accounts

HR.my is an HR management solution that’s completely free to use. Unlike some of its free software competitors, there’s no maximum number of employees who can be paid with this solution. The platform includes features such as incident management, credential tracking and alerts and reminders.

This software makes it easier for your business to handle payroll, review and manage expenses, track attendance and time and manage employee requests for time off. HR.my also offers employee web accounts, where employees can access payroll details and payroll records. However, note that it doesn’t provide direct deposit services.

Payroll4Free

Price: Free to use for organizations with 9 or fewer workers that pay no more than monthly. The only paid services offered are optional. Federal, state and local payroll tax calculations are included. For an additional fee, Payroll4Free can also make all necessary deposits and filings on behalf of your company, including year-end processing for W-2s.

Key features:

• Takes care of payroll tax calculations and gives companies access to all completed tax forms
• Supports tracking sick, vacation and PTO time
• Employees can use the included employee portal to access payroll details, tax forms and employee benefits information on any device
• Workers can be paid via direct deposit or paper check

As its name suggests, Payroll4Free is a free payroll solution for very small organizations. It supports both employee and contractor payments, and organizations can have a mix of both types of workers and still use the software.

With this tool, you can manage vacation and time off, as well as pay your employees via check or direct deposit. This software enables your company to handle payroll deductions and contributions. Additionally, Payroll4Free offers an employee portal for workers to review payroll details.

Paycheck Manager Free Payroll Calculator

Price: The payroll calculator is free to use. Saving payroll records and using the company’s payroll management service require a paid subscription after a free trial.

Key features:

• Calculates federal and state income tax withholding
• Calculates Social Security and Medicare withholding
• Supports different pay rates and pay schedules
• Accounts for additional withholding and pretax deductions

Paycheck Manager has a free payroll calculator that helps businesses calculate employee take-home pay using U.S. payroll tax information. You can enter earnings, pay frequency and deductions to work out a paycheck.