Did you know that a third of all businesses make incorrect calculations of payroll taxes? This costs them time and money and causes legal issues. Fortunately, they can use free payroll software for small business to get the job done properly. Payroll software is an invaluable tool for businesses as it helps them by calculating business payroll by multiplying the pay rates of employees by the period of hours worked per day and keeping track of employee deductions such as workers’ compensation insurance and taxes. Direct deposit is even offered by some of the free payroll programs available today.
Top 5 Free Payroll Software Options for Small Businesses
Here is a look at 5 of the best free payroll software services that small businesses can use:
This is a service that offers complete payroll functionality free of cost. Payroll4Free.com is available in all 50 states in the U.S.
You can make payments to your employees with paper checks or direct deposit as well as print pay stubs. This free payroll software for small business will calculate all of your tax liabilities and provide you with free-populated forms to submit to the government, including 1099s and W2s.
Payroll4Free.com can also help you find a workers’ compensation insurance policy for free.
This is different from other payroll software services as it is not a full-fledged payroll software. Paycheck Manager is an online calculator that is ideal for one-off calculations of paychecks, or small businesses that, say, have just one employee.
This is a great option for those times when you do not have access to complete payroll software (like on the
weekend at your retail kiosk or a night in your restaurant).
Paycheck Manager is useful when you need to either calculate or estimate a paycheck immediately.
It is also handy if all you need is a tool for calculating payroll and withholding taxes. This online calculator helps you in determining each employee’s paycheck after deductions and taxes and will calculate Medicare, social security and state/federal taxes that need to be deducted.
This is a free payroll software for small business that is especially ideal if you are already using Xero Accounting Software because, depending on the package you have, it is already included for businesses with 5 to 10 employees.
Apart from basic payroll, Xero Payroll helps in managing attendance and calculating tax payments. This software service can even send tax payments automatically if your business is located in one of the 7 states where the service is available.
Xero is an online accounting program for small businesses that is similar to QuickBooks. If you buy a Xero subscription for accounting, free payroll is one of the perks that comes with it.
This is probably one of the top free payroll software services for small businesses available nowadays. Wave is a free integrated business software that offers receipt scanning, invoicing and accounting capabilities.
It is a great choice for freelancers, entrepreneurs and small businesses as it also comes with a complete payroll system that is designed to not just compute but also keep track of employee benefits, bonuses and vacations.
Whether your business payroll scheme is monthly, semi-monthly, weekly or bi-weekly, Wave can support it.
This software comes with a user-friendly dashboard and available customer support and can help you manage payroll information and access banking details securely and promptly.
This is an HR software that comes with an easy-to-use, compliant and flexible payroll system.
Employment Hero offers a free plan that is inclusive of important payroll processing tools such as paperless onboarding, independent contractor tracking and employee file management.
Known for its highly user-friendly, configurable interface, this software also serves as a repository for VEVO checks, HR documents and employment contracts.
Additionally, Employment Hero allows easy access to its knowledge base and mobile application to make
things easy and convenient for you.
The budget of your small business should not keep you from using different software solutions that help in optimizing your payroll processes. As you can see, there is a large selection of free payroll software services for small businesses out there and you can be sure that you will find one that best suits the needs of your business.