Payroll4Free

Payroll4Free is payroll software for U.S. employers that pay employees and 1099 contractors. It suits very small businesses running payroll monthly, but the free service’s strict headcount and frequency cap—and optional fees for tax deposits and direct deposit—limit its appeal.

Overview

Payroll4Free combines payroll processing with tax calculations, time tracking, employee access and reporting. For a small employer, that breadth can replace several basic administrative tools; it does not make every part of payroll free. The no-cost service is advertising-supported and applies only to employers paying nine or fewer people no more than once a month.

That cap is decisive: businesses with larger teams or more frequent pay runs need another arrangement. Even eligible employers should account for optional charges if they want Payroll4Free to handle tax deposits or employee direct-deposit transfers through its bank.

Key features

Payroll, taxes and payments

The software handles pay for employees and 1099 contractors and supports year-end 1099 forms. It calculates federal, state and local taxes and prepares filled-out tax forms. Tax filing is included, but depositing and filing payroll taxes on the employer’s behalf requires the optional Payroll Tax Service. Employers can use paper checks, direct deposit or both; transfers through Payroll4Free’s bank require its separate Direct Deposit Service.

Time, employee access and reporting

Configurable rules accrue vacation, sick and PTO hours, making the time features useful for tracking common leave balances alongside payroll. Employees can view pay information online, reprint paystubs and W-2s, check accrued vacation and update personal information. Reports cover earnings, taxes, benefits, accrued time and payroll journals, while the free service also includes outside-software integrations and human-resource functions.

Security and support

Payroll4Free says it uses 2048-bit SSL encryption, stores encrypted client data in Amazon Cloud and requires a browser extension. It also says experienced payroll and tax professionals provide customer service and payroll advice. Those are useful assurances for employers handling payroll data, though the required extension adds a software dependency.

Pricing

Free basic services: free, for nine or fewer employees paid monthly. The plan is advertising-supported. Its headcount and pay-frequency limits make it a fit for a small, monthly payroll, not a growing team or weekly pay cycle.

Payroll Tax Services: $35,350 a month, billed monthly / annual, with the first two tax authorities included. This is the optional service for depositing and filing payroll taxes on the customer’s behalf. The stated price is far above the free basic plan, so employers should weigh it carefully against handling tax deposits themselves.

Direct Deposit Services: $35,350 a month, billed monthly / annual, as a recurring service fee. It covers employee direct-deposit transfers through Payroll4Free’s bank; paper-check payments remain an alternative. The paid options are described as monthly services, but the stated paid-from figure is 15 /mo, so confirm the applicable charge before choosing either service.

Payroll4Free is freemium, with paid plans from 15 /mo. No separate free-trial term is given. Multi-state payroll and contractor payments are supported, but the free plan’s nine-employee cap still applies.

Platforms

Payroll4Free is available as a web service and Windows application, as well as an extension. Installing the downloadable application requires Microsoft Edge WebView2 Runtime, a consideration for employers setting up Windows machines.

Who it's for

Payroll4Free is best suited to a small U.S. employer paying no more than nine people once a month, particularly one that can use paper checks and manage tax deposits without the paid services. Its contractor support, leave accruals, employee portal and reporting add useful scope within that narrow use case. Employers above the free cap, those needing more frequent payroll, or those expecting the paid tax and direct-deposit services to be inexpensive should compare alternatives.

Pros and cons

• Pros: Basic payroll costs nothing for up to nine employees paid monthly, keeping the entry cost low for a small employer.
• Pros: Employee and contractor pay, tax calculations, leave accruals, employee self-service and payroll reports cover several routine payroll needs in one system.
• Cons: The free service excludes employers with more than nine people or pay runs more often than monthly.
• Cons: Tax deposits and direct-deposit transfers through Payroll4Free are separate paid services, and the listed monthly service prices are substantial.
• Cons: The Windows download requires WebView2 Runtime, and use also requires a browser extension.

Alternatives

For a different nonprofit-focused shortlist, browse Nonprofit Payroll Software. Choose Wave instead if you need free estimates, invoices, bills and bookkeeping records, rather than Payroll4Free’s payroll focus. Consider PayFWDs if custom pricing based on employee count, payroll frequency, states worked, and time and attendance better fits your needs. Rippling is another paid option to compare.

CDM+ may suit readers looking for a paid product with a free trial; its Essentials plan is $25 a month for one program and one user. MIP Payroll is worth considering if you want payroll and HR modules with direct deposit and employee web services. Workday Benefits is another paid option to compare. Homebase may fit readers seeking a freemium labor-management tool with optional task and tip manager add-ons. ADP Workforce Now is an alternative to compare for an all-in-one payroll and HR suite.

Verdict

Choose Payroll4Free if you run a small, monthly payroll for nine or fewer people and want payroll, tax calculations, leave tracking and employee self-service without a basic-service fee. Its breadth is compelling within that cap. Look elsewhere if you exceed it, need more frequent payroll, or want Payroll4Free to handle tax deposits and direct-deposit transfers without substantial added charges.