Free payroll software in 2026: honest review
Free US payroll software is mostly a marketing claim. This page is the unedited account of every plan currently advertised as free, what is actually included, what is not, and where the realistic floor for legitimate compliant US payroll really sits.
Every "free" payroll option in 2026, stress-tested
| Option | Sticker | Real cost (3 EE) | Catch |
|---|---|---|---|
| Payroll4Free (calculator only) | $0 | $0 | No tax filing, no direct deposit, no bank reconciliation. Windows only. |
| Payroll4Free + tax filing | $0 + $25 | $25 | Direct deposit and reconciliation still extra at $25 each. |
| Payroll4Free + all add-ons | $0 + $75 | $75 | Net more expensive than Patriot Full Service for the same outcome. |
| Excel + IRS forms (DIY) | $0 | $300-600 (time) | Your hourly rate x 6-12 hours of compliance per year per employee. |
| Wave Payroll (self-service state) | $20 + $6/EE | $38 | Not free. Wave Accounting (bookkeeping) is free, payroll is not. |
| Wave Payroll (tax-service state) | $40 + $6/EE | $58 | Not free. |
| Wave Contractor-Only | $6/contractor | Varies | Free in months you do not pay anyone. Contractor-only, not W-2. |
| Gusto Contractor-Only | $6/contractor | Varies | Same as Wave: free idle months, contractor-only, not W-2. |
| Roll by ADP (3-month free trial) | $0 first 3 mo | $132 (year 1) | Promotional only. Regular price $29 + $5/EE after trial. |
| QuickBooks Payroll (30-day free trial) | $0 first 30 days | $756 (year 1, 3 EE) | Trial only. No ongoing free tier. |
The closest thing to genuinely free US payroll software
Payroll4Free is a Windows desktop application that calculates paychecks, federal and state tax withholding, and generates basic reports for up to 25 employees, at no cost. The free tier produces the same paycheck math as the paid alternatives. For a single- employee business with the time and confidence to handle filings, Payroll4Free can be a legitimate zero-cost option.
The catches are real. The free tier does not file federal or state taxes. It does not send direct deposit. It does not reconcile against your bank account. Each of those is a $25 per month paid add-on. Stack the three add-ons and you are at $75 per month for a Windows-only tool, which is meaningfully more expensive than OnPay or Gusto Simple at $40 + $6 per employee with all of those services included and a modern web UI.
Payroll4Free has a place for technically-minded micro-business owners who want to avoid recurring software bills and are willing to handle the tax-filing logistics themselves. For everyone else, the cheapest legitimate paid plan beats Payroll4Free on total cost and time-cost.
The Wave free-versus-paid distinction
Wave's products often get conflated. There are three distinct Wave products with three distinct prices.
Wave Accounting is genuinely free. It is the bookkeeping and invoicing product. There is no platform fee. The business model is the payment-processing fees on invoices you collect through the Wave Pay Now integration. If you only need bookkeeping and invoicing, Wave Accounting is one of the strongest free SMB tools on the market.
Wave Payroll is paid. It is $20 + $6 per employee in self-service states and $40 + $6 per employee in 14 tax-service states. The "free" reputation comes from the Accounting product, not the Payroll product. Wave Payroll has never been free.
Wave Contractor Payments (a sub-feature inside Wave Payroll) is $6 per contractor per month, with no base fee in months you do not pay anyone. This is functionally free for businesses paying contractors irregularly, but only counts if you are paying contractors, not employees.
For full Wave Payroll math see the Wave Payroll cheapest-tier page.
Why "I will just do payroll myself in Excel" is rarely cheaper
The Excel-and-IRS-forms approach to payroll is technically valid for a single-state single-employee business. Calculate gross pay, look up federal withholding in IRS Publication 15-T, calculate FICA at 7.65 percent each side, calculate state withholding from your state's published tables, deposit federal taxes monthly or quarterly to the IRS Electronic Federal Tax Payment System, deposit state taxes per your state's schedule, file Form 941 quarterly, file Form 940 annually, issue a W-2 by January 31, file W-2 with SSA by January 31.
The annualised time cost for one employee in one state is typically 6 to 10 hours. At $50 per hour of your time that is $300 to $500. Patriot Basic at $17 + $4 per employee is $252 per year for one employee. Patriot saves you the time and is cheaper on dollar cost.
The Excel approach only makes sense if your time is genuinely worth less than $25 per hour, which for most business owners is not the case. If you are reading this page considering DIY to save money, the cheapest legitimate path is Patriot Basic at $21 per month, not Excel.
For the full DIY accounting, see DIY payroll true cost in 2026.
What the realistic minimum legitimate US payroll cost actually is
For a single-employee single-state business with confident self-tax-filing: Patriot Basic at $21 per month, or Wave self-service at $26 per month. These are the absolute cheapest legitimate paid options.
For a single-employee single-state business that wants done-for-you tax filing: Roll by ADP at $34 per month or Patriot Full Service at $41 per month. These are the cheapest hands-off options.
For a 5-employee business: Patriot Full Service at $57 per month is the cheapest done-for-you-tax option. Square Payroll at $65 per month is the cheapest with time tracking included for hourly teams.
For a contractor-only business paying 1099s irregularly: Square Contractor-Only or Gusto Contractor-Only at $6 per contractor with no base fee. The cheapest possible US payroll spend in any given month.
None of these is "free". The cheapest legitimate compliant US payroll for a typical small business is $20 to $40 per month. Anyone advertising free payroll is either describing a contractor-only plan, a time-limited promotional trial, or a tool that requires significant time investment to use legally.
Other reality-check pages
DIY payroll true cost
Hour-by-hour breakdown vs $40/mo SaaS
Cheapest Patriot plan
Basic at $17 + the tax-add math
Cheapest Wave Payroll plan
Self-service $20, 14-state map
Free options (existing page)
Wave, Payroll4Free, stress-tested
Cheapest payroll for contractors
$6/contractor, no base fee
Year-end fees by provider
Where the hidden costs sit
Common questions
Is there a truly free payroll service in the US?
Payroll4Free is the closest to a genuinely free option but does not file federal or state taxes for you and does not include direct deposit on the free tier. Wave Payroll has no platform fee in some configurations (contractor-only or 14 tax-service states paid only $6 per employee) but the W-2 tier always has a base fee. For most US businesses, the realistic floor is $20 to $40 per month from a paid provider.
Is Payroll4Free actually free?
The Payroll4Free desktop product calculates paychecks and tax withholding for up to 25 employees at no cost. Tax filing, direct deposit, and the bank reconciliation reports are paid add-ons at $25 per month each. Most businesses end up paying $25 to $50 per month for the add-ons that make Payroll4Free practically usable, putting it close to Patriot Basic's $17 + $4 per employee. Payroll4Free works only on Windows.
Is Wave Payroll free?
No. Wave Payroll has always had a base fee. The fee is $20 per month in self-service states (you file taxes) and $40 per month in 14 tax-service states (Wave files taxes), plus $6 per employee. The free Wave product is Wave Accounting, which is genuinely free for bookkeeping but does not include payroll.
Can I do payroll for free using Excel and IRS forms?
Technically yes for a single employee in a single state where you have no income withholding requirement. For anything more complex, the time cost of calculating federal and state withholding, federal Form 941 quarterly, federal Form 940 annually, state unemployment and withholding filings, and year-end W-2 issuance is 6 to 12 hours per year per employee. At $50 per hour of your time, that is $300 to $600 a year, which exceeds the $250 to $500 annual cost of Patriot Basic.
What about Roll by ADP's free trial?
Roll by ADP offers 3 months free for new customers as of 2026. The regular price after the trial is $29 + $5 per employee. The trial saves you about $90 to $150 in the first year. After the trial, Roll is a paid product.
Is the cheapest legitimate payroll really $20 to $40 per month?
Yes. Patriot Basic at $17 + $4 per employee (self-file taxes) is the cheapest legitimate option. Wave self-service at $20 + $6 per employee is similar. Patriot Full Service at $37 + $4 per employee is the cheapest done-for-you-tax option. Free tiers either exclude tax filing, exclude direct deposit, exclude crucial states, or are time-limited promotions.