Payroll4Free

Payroll4Free is payroll software for U.S. employers paying employees and 1099 contractors. It is best suited to a very small business running payroll monthly; its no-cost basic service is appealing, but important payment and tax services can add cost.

Overview

Payroll4Free brings payroll processing together with tax calculations, time tracking, employee self-service and reporting. That range makes it more capable than a bare pay-run tool for employers with nine or fewer people. The key trade-off is that the free service has a strict monthly-payroll cap, while tax deposits and employee direct-deposit transfers through Payroll4Free require optional paid services.

Basic service is free for paying nine or fewer individuals no more than once monthly, and it is advertising-supported. Employers who pay more people or run payroll more often will outgrow that offer; those who fit the cap should still weigh the optional service charges against the savings from free basic payroll.

Key features

Payroll and taxes

The software pays employees and 1099 contractors and supports year-end 1099 forms. It calculates federal, state and local taxes and provides filled-out tax forms, with tax filing included. That combination can reduce the administrative work around a small payroll, but depositing and filing payroll taxes on the employer's behalf requires the optional Payroll Tax Service.

Payments and time tracking

Employers can pay by paper check, direct deposit or a mix of both. Direct-deposit transfers through Payroll4Free's bank require its optional Direct Deposit Service, so the free plan does not make that payment route cost-free. Time tracking covers vacation, sick and PTO, with hours accrued according to configurable rules; that is useful for keeping leave balances alongside payroll rather than tracking them separately.

Employee access and reporting

Employees can view pay information online, reprint paystubs and W-2s, check accrued vacation and update personal information. Reporting covers earnings, taxes, benefits, accrued time and payroll journals, giving employers several views of payroll and leave activity. 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. The extension requirement and the downloadable application's Microsoft Edge WebView2 Runtime installation requirement are worth considering when choosing how to deploy it.

Pricing

Payroll4Free is freemium. Free basic services cost nothing for nine or fewer employees paid monthly, with advertising support. This is the right fit for employers within that headcount and frequency ceiling who can use the basic service without paid tax or direct-deposit handling.

Plan	Price and terms	What it means
Free basic services	free; up to 9 employees paid monthly; advertising-supported	Core payroll for small monthly pay runs.
Payroll Tax Services	$35,350 a month; billed monthly / annual; first 2 tax authorities included	Payroll4Free deposits and files payroll taxes on the customer's behalf.
Direct Deposit Services	$35,350 a month; billed monthly / annual; recurring service fee	Employee transfers use Payroll4Free's bank.

The tax and direct-deposit services are separate paid options, so employers should account for them if they need Payroll4Free to handle those tasks. The stated paid-from price is 15 /mo; the service prices above are shown as $35,350 a month. Payroll4Free also supports multi-state payroll, though employers needing more than the first two tax authorities should factor the included-authority limit into their decision.

Platforms

Payroll4Free is available as a web service, a Windows application and an extension. The downloadable application requires Microsoft Edge WebView2 Runtime during installation. That makes the Windows download less straightforward than simply opening the web service, while the extension is a required part of the security setup.

Who it's for

Payroll4Free is a practical candidate for a small U.S. employer with nine or fewer people, a monthly pay schedule and a preference for free core payroll that also covers contractor payments, time accruals and employee access. It is less suitable for employers who exceed the free cap or want tax deposits and direct-deposit transfers handled without separate service charges.

Pros and cons

Pros

• Free basic payroll within a clear limit: employers paying nine or fewer people monthly can avoid a software charge for core services.
• Broad payroll coverage: employee and contractor payments, tax calculations, filled-out forms and year-end 1099 support cover more than employee pay alone.
• Useful leave and employee tools: configurable vacation, sick and PTO accruals pair with employee access to pay records, W-2s and personal details.
• Several payment methods: paper checks, direct deposit or a combination give employers flexibility, even though Payroll4Free's own bank transfers are an optional paid service.

Cons

• Strict free-plan ceiling: more than nine people or pay more often than monthly falls outside the basic free service.
• Key handling costs extra: tax deposits and filing on the employer's behalf, as well as direct-deposit transfers through Payroll4Free's bank, require paid services.
• Advertising-supported: the free basic service includes advertising.
• Setup requirements: the extension requirement and WebView2 Runtime requirement for the Windows download add deployment steps.

Alternatives

• Wave is a freemium alternative with a free Starter plan for unlimited estimates, invoices, bills and bookkeeping records; it suits readers prioritizing those tools over Payroll4Free's payroll functions.
• CDM+ is a paid option with a free trial and a $25 a month Essentials plan for one program and one user; consider it if a paid, program-based option is a better fit.
• Rippling is a paid alternative available on web, iOS and Android.
• ADP Workforce Now is a paid payroll and HR suite with Select and Plus tiers; Plus adds benefits administration.
• Employment Hero is a paid alternative with Pro tiers described by their AI video interview counts.
• PayFWDs uses custom pricing tailored to the business, with pricing depending on employee count, payroll frequency, states worked and time and attendance needs.
• Justworks Benefits offers a Payroll plan at $8 a month plus a $50/month base fee, with payroll for all employees, HR tools, expert support and time tracking access.
• MIP Payroll offers payroll and HR modules, with direct deposit and employee web services described as modules.
• Nonprofit Payroll Software is a category to explore for readers comparing payroll tools for nonprofit organizations.

Verdict

Choose Payroll4Free if you run a small monthly payroll of nine or fewer people and want core payroll, contractor support, tax calculations, time accruals and employee access without a basic software charge. Its breadth is the main reason to choose it; the headcount and frequency cap, advertising and added charges for tax handling and Payroll4Free's direct-deposit service are the reasons to look elsewhere.