Payroll4Free Review 2021: Features, Fees and Alternatives

Payroll4Free is a free payroll software for businesses with 25 or fewer employees. Learn about its features, pros and cons and alternatives.
Courtney JohnstonOct 28, 2020

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What’s inside

If simply isn’t in your budget, Payroll4Free offers all the services you’ll need to ensure your employees are paid on time and that you stay compliant with tax laws. While this free option won’t offer access to features like mobile payroll management and multiple employee rate management, it could be a great solution for a new startup or established small business not looking to exceed 25 employees. For business owners that want extra features and sleek interfaces, or have more than 25 employees, check out our list of alternatives.

Payroll4Free handles most of the setup process for you, though you will have to manually input your employees’ W-4 information. You’ll also need to establish each employee’s salary or hourly rate, as well as their current vacation time. Then, you'll set up direct deposits for each employee using your own bank (unless you opt to pay $15 per month to use Payroll4Free’s bank).

Once set up, you can integrate or export your time-clocking software data directly into Payroll4Free to make calculating paychecks quick and easy. If you are using direct deposit, your employees’ paychecks will automatically go into their bank accounts every pay period, with the necessary taxes being withheld. It is then your responsibility to report and deposit these taxes (unless you pay $15 per month for Payroll4Free to handle this). Vacation hours will be calculated as they’re taken.

If you run into any issues, Payroll4Free offers customer service support via phone or email.


Payroll4Free has a basic free plan with a few optional upgrades. The free plan allows you to manage your payroll for no charge as long as you have 25 or fewer employees. You can use Payroll4Free if you have more than 25 employees, but you will incur a monthly payment processing fee of $35 for each group of 25 employees after the first 25.

If you would like Payroll4Free to deposit and handle your company’s payroll taxes automatically, you’ll be charged $15 per month for this service. In addition, if you choose to use Payroll4Free’s bank to handle direct deposit payroll transfers, Payroll4Free will charge you $15 per month. If you opt into both services, you’ll be charged $30 per month.


If you’re feeling like Payroll4Free sounds too good to be true, you’re not alone. Based on Payroll4Free reviews from the Better Business Bureau (BBB), however, this service really does live up to its promises.

Note that Capterra and G2 Crowd's ratings are based on a small handful of reviews. The same goes for BBB's 4-star review. The only negative BBB review discusses the long intake process, which other users have noted but found tolerable. Reviewers on Capterra mentioned that the learning curve was challenging.

With all of this information in mind, you may still be unsure if Payroll4Free is right for you — or you may just want to compare it to some other options on the market. Here are some alternatives to consider:

A version of this article was first published on Fundera, a subsidiary of NerdWallet.

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