Free Payroll Software: 10 Options for UK and US Employers

Taking on your first employee is a big step, and payroll is one of the first jobs that comes with it. You have to work out pay and deductions, give payslips and report to the tax authorities on time. For a small team, free software can handle all of that.

The ten tools below are listed alphabetically and in no particular order, most of them from small, specialist providers. Each description comes from the tool's own site or HMRC's list, read this week. If you're working on your own for now, my guide on running a small business as the only employee covers that stage.

Free payroll software at a glance

In the free plan column, Yes means the tool's own site, or HMRC's list of free recognised payroll software, describes free use. Trial only means a time-limited trial and No means neither is stated on the pages we read.

Tool	Type	Good for	Free plan
1 A Simple Payroll	UK payroll	Tronc and tips payroll	Yes
Basic PAYE Tools	HMRC payroll software	The official HMRC option	Yes
Enrolpay	UK payroll	Auto enrolment built in	Yes
Frappe HR	Open source HR and payroll	Self-hosting HR and payroll	Yes
FreePayroll	UK payroll	Unlimited employees on a free tool	Yes
Payroll4Free	US payroll	Free US payroll	Yes
Primo Payroll	UK online payroll	Automated auto enrolment	Yes
RTI Lite	RTI submissions	Sending payroll data to HMRC	Yes
Stansoft	Linux payroll	Employers who run Linux	Yes
TimeTrex	Workforce management	Time tracking feeding payroll	Yes

Ten free payroll tools to consider

1 A Simple Payroll

Best for: UK hospitality businesses that need to run tronc (tips) payroll correctly alongside a simple main payroll for their staff.

Basic PAYE Tools

Best for: Employers in the UK with a handful of staff who want HMRC's own free software to report payroll in real time.

Enrolpay

Best for: Growing UK employers who want payroll and workplace pension auto enrolment handled together without extra software.

Frappe HR

Best for: Businesses with technical help who want open-source HR and payroll they can host and adapt themselves.

FreePayroll

Best for: UK businesses and practices that want HMRC-recognised payroll with payslips and auto enrolment, whatever their headcount.

Payroll4Free

Best for: US employers with small teams who want a free online payroll service that calculates pay and prints payroll checks for them.

Primo Payroll

Best for: Owners of small UK firms who want online payroll with automated pension auto enrolment and RTI submissions built in.

RTI Lite

Best for: Employers who already work out pay in their own spreadsheet and just need to send the RTI submission to HMRC.

Stansoft

Best for: Linux users running a small UK business who want accounting and HMRC-recognised PAYE payroll in the same package.

TimeTrex

Best for: Businesses that want time and attendance feeding payroll, with an open-source edition to start from.

HMRC's own list of free payroll software

Here's the most useful starting point for UK employers, and it comes straight from the source. HMRC publishes a list of free payroll software it recognises for businesses with fewer than 10 employees, separate from its list of other recognised products.

If you're a UK employer with a small team, start with that list: every product on it can report payroll to HMRC online, which is the part you can't skip. Check whether each one also handles payslips, pensions and different pay periods, because some free products cover only the basics.

UK payroll and US payroll work differently

In the UK, employers report pay to HMRC in real time each time they run payroll, and most also need to enrol staff into a workplace pension. In the US, employers deal with federal tax deposits and filings plus state rules that differ from one state to the next.

That's why a tool built for one country rarely works for the other. Choose software made for the country where your employees work, and check it covers your state or region.

Running your first payroll

1. Register as an employer with the tax authority before your first pay day.
2. Collect each employee's details and tax information.
3. Set up your pay schedule, such as weekly or monthly.
4. Run a test payroll and check the numbers against a calculator.
5. Submit the payroll report and give each employee a payslip.
6. Diary the deadlines for the year so nothing is missed.

What to check before you commit

• Employee limits. Some free tools stop at a certain team size.
• Payslips. Check you can produce and send them.
• Pensions. UK employers usually need auto enrolment support.
• Support. Find out where to get help if a submission fails.

Keeping payroll records

Keep copies of every payroll run, payslip and submission, plus records of any changes to pay or hours. Your software should store these, but export a copy regularly too. If the tax authority asks questions later, clear records make the conversation quick and painless.

Tips and tronc in hospitality

If you run a pub, restaurant or salon in the UK, tips can add complexity to payroll. Some tools on this list handle tronc schemes specifically, so if tips are part of your business, check how each tool treats them before you set it up.

Do you make free payroll software? Tool makers can ask to be considered for a featured place on this list.

My plain advice on free payroll software

Free payroll software is a sensible choice for a small team, but accuracy matters more than anything else. Double-check your first few pay runs, keep records of every submission and ask an accountant to look over your setup if you're unsure.

Plan for growth too. Some free tools only cover employers with fewer than 10 employees, so know what you'll move to when you hire more people. My piece on how payroll software helps with employee retention explains why getting pay right matters so much to staff.

Frequently asked questions

Is there free payroll software in the UK?

Yes. HMRC publishes a list of free payroll software it recognises for businesses with fewer than 10 employees.

Is there free payroll software in the US?

Yes. Some services describe free payroll for small employers, and there are open-source options for businesses with technical help.

Do I need payroll software for one employee?

In the UK you must report payroll to HMRC online, so you'll need software even for one employee unless you're exempt.

What does free payroll software usually leave out?

Some free tools skip payslips, pension features or different pay periods, so check what each one includes.

Can I switch payroll software mid-year?

Yes, but you'll need year-to-date totals for each employee, so switching at the start of a tax year is simpler.

Does free payroll software handle pensions?

Some include auto enrolment features, while others don't. Check before you choose if you employ staff in the UK.