The 5 Best Free Payroll Software

They say the best things in life are free – does that include payroll software?

We’ve made it easy for you to browse the best free payroll software available and find out if it’s a good fit for your business.

We’ve done all the hard work so you don’t have to, and found the best free payroll software on the market.

1. IRIS – Best all-around
2. HMRC Basic PAYE Tools – Best for checking employee’s NI number
3. Shape Payroll – Best for ease of use
4. Primo Payroll – Best for auto-enrolment
5. Enrol Payroll – Best for self-service

Is Free Payroll Software Worth It?

Free software gives businesses the ability to run payroll without any overhead fees. This is super helpful at the beginning stages of a business when you might not have the funds to invest.

There are limitations with free software, as most of them only offer basic features. Paid software provides automation, comprehensive reporting and employee access. These features take away the effort and stress of manual tasks and ensure you stay compliant. Your employees are able to access their own portal and request holiday, check payslips and update their personal details.

We recommend free payroll software for micro-businesses because most providers offer free software for three to 10 employees, and you don’t need a lot of the features paid software has at this stage of your business.

As your business grows, you might find that it’s no longer sustainable to manually carry out payroll tasks or you have too many employees to qualify for free software, you can often easily scale up to a paid version.

How much does payroll software typically cost?

Paid payroll software typically costs around £10 for a basic package.

Paid payroll services are usually either fully managed or part-managed. A fully managed service tends to cost around £4–£6 per employee, per month, and pension plan auto-enrolment costs around £1.50–£2 per employee, per month. If you want HR tools, this will cost you £10–£25 per employee, per month.

Part-managed payroll services are harder to price, as this cost depends on which services you want to outsource. You can expect to pay around £2–£3 per employee, per month.

How We Test Payroll Products and Services for Businesses

We tested eight market-leading payroll products and services to evaluate them in terms of functionality, usability, data security, and customer support so we can make the most useful recommendations to UK businesses.

Our rigorous testing process means these products have been scored and rated in five main categories of investigation and 10 subcategories – in fact, we covered 56 areas of investigation in total. We then gave each category score a ‘relevance weighting’ to ensure the product’s final score perfectly reflects the needs and requirements of Expert Market readers – and that’s our product research algorithm in a nutshell!

Our main testing categories for payroll products and services are:

Control: the level of customisation and flexibility provided by the payroll software in managing and processing payroll, such as the ability to define pay periods, setup tax withholding rules, and manage employee data.

Data Security: the measures and protocols implemented by the payroll software to ensure the confidentiality, integrity, and availability of sensitive payroll information.

Expertise: the level of knowledge and guidance provided by the payroll software vendor or support team. This can include resources such as documentation, tutorials, and training materials.

Scalability: the ability of the payroll software to accommodate the growth and changing needs of a business, including the capacity to handle an increasing number of employees and support multiple locations or entities.

Customer Support: the various channels and methods available for users to seek assistance and support from the payroll software vendor, such as email or ticket-based support, phone support, or live chat.

The Expert Market Product Testing Process