Ultimately, if you’d prefer not to take chances, most paid payroll providers offer free trials. This means you’re on your own if Uncle Sam busts down your door with a nasty tax bill in hand. While this is good advice in general, it’s particularly crucial in this no-cost software genre since most free payroll services do not offer any calculation accuracy guarantees. If you do choose free payroll software, make sure to keep detailed financial records (which you can do for free with free accounting software) and to double- and triple-check your paycheck and tax calculations. (The main exception is Payroll4Free, which supports payroll for up to 25 employees and has many features that are similar to some paid self-service payroll providers.) That’s why we and most of our top free payroll picks tend to recommend free software only to businesses with 10 or fewer employees. Plus, as your workforce grows, you’ll need more sophisticated software that exceeds what most free payroll services provide. Payroll mistakes can have huge financial consequences not just for your employees but for your business, especially once the IRS gets involved. Payroll is complex, and it only gets more complex the more employees you have.
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