Top 10 Open Source and Free Payroll Software

Paras Kela

Senior Writer

Open Source and Free Payroll Software

Key Takeaways:

  1. Payroll management is vital, and automation streamlines tasks like calculating wages, taxes and generating payslips.
  2. Traditional manual methods are error-prone; free payroll software significantly lowers mistakes, aiding in accurate calculations.
  3. The top free payroll systems are Collabrill, Kredily, Timetrex, OpenPro, Paymaster, Talypayroll, Payroll4free, and WebHR.

Payroll management is essential for every business. It helps ensure accurate employee compensation, compliance with tax regulations, timely payment disbursement, and overall financial transparency within the organization.

Looking for Payroll Software? Check out SoftwareSuggest’s list of the best Payroll Software solutions.

Traditionally, payroll management was a manual process requiring businesses to track employee hours and pay rates on spreadsheets. This was not only time-consuming but also prone to errors.

Nevertheless, thanks to modern taxing software solutions, you can now streamline and automate most of these tasks via free payroll software.

In this blog cum guide, we’ll explore the 10 best free payroll software options, delving into their features, pros, cons, and other technical and non-technical aspects. But first, let’s begin with the basics.

What Is Free Payroll Software?

Free payroll software is a business tool that allows large and small business owners to manage and process payroll at no cost. You can automate payroll-related tasks, such as calculating wages, deducting taxes, and generating payslips. Most open source payroll software also helps you with tax filing services.

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Pro-tip

Before selecting an open-source or free payroll software, consider your business size, industry, and growth potential. Evaluate features like tax calculations, reporting capabilities, and user-friendliness. While these options can offer cost savings, ensure they align with your long-term needs. A thoughtfully chosen payroll system will help you streamline operations and accelerate growth.

While free payroll software can be a cost-effective solution for small businesses with a limited budget, it’s important to note that some free software may have limitations or offer fewer features than paid options. Therefore, researching and comparing different payroll software options is important to find the best fit for your business needs.

How Manual Payroll Processing is Different From Using Payroll Software?

Manual payroll processing is perfect for small businesses with fewer employees. However, as your organization grows, you should invest in a payroll tool to automate basic tasks and reduce the chances of errors.

Also, manual processing requires hiring people with specialized skills, whereas anyone with little knowledge of payroll can manage the software. 

Here’s a complete list of comparisons between manual and tool-based payroll processing.

Points of ComparisonManual Payroll ProcessingSoftware Payroll Processing
SuitabilitySuited to serve the needs of small organizations with a little workforce.Fit to serve large organizations with a sizable workforce.
EffortIndividuals handle the entire system without the help of any system.The whole system can be managed using customized software as per your needs.
Skills RequiredThe individuals hired need prior training and experience in payroll management.The system is easy to use, and almost all the steps are automated. Therefore the system does not require an experienced or highly skilled individual to operate.
ReplacementIndividuals, systems, or processes can be re- placed anytime.The system requires a substantial investment. Due to this long term commitment, it is difficult to replace.
ReliabilityThe system is more prone to errors due to human intervention. This makes it less reliable.The system is more reliable, quick, and accurate.
CustomizationIt can be customized and personalized as per the needs of the organization.It cannot be completely customized.
SecurityThe system is less secure and has no scope for encryption.The system is more secure if the data is encrypted and password protected

Top 10 Free and Open Source Payroll Software

Now that you know how modern payroll software has the edge over manual payroll systems, it’s time to look at the 10 free, open source payroll software for your business.

Software NameFeatures
Time Tracking, Data Imports/Exports
Income Tax Computation, Mid Month Variable Payout
Comprehensive Tax Reports, Multi-Source Debiting
Customized data fields, Unlimited earnings and benefits types
Comprehensive Tax Reports, Leave management
Cash employee coinage report, Employee online payslip access
Vacation & PTO Tracking, Employee Access Portal
Multiple payroll setups, Different currency options
Employment Cost Analytics, Salary Structure Calculation
Diverse Payroll Customization, Advanced JavaScript Functions

1. Collabrill

Collabrill

Collabrill is a cloud-based payroll solution for small and medium businesses. It helps simplify and automate tedious payroll tasks, saving time and eliminating errors. You can track employee’s attendance and leave directly from the system, making calculating payroll more accurate. It also includes features for compliance, such as tax calculations and reporting. Although it is not completely free, it comes with a 30-day free trial.

Features

  • Task Management
  • Time Tracking
  • Data Imports/Exports
  • Application Integration
  • Accounting Integration
  • Bug Tracking
  • Portfolio Management
  • Resource Management
Pros
  • The software offers excellent customer support to assist users effectively.
  • Its user-friendly interface ensures a minimal learning curve for new users.
  • It aids in document organization, mitigating the risk of data loss.
  • The availability of diverse modules caters to various business needs.
Cons
  • The user interface has room for improvement to enhance user experience.
  • Some functionalities may be limited, potentially affecting intricate calculations for larger enterprises.
  • Integration capabilities with other applications are less extensive than free payroll software.
  • The lack of a mobile app may restrict accessibility and convenience for users on the go.

2. Kredily

Kredily

Kredily is a cloud-based HR and payroll software that helps small and medium-sized businesses manage their payroll, attendance, leave, and other HR functions. It offers customization options to fit the needs of different businesses. Plus, it provides real-time reports and analytics to help businesses make more informed decisions faster.

Features

  • Overtime Calculation
  • Roster/Rotational shift
  • Payslip Bulk Download
  • FNF Management
  • Income Tax Computation
  • Mid Month Variable Payout
  • Customizable Salary Structures
Pros
  • The software offers an extensive array of features that cover various aspects.
  • Its interface is intuitive and user-friendly, ensuring ease of use.
  • Customer support is proactive, providing timely assistance and guidance.
  • It has a mobile app that allows you to track employee salaries on the go.
Cons
  • There are limited integration options.
  • Reporting capabilities are quite limited.
  • Only supports bank transfer, which can be a limitation for some businesses.
  • It may not be the best option for companies that plan to scale up rapidly.

3. Timetrex

Timetrex

Timetrex is a complete workforce management software that provides the benefits of automation to even small organizations. It helps businesses optimize their workforce and reduce administrative tasks associated with workforce management. TimeTrex offers customization options to fit the needs of different businesses and can be accessed through a web browser and mobile devices.

Features

  • Custom Deductions Handling
  • Advanced Payroll Engine
  • Electronic Pay Stubs
  • Comprehensive Tax Reports
  • Multi-Source Debiting
  • Check Printing
  • Customizable Reports
Pros
  • As it is an open-source solution it allows you to modify the source code to suit your requirements.
  • Has advanced absent management and overtime tracking that leads to accurate payroll calculation.
  • Has an active user community that shares tips and best practices.
  • The platform supports compliance management.
Cons
  • Customer support needs to be more quick to enhance user interaction.
  • Its mobile app isn't as comprehensive as its web app.
  • Another drawback is that there are limited integration options.
  • The search option needs improvement to become more user-friendly.

4. OpenPro

OpenPro

OpenPro is an open-source ERP software designed for businesses of all sizes. It offers various aspects of business, including sales, marketing, HR, payroll, production, and manufacturing. It helps managers streamline operations, automate administrative tasks, and make data-backed decisions.

Features

  • Consolidated entry screen
  • Built-in HRMS
  • Multiple bank account capability
  • Customized data fields
  • Unlimited earnings and benefits types
  • Department and location tracking
  • Supports all Pay Frequencies
Pros
  • Seamlessly facilitates transferring data from Quickbooks payroll.
  • Offers an elevated level of control and detailed analysis.
  • Provides comprehensive and in-depth reports along with robust analytics.
  • Boasts an intuitive and user-friendly interface that enhances usability.
Cons
  • Involves a steeper learning curve during initial usage.
  • May require assistance during the setup process.
  • Integration options are limited in scope.
  • Setting up workflows can be intricate and time-consuming.

5. Paymaster

Paymaster is a web-based payroll software solution that offers comprehensive features to streamline payroll processes. It has direct deposit, employee self-service, tax reporting, and more. You can customize the solution to meet your business’s unique needs. Plus, you can access it from anywhere, anytime.

Features

  • Integrated attendance and payroll
  • Pension and tax credit management
  • Electronic Pay Stubs
  • Comprehensive Tax Reports
  • Leave management
  • Electronic fund transfer system
  • Online employee self-service functionality
Pros
  • User-friendly interface designed for effortless navigation.
  • Robust security measures and comprehensive compliance features.
  • A highly customizable solution tailored to your specific needs.
  • Proactive and responsive customer support for any queries or concerns.
Cons
  • Presents limited integration options with external platforms.
  • The mobile app's functionality falls short compared to its web counterpart.
  • Lacks scalability to accommodate the growth of your business over time.
  • While Paymaster does offer benefits management features, they are limited compared to other payroll and HR software solutions.

6. Talypayroll

Talypayroll

Talypayroll is an open source payroll software solution catering to small and medium-sized businesses in South Africa. It helps accurately calculate employees’ salaries and tax requirements and deductions, helping companies ensure they meet legal requirements. The software offers a free version that supports up to five employees, making it a great choice for small businesses.

Features 

  • Payslip creation & printing
  • Flexible payroll scheduling
  • Employee loan support
  • Cash employee coinage report
  • Employee online payslip access
  • Comprehensive tax reporting
  • Employment tax incentive (ETI)
  • SARS compliance assurance
Pros
  • Has an employee portal that allows them to view their own payslips online.
  • Helps generate EMP201, IRP5 and EMP501 reports.
  • Has a payroll calculator to help calculate payroll taxes.
  • Helps comply with SARS (South African Revenue Services) laws.
Cons
  • The platform does not have a mobile app.
  • Only suitable for businesses in South Africa.
  • Limited features for growing businesses.
  • The free version only supports up to five employees.

7. Payroll4free

Payroll4free

Payroll4free is a free payroll solution that empowers you to manage payroll for up to 25 employees. It supports tax management, direct deposit, employee self-service, and more. Payroll4Free aims to simplify and automate the payroll process, allowing businesses to save time and reduce errors.

Features

  • Employee & Contractor Payments
  • Comprehensive Tax Handling
  • Vacation & PTO Tracking
  • Employee Access Portal
  • Robust Reporting Options
  • Integration Capabilities
  • Direct Deposit or Checks
Pros
  • Offers fundamental payroll services for streamlined operations.
  • Seamlessly integrates with well-known accounting software such as QuickBooks.
  • Boasts a proficient and well-informed customer support team.
  • Efficiently automates essential tasks within the payroll process.
Cons
  • Frequent and intrusive advertisements within the app can be distracting.
  • Limited in capacity, supporting only 25 or fewer employees.
  • Lacks a mobile application for on-the-go accessibility.
  • The user interface could benefit from enhancements to improve user experience.

8. WebHR

WebHR

WebHR is a leading HR and payroll software that helps manage payroll, attendance, compliance, and other HR requirements. This software aims to aid companies in paying all types of employees they hire effectively, be it full-time, contractual, part-time, or even freelance.

WebHR is neatly designed to manage even workflows of employees working for different time shifts, overtime, holidays, etc. It helps you comply with various legislative regulations and stay updated with them.

Features

  • Centralized payroll data
  • Multiple payroll setups
  • Different currency options
  • Auto-calculation of PTO, taxes, expenses, etc.
  • Auto payslip detail notifications
  • Various payslip formats
  • Compliance reports
  • Direct deposit
  • Paycheck processing
Pros
  • Users can benefit from responsive and collaborative customer support.
  • It has a sturdy and well-defined approval process.
  • Users can customize their experience by selecting only the necessary modules, reducing unnecessary intricacies.
  • High degree of adaptability and dependability.
Cons
  • Lacks comprehensive reports with in-depth insights.
  • User-friendliness could be improved for a smoother experience.
  • Encounters frequent bugs and glitches in its mobile application.
  • Does not offer support for multiple languages, limiting accessibility.

9. PHP Payroll

PHP Payroll

Built using the PHP programming language, PHP Payroll is an open source payroll solution for small and mid-sized businesses. It helps companies improve their payroll efficiency and allows you to automate tedious tasks, such as attendance and leave management and generating salary slips. It also has a holiday management system wherein employees can see the company’s holiday plan, apply for leaves, and check their leave balance.

Features 

  • Allowance & Deduction Computation
  • Detailed Report Generation
  • Employment Cost Analytics
  • Salary Structure Calculation
  • Holiday Attendance Management
  • Employee Holiday Visibility
  • Instant Payslip Generation
  • Statutory Report Generation
Pros
  • Seamlessly connects with external biometric devices for enhanced security.
  • Efficiently oversees employee information and work reports.
  • Encompasses a range of modules, such as attendance tracking and employee performance analysis.
  • Offers distinctive solutions tailored to diverse industries.
Cons
  • Presents a steep learning curve for effective utilization.
  • Customer support lacks proactive engagement.
  • The user interface and experience could benefit from enhancements.
  • Absence of a mobile application limits accessibility on the go.

10. IceHRM

IceHRM

IceHRM is a human resource software explicitly designed for small organizations. It centralizes entire data and allows access only to authorized persons, maintaining high security. This helps track when an employee has clocked in and out. It also caters to other roles and responsibilities of HR professionals, like onboarding, salary dispensing, leave management, and compliance.

Features

  • Custom Salary Configuration
  • Tailored Payroll Reports
  • Diverse Payroll Customization
  • Advanced JavaScript Functions
  • Integrated Module Data Processing
  • Bulk Payslip Generation
Pros
  • Boasts an intuitive and user-friendly interface for effortless navigation.
  • Empowers complete payroll control while maintaining robust security measures.
  • The regular release of new versions ensures up-to-date features and improvements.
  • The reliable time tracking feature enhances precision in payroll calculations.
Cons
  • Inadequate documentation for API and development environment hinders customization.
  • Limited functionalities restrict its suitability for expanding businesses.
  • The scarce availability of training materials complicates initial setup procedures.
  • Lacks a robust mobile app, limiting accessibility and convenience.

What To Look for in the Best Free Payroll Software?

While the best free salary software for your organization depends on your unique needs, here are some essential features that you must look for. 

  • Accurately calculate the wages based on the predefined salary schedule
  • Allow employees to apply for leaves and view their leave balance. Also, managers should be able to approve/reject the same
  • Biometric integration for attendance management and wage calculation on that basis
  • Supports direct deposits to avoid manual payment every month
  • Generate payslips automatically and send them to respective employees through email
  • Create reports on leave summary, wages paid to workers, worker’s compensation, etc.
  • Perform statutory compliances such as tax deductions, due date reminders, etc.
  • Automatic deduction of advances or loans from salary

Also, HR and payroll software integration is a must to avoid duplication or other errors.

Wrapping up

Almost all organizations today seek automated payroll software to simplify salary payments and time management and ensure adherence to legal and tax-related laws. However, choosing an excellent open-source payroll system that blends in with the organization and shows consistent results is essential.

The tools mentioned above can help you save costs while empowering you to manage your payroll more effectively. 

Have you come across any of these payroll systems? Let us know your experience with the tool in the comment section below.

Frequently Asked Questions

Some of the major advantages of free and open-source payroll software are cost efficiency, customization options, community support, and transparency in code. This allows businesses to have control over their payroll management without recurring licensing fees.

While free and open-source software provide cost-efficiency, they might lack certain advanced features, dedicated customer support, or industry-specific functionalities present in premium solutions.

Security varies among software, but many reputable open-source solutions have robust security measures. However, it's crucial to update software regularly and implement security best practices.

Check for compatibility and integration capabilities before choosing software. Open-source solutions often have API integrations or plugins, but it's essential to verify compatibility with your current systems to ensure smooth operation.

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