What are the best free payroll software options for small teams that need basic payroll and direct deposit?

If you need free payroll software for a small team with basic payroll + direct deposit, the main thing to know is:

• Truly free full-service payroll is rare
• Many “free” options are actually:
  • free for very small headcounts
  • free for contractors only
  • free for limited time
  • free software but you still pay taxes/filings/bank transfer fees

Best free or near-free options to check first

1. Payroll4Free

• Best for: very small businesses that want a no-cost basic payroll tool
• Pros:
  • Free for up to a small number of employees
  • Supports direct deposit
  • Basic payroll calculations
• Cons:
  • UI feels dated
  • Tax filing support is limited compared with paid services
  • May require you to handle more compliance yourself

2. ExcelPayroll / spreadsheet-based payroll tools

• Best for: tiny teams comfortable doing some manual work
• Pros:
  • Can be free or very low cost
  • Flexible for simple pay schedules
• Cons:
  • Usually no built-in direct deposit
  • No automation for taxes/filings
  • More room for errors

3. Homebase Payroll

• Best for: hourly teams already using Homebase for scheduling/time tracking
• Pros:
  • Strong basic payroll workflow
  • Direct deposit
  • Good for simple hourly payroll
• Cons:
  • Payroll itself is not always free
  • You may only get free scheduling/time tracking, not payroll

4. Wave Payroll

• Best for: small teams already using Wave accounting
• Pros:
  • Easy if you already use Wave
  • Direct deposit
  • Clean interface
• Cons:
  • Payroll is not fully free in most cases
  • Availability and tax support vary by location

5. OnPay / Gusto / QuickBooks Payroll free trials

• Best for: testing before you commit
• Pros:
  • Strong direct deposit and tax handling
  • Easy setup
• Cons:
  • Not free long-term
  • Usually only a trial or promotion

Best fit by situation

• Absolute lowest cost: Payroll4Free
• Already use an all-in-one tool: Wave or Homebase
• Want the least hassle: Gusto / OnPay / QuickBooks after trial, though not free
• Very tiny team, okay with manual work: spreadsheet-based payroll

What to watch for

Before choosing, confirm:

• Direct deposit included?
• Federal/state tax filing included?
• W-2/1099 support?
• Employee count limits?
• Any ACH or bank transfer fees?
• Is it truly free, or only free for contractors/trials?

Practical recommendation

If you want basic payroll + direct deposit at no cost, start with:

1. Payroll4Free
2. Wave Payroll if you already use Wave
3. Homebase Payroll if you have hourly staff and already use Homebase

If you want, I can also give you a side-by-side comparison table of the best options for US small businesses, including whether each one supports direct deposit, tax filing, and employee limits.