Top 10 Free Payroll Software Solutions for Small Businesses in 2025: In-Depth Features, Pricing, and Rent Invoice Integration
Efficient payroll processing is essential for small businesses to maintain compliance, keep employees satisfied, and streamline operations. In 2025, several free payroll software solutions offer robust features to handle payroll, track attendance, generate tax forms, and, increasingly, support rent invoice management for businesses that reimburse or charge for workspace. Below, we detail the top 10 free payroll software options for small businesses, highlighting their features, pricing models, and suitability for different business needs.
1. Homebase
Homebase is an all-in-one solution tailored to hourly teams and small businesses. It combines payroll, time tracking, scheduling, and messaging. Their payroll add-on tightly integrates with time cards, automatically calculates wages, taxes, overtime, and generates records for compliance. Mobile access lets you process payroll on the go, and it integrates with systems like Clover, ADP Run, and Square. The basic plan is free for up to 10 employees; the payroll add-on costs $39/month plus $6/month per active employee. Homebase does not directly handle rent invoice creation but seamlessly tracks costs that can be included in rent invoice requests, ensuring complete payroll records for reimbursed office spaces.
Best for: Hourly teams, small businesses with mobile needs.
2. Payroll4Free
Payroll4Free offers fundamental payroll management for organizations with up to 25 workers. Features include automated tax calculations, vacation/PTO tracking, and employee portals. Direct deposit and tax filing are available for a modest fee. Payroll4Free allows payments by check or ACH and has integration with QuickBooks. The platform does not natively support rent invoice generation but tracks payroll and deductions which are useful for businesses subleasing or sharing office space.
Best for: Basic payroll needs.
3. HR.my
HR.my is a community-funded HR platform offering unlimited payroll processing—ideal for businesses needing simple payroll and HR tasks in one. It includes PTO tracking and pay slip delivery but lacks deep integrations with external accounting platforms. While it doesn't generate rent invoices directly, its comprehensive HR records can support documentation for rent invoice claims.
Best for: Companies needing payroll and basic HR.
4. SumoPayroll
Free for up to 10 employees, SumoPayroll provides direct deposit, expense management, and time tracking. Employees can self-access records and update details. Paid plans scale affordably, making it suitable as businesses grow. Like others, it focuses on payroll and HR, but its expense tools can assist in tracking costs, which helps verify reimbursement claims included in rent invoices.
Best for: Accurate payroll and expense tracking.
5. ExcelPayroll
This straightforward payroll solution is based on Microsoft Excel. It lets small businesses run payroll, calculate taxes, and print paychecks. It's best suited to owners comfortable with spreadsheets and offers full access to payroll records, which can be manually incorporated into rent invoice requests for shared office expenses.
Best for: Small teams, Excel-savvy users.
6. Paycor (Free Trial)
Paycor offers a 14-day free trial for its advanced payroll platform featuring automation, customizable workflows, and mobile access. Beyond the trial, plans are affordable, and Paycor’s reporting features can be leveraged to pull payroll data needed for accurate rent invoice calculations for office-sharing arrangements.
Best for: Growing teams needing automation.
7. ADP RUN (Free Trial)
ADP’s RUN provides a 3-month free trial for its integral payroll and HR suite. It includes benefits management, automated payroll, and a powerful dashboard. HR and payroll reports can be exported for rent invoice documentation and office reimbursements.
Best for: Businesses needing a full suite and HR integration.
8. QuickBooks Payroll (Free Trial)
QuickBooks Payroll syncs perfectly with QuickBooks accounting, offering a 30-day free trial. Businesses can run fast payroll and generate direct deposit payments. Strong reporting lets users document payroll and expense payments, supporting rent invoices for office spaces handled financially through QuickBooks.
Best for: QuickBooks users.
9. Patriot Payroll (Free Trial)
Patriot Payroll gives small businesses a free 30-day trial of its simple, tax-compliant payroll platform. Patriot’s reports make documenting payroll expenses for rent invoice generation straightforward, especially for workspace rental or co-working arrangements.
Best for: Businesses on a budget.
10. RiseLite
RiseLite is free payroll software with core wage calculation, direct deposits, and time tracking. Designed for smaller teams, it supports payroll, benefits, and PTO tracking. Data can be exported and used to prepare rent invoices reflecting the cost of shared or rented office spaces.
Best for: Businesses needing simple payroll.
Key Considerations for Small Businesses
When choosing free payroll software, small businesses should evaluate integration options, mobile access, employee limits, and how payroll data is managed for compliance. If you need to generate rent invoices—for example, to document staff occupancy or internal billing linked to payroll—look for platforms with exportable expense and payroll records.
Conclusion
Free payroll software offers small businesses an opportunity to automate and streamline payroll while building financial records for compliance and expense tracking. Platforms like Homebase, Payroll4Free, and HR.my provide effective core features, and those needing advanced payroll and rent invoice documentation should consider software with customizable reporting and easy data export. Most free payroll options serve up to 10–25 employees, with paid plans available for larger teams or advanced features.