While the word “free” tends to add an element of temptation, it doesn’t mean it’s right for your business. Certainly, when it comes to which payroll software to use, it’s important you make a decision based on more than price alone.
The Pros and Cons of Free Payroll Software
Yes, free payroll software can save you time and resources and improve accuracy and compliance. But can its limitations cost you more in the long run? It’s time to consider the pros and cons of free payroll software.
Pros: Why You Should Use Free Payroll Software
Free payroll software provides many benefits to your business. You can implement more efficient processes, improve compliance and accuracy, and pay your employees on time. Let’s look at the benefits of using free payroll software in more detail.
- Save time. Free payroll software automates those time-consuming tasks. Working out calculations and generating payslips are taken care of. This allows you to free up your finance team to focus on the bigger picture.
- Security. Free payroll software uses the latest technology to secure your data. This technology includes approvals, user passwords, multi-level management, and multi-factor authentication. No more manual data entry.
- Tax filing. Free payroll software includes tax calculation features. These features allow your payroll team to quickly verify that accurate tax has been paid for each employee. This is another way that free payroll software will save you time, as well as help you eliminate human error.
- Compliance. You can improve your business regulations compliance with more accurate benefits management, tax filing, and other payroll transactions.
- Reporting. Free payroll software stores accurate records of all your payroll data. This only makes it easier to review your audit transactions and computations.
Cons: Why You Shouldn’t Use Free Payroll Software
You might think that “free” doesn’t come with any downsides. But what’s that saying about “a free lunch”? Let’s look at why free payroll software might not be the right choice for your business.
- Free is often temporary. One form of free payroll software are free trials. Yes, you can set up a free account and try out some, if not all, of the features. And those features may well be useful, such as reporting options and time tracking. But with a free trial, you have to pay to start using them in your actual business. So unless you’re confident that you’ll use the software in the long run, there isn’t much point in using it at all.
- Limited number of users. Free software targets very small businesses. But the free payroll solutions on the government website have only been tested with businesses that employ fewer than 10 staff. So it’s a safe bet that it will fall short with any company exceeding that headcount. Yes, it might be fine for a while - but it's not a good fit if you plan to grow your business and expand your team.
- Limited features. Most free payroll software websites include a Pricing page. Here, you’ll find a comparison between the free plan and the more robust paid-for plans. For example, the free plan might include timesheets and time clocks but not performance tracking and compliance features. If your business needs those missing features, you’ll have to pay your staff to provide them manually.
- No support. Not all free payroll software includes support with its free plan, which can be challenging. When you’re starting out with a new online tool and you get stuck, having no one to ask for help can mean you give up on the tool and begin the process of finding a new solution all over again.
- Outdated legislation. Some free payroll software is open-source. So basically, anyone can alter it and release their own version. That not only presents a security risk, but it also means that it may need to be updated when it comes to legislation. However, as open-source developers sometimes work on such projects in their free time, they aren’t obligated to maintain legislation requirements.
Like with most things, you get what you pay for. You can’t run a business constantly trying to learn new software on free trials or free plans with limited functionality. If business goes to plan, you’ll need those premium features sooner than you think.
A Better Alternative: Premium Small Business Payroll Software
So while free payroll software might seem tempting at first glance, is it the best way to run payroll? Not really. A better alternative is to choose a payroll solution that can scale alongside your company. But which solution should you choose?
The Right Solution: Onfolk’s All-in-One HR Payroll System
Onfolk is a powerful payroll system for small business tasks, with none of the above limitations. You get the full suite of features, it maintains compliance with updated legislation, provides first-class support, and is scalable from a small business up to a huge corporation. Not only that, but Onfolk also provides plenty of features to empower your HR team, such as self-serve onboarding and insights and reporting.
By booking a demo with Onfolk today, you can find out how the all-in-one solution can help your HR and finance team right away. And your business can focus on those tasks that will help it get to the next level and truly expand.
While the word “free” tends to add an element of temptation, it doesn’t mean it’s right for your business. Certainly, when it comes to which payroll software to use, it’s important you make a decision based on more than price alone.
The Pros and Cons of Free Payroll Software
Yes, free payroll software can save you time and resources and improve accuracy and compliance. But can its limitations cost you more in the long run? It’s time to consider the pros and cons of free payroll software.
Pros: Why You Should Use Free Payroll Software
Free payroll software provides many benefits to your business. You can implement more efficient processes, improve compliance and accuracy, and pay your employees on time. Let’s look at the benefits of using free payroll software in more detail.
- Save time. Free payroll software automates those time-consuming tasks. Working out calculations and generating payslips are taken care of. This allows you to free up your finance team to focus on the bigger picture.
- Security. Free payroll software uses the latest technology to secure your data. This technology includes approvals, user passwords, multi-level management, and multi-factor authentication. No more manual data entry.
- Tax filing. Free payroll software includes tax calculation features. These features allow your payroll team to quickly verify that accurate tax has been paid for each employee. This is another way that free payroll software will save you time, as well as help you eliminate human error.
- Compliance. You can improve your business regulations compliance with more accurate benefits management, tax filing, and other payroll transactions.
- Reporting. Free payroll software stores accurate records of all your payroll data. This only makes it easier to review your audit transactions and computations.
Cons: Why You Shouldn’t Use Free Payroll Software
You might think that “free” doesn’t come with any downsides. But what’s that saying about “a free lunch”? Let’s look at why free payroll software might not be the right choice for your business.
- Free is often temporary. One form of free payroll software are free trials. Yes, you can set up a free account and try out some, if not all, of the features. And those features may well be useful, such as reporting options and time tracking. But with a free trial, you have to pay to start using them in your actual business. So unless you’re confident that you’ll use the software in the long run, there isn’t much point in using it at all.
- Limited number of users. Free software targets very small businesses. But the free payroll solutions on the government website have only been tested with businesses that employ fewer than 10 staff. So it’s a safe bet that it will fall short with any company exceeding that headcount. Yes, it might be fine for a while - but it's not a good fit if you plan to grow your business and expand your team.
- Limited features. Most free payroll software websites include a Pricing page. Here, you’ll find a comparison between the free plan and the more robust paid-for plans. For example, the free plan might include timesheets and time clocks but not performance tracking and compliance features. If your business needs those missing features, you’ll have to pay your staff to provide them manually.
- No support. Not all free payroll software includes support with its free plan, which can be challenging. When you’re starting out with a new online tool and you get stuck, having no one to ask for help can mean you give up on the tool and begin the process of finding a new solution all over again.
- Outdated legislation. Some free payroll software is open-source. So basically, anyone can alter it and release their own version. That not only presents a security risk, but it also means that it may need to be updated when it comes to legislation. However, as open-source developers sometimes work on such projects in their free time, they aren’t obligated to maintain legislation requirements.
Like with most things, you get what you pay for. You can’t run a business constantly trying to learn new software on free trials or free plans with limited functionality. If business goes to plan, you’ll need those premium features sooner than you think.
A Better Alternative: Premium Small Business Payroll Software
So while free payroll software might seem tempting at first glance, is it the best way to run payroll? Not really. A better alternative is to choose a payroll solution that can scale alongside your company. But which solution should you choose?
The Right Solution: Onfolk’s All-in-One HR Payroll System
Onfolk is a powerful payroll system for small business tasks, with none of the above limitations. You get the full suite of features, it maintains compliance with updated legislation, provides first-class support, and is scalable from a small business up to a huge corporation. Not only that, but Onfolk also provides plenty of features to empower your HR team, such as self-serve onboarding and insights and reporting.
By booking a demo with Onfolk today, you can find out how the all-in-one solution can help your HR and finance team right away. And your business can focus on those tasks that will help it get to the next level and truly expand.
