Payroll · Context-specific fit
Wave Payroll Review
Low-cost payroll that plugs into Wave's free accounting — simple and affordable for tiny shops
Quick verdict
Wave Payroll is best for Solo operators and micro trades shops — especially those using Wave's free accounting — that want simple, low-cost, compliant payroll in the same place as their books. Pricing: $20/month + $6 per active employee/contractor (self-service: you file taxes), or $40/month + $6 per active employee/contractor (full-service with automatic tax filing in all 50 states).. A two-step 1099 process, no international payroll, and a cheapest plan that offloads tax filing. But the low price and seamless Wave-accounting integration make it strong for very small shops..
About Wave Payroll
Wave Payroll is the payroll module of Wave, the long-running small-business financial suite known for its genuinely free accounting and invoicing. Founded in 2010 in Toronto and acquired by H&R Block in 2019, Wave's pitch to a tiny trades shop is integration and price: run your books on Wave's free accounting, then bolt on payroll so wages, taxes, and expenses flow into the same ledger automatically. For a solo operator or micro-shop that already wants free invoicing and accounting, adding payroll in the same place is the path of least resistance.
Pricing is straightforward and cheap. After Wave's 2025 plan change, payroll is $20/month plus $6 per active employee or contractor on a self-service basis (you handle tax filings), or $40/month plus $6 per employee/contractor for full-service with automatic tax calculation, filing, and payment in all 50 states. Either way it is among the lower-cost options, and the tight link to Wave's free accounting is the real differentiator.
Reviewers (G2 around 4.1) praise the easy-to-use interface, the automated tax filing on the full-service plan, and the seamless accounting integration. The recurring gripes are a clunky two-step process for paying 1099 contractors and no support for international payroll — both fine for a typical US trades shop with W-2 employees, but worth knowing.
For a very small trades business — especially a solo operator or micro-shop already using or open to Wave's free accounting — Wave Payroll is a low-cost, simple way to add compliant payroll without a separate system. Larger shops or those wanting deep HR, scheduling, or benefits will outgrow it and should look at Gusto or Homebase.
How it works
If you use Wave's (free) accounting, you add the Payroll module; you can also use Payroll standalone. You set up employees/contractors and pay schedules, and run payroll online — wages, taxes, and expenses post automatically into Wave's accounting ledger. On the full-service plan ($40/mo + $6/employee), Wave calculates, files, and pays payroll taxes in all 50 states; on the self-service plan ($20/mo + $6/employee) you handle the filings. Direct deposit and employee self-service are included. The defining feature is the tight integration with Wave's free accounting and invoicing.
Pros & cons
What works
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Low cost
From $20/mo + $6/employee (self-service) or $40/mo + $6/employee (full-service tax filing), Wave Payroll is among the cheapest compliant payroll options — ideal for solo operators and micro-shops.
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Seamless Wave accounting integration
Wages, taxes, and expenses flow straight into Wave's free accounting ledger, so a tiny shop can run books and payroll in one place without manual journal entries.
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Automatic tax filing (full-service)
The $40/mo plan calculates, files, and pays payroll taxes automatically in all 50 states — hands-off compliance for a low price.
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Easy to use
Reviewers (G2 ~4.1) consistently praise the simple, clean interface and straightforward payroll process — well-suited to non-experts.
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H&R Block-backed
Wave has been owned by H&R Block since 2019, adding tax pedigree and stability to the platform behind your payroll.
What doesn't
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Clunky 1099 contractor process
Reviewers note paying 1099 contractors is a two-step process — a minor friction for trades that lean heavily on subcontractors.
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No international payroll
Wave Payroll is US (and Canada) focused with no international payroll support — fine for typical US trades, but a hard limit if you ever need it.
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Self-service plan offloads tax filing
The cheapest $20/mo plan does not file taxes for you. Hands-off filing requires the $40/mo full-service plan, so compare the real cost.
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Best for very small shops
Its strength is simplicity and price for solo/micro operations. Growing shops needing deep HR, benefits, or scheduling will outgrow it.
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Value tied to Wave ecosystem
The biggest advantage is integration with Wave accounting; if you do not use Wave for books, some of the appeal is lost versus a standalone payroll specialist.
Pricing
$20/month + $6 per active employee/contractor (self-service: you file taxes), or $40/month + $6 per active employee/contractor (full-service with automatic tax filing in all 50 states).
Starting base: $20/mo + $6/employee
Affiliate disclosure: No public publisher affiliate program confirmed — outreach required (H&R Block / Wave)..
Integrations
Frequently asked
How much does Wave Payroll cost?
$20/month plus $6 per active employee or contractor on a self-service basis (you file taxes), or $40/month plus $6 per employee/contractor for full-service with automatic tax filing in all 50 states. It is among the cheapest compliant payroll options.
Do I need Wave accounting to use Wave Payroll?
No, but the main advantage is the seamless integration — if you use Wave's free accounting, wages, taxes, and expenses post automatically to your ledger. Standalone use works, but you lose part of the appeal.
Does Wave Payroll file my payroll taxes?
On the full-service plan ($40/mo + $6/employee) it calculates, files, and pays payroll taxes automatically in all 50 states. On the cheaper self-service plan ($20/mo + $6/employee), you handle the filings yourself.
What are Wave Payroll's limitations?
Paying 1099 contractors is a two-step process, there is no international payroll, and it is best suited to very small shops. Growing trades businesses that need deep HR, benefits, or scheduling will outgrow it.
Other payroll services
Gusto
Tier SThe modern SMB payroll favorite — best affiliate economics in the entire WrenchStack universe ($300-$1,000+ per signup via PartnerStack)
OnPay
Tier SLean SMB payroll with flat pricing — favorite of small trades shops who don't need Gusto's bolt-ons
Patriot Payroll
Tier SUltra-affordable payroll for 1-3 employee shops — cheapest tax-filing payroll in the market
Hourly.io
Tier SPayroll + pay-as-you-go workers comp combined — the only payroll service with WC built in, structurally relevant for trades
QuickBooks Payroll
Tier APayroll embedded in QuickBooks Online — convenient for QBO users, mediocre as standalone product
Square Payroll
Tier APayroll embedded in Square ecosystem — convenient for Square-POS users, narrow fit outside that context