# Wave Payroll

Wave Payroll is a payroll tool for freelancers and micro-businesses rated 4.2/5 on G2 and 4.4/5 on Capterra. Pricing from $20/mo base + $6/employee. Owned by H&R Block.

**Category:** Payroll software for freelancers and micro-businesses  
**Vendor:** Wave Financial Inc. (subsidiary of H&R Block)  
**Founded:** 2010  
**HQ:** Toronto, Ontario, Canada  
**Website:** https://www.waveapps.com/payroll  


## About

Wave Payroll is the payroll product from Wave Financial Inc., a Toronto-based company known primarily for its free Wave accounting software for freelancers and small businesses. Wave was founded in 2010 and acquired by H&R Block in 2019 for approximately $537 million. Wave Payroll adds paid payroll processing on top of Wave's free bookkeeping, letting sole proprietors and very small teams run payroll without switching platforms. The product operates in two modes: full-service (tax-service states), where Wave handles payroll tax calculations, filings, and deposits automatically, and self-service (remaining states), where employers manage their own state tax submissions. Wave accounting remains free; Wave Payroll is the primary paid product in the Wave ecosystem.

## Ratings

| Source | Score | Reviews |
|---|---|---|
| G2 | 4.2/5 | 50 |
| Capterra | 4.4/5 | 100 |
| Gartner Peer Insights | N/A/5 | insufficient data |
| TrustRadius | 7.5/10 | 30 |

## Funding

~$79M before H&R Block acquisition in 2019 for ~$537M

| Round | Amount | Date | Lead |
|---|---|---|---|
| Seed | $2M | 2011 | OMERS Ventures |
| Series A | $17M | 2012 | OMERS Ventures |
| Series B | $30M | 2014 | Social Capital |
| Series C | $30M | 2017 | National Bank of Canada, Portag3 |
| Acquisition | ~$537M | 2019 | H&R Block |

## Viability

Medium risk. Wave itself is stable, backed by H&R Block, but the payroll product has limitations that create real risk for growing businesses. Coverage is not nationwide in the full-service tier, and H&R Block's strategic appetite for investing in Wave's payroll product is unclear given the parent company's focus on tax preparation. Wave Payroll makes the most sense as a low-friction extension for freelancers already using Wave accounting. It is not a long-term platform for businesses that expect to hire more than 5-10 people.

## Pricing

Wave Payroll's pricing is simple but state-dependent. In tax-service states (most major ones), you pay $20/mo plus $6 per active employee per month and Wave handles everything including tax deposits and filings. In self-service states, there is no $20 base fee but you pay the same $6 per employee and must file state payroll taxes yourself. The current list of tax-service vs. self-service states is on Wave's pricing page and changes periodically. Contractors pay $6 per month regardless of state. For a solo operator with one part-time employee in a tax-service state, the all-in cost is $26/mo.

| Plan | Price | Best for |
|---|---|---|
| Tax-service states | $20/mo + $6/employee/mo | Full-service payroll with automatic tax filing; simplest option for micro-businesses in covered states |
| Self-service states | $6/employee/mo (no base fee) | Payroll processing with employer-handled state tax filings; works for owners comfortable managing state tax deadlines |
| Contractors | $6/contractor/mo | Businesses paying 1099 contractors only |

## What reviewers say

_~50 G2 reviews at 4.2/5 and ~100 Capterra reviews at 4.4/5, plus TrustRadius_

**Praised:**
- The Wave accounting integration is the strongest selling point; payroll journal entries post directly to Wave books without manual reconciliation, saving solo operators hours per month
- Price is a consistent positive: at $20/mo base plus $6 per employee, Wave Payroll is one of the cheapest full-service payroll options for micro-businesses
- Simplicity is frequently praised; reviewers who are not accountants say they can run payroll in under ten minutes after the initial setup

**Complaints:**
- State coverage is the biggest friction point; self-service states require the employer to handle their own state tax deposits and filings, which defeats the point of using a payroll service for many small business owners
- Support response times are slow; email is the primary channel and wait times of 48-72 hours are reported, which is frustrating during payroll deadline weeks
- The feature set is thin for growing businesses: no PTO tracking, no time-clock integration, no HR compliance tools, and no benefits administration

## Compliance

- **SOC 2:** Yes
- **GDPR:** Yes
- **HIPAA:** No
- **SSO:** No

## Integrations

- Wave Accounting (native)
- Wave Invoicing (native)
- Google Sheets
- PayPal
- Etsy
- Shoeboxed
- Zapier
- Stripe
- HubSpot
- Calendly

## FAQs

### Is Wave Payroll free?

No. Wave accounting is free, but Wave Payroll is a paid product. In tax-service states it costs $20/mo plus $6 per active employee per month. In self-service states there is no monthly base fee, just $6 per employee. Contractors cost $6 per month regardless of state.

### What is the difference between Wave Payroll and Wave accounting?

Wave accounting is a free bookkeeping and invoicing tool. Wave Payroll is a separate paid product that adds payroll processing, direct deposit, and (in tax-service states) automatic tax filing. The two products share a login and sync automatically, which is their main advantage together.

### Which states does Wave Payroll file taxes in?

Wave offers full-service automatic tax filing in a subset of US states called tax-service states. In the remaining self-service states, Wave calculates taxes but the employer must deposit and file state payroll taxes manually. The current list is on Wave's pricing page. It changes as Wave expands coverage.

### Who owns Wave?

Wave Financial Inc. is a subsidiary of H&R Block, the tax preparation company. H&R Block acquired Wave in 2019 for approximately $537 million. Wave operates as an independent product team out of Toronto.

### Who is Wave Payroll best for?

Wave Payroll is best for freelancers, sole proprietors, and micro-businesses with 1-5 employees who already use Wave accounting and want payroll to sync without switching platforms. It is a weak choice for businesses in self-service states, for employers who need HR tools beyond payroll, or for anyone planning to grow past 10 employees in the next year.


## Sources

- [G2: Wave Payroll reviews](https://www.g2.com/products/wave-payroll/reviews): rating 4.2/5, ~50 reviews
- [Capterra: Wave Payroll](https://www.capterra.com/p/161587/Wave-Payroll/): rating 4.4/5, ~100 reviews, sub-scores, demographics
- [TrustRadius: Wave Payroll](https://www.trustradius.com/products/wave-payroll/reviews): score 7.5/10, ~30 reviews
- [Wave Payroll pricing page](https://www.waveapps.com/payroll/pricing): tax-service vs. self-service state pricing confirmed
- [Wikipedia: Wave (financial software)](https://en.wikipedia.org/wiki/Wave_(financial_software)): founding, founders, H&R Block acquisition, HQ
- [Crunchbase: Wave Accounting](https://www.crunchbase.com/organization/wave-accounting): funding rounds, acquisition details
- [H&R Block press release: Wave acquisition](https://newsroom.hrblock.com/2019-06-18-H-R-Block-Announces-Acquisition-of-Wave-Financial): acquisition price ~$537M, 2019
- [LinkedIn: Wave company page](https://www.linkedin.com/company/waveapps/): employee count, HQ, specialties