Wave Payroll
Payroll add-on for Wave accounting.
About Wave Payroll
Wave Payroll runs payroll, calculates federal and state/provincial taxes, files those taxes automatically, and pushes direct deposits to employee bank accounts — all within the same dashboard where Wave Accounting tracks income and expenses. The accounting entries post automatically, so reconciliation requires no manual journal entries. Employees get a self-service portal to view pay stubs and download their own T4s or W-2s at year-end. This fits micro-businesses already on Wave Accounting: sole proprietors with a handful of employees, small retail or service businesses that chose Wave's free accounting tier and want payroll without switching platforms. A bookkeeper who manages ten clients all running Wave could use it to centralize payroll processing without paying for separate software. The ceiling is low. Wave Payroll is a feature extension, not a standalone payroll platform. It connects to Wave Accounting and nothing else — no QuickBooks, no Xero, no FreshBooks. Firms managing clients on multiple accounting platforms cannot use it as a single payroll tool. Reporting is thin compared to Gusto or ADP Run, and there is no free trial to evaluate it before committing.
Best for
Wave accounting users wanting affordable payroll integrated with their free accounting software
Key Features
- Integrated payroll processing with Wave accounting
- Automated tax calculation and filing
- Direct deposit management
- T4/W-2 form generation
- Employee self-service portal
Pros & Cons
Pros
- Payroll entries post directly to Wave Accounting with no manual journal work required
- Automated federal and state/provincial tax filing removes the deadline-tracking burden from the business owner
- Direct deposit setup is straightforward and processes through standard banking connections
- Employee self-service portal lets staff download pay stubs and year-end T4s or W-2s without contacting the bookkeeper
- Pricing starts at $40/month, significantly undercutting Gusto's $40 base plus $6 per employee per month for comparable features
- Tax calculations update automatically when rates change, covering both US and Canadian payroll rules
Cons
- Zero integration with any accounting platform other than Wave — useless for bookkeepers whose clients use QuickBooks or Xero
- No free trial, so firms pay before confirming the workflow fits their practice
- Payroll reporting is basic — no departmental breakdowns, no labor cost analysis, nothing close to what Gusto or ADP Run produce
- Locked into the Wave ecosystem: switching accounting software later means rebuilding payroll history elsewhere
- Smaller user community than Gusto or QuickBooks Payroll means fewer third-party resources and slower community-driven troubleshooting
- Not a viable option for growing businesses that will eventually need HR features, benefits administration, or multi-state complexity at scale
Ledger Brief Take
This is strictly for existing Wave Accounting users — the payroll module won't work standalone and lacks integrations with other accounting platforms. While it handles the basics competently (processing, tax filings, direct deposits), it's essentially a feature extension rather than a full payroll solution, making it ideal for micro-businesses already committed to Wave's ecosystem but limiting for firms serving diverse clients.
Frequently Asked Questions
Common questions accountants ask about Wave Payroll.
What does Wave Payroll cost and what does the base price include?
Wave Payroll starts at $40 per month plus $6 per active employee per month in the US. Canadian pricing differs by province. The base price covers payroll processing, automated tax calculations, direct deposits, and T4 or W-2 generation. There is no free trial and no free tier — you pay from day one.
Does Wave Payroll integrate with QuickBooks or Xero?
No. Wave Payroll connects exclusively to Wave Accounting. If your clients use QuickBooks, Xero, or any other accounting platform, Wave Payroll will not sync with those systems. Bookkeepers managing a mixed client base need a payroll tool like Gusto or ADP Run instead.
How does Wave Payroll compare to Gusto for small businesses?
Gusto starts at $40/month plus $6 per employee, the same entry price, but offers stronger reporting, built-in HR features, benefits administration, and integrations with QuickBooks, Xero, and others. Wave Payroll wins only if you are already on Wave Accounting and want a single-dashboard experience with no extra per-employee cost at the lowest headcounts.
Can Wave Payroll handle both US and Canadian payroll?
Yes. Wave Payroll supports both US payroll with IRS tax filing and Canadian payroll with CRA remittances and T4 generation. The pricing structure differs between the two countries, and not all Canadian provinces are supported, so verify your province is covered before committing.
Is Wave Payroll suitable for an accounting firm managing multiple clients?
Only if every client uses Wave Accounting. The payroll module has no standalone mode and no multi-platform integrations. A firm with ten Wave-only clients could centralize their payroll processing here. A firm with a mixed client base cannot use Wave Payroll as its primary payroll tool.
How secure is payroll data in Wave?
Wave uses 256-bit encryption for data in transit and at rest, and banking-grade security protocols govern direct deposit connections. Wave is owned by H&R Block, which imposes enterprise-level security standards on the platform. That said, Wave has not published a SOC 2 Type II report publicly, unlike Gusto, which is a consideration for firms with strict vendor compliance requirements.