# Payroll4Free.com

America's Small Business Payroll Service

## Elevator pitch
Payroll4Free.com is a payroll service company, much like ADP or Paychex, except that we focus on very small businesses and offer the basic services free of charge (optional premium services are between $25 and $30 per month). The services are primarily supported by payroll-related offerings and by advertising that is displayed on the payroll software. Our small business owner clients provide a very valuable target market for advertisers who offer products and services intended for business use.

- Canonical URL: https://wefunder.com/payroll4freecom
- Entity ID: wefunder:company:12332
- Last updated: 2026-06-04T05:02:03Z
- Generated at: 2026-06-04T19:02:45Z

## Quick facts
- Thousands of very happy clients across the entire United States
- Growing fast, rapidly accelerating acquisition rate
- 2024 Q1 client service revenue up over 25% compared to same period 2023
- Top choice on review sites including Forbes, Nerd Wallet, Motley Fool and Business.org.
- Largely automated many manual processes relating to client onboarding and tax filings
- Rated by clients 4.8/5 in service and support

## Active fundraises
- wefunder:fundraise:118809: 4(a)(6) successful (USD)
- wefunder:fundraise:118808: 4(a)(6) successful (USD)
- wefunder:fundraise:57058: 4(a)(6) successful (USD)
- wefunder:fundraise:57059: 4(a)(6) successful (USD)
- wefunder:fundraise:29377: 4(a)(6) successful (USD)
- wefunder:fundraise:8098: 4(a)(6) successful (USD)

## Story
Invest in Payroll4Free.comIf you would like to personally discuss this investment with the President of Payroll4Free.com, please click here to schedule a call!Payroll4Free.com is a payroll service, much like ADP or Paychex, except that we focus on very small businesses and offer our basic payroll service free of charge.There are over 25 million small businesses in the United States with fewer than 10 employees! Based on our own client statistics, only about 4% use a payroll service. Virtually all other payroll services charge a base fee per payroll run or month, and additional fees per paycheck or per employee, so their smaller clients are charged much more per paycheck than their larger clients. Each year, the IRS assesses billions of dollars in payroll tax penalties to small businesses. In 2023 payroll related IRS penalties exceeded $8 billion. Small businesses have an urgent need for an affordable payroll service. With clients in all 50 states, Payroll4Free.com is well positioned to serve the needs of this vast, underserved market.Our free service is rich with features, including accommodating different paid leave time accrual policies, multiple wage rates and departments, an online portal for employees, and much more. We also offer some optional services for which we do charge small fees, which is our current source of revenue.Our small business owner clients typically manage the payroll function directly (unlike larger companies where payroll is handled by a controller or HR department). They provide a very valuable target market for advertisers who offer products and services for business use.Our primary revenue in the future will come from partnerships with companies that offer services that can be integrated into the Payroll4Free.com application. These include workers comp, employee background checking services, banks offering ACH services, job posting services, and others. Additional revenue will also be generated from advertising that is displayed on the payroll software application from other companies, both local and national, offering goods and services to our clients.We are poised for explosive growth. We have software compatible with regulations in all 50 states, a growing client base of 5,000+ with a rapidly increasing rate of new client acquisition, and we are not spending anything yet on marketing! Funds from this sale of equity in our company will allow us to complete the technology to greater automate operations, to hire additional staff to handle the large volume of signups we currently get each month, and to begin a marketing program that will help us reach our potential. I hope you will join us as a shareholder, and that you too will benefit from that growth. If you would like to discuss this opportunity with me personally, please schedule a phone call with me by clicking here."- Mike Rosenberg, PresidentWE ARE POISED FOR GROWTHWe began in 2013, our first full year, with 2 clients in one state. Since then, we have completed additional programming to automate many back-office functions and accommodate regulations for all 50 states. We added training videos to ease new client intake. Our client base now exceeds 5,000 clients in all 50 states. Currently, we spend absolutely nothing on marketing - new clients find us searching on the web or are referred by other clients and accounting firms.There is a tremendous demand for our services. Payroll4Free.com is the welcome solution to the very small businesses we serve, because virtually all other payroll services charge fees structured so that the smallest clients pay the most per employee. There are more than 25 million businesses in the United States that have fewer than 5 employees. In addition to those of our clients who have switched to us from other payroll services, many of our clients had previously used no outside payroll service at all.Onboarding new clients has largely been a manual process, which up to now has limited the rate at which we could add new clients. Thanks to our previous fundraising we have already implemented new, automated on-boarding technology in 45 states, and we have seen our acquisition rate more than triple in those states. We have also completed programming to automate a large portion of tax filings, which was another manual and labor-intensive task. Use of funds from this campaign will include implementing automated onboarding and tax filings in the remaining states.After fully implementing the automation technology, we will begin an aggressive marketing program. We look forward to earning a significant market share of the small payroll service business from this gigantic, underserved market (but it is not guaranteed).VALUATIONAn important issue for all investors is the value of their investment. For start-up companies that have not yet established revenue and profitability, the valuation can seem somewhat arbitrary.To determine a valuation for Payroll4Free.com, we calculated the value per client for several other payroll service companies (valuation divided by number of clients). For ADP, the largest payroll company, that value is $100,000 per client. For Paychex, the value per client is $60,000. For Gusto, which is not yet publicly traded, the value (set by venture capital investments) is $32,000 per client.Payroll4Free.com's value for this campaign is less than $4,000 per client. This means that not only should Payroll4Free.com's value increase with the growth of its client base (based on initial per client value), but as its client base reaches critical mass, it will also allow for significant revenue growth from advertising partners, which will increase the per client value exponentially. Prospective investors should be very encouraged by this great growth potential.Future projections are not guaranteed. WHAT PART OF FREE DON'T YOU UNDERSTAND?Payroll4Free.com is distinguished from all other services by:(1) Price(2) Service(3) Revenue ModelThe Payroll4Free.com client can be characterized as the owner of a very small business who is not necessarily an expert in payroll or accounting. Our entrepreneur clients run payroll themselves, logging in to enter hours worked, print checks and reports, and maintain employees (unlike larger companies where the payroll function is handled by a controller or HR department).PriceOur average-size client has 3.97 employees. Our free services are very attractive to clients when compared to the cost of other services. Based on the choice of Payroll4Free.com clients to use some optional fee-based services, our clients actually pay an average of $20.14 per month (the most they can pay for ALL optional services is $40 per month). ADP and Paychex are far more expensive for companies with 4 employees ($129.20 and $103.55 per month, respectively for semi-monthly payrolls, based on rates reported by Payroll4Free.com clients who switched from those services). And lower cost services, like Gusto and Quickbooks Online, charge $64.00 and $69.00 (not including local tax filings) per month, respectively (based on rates shown on their websites as of 5/1/2024). Payroll4Free.com is clearly the best value for the small business owner.ServicePayroll4Free.com is accredited by and enjoys an A+ rating with the Better Business Bureau. We provide the highest level of personal service, and were rated 4.8 out of 5.0 by our clients in service and support. Our type and size client is often dismissed by larger payroll services, who tend to focus on their more profitable clients. We often hear stories from clients about their bad experiences with well-known payroll service companies that they have used previously.Revenue ModelOur clients represent a great target market for companies who offer goods and services of interest to small business owners. Our technology provides for advertising in the business application: "skyscraper” ads on the right side of the screen and "leaderboard” ads at the top of the screen rotate to allow multiple ads to appear in succession. Advertisers are assured a monthly per client minimum of 12 impressions with a minimum duration of 10 seconds, with a potential of 180 advertisers (based on average time spent per month by a Payroll4Free.com client). The ads do not interfere with the clients’ payroll work, and when a client chooses to click on a particular ad, they will be directed to the advertisers designated landing page.In addition, Payroll4Free.com also has technology to print ads, such as coupons, on employee paystubs and to show them to employees when they access their pay information on the employee portal.The concept of providing free service supported by advertising is not new.  Payroll4Free.com is unique in applying this revenue concept to business software applications. We believe we are in the best position to take advantage of this revenue model because (1) our marketplace of very small businesses (25 million+) is large enough that even a relatively small market share can produce a very large client base, (2) our client base represents a narrowly-defined key target for many advertisers, and (3) because our clients regularly and reliably log on to Payroll4Fee.com to take care of necessary business functions, advertisers can justifiably rely on receiving the exposure for which they pay.HOW WE MAKE MONEYPayroll4Free.com has two major sources of revenue: (1) client fees for optional services and (2) advertising.(1) CLIENT FEES: Clients pay fees for optional services including Payroll Tax Service, Direct Deposit Service, and when paying more than 10 employees. Currently, fees from clients average $20.14 per month per client.(2) ADVERTISING REVENUE: With sufficient success in our fundraise efforts, we are projected to reach 20,000 clients within two years, at which point we expect to begin to attract many advertisers (but it is not guaranteed). Payroll4Free.com offers easily auditable longer-duration advertising impressions that provide assurance that advertising dollars are not wasted on fraud. An article in Adweek (February 21, 2016) indicated just how scary is the problem of fraud in advertising:Long a dirty little secret of the digital media business, the topic of ad fraud has been thrust front and center in discussions among agency executives, advertisers and publishers over the last three years. Bot traffic, or nonhuman digital traffic, is at its highest ever, and recent projections from the Association of National Advertisers have more than $7 billion in advertising investment wasted.Two different categories define our advertising opportunities:(a) Display AdvertisingAds appear on the right side of the screen (skyscraper ads), and at the top of the screen (leaderboard ads) within the payroll application, where clients enter hours worked, print checks and reports, and maintain employee data. Advertisers can be local, regional, or national, and can include a wide range of product and service categories, including those directed to the business (office supplies and equipment, credit card processing, business loans, telecom, IT, etc.) and those directed to the business owner personally (electronics, jewelry, automobiles, etc.).(b) Payroll-Related PartnershipsPartnerships allow us to offer our clients payroll-related services like workers' comp, employee background checks, job posting, banking services, and healthcare plans at great savings. We recently signed a new agreement to offer unique services that allow our employer-clients to offer payroll advances to their employees without using their own funds, and saving their employees from outrageous interest charges!Invest in Payroll4Free.com Today!With 25 million + very small businesses, all of whom can substantially benefit from our services, Payroll4Free.com has the potential of growing its client base exponentially (but it is not guaranteed). As our client base grows, we expect to become very valuable to advertisers for whom our clients represent a key target market. Your investment will provide the funds for marketing, added personnel, and additional automation of back-end processes. Our revenue model should ultimately provide us with more revenue per client than many of the fee-based services, all while providing a fabulous deal for small businesses and a great opportunity for appropriate advertisers. If you would like to personally discuss this investment with the President of Payroll4Free.com, please click here to schedule a call!

## FAQ
1. **What is your current monthly growth rate? How many active users do you have and what is the estimate minimum number of users you need to reach break even point?**
   - We have added our 1,000th client on June 13, 2017. With virtually no marketing expense, we are adding 40 - 50 new clients each month. Profitability is a factor not only of the number of clients, but also the number of and revenue from advertisers. Based on our experience so far, we project operating at a profit (break-even) at 5,000 clients. One of the major goals of this funding is to have a marketing and internal support staff budget that will allow for a major increase in the rate of clien...
2. **What are the other ways that you make money except advertisements and premium service charges?**
   - In the future, we expect to add additional revenue streams, one of which is insurance (particularly payroll-related insurance such as Workers Compensation). We hope to do this in partnership with many of the thousands of independent insurance agencies throughout the US.
3. **Are investors if they invest $250 only to get back $500 eventually or does the 5% keep going on forever?**
   - Under Revenue Share, Payroll4Free.com will pay 5% of its revenue to investors, until each investor has received double the initial investment. So if you invest $250, you will receive a total of $500.
4. **What is your retention rate of the 40 to 50 new clients you sign up monthly? When does this round of raising money end?**
   - Our retention rate varies, but over time we have lost about 35% of clients, mainly due to the fact that they have gone out of business (since many of our clients are very small startups). This round will end in 180 days since it started (6/26). We may choose to end earlier once a certain level of goal has been met, if we feel that it will be to our benefit not to wait.
5. **when does this round close and for the $2k investment is it 2 nights in a hotel?**
   - Yes, one hotel room is included for two nights in the $2,000 level investment perk, along with the other items listed.

## Team
- Michael Rosenberg (President & CEO)
- John Presti (VP of Client Services)
- Carol Emeruwa (Director of Payroll Tax Services)

## Q&A
- Q: do you get the 5% of the return monthly? quarterly? annually? is it 5% of the initial investment ie. $500 = $25 per payout or 5% of the double = $50 per payout? when do you anticipate the 5% starting to payout, Jan. 2018?
- Q: Hi - 1) Does the free payroll for life perk include the deposit and file taxes service as well as the direct deposit service for no cost for life? 2) If your company gets acquired by a different company (e.g. say H&R block), how will you ensure that the new company honors the life time perk for customers/other investors? 3) Have you come up with a perk that eliminates ads yet? thanks
  - A: Hi Mandar, Here are answers to your questions: 1) The free payroll tax service for life perk does NOT include direct deposit service. Direct deposit is a separate service, but the monthly fee is only $5 if you already have payroll tax service (free or paid version). 2) If we are acquired, the purchasing company will be legally obligated to honor all contracts and agreements, including lifetime pricing (based on investing or paid subscriptions). 3) We do not have a perk for eliminating ads at this time, but may consider it in the future. Thank you.
- Q: So how do you make money if this is free?
  - A: Lissette, while we do offer some optional services to clients for which we do charge fees, our revenue model is more similar to that of Facebook,  Linkedin and Twitter.  We are establishing revenue generating payroll-related partnerships for Workers Comp, Job Posting, Employee Background Checks, and we have reserved space (which do not "pop-up" or otherwise interfere with client work) for advertising on screens clients see when they enter hours worked, print checks, print reports, etc. This revenue model works because we focus on very small companies, where typically, the owner of the business is the one running payroll (whereas at larger companies, payroll would be handled by, say, a controller or Human Resource Department).
- Q: 5% of net monthly? quarterly? annually? when do payments of the 5% start? 2018?
- Q: It is good to see you are having success. Can you share more specific metrics on the number of costumers in the last quarters? If I invest more in this round when can I expect to be able to exit my investment? I have seen very few business updates shared with wefunder investors in the past, any thoughts on your investor communication going forward?
- Q: Hi - thanks for offering us the opportunity to invest, very exciting opportunity as a small business owner myself (who runs payroll) the fees have been very painful. A few questions. 1- What was your 2022 revenue and how are you trending in 2023? What has to go right for you to hit $100mm in revenue? 2- What is the biggest threat to payroll4free? 3- Why specifically is this business important today (vs. another moment) and why are you building it? Thank you!
  - A: Eric, 1. Our 2022 revenue was $415,534, and our first quarter shows an annualized 17% increase. 2. We will need to continue to raise significant funds over the next two years. We are making great progress, but without sufficient additional funding, our continued progress is in question. 3. There are many positive indicators that should encourage our investors that the time is now: A. We are getting far more signups than we can possibly handle, and that's with no marketing! Just imagine if we were marketing! B. Great reviews from the most credible sources: Forbes, Nerd Wallet, Motley Fool, and others! (With no help from us - we didn't even know they were reviewing us). C. Although we are yet at an early stage, potential revenue-generating advertising partner s are already approach us! D. The Banking Crisis is presenting an urgent opportunity for us. There are no guarantees, but we genuinely believe that with sufficient early stage support, our investors should be very encouraged about our future!
- Q: After having defrauded your investors in 2018, how are new investors supposed to have confidence in your ability to return their capital? Do you consider what you're doing to be a ponzi scheme? Thanks for answers in advance!
  - A: Darrin, You're question is curious. Since the end of our our Revenue Share campaign, we have been making Quarterly payments religiously. We make those payments to Wefunder (based on 5% of our annual revenue), and they in turn distribute those funds proportionately to our investors. (In addition, the majority of those investors have been using our payroll services and received, and still receive, the perk of Free Payroll Tax Services). In 2022 those payments increased significantly, since our revenue in 2022 increased some 74% over the previous year! Please check with Wefunder to make sure your Wefunder account has been properly updated. Mike
- Q: Investors investing over $1,250 will receive free payroll tax service for life, as long as Investor remain a client of the Company. 1) Can you explain at what point will an investor "not" be considered a client of the company (i.e. no activity for a year), or any other reasons the company deems grounds to void the free payroll tax service for life? . 2) Does this include all tax services offered by payroll4free? 3) Does the free payroll tax service for life have to start immediately or will it still be valid once you register your company (i.e. 1 or 2 years after the investment)? The cost of the free payroll tax service for life is $1250 and each share is priced at $11.25/share, correct?
  - A: Hi there! The free payroll tax service (PTS) for LIFE perk applies with any investment over $1250. The share price is $12.50 (unless you qualified for the early bird bonus, then it would have been $11.25). Once qualified, the free PTS can be applied at any time you wish. If you are an existing client, you can add it as soon as you qualify, or wait until a later date. If you are not yet a client, you can add it when you become one. We actually have a client who invested two years ago and qualified for the perk, but just started a new business and decided to activate it now for the new company. We also have clients who have multiple companies and who invested multiples of the qualifying amount in order to receive free PTS for each business. The PTS service covers all payroll related taxes and continues until the client decides to cancel the service or when they close their business. It does not get voided if there is an extended period of no activity, unless we are notified that the business has been closed. However, it cannot be transferred to another business (if one is closed and a new one is started, for example). Hope this helps! Mike
- Q: I’m glad to see your wisdom in taking your time and doing things right! You not getting ahead of yourself means that you have thought things through and preparing for massive growth in the future. Some companies grow too fast and Fizzle out quickly I love that you are doing this right! I see the massive growth ahead and see that you are putting all the pieces in place and being prepared! Awesome job! Not a question just a comment thanks!
  - A: Thank you so much for your kind words!
- Q: Do you intend to pay a dividend?
  - A: We do not pay a dividend at this time.  We don't anticipate paying a dividend for at least the next three years.  Our main focus is to grow the value of the company.  Even nickel and dime is being plowed back into the company to assure growth.
- Q: What is your 2020 revenue as of May'31? What is the projection for year 2020?
- Q: when does this round close to invest in?
- Q: Hi. I would like to sell my current Payroll4Free shares. Would the company and/or any of its investors be interested in purchasing these shares? Thanks
- Q: Hi. I invested a few years ago and am wanting to sell my shares. What is the process?
- Q: I have been your customer from 2018 and invested in your company. The first investment I made gave me payroll Tax services for free as long as my account is active. The contract that I received says the following on page 11 exhibit B. “Customer Discount . Investors investing over $1,000 will receive free payroll tax service for life, as long as Investor remain a client of the Company” I have attached both the contracts in this email as well as the email I received when I invested in your company. According to the contract, I should not be getting charged for payroll tax services. I would appreciate any information you can provide as to why such charges are appearing on the application, as well as how we can remedy this moving forward.