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Payroll software review

Wave Payroll

Payroll from Wave, the accounting software: $40 a month plus $6 per active employee and $6 per contractor paid, with federal and state tax filings in all 50 states and no term. It has no POS connection, no tip features and live support only on weekdays.

By WaveParent company: H&R Block, Inc.

RTC SCORE

5.6

#11 of 22 with enough data

Our verdict

Low, published payroll pricing with state and federal tax filings and no term, best for a small team already on Wave's accounting. For a tipped restaurant crew it leaves tips, hours and local taxes to you.

What we like

  • One published price in every state: $40 a month plus $6 per active employee, with no setup fee and W-2 forms included.
  • Wave files and pays federal and state payroll taxes in all 50 states.
  • Month to month with no early termination fee, and a 30-day free trial.
  • Each pay run posts automatically to Wave's accounting software.

What to watch

  • No tip features documented: no POS tip import, tip pooling, tip credit make-up or Form 8846, and nothing published yet on the 2026 W-2 for tips.
  • Direct deposit needs 3 business days, and there is no built-in time tracking or scheduling.
  • Local payroll taxes and 1099 filing are outside the tax service, and the penalty guarantee is capped.
  • Live support only by chat and email, weekdays 10 a.m. to 4 p.m. Eastern, with no phone line.

How the score breaks down

RTC Score5.6out of 10

Methodology v0.1.0

Data completeness97%

We could verify 97% of the scoring data

Strongest points
12-month payroll cost (reference restaurant), Who files payroll taxes, Published pricing
Weakest point
POS integrations

Score by criterion

  • 12-month payroll cost (reference restaurant)Weight 19%Strongest9.8 out of 10

    $1,560 over 12 months

  • Who files payroll taxesWeight 7%Strongest8.5 out of 10
  • POS integrationsWeight 6%Weakest0.0 out of 10
  • Published pricingWeight 5%Strongest10.0 out of 10
  • Tip credit and minimum wage make-upWeight 5%0.0 out of 10
  • Tips imported from POS systemsWeight 5%0.0 out of 10
  • 2026 W-2 ready for No Tax on TipsWeight 5%0.0 out of 10
  • Initial termWeight 5%10.0 out of 10
  • Live support hours a weekWeight 5%1.8 out of 10
  • Payroll in all 50 statesWeight 4%10.0 out of 10
  • Time trackingWeight 4%4.0 out of 10
  • FICA tip credit (Form 8846)Weight 3%0.0 out of 10
  • Tip pooling and tip-outsWeight 3%0.0 out of 10
  • Early termination feeWeight 3%10.0 out of 10
  • Unlimited pay runsWeight 3%10.0 out of 10
  • Fastest direct deposit includedWeight 3%2.0 out of 10
  • Tax penalty guaranteeWeight 3%7.0 out of 10
  • Year-end W-2 and 1099 formsWeight 2%6.0 out of 10
  • Accounting integrationsWeight 2%10.0 out of 10
  • Notice to avoid renewalWeight 2%10.0 out of 10
  • Garnishments and new-hire reportingWeight 2%No data
  • Declared cash tipsWeight 2%0.0 out of 10
  • State and local minimum wages built inWeight 2%No data
  • Dedicated specialistWeight 2%0.0 out of 10
  • Paying 1099 contractorsWeight 1%10.0 out of 10
  • Early pay for employeesWeight 1%0.0 out of 10

All the data, with sources

Each value links to its source. "Not published" means the vendor doesn't disclose it; "Unconfirmed" means we looked and couldn't confirm it. Data points we have for fewer than four vendors are left out until we can compare them.

Pricing
Data pointValue
Base fee$40/moSource: Wave (opens in a new tab)One plan for every state since April 2, 2025; the tax service is included.
Per employee$6Source: Wave (opens in a new tab)
Who counts as an employeeEach active employee, even if not paid that monthSource: Wave (opens in a new tab)Each active employee counts, even if not paid in the period; contractors count only when paid.
Per contractor (1099)$6Source: Wave (opens in a new tab)
Published pricingPublishedSource: Wave (opens in a new tab)
Setup fee$0 one-timeSource: Wave (opens in a new tab)
Year-end forms fee$0/yrSource: Wave (opens in a new tab)W-2 and W-3 forms are generated and filed as part of the tax service at no extra charge. Filing 1099s is outside the tax service; Wave's help center has listed e-filing at $5 per form, which we could not reverify today.
Each extra stateUnconfirmedSource: Wave (opens in a new tab)The price is the same in every state, but Wave does not say whether one account can run payroll in more than one state or what that costs; Merchant Maverick (May 2026) scores its multistate payroll 0 out of 5. We looked on the payroll page and in recent reviews.
Other fees$25 for each insufficient-funds (NSF) debit on payroll or tax payments. Unpaid balances can accrue interest of up to 1.5% a month. Filing 1099 forms is outside the tax service (Wave's help center has listed $5 per form). Workers' compensation insurance and Wave Advisors bookkeeping or coaching cost extra.Source: Wave (opens in a new tab)
Taxes and forms
Data pointValue
Who files payroll taxesThe provider calculates, files and pays federal and state payroll taxesSource: Wave (opens in a new tab)Federal and state only. The tax service terms exclude city, county and school district payroll taxes: Wave calculates them, but you pay and file them.
Payroll in all 50 statesYesSource: Wave (opens in a new tab)Before April 2, 2025 the tax service covered only some states; some reviews still say 14.
Year-end W-2 and 1099 formsW-2 onlySource: Wave (opens in a new tab)Wave files W-2 and W-3 forms for you and generates 1099-NEC forms, but 1099 filing is excluded from the tax service (its help center has offered e-filing at $5 per form).
Paying 1099 contractorsIncluded in payroll plansSource: Wave (opens in a new tab)Same plan, at $6 per contractor paid.
Tax penalty guaranteePays them, up to a published capSource: Wave (opens in a new tab)Only for penalties caused by Wave's calculation errors, reported within 90 days of the first notice. The cap is $500 or what you paid Wave in the prior 12 months, whichever is greater; unpaid taxes and interest stay with you.
Garnishments and new-hire reportingUnconfirmed()(due for a re-check)Source: Merchant Maverick (opens in a new tab)New-hire reporting is listed as included (Merchant Maverick, May 2026). For garnishments, Wave's help center (blocked to us today) has described them as a deduction you set up yourself, with the money sent to the agency outside Wave. We could not confirm the current mechanics.
Paying your team
Data pointValue
Pay schedulesWeekly, Every two weeks, Twice a month, Monthly()(due for a re-check)Source: Fit Small Business (opens in a new tab)
Unlimited pay runsYesSource: Wave (opens in a new tab)The price is per month and per person, with no charge per pay run; Merchant Maverick also lists unlimited and off-cycle pay runs.
Fastest direct deposit includedThree or more business days()(due for a re-check)Source: Merchant Maverick (opens in a new tab)You approve payroll 3 business days before payday (Wave's help center: by 3:00 PM Eastern); no faster option is published.
Early pay for employees (earned wage access)Not offeredSource: Wave (opens in a new tab)Wave does not document early pay for employees; we looked on its payroll page and plan details and in recent reviews.
Tips
Data pointValue
Imports tips from these POS systemsSource: Wave (opens in a new tab)Wave documents no POS connection: its payroll page lists only Wave's own accounting, and its help center covers tips only as customer tips on invoices. Tips are entered by hand in each pay run.
Tip pooling and tip-outsNot offeredSource: Wave (opens in a new tab)Wave does not document tip pooling or tip-outs; we looked on its payroll page and in its help center search results.
Tip credit and minimum wage make-upNot supportedSource: Wave (opens in a new tab)Wave does not document a tip credit or a top-up to the minimum wage; we looked on its payroll page, in its help center search results and in recent reviews. You would have to calculate it yourself.
FICA tip credit (Form 8846)Not supportedSource: Wave (opens in a new tab)Form 8846 is not among the forms Wave files, and Wave documents no report for it.
Declared cash tipsNoSource: Wave (opens in a new tab)Wave does not document a pay type for declared cash tips; we looked on its payroll page and in its help center search results.
2026 W-2 for No Tax on Tips (code TP and tipped occupation code)Not confirmedSource: Wave (opens in a new tab)Wave has published nothing on the 2026 W-2 codes TP and TTOC; we looked on its payroll page, its blog sitemap and in web searches on 1-oct-2026. Checked monthly until January 2027.
2026 W-2 for qualified overtime (code TT)Not confirmedSource: Wave (opens in a new tab)Wave has published nothing on code TT for qualified overtime; same search as for tips.
Service charges paid as wagesUnconfirmedSource: Wave (opens in a new tab)Wave does not say how it treats service charges; we looked on its payroll page and in its help center search results.
State and local minimum wages built inUnconfirmedSource: Wave (opens in a new tab)Wave does not document built-in state or local minimum wages; we looked on its payroll page and in recent reviews.
Integrations and time tracking
Data pointValue
POS integrations (hours or sales data)Source: Wave (opens in a new tab)No POS system is listed by Wave or, as far as we found, by any POS marketplace; Merchant Maverick counts 2 integrations in total.
Time trackingOnly through an integration()(due for a re-check)Source: Merchant Maverick (opens in a new tab)Hours are typed into a timesheet in each pay run.
SchedulingNot offered()(due for a re-check)Source: Merchant Maverick (opens in a new tab)Wave does not document staff scheduling; we looked on its payroll page and in recent reviews.
Accounting integrationsOthersSource: Wave (opens in a new tab)Only Wave's own accounting software, where each approved pay run is posted automatically; no QuickBooks or Xero connection is documented.
Payroll engineCheck (a payroll infrastructure provider)Source: Wave (opens in a new tab)
Benefits and insurance
Data pointValue
Health benefitsNot offered()(due for a re-check)Source: Merchant Maverick (opens in a new tab)You can set up custom benefit deductions, but Wave offers no health plans of its own or through a broker.
Workers' compensationThrough a partner()(due for a re-check)Source: Merchant Maverick (opens in a new tab)
Contract and exit
Data pointValue
Initial termMonth to monthSource: Wave (opens in a new tab)
Automatic renewalMonth to monthSource: Wave (opens in a new tab)Month to month, with no renewal term.
Notice to avoid renewal0 daysSource: Wave (opens in a new tab)You can close your payroll account at any time.
Early termination feeNoneSource: Wave (opens in a new tab)Monthly billing is not prorated, and fees already accrued are still owed.
Early termination clauseNo early termination fee. Month to month; you can close the account at any time, but monthly billing is not prorated and fees already accrued are still owed.Source: Wave (opens in a new tab)
Right to raise pricesWave may change its fees at any time and makes commercially reasonable efforts to give at least 30 days' notice; if you do not accept a change, you can cancel before it takes effect (Payroll Terms of Service).Source: Wave (opens in a new tab)
Your records when you leaveLimited or lost access after you leaveSource: Wave (opens in a new tab)Once the account is terminated, access ends and Wave may delete the data, so download your reports and tax forms first. The terms also tell you to keep your own payroll records.
Support
Data pointValue
Support 24/7No()(due for a re-check)Source: Wave Help Center (Wayback Machine copy) (opens in a new tab)Only the help center and the Mave chatbot are available 24/7.
Live support hours a week30()(due for a re-check)Source: Wave Help Center (Wayback Machine copy) (opens in a new tab)Monday to Friday, 10 a.m. to 4 p.m. Eastern, by live chat and email; no phone line. In May 2026 Wave said chat was temporarily reduced to 11 a.m. to 4 p.m. because of payroll disruptions.
Dedicated specialistNo()(due for a re-check)Source: Wave Help Center (Wayback Machine copy) (opens in a new tab)Support goes through a shared team; one-on-one payroll coaching is a paid Wave Advisors service.
Language
Data pointValue
Employee app in SpanishNoSource: Wave Help Center (opens in a new tab)
Owner's dashboard in SpanishNoSource: Wave Help Center (opens in a new tab)
Pay stubs in SpanishNoSource: Wave Help Center (opens in a new tab)
Support in SpanishNo()(due for a re-check)Source: Wave Help Center (Wayback Machine copy) (opens in a new tab)Wave's support page offers no Spanish service, and Wave says the product is only available in English.
Contract or terms in SpanishNoSource: Wave (opens in a new tab)The terms are published in English only.
Website in Spanish for the USNoSource: Wave (opens in a new tab)The sitemap (937 pages) has no Spanish pages, and Wave says it is only available in English.

More about Wave Payroll

How we score