Toronto-based Payment Evolution has been getting some press recently with articles in the Financial Post and on StartupNorth.ca highlighting their free online payroll solution. It's tailored to small businesses looking to spend more time working on their business and less time dealing with the administration of payroll. Free is of course a very small-business friendly price, and it'll remain free for those businesses that have 5 employees or less. If you have 6 or more employees, it's still a very affordable $18 per month.

As far as we're aware, this is the only free payroll solution available in Canada; if you find more or other useful small business tools, please share them in them comments!