Do it Yourself Payroll Software
Employers have the complex and time-consuming responsibility of ensuring their employees are paid accurately and on time. Furthermore, they must compute and pay taxes to the government. Some employers outsource their payroll to related service providers, preferring not to handle any payroll duties; others purchase payroll software, which makes wages and tax computations easier. Do-it-yourself payroll software simplifies payroll processing, but you must select the software that is appropriate to your needs.
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Instructions
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Be aware of the general features of payroll software. The programs are generally designed so they are easy to use even if you have no prior bookkeeping experience. Payroll software figures employees' income, statutory deductions such as taxes and child support, and involuntary deductions such as health and retirement benefits. The software generates and prints payroll checks, and tax forms such as W-2s. It creates payroll reports such as payroll registers and tax documents required by the IRS. It also allows you to set up and transmit employees' pay via direct deposit.
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Use accounting software with a basic payroll feature such as Quickbooks or Peachtree if your accounting tasks are considerable. Accounting software is popular among small businesses because it provides both accounting and payroll options.
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Use stand-alone payroll software such as Pensoft or Zpay if you do not need an accounting module. These programs are less expensive than accounting software and are designed strictly for payroll. Stand-alone payroll software has more payroll features than accounting software. In many instances, the software allows you to import your payroll files into popular accounting software.
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Choose the software your accountant uses, if possible. This allows your accountant to import your payroll data quickly, saving time on auditing and tax preparation, which in turn saves you money.
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Consider in-house payroll software such as Ultimate Software if your payroll is large. The software is designed for payroll processing but also includes a full HR feature, which both the HR and payroll department can use.
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Tips & Warnings
Choose the do-it-yourself software that best suits your company's size and needs. If you expect your business to grow, ensure the software has that capability.
Generally you must pay an annual fee to update your payroll software tax tables.
Contact the manufacturer if you experience problems with the software.
References
Resources
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