Calculating payroll taxes, computing employee deductions, writing checks — a payroll system can be tedious and time-consuming. That's why, traditionally, business owners have hired payroll services to handle the chore for them. These days, however, a growing number of business owners are opting to tackle the task with easy-to-use payroll software programs. Payroll solutions generally include some combination of the following features:
Consider an accounting suite with a payroll solution
Many popular accounting programs include basic payroll software; others require you to purchase an add-in module.
I recommend: Three of the most popular accounting suites —
QuickBooks,
MYOB and
Peachtree — include payroll solutions. See how their payroll capabilities rate in TopTenREVIEWS'
Accounting Software Reviews.
Compare stand-alone payroll software programs
A separate payroll software program may suit your needs better than a component of an accounting suite. In general, stand-alone programs are cheaper than full accounting suites and may offer more of the features you want. In many cases, files from these payroll software programs can often be imported into popular accounting programs.
I recommend: Popular stand-alone payroll software includes
ZPay and
PenSoft.
Sync up with your accountant
It may be wise to choose the same software used by your accountant. This enables your accountant to import your payroll software files in a snap, which can save time auditing your books and preparing your taxes. And that saves you money.
I recommend: If you need an accountant, find one through your contacts or start with the local chapter of
The American Institute of Certified Public Accountants.
Get help with payroll software
Sometimes, even the simplest small business payroll software program can leave you scratching your head. If you run into problems or questions, check the manufacturer's Web site for FAQs and customer support.
I recommend: If you can't find an answer to your payroll software query, seek help from your peers.
QuickBooks offers a community discussion forum where you can ask your payroll questions.