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John Henshell

Guide to Do-It-Yourself Payroll Software

Make payroll easier with an accounting suite, payroll software or an online service


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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:
  1. Ease of use for someone without bookkeeping experience
  2. Calculate employee earnings and deductions
  3. Deduct federal, state, and local payroll taxes in accordance with the laws
  4. Print payroll checks
  5. Prepare and print related tax forms, such as W-2s
  6. Generate reports and keep IRS-required records
  7. Enable electronic direct deposits to employee bank accounts (optional)

Action Steps
The best contacts and resources to help you get it done

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.

Tips & Tactics
Helpful advice for making the most of this Guide

  • Expect to pay an annual fee to update the tax tables in your payroll software.
  • Some payroll solutions may require you to purchase checks from the software manufacturer.
  • Look for payroll software that is targeted to a business your size, and will work if your payroll grows.

The official source of Do-It-Yourself Payroll Software is
the Payroll Software page at Business.com


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 Related Resources from Business.com Back to top 
 Recommended Solution Providers Back to top 

QuickBooks Payroll offers a variety of in-house or outsourced paycheck and payroll tax services—all IRS-approved.

Peachtree Payroll Service by Sage Software offers in-house or full-service payroll solutions.

Process payroll online using records from time and billing, human resources or sales commission records.

Online service provides direct deposit, completed tax forms and electronic federal tax deposits.

Provider of PayWindow 2006 software for small business payroll.


 Best Sites to Learn MoreBack to top 

Buyer's guide to small business payroll software and services.

Learn from these topics about small-business payroll.

Buyer's guides covering self-service payroll options, software, consultants and other payroll related issues.


  Best Blogs and Forums Back to top 

Payroll posts feature general and QuickBooks-related information.


  CommentsBack to top 

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