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Jeanni Brosius

Guide to Payroll Tax Software

Choose the best payroll tax software options for your business


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Payroll tax software may be used to streamline your bookkeeping procedures and to create a standard for which you calculate payroll tax as well as other deductions or earnings. It is also very important to make sure your payroll software is secure and the salary database is protected. Below are some areas in which payroll software can benefit your business.
  1. Payroll software can help reduce errors in calculating payroll taxes.
  2. Business payroll software may also handle your tax documents, such as an employee's W2 or 1099.
  3. Payroll tax programs reduce human error and will give you piece of mind that your employees will get the correct amount of pay and deductions.
Many business tax software programs have a built in payroll program.




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

Should you outsource or keep payroll tax programs at home


Many companies choose to outsource their payroll, which means their payroll tax database is sent into hands off the property. This may be a great benefit for larger payrolls; however some companies choose to combine outsourcing and keeping their own software for payroll as well. And by purchasing the best payroll software suited to their needs, small businesses can keep accurate payroll records.

I recommend: Small Business Services is used by many companies as an outsource payroll system. Manage your own payroll with Quicken payroll software. Peachtree also offers payroll services as well as trusted payroll tax programs.

Handle payroll online


To cut down on paperwork, you could handle your payroll needs with an online payroll program. You can sign up online with your choice of payroll companies and receive email reminders when a tax form or payroll is due. Most online payroll companies also guarantee accuracy, which cuts down on human error and angry employees.

I recommend: Take car of your payroll tax needs online with Intuit
Capitol One also offers online Back to Business Payroll.

E-file with business payroll software


E-filing taxes seems to be the trend now. Many business payroll software systems allow you to e-file your payroll taxes. This may set your mind at ease by knowing your taxes accurate and paid on time. It also saves trips to the post office, additional postage and by saving paper, you will help save a tree.

I recommend: Tax Works and eSmart Payroll offer a payroll tax program that offers e-filing.

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

  • Your business payroll software should be flexible, and allow bonus pay, over time and special deductions, such as garnishments or insurance payments.
  • Your payroll software should have all the tax forms for your state and local taxes as well as federal.
  • Check with the companies from which you currently buy your software packages to see if they can give you a bundle discount or allow you to purchase an additional package at a discount.
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