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What is Payroll Software?

Nicole Madison
Updated May 16, 2024
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Payroll software can be used to standardize the way a company handles the calculation and processing of its payroll. It can be used not only to calculate money due to employees, but also to provide for the easy keeping of accurate records. Essentially, these programs can help to streamline the entire process, making the task of processing payroll less time-consuming and cumbersome.

Some companies choose to outsource their payroll requirements, and while this is a viable alternative, many companies find that keeping processing in-house by using software is more practical. Doing so offers a high level of flexibility, affording businesses the ability to make changes with relative ease and to keep records maintained according to their unique needs. Even such things as reimbursing employees for expenses may be easier when payroll software is used.

There are many types of payroll programs from which to choose. Some software packages allow users to print checks or pay employees via direct deposit. Others are capable of interacting with human resource files, allowing the user to move forward with payroll tasks without entering vital human resource information into the new application.

Payroll software can be used to make quick work of calculating the necessary regional, state, or national deductions. Instead of doing such calculations by hand and risking unfortunate errors, the user can allow the program to handle the math. Many applications can even handle important tax season forms, helping companies to make sure their employees receive their W-2s on time.

Some companies choose to use this software in conjunction with professional payroll services. A company might decide to use the software to handle the information and reports an outside service might need to process the company’s payroll. Using the program lowers the risk of human error or of something going wrong within a pay period, even if a vital administrative employee is out sick at the end of a pay period. The software can be used to send the pertinent information to the payroll service automatically, taking pressure off administrative staff to get payroll reports in on time.

When selecting payroll software, companies should keep in mind that not all programs are created equal. Some offer more flexibility than others, and as the need for changes can come up unexpectedly, shoppers may find that it's better to purchase software with the highest level of customization possible.

EasyTechJunkie is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Nicole Madison
By Nicole Madison
Nicole Madison's love for learning inspires her work as a EasyTechJunkie writer, where she focuses on topics like homeschooling, parenting, health, science, and business. Her passion for knowledge is evident in the well-researched and informative articles she authors. As a mother of four, Nicole balances work with quality family time activities such as reading, camping, and beach trips.
Discussion Comments
By anon334462 — On May 13, 2013

Payroll software is a very important tool for business owners to keep track of all employee data, i.e., tasks, attendance, leaves, payments, working hours etc.

I think Eilisys Payroll Software is one of the best payroll software programs to use for any size business.

By MrSmirnov — On Jun 06, 2011

If you are interested in switching over to payroll software, do you feel that it is fairly user friendly?

I think that adopting payroll software would make handling deductions simpler. A lot of accounting work goes into making sure everyone on staff pays what they need to pay.

Can anyone recommend some good payroll software for a small business that doesn't have a dedicated payroll manager?

I would prefer something that is useful for professionals, but doesn't have a huge learning curve. If possible, the ability for the software to print checks, as well as create pay stubs for employees, would be a definite asset.

By letshearit — On Jun 05, 2011

If you are in charge of a small to medium sized business, payroll software can make your life a lot easier. It does much of the accounting for you, freeing up time and cash.

There is a number of free payroll software available online, so you can always give a program a try before you commit to switching over. I find that using software to do all of the mathematical work for me makes life in the office much easier.

Another great thing about the payroll software is that it can be set up to give you reminders. You'll never forget to submit paperwork with your software reminding you.

By anon35839 — On Jul 08, 2009

what are the use case and actors

By akpanko — On Dec 11, 2008

what's the advantages and disadvantages of payroll system?

Nicole Madison
Nicole Madison
Nicole Madison's love for learning inspires her work as a EasyTechJunkie writer, where she focuses on topics like...
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