Payroll processing software is one of the tools that most businesses use to simplify paying their employees. It is also used for billing and for general record keeping. There are many advantages to using this software because it standardizes payroll procedures. It also ensures that employees are paid the correct amount due to them and that the proper deductions are taken from their gross earnings. It removes the concern that third party payments to the city, state, and federal government are properly made. It also deducts health care payments, child support payments, and other deductions that may be mandated by law. Worker’s compensation, Social Security, and many other deductions can be easily made by using the software.
There are many different types of software available for a variety of purposes. Payroll processing software may be very simple and made to do basic functions such as computing payroll, or it could be capable of more complex functions. Like any other software product, the user must control the input of information. There are products that may be downloaded after they are purchased online, and others that can be found in office supply stores and large discount chains. It is also possible to buy the service of a company who allows you to use their server for payroll and other purposes and they store your information for you.
Small businesses do not usually need elaborate payroll processing software, but they can definitely benefit from using this modern wonder that can help them keep track of finances. Even a very small business with only two or three employees will find that the software aids in keeping their finances organized. Payroll software does many more things than make checks for employees. The advanced software can also directly deposit funds from the company account to the worker’s bank account. Paper checks are used less and less because of the ease of electronic banking that payroll processing software offers.
One of the most popular software packages is QuickBooks Enhanced Payroll. Over a million small businesses use it to print paychecks or for direct deposit of funds. Up to three employees can be paid using it, and more are easily added. This system makes it easy to run a payroll report at any time. It saves time and money by paying payroll taxes and filing tax forms. There is no need to outsource payroll or to pay an accounting service to do this when a small business uses QuickBooks. Best of all, it is simple to use and information can be easily entered. Once the hours worked by an employee during the pay period are entered, the software calculates the deductions and prints the paycheck.
Sage Peachtree is another popular software package. The company offers a bundle that includes a payroll processing function plus Pro Accounting. It enables small businesses to pay and manage employees, control cash flow, and electronically file taxes. Other helpful accounting functions allow the business to automate invoices and checks and keep a record of sales and inventory. There are over 80 reports that can be made using this software as well. The software offers other accounting solutions that small businesses would find helpful. A new version is introduced each year with updates and additional options. The company offers a free trial of their payroll software at their website.
The advantages offered by this software include the fact that it is affordable and that it saves money in several ways. Businesses that once paid an accountant or other company to handle their payroll and finances find that their need for financial professionals is greatly reduced. They may need to use these services at tax time or once or twice during the year to ensure that their finances and payroll are in order. The software is a technological advancement that is beneficial to businesses of all sizes.