Handling a payroll is a huge responsibility for anyone, let alone someone who is trying to learn it on their own. If done incorrectly, you won’t just throw your company’s finances off, but could also impact your employees’ pay or benefits, and errors in tax reporting could mean paying penalties.
If you plan on managing payroll yourself, be prepared to do a lot of accounting, study up on federal and state payroll laws, keep track and meet deadlines, and manage your employees hours and benefits. If this is more than you are willing to take on, you are not alone, but at the same time hiring a part-time accountant can be expensive, which is why many business owners find payroll software to be a happy medium.
The answer to this question depends on the needs of your business. Whether you are looking for payroll software that just calculates paychecks and taxes, or one that allows you to enter in the data and takes care of the rest, there is a payroll software for you.
With most payroll software services, you can calculate paychecks, file payroll taxes, provide direct deposit, issue year-end W-2s, report new W-2 hires, and help manage your employee benefits. Additionally, many companies include error-free guarantees backing their products, live specialist support, and many offer mobile friendly formats for easy access anywhere.
The cost of payroll software depends on the services you need and the size of your company. Oftentimes, payroll software has a base rate (starting as low as $9 a month) and then charges a small amount per employee. This could mean that a small businesses pays $25 a month, while a larger business pays $200 a month for the same software.
Also, if you are looking for a customized payroll software program, expect to pay more than if you select a pre-packaged software program.
As a result of the varying prices, we suggest getting quotes from companies you are interested in before making your final decision.