Payroll software for business

Payroll software automates the most labor-intensive aspects of running payroll. Specific features vary from one provider to the next, but employers generally are be able to use software to:

• Calculate wages earned
• Integrate payroll with time and attendance
• Withhold taxes and other deductions
• Pay employees
• Run payroll reports
• Access important tax forms

Businesses that opt for full-service payroll may also receive professional assistance with regulatory compliance and have taxes filed on their behalf.

No two payroll providers are the same, but most high-quality solutions generally can:

• Automate labor-intensive payroll and tax calculations
• Deposit tax payments on time
• Assist with inquiries from the IRS or state agencies, should they occur
• Help support compliance with constantly changing employment laws and regulations
• Integrate seamlessly with timekeeping, workers’ compensation, insurance services and other HR applications
• Provide support with unemployment claims
• Protect sensitive client payroll data

Organizations of all sizes use payroll software, but what works for one may not be suitable for another. A small business may only need basic features that save time and help them with tax compliance. Larger corporations, on the other hand, tend to look for more advanced solutions that can integrate payroll with other HR systems or have advanced reporting capabilities.

Yes, payroll can be processed without software, but this is often a risky option for employers who don’t have the time or the accounting skills to do it correctly. The tax penalties that ensue from mistakes can quickly negate any savings achieved through DIY methods. For this reason, many businesses prefer to partner with a payroll service provider or explore outsourcing solutions.

Regardless of how employers choose to run payroll, whether through traditional bookkeeping or a software solution, the process requires a few basic elements to get started. These include:

• Federal and state employer identification numbers (EINs) for tax purposes
• Payroll schedules that meet state requirements, as well as the needs of the workforce
• A means of tracking employee time and attendance, especially if workers are hourly
• Payment methods and statements that comply with all state regulations
• A payroll manager to oversee the entire process of calculating wages and deductions, paying employees and filing taxes with government agencies on time

Of the many types of payroll software on the market today, some are easier to use than others. Those that are user friendly will usually provide hands-on training, digital learning tools, dedicated account resources or in-product demos to ensure that their clients can run payroll as proficiently as possible. To make things even easier, payroll software may also be capable of integrating with timekeeping, insurance and retirement solutions, and other HR programs.

Payroll software costs vary depending on the number of people employed by the business, its individual needs and the provider’s price structure. An annual base price usually applies and there may be an additional fee for each payroll transaction. When weighing payroll software costs, it’s important to assess the level of support provided with the product and how well it can integrate with other programs.

With ADP, you can start processing payroll at any time, not just a new quarter or new year. If you’re switching providers, you can ease the transition process by asking for all the necessary forms and information upfront.

Not all types of payroll software can meet the complex needs of international businesses. Employers that pay employees in multiple countries generally require a payroll service provider that offers worldwide compliance expertise, on-demand analytics and reporting, and first-rate security measures. Some, like ADP, are also capable of unifying data into a single system of record, which helps make managing global payroll easier.

Compared to manual data entry, online payroll software can save you considerable time. The features available in the package you choose will ultimately determine your total work effort.

You can process payroll anywhere because ADP products are in the cloud. So, even if you’re relocated from your place of business, ADP’s payroll software lets you easily use a mobile device to pay your employees.

ADP automatically syncs with many popular accounting software products, including QuickBooks™, QuickBooks™ Online, Xero™ and Wave, to ensure a seamless transition of your data. Check with a payroll provider to make sure they pair up with your preferred program.

Your accountant will probably appreciate that you’re using a trusted payroll service provider because it enables seamless data integration, reporting and payroll processing. This empowers accountants to do more work with greater efficiency, so they have more time to work on strategies that help you run a better business.

Though some companies prefer to wait until the start of a new quarter or new year before switching payroll providers, ADP can support your move at any time. We’ll give you a list of all the forms and information needed to ensure a smooth transition with minimal disruption to your day-to-day operations. The length of time required ultimately depends on your business priorities, the services you’re using and how quickly you can access the necessary data.

Employees paid via direct deposit usually have access to their wages by 9:00am on payday, though processing times can vary depending on the sender and the bank. Some financial institutions charge fees for this service. Payroll providers typically include the incurred cost in their base price rather than treating direct deposit as an add-on.

Payroll software is commonly integrated with general accounting ledgers, time and attendance systems and payroll-related benefits, such as health insurance and retirement savings plans. Providers who offer these integrations understand that an all-in-one ecosystem optimizes efficiency and improves the employee experience.

ADP’s payroll software stays current with the latest tax laws and HR regulations at the federal level and in all 50 states. However, multi-state payroll processing may require employers to register their business in every state where they employ people. Learn more about navigating multi-state compliance requirements 

Many automatic payroll systems include federal and state tax filing support, but not all of them assist with local taxes. These taxes are challenging because they can vary greatly from one municipality to the next and may change with little notice. Employers should ask potential providers about local tax support.