Payroll Software

If you are still writing payroll checks manually, please stop right now! You must know how much time can be saved by automating the payroll process. If the payroll function in your business has not been automated, it's probably because the person in your company doing the payroll manually is concerned about losing their job.

If your business has employees, a computer, printer and you are doing your payroll manually, it's time to buy a payroll software program and start printing out your payroll checks on your laser or inkjet printer. One immediate benefit, beyond the time saved in preparing the pay checks, is the ability to give your employees a check stub with current and year-to-date payroll information.

All you need is to choose a payroll software program and order blank payroll checks. QuickBooks voucher checks, perforated into thirds, work very well The check portion would be on top and the pay stub occupying the second position. The third portion of the page is usually left blank. Blank payroll voucher checks can be purchased from almost any check printing company. It's a good idea to match the blank payroll check to the software program you will be using.

Here's a short list of payroll programs that will get the job done for small to medium companies:

• QuickBooks from Intuit
• Peachtree Accounting 2006
• Creative Solutions
• Cougar Mountain
• PenSoft
• Mas90

This payroll software program list is meant to be a starting point for employers who do not have any idea what's out there. When reviewing a particular payroll software program pay particular attention to the void check routine, preparation of journal entries and preparation of all payroll tax forms in your state. Because the state unemployment tax rate may change every year, and because your state rate change notification is received after the first few pay periods in the year, look for a payroll software program that will make the adjustment to your unemployment tax rate retroactively, or to the first of the year.

When buying payroll software be sure to inquire about their technical support programs. You can expect there will be a learning curve and it's nice to be able to get free technical support to help you get started.

Some payroll companies license their software which means that you pay an annual lease fee. Those programs that sell their software usually get you with annual or monthly tax table updates.

It's also a great idea to get references from current users of the payroll software program you are considering buying before you purchase or lease. Try and find users in the same industry as your business. These references can be a good source of free technical support after you begin using the program. Some payroll software programs (Creative Solutions) have a users forum which is another excellent source of free technical support.

Talk to other businesses in your area and ask them what sort of payroll software they use. These sources can offer the invaluable benefit of experience.

Here are some other things to consider when looking to buy or purchase payroll software:

• Ideally you would like to purchase an integrated General Ledger and Payroll Software program
• Chose a payroll software program with a net to gross feature
• Check the reports schedule for a workers compensation report
• The ability to print prior year W-2's is a nice feature for wayward employees who lose their W-2
• Some states have cities and counties with income tax withholding. Make sure your payroll software program will calculate these taxes and prepare the necessary payroll tax forms.
• The ability to print prior year W-2's is a nice feature for wayward employees who lose their W-2

• You may need the ability to print W-2's after closing the year for which the W-2's apply. For example, if you are processing payroll checks in February 2005, you may need to print a W-2 for an employee who misplaced his W-2 for 2004.
• Oftentimes businesses use more than one checking account to write payroll checks. Make sure your payroll software program allows you to use more than one checking account.

Just a brief word for those who may feel like outsourcing their payroll function. Probably ADP and Paychex are the two major competitors offering total turnkey services. They are not inexpensive but they take the responsibility of payroll processing off your mind completely.