payroll must pay your employees through a payroll system, but the type of system you use depends on your payroll needs. The size of your company and your knowledge of payroll tasks have a lot to do with whether you choose an automated or manual system or whether you turn the job over to a payroll service provider.
An automated, or computerized, payroll system can be stand-alone software or payroll software integrated with human resources and accounting features. From your work site, you enter your employees’ payroll data in the system -- including personal information such as Social Security number and address -- and salaries, work hours, pay rate and tax-withholding information. The software calculates paychecks based on the data you entered and enables payment by live check, direct deposit and pay cards. With an automated timekeeping system, you can input the hours into payroll software. Payroll software withholds taxes from your employees’ wages and calculates complex items such as wage garnishment, supplemental wages and pretax deductions. The software lets you track specific employee benefits, print payroll registers and tax reports and perform W-2 processing. This system improves efficiency and accuracy over manual systems.
Payroll ServiceAn automated, or computerized, payroll system can be stand-alone software or payroll software integrated with human resources and accounting features. From your work site, you enter your employees’ payroll data in the system -- including personal information such as Social Security number and address -- and salaries, work hours, pay rate and tax-withholding information. The software calculates paychecks based on the data you entered and enables payment by live check, direct deposit and pay cards. With an automated timekeeping system, you can input the hours into payroll software. Payroll software withholds taxes from your employees’ wages and calculates complex items such as wage garnishment, supplemental wages and pretax deductions. The software lets you track specific employee benefits, print payroll registers and tax reports and perform W-2 processing. This system improves efficiency and accuracy over manual systems.
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