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March 28, 2011

Top Ten Tips On How To Use Payroll Software

If you are still doing any part of payroll by hand, chances are that you are not taking full advantage of the advances in payroll software. Here below are the top ten ways that you can increase efficiency and accuracy by simply letting the payroll software do the heavy lifting.

1. Calculate taxes automatically.

Federal, state, local, Social Security, Medicare, and net pay taxes are all calculated by payroll software. As perhaps the most time consuming and tedious of calculations (as well as the ones with the most need for pinpoint accuracy), the correct payroll software with the right company who stands behind its calculations (make sure there is a guarantee of some sort when it comes to taxes) is a way to drastically reduce payroll workflow.

2. Deductions are able to be customized to your business specifically.

Your business is unique, and so are the things you must do to run it. Therefore, your deductions are not going to look like anyone else’s. Payroll software will allow you to create custom categories for deductions and automatically calculate them based on the most up to date tax tables.

3. Let payroll software handle your federal forms.

Stop doing your W2s by hand. While you are at it, stop doing your 944s, 941s, and 940s by hand, too. Printed federal forms cut down on mistakes anyway, which saves you time and money, potentially a lot of money from potential audit.

4. Payroll software does business reports.

Electronic payroll reports that can be quickly exported to PDF, Excel, or Quickbooks format can potentially be a lifesaver, and at the very least, can save you the hassle of saving and finding paper files, as well as auto organizing your reports for future use. Use these for your deposit requirements, payroll taxes, tax liability, journal summary, employee earning total, journal details, pay periods, and payroll details.

5. Use payroll software to print checks.

Payroll software can give you pre-printed checks or allow you to print your own checks. Many software packages offer both options.

6. Use payroll software to take care of your direct deposits.

You will get a better class of employees if you show that you are up to date in your payment methods, which includes direct deposit.

7. Payroll software gives a sense of security.

Use payroll software to protect your files from hackers.

8. Technical Support.

Good payroll software packages give you the backing of the company as well as the software itself, which basically means that you have an outsourced technical support accounts team for free on call, which is about the best price that you can get.

9. Simplicity.

Once you make the initial setups to your payroll software, most of the processes become automatic, a much better process than having to train new employees over and over and look over their shoulder for mistakes.

10. Cost.

Payroll software streamlines your accounts workflow at a minimum of cost. Many packages are so good today that they can completely replace a human accounting employee.

If you follow these simple tips, you should be able to effectively use payroll software to benefit your business.

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