Choose a payroll software solution based on business size (number of employees): small business (0-100), mid-sized business (101-2500) or enterprise business (more than 2500).
Small business (0-100) payroll software usually comes pre-packaged in a format specialized to suit small business needs.
If you are a mid-sized business (101-2500), you can opt to purchase pre-programmed business payroll software or can choose to have it customized to fit your more complex needs.
For enterprise businesses (more than 2500) that face multifaceted issues and may have employees spread around the world, business payroll software solutions will resolve the complexities of payroll including differing tax laws from location to location.
Payroll software solutions typically include tax forms such as 940, 941, 944, 1099, W-2 and W-3.
Choose software that includes the 940 form, used to report annual Federal Unemployment Tax Act (FUTA) taxes, which is paid by employers to help fund federal unemployment benefits.
All payroll systems come loaded with 941 software. Form 941 is the employer's Quarterly Federal Tax Return that reports each employee's wages and tips and the withholding that you've taken out, including Federal income taxes, Social Security and Medicare.
Your payroll processing software will also include Form 944, the annual reporting version of Form 941.
If your business uses independent contractors or you pay interest income, you'll want help with 1099 (1099-MISC) forms. Form 1099 software can be an extremely helpful tool in printing out and distributing these forms.
Your payroll software assists in printing and distributing payroll W-2 forms, employee wage and tax statements that you must provide annually to all employees.
Payroll processing software also includes W-3 forms that enable employers to transmit each employee's W-2 wage and tax statement to the IRS.
Choose between web-based or desktop payroll processing solutions.
Web-based or online payroll software enables users to log on to a secure Internet site and enter payroll information without buying multiple software licenses.
Desktop or PC-based payroll software is beneficial for businesses that do not have multiple users.
Payroll processing software offers features such as direct deposit, check printing, deduction calculations, accounting system integration, role management and multiple licenses, and may have a demo available.
With direct deposit payroll software, you eliminate the hassles of check printing and distribution.
Payroll check printing software lets you print paychecks directly from the software application, virtually eliminating errors.
Deduction calculations comes as a standard feature in most applications, automatically deducting employee benefits like 401k contributions, taxes, Social Security and Medicare payments.
Accounting system integration makes payroll software solutions work with existing accounting software such as QuickBooks.
Role management allows HR employees access only to portions of payroll software solutions that apply directly to their role.
If you have more than one employee managing your payroll software solutions, you will need multiple licenses. This means you need to purchase a payroll accounting software license for each user.
Before you purchase payroll software, check with each brand that you are considering to see if they have a payroll software download demo available.
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Figure W-2 tax deductions for general and special payroll
By
Lori Carver
W-2 printing software is easy when you have software that works with your general accounting program to import the data and then prints it out on the forms you need. Many software programs allow you to print or file these forms electronically, so your employees can get their information easily from the Internet. Some software programs demand certain types of printers, such as laser printers, to print out the W-2 forms and may not work with other types of printers.
Use software to get this job done quickly, no matter how many employees you have or how many different types of payroll deductions you have to make. Look at the following when choosing payroll software: W-2:
1. Use your all-purpose payroll software W-2 feature to print W-2 forms.
2. Purchase specific W-2 software for this procedure.
3. Obtain special W-2 form software for special organizations.
Action Steps to Implement Payroll Software
The best contacts and resources to help you get it done
Find suppliers of W-2 software for your business needs
Choose general payroll software programs that include a section for W-2 forms. These programs will automatically integrate your data so you don't have to duplicate entries when it's time to print the W-2s.
I recommend:Intuit EasyAcct offers a complete payroll software that includes a section for W-2 forms. You can choose from a variety of formats for the W-2 forms, including laser and continuous feed forms. Sage Abra offers a general payroll software that includes every aspect of payroll, including W-2 forms.
Locate providers of W-2 software which stands alone
Use special W-2 software that creates the form then prints it. Find out if you need a special printer, such as a laser printer. Consider what format the software uses and if you need to supply pre-printed forms or if the software sets the form.
I recommend:Easy W2/1099 offers software, which includes W-2 forms within the software. It also supports pre-printed forms if you care to use those. ESmart Payroll provides software to make it easy to create and print W-2 forms.
Select W-2 software providers for special business needs
Many businesses need special payroll software to address the needs of that particular business. Buy W-2 software from a vendor who offers your special software with a W-2 section.
I recommend:Parish Data System offers church software that includes special rules for treating clergy compensation. Print W-2 reports with this software and also print the W-2 forms. Sirius GT offers construction payroll software that includes a section for W-2. Print W-2 forms on paper or magnetic media with this software.
Tips & Tactics for Smart Use of Payroll Solutions
Helpful advice for making the most of this Guide
• Purchase information about W-2 software from trusted sources. Although an unknown vendor may sell the program for less, the program may not function correctly or it may contain a virus.
Figure W-2 tax deductions for general and special payroll.
W-2 printing software is easy when you have software that works with your general accounting program to import the data and then prints it out on the forms you need. Many software programs allow you to print or file these forms electronically, so your employees can get their information easily from the Internet. Some software programs demand certain types of printers, such as laser printers, to print out the W-2 forms and may not ...
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