{"id":187150,"date":"2024-02-21T12:39:09","date_gmt":"2024-02-21T12:39:09","guid":{"rendered":"https:\/\/www.techopedia.com\/?post_type=definition&p=187150"},"modified":"2024-02-21T12:39:09","modified_gmt":"2024-02-21T12:39:09","slug":"payroll-software","status":"publish","type":"definition","link":"https:\/\/www.techopedia.com\/definition\/payroll-software","title":{"rendered":"Payroll Software"},"content":{"rendered":"

What is Payroll Software?<\/span><\/h2>\n

Payroll software<\/a> is a tool that simplifies the setup, management, and automation of payroll processes. It may be housed on the cloud or operated locally within a business’s premises.<\/p>\n

Depending on the business size, payroll applications range from simple to complex, offering features like tax filing assistance, direct deposit setup, and ensuring legal compliance. Many payroll apps are also integrated with accounting and human resource (HR) solutions<\/a>, syncing data across a company’s departments.<\/p>\n

On-Premises vs Cloud-Based Payroll Software<\/span><\/h2>\n

Payroll solutions can be categorized based on data storage, management, and updates. On-premises software is installed and runs on a company’s computers and servers. This allows businesses private control over their data and customization. Such applications typically involve a one-time setup cost rather than ongoing subscription fees.<\/p>\n

Meanwhile, cloud-based payroll solutions are hosted on the vendor’s servers and accessed over the internet. They’re a type of Software-as-a-Service (SaaS)<\/a> apps. These solutions are scalable, as they don’t require the business to build a dedicated IT infrastructure. Some businesses prefer cloud-based apps for their efficiency, automatic updates, accessibility, and cost-effectiveness. They’re also ideal for companies with remote or international teams.<\/p>\n

Integrated HR, Accounting, and Payroll Solutions<\/span><\/h2>\n

Platforms like QuickBooks offer integrated HR<\/a>, accounting, and payroll functionality. These all-in apps help key personnel in managing employee data on a single platform and automating payments. Gusto and similar applications provide integrations with other business software, including QuickBooks, to seamlessly link payroll with bookkeeping tasks.<\/p>\n

Benefits of Using Payroll Software<\/span><\/h2>\n

Payroll software benefits business owners, accountants, and HR managers, as it automates calculations, ensures tax compliance, and efficiently manages employee data.<\/p>\n