Selecting the right payroll solution is an important decision for all business owners. The wrong payroll solution can be expensive not only in terms of money, but in productivity, which translates back to morale, which translates back to money. When selecting payroll solutions, carefully consider your resources. Here are brief descriptions of each type, and the resources you need to implement them:

Payroll Software - Payroll within Accounting Software

When using payroll software, or when running payroll within your accounting software, your company runs payroll "in-house." Your company is responsible for all upgrades to the software, including tax table and tax rate changes. This option provides a high level of control, which some clients prefer. Generating checks, withholding taxes, tax return filings, and payroll tax payments are the main duties that must be carried out in a timely manner by somebody within the business. Electronic services, such as direct deposit, may or may not be available through the software.

To run payroll in this manner, you need a person who is not only familiar with payroll laws, but also familiar with the accounting side of payroll. Payroll is confusing, even daunting, so don