payroll tax deduction table

Friday, July 23rd, 2010 at 4:09 pm

15 Things Must Know Before Choosing Payroll Software

Whether you're starting up a new company, making the jump from books to computer, or looking for replacement payroll software, it's important to get payroll software that is going to do everything you need it to and fit the needs of your company. Here are 15 questions to ask about any payroll software you are considering purchasing for your company. When you have answers to all these questions, you'll easily be able to identify the right payroll software.

1. Does this software have current tax information for your state?
Most software has this information, but make sure you're not buying a previous year's edition that has outdated tax information.

2. Does this software have flexibility to add local tax info?
If your company is in a region with local income taxes, this is an important feature.

3. Will you need to options for pre-tax and/or post-tax deductions?
If your company offers health plans or retirement plans or something similar, then you will need this option.

4. Will you be printing on blank checks or checks preprinted with your company and bank info?
If you want to be able to print on blank checks, which are less expensive than pre-printed checks, you'll need software that can print your company and bank identification information on the checks.

5. Do you want to print signature images on checks or sign checks by hand?
Signing checks by hand is more secure, but can be time consuming if you print a lot of paychecks every week.

6. Which tax forms will you need to print using your payroll data? i.e. Form 940, 941, W2, 1099, etc.
Make sure your software can print the forms that you need or at least has an add-on component to allow you to print them.

7. Does this software support your payroll period, i.e. daily, weekly, biweekly, semimonthly, or monthly?
Some companies may even pay some positions in one period and other positions in another period, i.e., paying hourly workers weekly or even daily while paying salaried management positions monthly or semimonthly. Make sure the software you purchase has the flexibility you need.

8. Will you need to be able to calculate tips and or commissions?
This is particularly important for restaurants and companies employing commissioned sales reps.

9. Does this software support printing for the check format you prefer?
For example, do you use check-at-top, check-at-bottom, or check-in-the-middle formats for your blank checks and stubs?

10. Does the software offer year-to-date payroll data entry?
If you are changing software or making the jump to computer-based payroll in the middle of a year, you'll want to enter year-to-date information for employees instead of having to enter every previous pay period by hand.

11. What level of technical support does the software developer offer?
Usually, unlimited technical support is best, but it is not offered by all software titles.

12. Will you need to do payroll for more than one company?
If you run an accounting firm or own multiple businesses, this is an important consideration.

13. Does this software have a trial version you can test drive?
There's no better way to make sure the software you buy is right for you and your company than to give it a trial run. Look for titles that let you try the software for free—companies that don't let you try their software risk free are afraid you won't like their software.

14. Are there any hidden fees?
Do you need to pay extra money if you need to update your tax tables in the middle of year or if you need to handle multiple companies?

15. Are database back-up and restore features included?
Software without these features can cost you thousands of dollars if something happens to your computer or your data becomes corrupted. Back-up and restore features will allow you to get back to normal operations with a minimum of fuss.

Answering these questions will help you identify software titles that are likely to work well for your company. Taking extra time before you buy to get the features you need, will save you time and money while reducing frustration down the road.
One software title that includes a variety of options for all these situations is ezPaycheck 2010 from Halfpricesoft.com. ezPaycheck is available for a free 30-day trial to ensure that it has the features your company needs before ever paying a dime. It's available for download at http://www.halfpricesoft.com.

For More Information Please Contact:
halfpricesoft.com P.O. Box 17067 Louisville, KY 40217 USA
email: contact@halfpricesoft.com
Fax: (866) 909-6448

About the Author

About halfpricesoft.com

Halfpricesoft.com is a leading software provider of easy-to-use 1099, W2,Payroll Software and bar code printing solutions for small to medium size businesses. And its easy-to-use software can save users both money and time. http://www.halfpricesoft.com

How can a home-based business owner hire affordable help?

I'm a home-based business owner and I also work full-time for my night shift job. Because of my schedule, I need to hire a couple of part-time people to help with administrative tasks. I've had many inquiries from people but they want to be paid cash (under the table). However I don't want to get in trouble with Revenue Canada because of not taking the tax deductions off. But I don't know how to calculate payroll deductions. Any suggestions from anyone? My family and friends don't live nearby and they aren't able to help me.

you could write them a check in their name, get them to sign it, pay them in cash and keep the check and deposit it yourself.
This way it shows the taxes and your doing nothing wrong