Best Online Accounting Software With Payroll

Payroll features in accounting software

One of the best things about payroll is that it auto-manages the entire process. All you have to do is to either enter the timesheet of your employees, ask them to submit their own timesheets, or use a built-in/integrated time tracker, and then the accounting software will take care of the rest. In fact, the payroll feature can also handle ‘deviations’ in the regular payroll schedule, like vacations, sick leave, and bonuses, as employees can individually apply for leave even when they are out of office. Employees are also entitled to receive their individual payroll reports, which you can also give to your accountant – who can have full access to your payroll to help you verify data in preparation for tax season.

Speaking of taxes, not only does the software calculate the taxes you have to pay (and in some cases even allows you to file tax reports right away), but it can also remind you when payday is due and give you the option to decide how you’d like to pay your co-workers.

Integrating third-party payroll solutions

Unfortunately, payroll is a feature that not every online accounting solution provides. However, what these programs can do for you is offer the option to integrate a third-party app with your software, so you can manage payroll after all. In fact, some of these apps are capable of something the built-in payroll solutions of accounting software aren’t: auto-filing the necessary tax reports in every U.S. state. Furthermore, each time you run payroll, it reduces the chance of manual errors and common mistakes by removing duplicate entries that might have been left by calculating ordinary hours, penalty hours, overtime and allowances – making the end of the month completely hassle-free.

Although there are plenty of third-party applications supported by online accounting solution providers, one of the most popular third-party payroll services is Gusto. The app automatically calculates, files, and pays your taxes – it even adds insurance costs and prepares your 1099s.

Recommended online accounting and payroll software

Not too many online accounting solutions have built-in payroll features, or if they do, they are often pay-only. However, if you want to make sure that everything is in one place, or you want to replace the existing payroll feature with a huge variety of third-party add-ons, then Xero and QuickBooks Online, two of the market leaders, might be your best option.