Software Can Fill Bill for Small Company’s Payroll
“Payroll Made E-Z” sounds like an oxymoron, but this software program does offer a simple alternative for small businesses that don’t want the expense or bother of setting up a professional accounting or payroll system.
At $29.95, the Windows program is easy to buy. You can download it from E-Z Legal Forms Inc.’s Web site (https://www.e-zlegal.com) or order the CD-ROM from the Deerfield Beach, Fla.-based software publisher by calling (800) 822-4566.
Setting up a payroll system is easy after you get the hang of it, but getting started is a bit harder than it should be. The help system was confusing to use, and the program doesn’t come with a manual.
After I understood what to do, it took only 15 minutes to set up a payroll for a mock company with five employees. First, you provide information about your business; then you enter basic information for each employee, including name, employee number and Social Security number as well as information about various withholdings.
The program does not share data with other accounting programs. If you have an accounting program, you should first see if it offers payroll and, if so, if you need to pay extra for that module.
The E-Z program will generate W2s, an unlimited number of payroll checks and quarterly reports. Unlike some programs, you don’t have to close the period to generate checks. Checks are printed on standard computer check forms that you can purchase from office supply stores.
You can have more than eight deductions such as child support, FICA, insurance and 401(k) contributions. It automatically deducts state and federal taxes (you tell it what state the employee lives in), but these settings can be overridden if necessary.
If you already use an accounting program with a payroll module, there is no need to purchase Payroll Made E-Z or any other payroll tool. QuickBooks 99, for example, comes with both a payroll function and links to Intuit’s online payroll service. Because payroll is integrated into QuickBooks, the data you enter can be carried over and used in other modules of the program, making it more efficient to use QuickBooks for all your accounting needs. Also, after you’ve gotten over the learning curve with Quicken or any other accounting program, you’re well on your way to understanding how to use payroll and other functions.
Although Intuit markets QuickBooks to small businesses, company representatives are quick to point out that Intuit’s personal finance program, Quicken, is used by many small companies. Quicken doesn’t come with a payroll module, but Intuit will soon release QuickPayroll, which can be used as a stand-alone product or with Quicken 99.
Intuit also offers an online payroll service that works with QuickBooks and will work with QuickPayroll. With the online service, QuickBooks 99 users enter payroll information and, two days before payday, transmit the payroll information to the payment service. The company will debit your account for the payroll, taxes and processing fees and deposit the money directly into the employees’ accounts, assuming that the employees have signed up with the service’s direct-deposit option.
Your data are stored locally in QuickBooks files but the online service handles payroll tax calculations, electronic filing of required tax forms, federal and state tax payments, tax table updates and the printing and mailing of W2 forms.
QuickBooks 99 costs $120. QuickBooks Pro, which includes extra features such as time and billing, job costing and multi-user support, costs about $220.
Another option is First Accounting from Norcross, Ga.-based Peachtree Software Inc. (https://www.peachtree.com). This $69 program offers payroll along with general ledger, accounts receivable, accounts payable, inventory and job tracking. The program has an easy-to-understand interface and a tutorial that walks you through the process of setting up your company and entering initial data. I generally don’t use terms such as “delightful” to describe accounting software, but this is as close as it gets. You can download a free trial version from Peachtree’s Web site that is fully functional but limited to 10 uses.
Technology reports by Lawrence J. Magid can be heard at 1:48 p.m. weekdays on KNX-AM (1070). He can be reached at larry.magid@ latimes.com. His Web page is at https://www.larrysworld.com or keyword “LarryMagid” on AOL.
