This page was last updated on June 9th, 2025
Payroll software allows companies to manage and streamline payroll processes and ensure employees are paid timely and accurately. These systems help HR departments automate payroll processes, and accounting teams support accurate bookkeeping. The best payroll software also calculates wages, taxes, and pre- and post-tax deductions, along with helping organizations comply with various state and federal taxes and Social Security requirements. Customers who use payroll software often leverage multi-country payroll software as well.
Payroll tools also integrate with a variety of other tools such as core HR software , accounting software , benefits administration software , and time and attendance software .
To qualify for inclusion in the Payroll category, a product must:
Calculate and pay employee salaries
Follow Employee Pay Rules, such as minimum wage and overtime pay
Calculate and deduct withholdings, such as payroll taxes, insurance, retirement contributions, etc.
Print or deposit paychecks directly and manage employee payment data, such as bank accounts
Generate payroll reports like salary statements, benefits reports, or leave summaries
Comply with local and national workplace laws and privacy regulations
