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What to look for in payroll software

  • Full-service vs self-service — full-service handles tax filings on your behalf; self-service requires you to file yourself
  • Pricing structure — most tools charge a base fee plus a per-employee fee; understand the total monthly cost at your team size
  • Contractor support — if you pay 1099 contractors, confirm the tool handles contractor payments and year-end 1099 filing
  • State coverage — confirm the tool supports payroll tax filing in every state where you have employees
  • Integrations — payroll that connects with your accounting software reduces manual data entry
  • Contract terms — check whether the tool requires an annual contract or allows month-to-month

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