HR software is software which takes care of all the HR functions like selecting, recruiting, training and development, staffing, induction and other related activities pertaining to employee selection all come under the purview of HR functions. Payroll software is software which calculates employee wages, salaries, bonus and tax deductions. Payroll functions starts after HR function ends. However both the functions are interrelated. HR before selection records the employees’ previous salary and records present employee compensation. Software which caters to both HR and payroll functions is the HR and payroll software. HR and payroll software works handy for many HR managers to work on employee records and compensation.

Almost all organizations have payroll software requirement that have a staff of more than 50 employees. Since then it is cumbersome for the employer to calculate the salaries of each employee. The basic payroll software requirement and usefulness of payroll software is that it helps to effectively and accurately calculate the salaries of employees without mistakes so that the employee gets paid for the work he has done.

Payroll software which is a part of the accounting software package is payroll accounting software. Payroll accounting software keeps track of weekly, monthly, quarterly, annual pay checks, and payroll tax-related forms. It also helps to prepare comprehensive MIS (management information) reports, transaction entries, return forms, utilities, graphical representation and master entries.