Payroll software is a computer program that is designed specifically for the processing, producing and distribution of a company’s payroll. Payroll software facilitates speeding up of the process making sure that an employees pay is calculated accurately.  Also helps to eliminate the hassle of understanding complex payroll formulas and systems in addition to reducing the cost of administration. Due to the importance of a payroll package it is essential to understand all payroll software systems to provide a full service payroll package required for the company and the administration.

A full service payroll package include software systems required to calculate for tax regulations, insurance, retirement funds, tax filing, attendance records, bonus and overtime , incentives, allowances, subsidies, provident funds, authorized and unauthorized leaves etc.

Multi companies payroll software is software which is capable of maintaining payroll information for multiple companies; all the payroll of multiple companies can be maintained in single installation. Some software also has a multi company option. This multi companies payroll software is like any other payroll software which has an additional feature of multiple company option.

Business may require small or large payroll software according to its requirements. Business payroll small software is for companies which do not require a large and robust as it might not have a huge base of employees and most of the work is automated. Business payroll small software is best suited for sole proprietorship and small business.