Short answer: “payroll computer software” can mean three different things today: a program installed on one office computer, a cloud payroll app you use in a browser, or a full-service provider that also files your taxes. Most small businesses now choose cloud or full-service payroll, and pair it with a time clock that sends approved hours, so nobody retypes timesheets.
The right choice depends on how many people you pay, how many states you operate in, who runs payroll and how much of the tax work you want to handle yourself. This guide compares the options and gives you a quick quiz to see which fits.
Three kinds of payroll software
1. Installed desktop payroll software
Installed on one computer in the office. You enter hours, run calculations and print or upload payments. It can suit a single location with stable staff and someone comfortable managing software updates.
- Watch for: tax-table updates, backups, access from only one machine, and how long the vendor will support the product.
2. Cloud payroll software
Runs in a web browser or app, updates automatically and can be used from anywhere. Most products price per employee per month.
- Watch for: which tax filings are included, fees for extra states or off-cycle runs, and how hours are imported.
3. Full-service payroll providers
The provider calculates pay and also deposits payroll taxes and files federal and state returns for you. It costs more, but it moves deadlines and filings off your desk.
- Watch for: what happens if a filing is late, and who is responsible for correcting errors.
Take the 1-minute quiz
Drag the sliders to describe your business and watch the best fit change.
Which payroll setup fits your business?
Drag each slider to describe your business. The bars update as you go.
A simple guide, not a recommendation for a specific product.
Desktop vs. cloud vs. full-service at a glance
- Access: desktop works on one computer; cloud and full-service work from any device with a login.
- Updates: desktop needs tax updates installed; cloud and full-service update automatically.
- Tax filings: desktop and basic cloud plans usually leave filings to you; full-service files for you.
- Backups: desktop backups are your job; cloud providers handle them.
- Multi-state: the more states you have, the more value you get from full-service filings.
Whatever you choose, the hours have to be right
Every type of payroll software depends on the hours you give it. For hourly teams, the most common payroll fixes start with time data: a forgotten clock-out, a missing meal punch or overtime nobody noticed until payday. A simple routine prevents most of them:
- Employees clock in with a mobile time clock app, an NFC tag or a kiosk.
- Missed punches are flagged and fixed the same day.
- Managers approve timecards before the payroll cutoff.
- Approved hours are exported to your payroll software.
Where EZTime fits
EZTime is a time and attendance system, not payroll software. It handles the part before payroll: clock-ins, schedules, overtime and break alerts, missed-punch corrections and approvals. Then you export payroll-ready hours to the payroll software you choose, desktop, cloud or full-service.
See EZTime with your own team
Leave your details and a US team member will reach out, or start your free 14-day trial right away. Plans start at $2 per employee per month.
Frequently asked questions
What is payroll computer software?
It is any program used to calculate and process payroll. Traditionally it meant software installed on one office computer; today most payroll software runs in the cloud and is used through a web browser or app.
Is desktop payroll software still available?
Some installed payroll programs are still sold, but many vendors have moved to cloud subscriptions. If you prefer desktop software, check how tax tables are updated, how backups work and how long the product will be supported.
Is cloud payroll software safe?
Reputable cloud payroll providers use encryption, access controls and backups. Your own practices matter too: use strong passwords, two-factor authentication and limit who can run payroll.
What is full-service payroll?
Full-service payroll means the provider not only calculates pay but also deposits payroll taxes and files federal and state payroll tax returns on your behalf. It costs more but reduces the risk of missed deadlines.
How do employee hours get into payroll software?
Usually through an export or import of approved hours from a time and attendance system. Approving timecards before the export avoids retyping and most payroll corrections.
This article is general information for US employers, not tax or legal advice. Tax rates, wage bases and state rules change; confirm current figures with the IRS, your state agency or a payroll professional.