Payroll happens to be the most critical element of an organization's functioning. It handles one of the most significant assets- employees (human personnel). Businesses calculate employees' paychecks, withhold taxes, provide benefits, and comply with legal rules with an adequate payroll management system. The significance of payroll makes it prone to errors and manipulations. If it does not receive proper attention, it can cause havoc for companies. Thus, a business struggling with the process must consider other alternatives if the current practices are non-satisfactory. Payroll on Quickbooks
, Freshbooks, Xero, and other accounting software can help introduce efficiency and minimize errors.
Cloud accounting software like Quickbooks, Sage, Netsuite, etc., have diverse accounting and bookkeeping features. They help firms store vital financial information securely with adequate backups. However, choosing one from many can become highly challenging for firms. Here are detailed comparison points between Xero bookkeeping and Quickbooks for payroll:
Quickbooks is a cloud accounting solution for small and medium-sized businesses. Payroll on Quickbooks is subscription-based, meaning companies have to pay a specific amount every month to activate the payroll services. The Quickbooks payroll service includes the following features:
Updated payroll rates for accurate calculations and supporting federal and state tax laws
Creating paychecks with automated tax calculations
Directly depositing employees' payslips to their current or savings accounts
Direct deposits for 1099 contractors
Quickbooks workforce website for employees to check their payroll information
Automatic federal and state tax forms filling
Facilitating e-filing and e-payment
Guaranteed no tax penalties
Note: All these services are only available on Quickbooks Desktop Software.
Xero bookkeeping software:
Xero is a popular cloud-accounting software among small, medium, and large-scale enterprises. It provides flexible and affordable pricing options with an easy-to-use interface. Payroll services under Xero bookkeeping
happen with integrations with Gusto payroll software. Businesses can update their accounts on Xero while managing payroll calculations and deductions on Gusto.
Gusto makes payroll management seamless and flexible. Every payroll activity like deductions, calculations, and filings gets automated. The employees can view their accounts, pay stubs, and W-2 forms online. The services are comprehensive and also allow direct deposits the next day.
Businesses can choose to run the payroll on Autopilot, meaning the recurring payroll activities will happen automatically. They can send automated emails to employees to notify them about their paychecks. Moreover, they can set up multiple schedules and paydays for convenience. It also supports 1099 contractor payroll filing.