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Any business with employees — even just one employee — needs payroll software. These services keep your team paid and your company compliant with regulations. Many of these platforms also offer services beyond payment and regulatory compliance. Below, learn all about this software and how you should use it. Payroll software is digital technology that businesses of all sizes use to calculate and pay employee wages and salaries in full and on time. Concurrently, this software calculates, withholds, and files the appropriate federal, state, and local taxes, keeping your business compliant with regulations. Many payroll services also report your new hires to your state’s labor department, relieving you of another compliance burden.