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What is the difference between payroll software and a payroll service? Im a business studies student and wondered whether the only difference is that a payroll service is internet-based? Or is there more to it? Is this the case for all payroll services? Any advantages and disadvantages of each type of payroll managing method would be very helpful. Thank you.
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batasha wrote:What is the difference between payroll software and a payroll service? Im a business studies student and wondered whether the only difference is that a payroll service is internet-based? Or is there more to it? Is this the case for all payroll services? Any advantages and disadvantages of each type of payroll managing method would be very helpful. Thank you.

PCPlus has an integrated payroll module that will do all the calculation for payroll, and create the checks. A Payroll service will do all that for you, but you're paying for them to do this.

The benefits of one over the other depends on the church.

I'll take a stab at enumerating the pros and cons:

Payroll done in-house:
Pros:
Usually done by an employee doing other bookkeeping, so it is an additional task, not a full-time position
Flexible hours - employee can choose when to do payroll tasks
Adjusts easily to needs of the church

Cons:
Payroll laws are complicated, and the employee must keep up on all the rules
Tax tables can be complicated
Record keeping can be complicated

Payroll Services:
Pros:
Relieves the church employee from having to keep up on payroll laws
Costs less than a payroll employee (or about the same as paying a bookkeeper to do it part-time)
They do the record keeping (I think)

Cons:
If you already have a bookkeeper, payroll services is an extra expense
not as flexible as doing it in-house