Payroll software aims to automate the process of paying a company’s employees in order to reduce manual errors and time spent. Some typical functionalities include automatic withholdings or deductions, processing direct deposits, voiding payments and generating tax forms and other reports.

Emerging trends in the payroll industry are: direct deposit with employee's choice of bank, electronic tax filing, online W-2 accessibility, employee self-service portals, and enhanced ability to analyze labor costs.

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