Payroll Tax Preparation - Software Vs. A Professional

Payroll tax preparation can be done by you with specially designed software or by a professional, such as an accountant, CPA or payroll administrator.  Whichever way you choose depends on your comfort, expertise and assurance that the preparation of your payroll tax will be done properly and in accordance with federal and state laws.

Individual Preparation with Software

Individuals that choose to prepare their payroll on their own should check the validity of the software that they are using.  Software that is out of date or not current with payroll tax laws will result in an improper tax preparation. This may result in penalties or fines for the company preparing the payroll tax filing.

Using a Professional Tax Preparer

A professional such as a third-party payroll tax preparer or certified public accountant should be versed and up-to-date on the current payroll tax laws, rules and regulations.  In many cases using an outside source to prepare payroll taxes is better for a company than relying on a software package but either method is an acceptable way to complete a tax filing.