Another accounting software modules is payroll accounting software. It deals with the process of paying dues to the employees for the services they rendered. First of all it has to process the requirements for deducting money from the salary of the employee in the form of payroll taxes, employee benefits, insurance premiums and other deductions.

An employee may be paid different types of wages and commissions. Some of them are hourly wages, a  certain pay per calender year, commissions to sales persons, reimbursements etc. A payroll involves the calculation of these. Apart from these, amounts paid for vacation and accrued sick leave are added. 

From the above, certain amounts in the form of income tax, social security tax, union dues, health insurance etc, have to be deducted from the gross pay. What is left after is known as net pay which the employee ultimately receives. In addition, the employer is required to pay additional governmental taxes in the form of social security and unemployment insurance.

It is easy for an employer to do the payroll by hand if the number of employees is very small. But for a  bigger organization such a task can not be done by hand. They have to use an accounting software or may use an integrated module from a human resource management system to the task or may even assign the task to a service company for doing the job of payroll.

Payroll accounting software and payroll applications hold the payroll information of each particular employee. The information could be of the pay rate, tax deductions, vacation hours, other miscellaneous deductions etc. A good payroll accounting software includes employee paychecks, periodic payroll tax reports, year end employee reports etc.

Payroll application software are developed and marketed by some big names in the software industry.  Organization such as Sage, Maxwell, Intuit are involved in the making of payroll software. Two of the  best software in payroll accounting is produced by Sage Software. These products are 'Sage Mas 90 ERP and Sage Mas 200 ERP' and 'Sage business work accounting'. The Sage products are known for their simplicity and efficiency. With the help of these products, it is possible for an organization to successfully manage the payroll accounting.