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The best software to use is MS-Office Worksheet, which is efficient and helpful. But a bigger company might use more-advanced and more-specific software. There are many payroll programs available, so the "best" one depends on your individual business. If you only have a few employees and want a low cost solution, a spreadsheet may work just fine. If you want something more powerful that writes paychecks, prepares payroll tax returns and documents and integrates with your accounting records, you might select something like Quickbooks. Many companies use outside payroll services that provide additional HR reports.

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