Choosing Payroll for Micro Businesses for 2023 Tax Season

Selecting software that allows you to process payroll for micro businesses for the 2023 tax season may make you wonder whether or not it is truly essential. Micro businesses greatly benefit from using software even with less than 10 employed people. The main component of your payroll selection is your business’s needs. Payroll designed for smaller-sized companies should function differently from what larger businesses require. Start by identifying your micro business’s key needs. Look for customizable software that allows you to add tools when you need them.

Advanced Micro Solutions offers a customizable, full accounting suite of tools. We designed our AMS Payroll add-on module with small businesses of different sizes in mind. Download our free 1099-etc Demo today to explore how our system supports your individual requirements or up to 9,999 employees per payer.


What Do I Need in Payroll for Micro Businesses?

Payroll necessities for your micro business will likely differ significantly from a small business with 100 or maybe even 500 employees. Ask yourself the following questions before you look for a payroll solution for tax year 2023 documents.

How often do you want or need to process payroll? Consider investing in payroll software that allows users to choose from multiple processing and deposit schedules. You may have a micro business now that you want to expand. Think about your depositing schedule options so that you do not prematurely grow out of your new software.

Do you need to track 401(k) deductions? Setting up deductions and additions can become a time-consuming, albeit important part of payroll management. Find payroll for micro businesses that allows you to set up different user defined fields for 401(k)s or health insurance.

Will you use your payroll solution to compensate any independent contractors? You do not want to find the best employee payroll software and then realize that you need to onboard independent contractors. Confirm that your payroll software can manage every type of worker classification. A comprehensive system should allow you to enter the micro business’s payroll and non-employee compensation by check throughout the year.

Do you need to choose between an in-house bookkeeper and a system that offers 24/7 customer support? Solidify your support whether you assign payroll management tasks to an existing employee or manage it yourself. Ask your vendor if their payroll for micro businesses provides a Frequently Asked Questions resource or on-call tech support.


The Benefits of Micro Business Payroll Software

It is true that certain payroll softwares will not meet the needs of a micro business. Look for a product that supports your business in the following unique and fundamental ways:

Scalability – Small and micro businesses need flexible payroll options. Look for software that allows you to add or remove certain features as you need them. Track your payroll taxes with the tools that you need most. Add to your payroll features if you decide to grow your company.

Saves Money – Hiring an external accountant or payroll service may become too costly for your micro business. Search for a user-friendly payroll for micro businesses program that helps catch your mistakes before you incur high fees.

Improves Employee Experience – Determine whether you want to distribute compensation with paychecks or by using direct deposit. You may give your employees and/or independent contractors the option. The best payroll software can accommodate either of these methods.

Less Payroll Tax Compliance Stress – Allow your payroll software to calculate, deduct, and file your taxes with fewer mistakes. Certain software automatically calculates all federal, state, and local payroll taxes for your business. You may also choose to use a compatible electronic filing program to send any forms directly to the Internal Revenue Service or the Social Security Administration.


Why AMS Works for Micro Businesses

Our full accounting suite of tools is versatile and does not have any subscriptions or hidden fees. Use AMS Payroll as payroll for micro businesses to process any “live” or after-the-fact payroll. We support small and micro businesses in all 50 states, plus the District of Columbia and Puerto Rico. Access the most up-to-date state and federal tax tables while setting up as many as 40 user defined fields for deductions and additions.

Our software supports over 30 different check types. Micro businesses may print their checks individually or by a date range. We have five other add-on modules to consider with our base W-2/1099 Forms Filer. These modules are E-File, Software Generated Forms, Affordable Care Act Filer, Forms Filer Plus, and 1042-S Filer.

Software Solutions from AMS

Our W-2 and 1099 Forms Filer is our only required platform. From there, users pick the services they need. Choose from the tools below to build out your customized accounting software.