Payroll software for 1 employee might seem pointless, but it is an important investment for a small business. You will still need to run payroll for a single employee. However, some small business owners opt to do manual payroll until they have enough employees to feel as if the number warrants payroll software.
While that might seem like the smartest option, owners risk wasting time and money running manual payroll for a single person. Advanced Micro Solutions Payroll Software its users the most affordable and comprehensive payroll software for 1 employee. Our tools:
- Are user-friendly and budget-friendly to increase efficiency and save time
- Support a wide range of employees and contractors
- Are scalable if your small business wants to grow into a larger operation
In 2025, Lift HCM noted that small businesses reported saving over eight hours per pay period after incorporating payroll software. It was a 90% reduction in time spent on these tasks.
What You Need to Know About Running Payroll for 1 Employee
Payroll software for a single employee might sound silly, but payroll taxes still apply. There are a few scenarios where you can end up with only one employee requiring payroll, such as:
- Someone who works part-time in your clothing boutique
- A business partner who is paid a full-time salary
- You are the sole employee
The IRS does not make special tax exemptions for sole proprietors or independent contractors. But when it comes to running payroll for 1 employee, why does software matter? As it turns out, there are more benefits to investing in payroll than you might think.
- Accuracy: Using a payroll tool to outsource important calculations means that you will not need a calculator to confirm and re-confirm that you have the correct figures.
- Efficiency: Even if you only run payroll for one employee, you are likely doing it twice per month. Using software tools will save hours every month that you would otherwise spend sitting down every other week to calculate payroll, withhold taxes, and determine the relevant wage information.
- Scalability: Many businesses with one employee aspire to hire more. Using a payroll system early on will help you understand the process before hiring additional workers.
Frequently Asked Questions
- Does my nonprofit need better payroll software solutions? – Nonprofits may not pay any taxes on their revenue, but they certainly need efficient and timely payroll management for their core operations. Software can provide accurate employee payments and legal compliance for your nonprofit organization.
- Should small businesses only download payroll software? – Getting desktop-based tools means that you may encounter fewer leaks or hacks and will not need to worry about an internet outage. Alternatively, cloud-based software might be more affordable or efficient. The decision comes down to which program offers the best tools for your business.
Find Affordable and Customized Software from AMS
Payroll software for 1 employee is important, even for the smallest businesses. Getting software support improves efficiency and accuracy. AMS also has budget-friendly software tools. We are a desktop-based platform with annual billing. Your program is stored directly on your computer, and you will not need to pay an exorbitant subscription price.
AMS prioritizes usability for small businesses. Our software tools are modular, meaning that our customers choose the add-on features that they want to purchase. The customizable software suite comes without the added cost of personalization. If you want more than budget-friendly payroll software for 1 employee, consider any of our other software tools:
If you have any questions about which platforms to try, give our Sales and Information Team a call at (800) 536-1099. We are happy to discuss our products and make recommendations. If you are unsure whether AMS is right for your business, try our free 1099-etc Demo software.