Wave Accounting Releases U.S. Payroll Product

BY SETH FINEBERG Free online accounting software maker Wave Accounting has released the U.S. edition of Wave Payroll, its cloud-based payroll offering designed for small businesses.  Wave launched the product for the Canadian market in February and it is now available in all 50 states. Signing up for the product is free, however running payroll is $5 or less per employee per month, with no charge until the first payroll is completed. There is also no charge for employees not paid in a given month.   To coincide with the start of the 2013 tax year, Wave will also include an option as of January 2013 to handle tax deposits and tax filings for a flat fee of $25 per employer per month. With Wave Payroll, employers can pay employees via check, or choose direct deposit at no extra charge; manage federal, state and local payroll taxes without ever needing to consult a payroll calculator; handle vacation time, including the option to pay vacation hours on each check, or to accrue the vacation hours worked for another date; assign payroll deductions or benefits to each employee on a one-time or recurring basis; and provide employees with a self-serve portal to maintain their contact information and retrieve their pay stubs and other documents.   "For most small businesses in the U.S., especially those with fewer than 10 employees, traditional payroll solutions just don't make sense; they're too expensive and complicated for a small business owner," said Wave Accounting co-founder and chief executive Kirk Simpson. "With Wave Payroll, we essentially reinvented the payroll process by developing a solution that is quick, affordable and easy to use, while helping to avoid costly non-compliance penalties."

EXACT CPA COMMENT: The landscape of technology tools to assist small and medium sized businesses seems to be changing on a daily basis.  Wave Payroll offers small businesses a solution to meet their needs.  I've seen the great reviews on the free Wave Accounting platform and Wave Payroll, now available in the United States, seems to be receiving more of the same.  The tax deposit and tax filing features being made available in January 2013 will make payroll even easier.  For a small business with 10 employees or less, all your payroll can be completed for less than $100 a month.  My only concern with applications such as this one, is what happens if you outgrow their services and need to change providers......does the data go with you?  I'm happy to see so many small businesses finding ways to help other small businesses be successful.  Wave Accounting is definitely one to keep on the watch list.