A payroll service and an accountant solve different problems. Payroll software can run payroll and filings. An accountant may advise on tax treatment, owner pay, and year-end planning. Some employers need both.
Plain-English answer: use payroll software or a payroll service for recurring payroll execution. Use an accountant when tax treatment, owner compensation, entity structure, or cleanup decisions matter.
| Need | Payroll service/software | Accountant |
|---|---|---|
| Run regular payroll | Usually best fit | May help, but not always their preferred role |
| Tax deposits and filings | Often included in full-service payroll | May review or coordinate |
| S corp owner salary | Runs payroll once salary is decided | Often important for planning |
| Year-end tax strategy | Provides payroll records/forms | Usually more relevant |
When each option may fit
- Use payroll software if payroll is simple and you know what needs to be done.
- Use full-service payroll if you want help with deposits, filings, forms, and reminders.
- Use an accountant if payroll ties into tax planning, owner compensation, or entity structure.
- Use both when the accountant advises and the payroll provider executes.
Questions to ask
- Will my accountant actually run payroll, or only advise?
- Who is responsible for payroll tax deposits and filings?
- Who handles W-2s and year-end forms?
- Who helps if a tax notice arrives?
- How do payroll reports get to my accountant?
Mistakes to avoid
- Assuming your accountant wants to run payroll. Many prefer clients use payroll software.
- Assuming software gives tax advice. Tools usually execute payroll, not tax strategy.
- Leaving responsibility unclear. Someone must own deposits, filings, and forms.