If you plan to offer employee benefits such as health insurance or matching retirement plan contributions, you'll have to make the associated payroll deductions. Because deductions may differ for each employee, this can get complicated, especially if you're doing payroll manually. However, if your business uses a payroll software service or outsourcing company, the provider should automatically calculate deductions and contributions for each payroll run, reducing payroll errors and miscalculations. Payroll software solutions may also make it possible to easily integrate benefit information with payroll, accounting and HR business functions so each department has an accurate, up-to-date record of employee benefits.