Payroll Calculator API for USA

Business Challenge

The customer has the existing service, where users have access to the extensive functionality related to financial reports / documentation. This software is popular and has its target audience, which is steadily expanding. Among all, following features are most popular:

• Invoice generator. Invoice is a financial document that firms send to the clients in order to receive the payment for the provided services or goods
• 1099-MISC form generator. 1099-MISC form is a document that includes the information about any miscellaneous income except wages
• Pay stub generator. Easy creation of pay stubs using online stub maker
• W-2 form generator. W-2 is an annual report, wages and tax statement. Basically, this report prepares the employer for for each employee

So, W-2 form generator as a feature for simplification of wages/taxes calculation offers to use auto calculator option. Wages/tax information becomes pre-filled in the W-2 form template. Earlier, the solution for automatic payroll calculation and identifying employee wages / taxes used an external back-end. Later the client made the decision to implement own payroll calculator API and to connect it to the already existing front-end. With this challenge the customer started communication and further cooperation with the development team.

Our Solution

Auto calculator is a part of the existing W-2 form generator. Auto calculator makes the calculations when user fills in following fields:

• State
• Year
• Marital status
• Dependents amount
• The amount of earned money before taxes last year

As the first step, a business analyst researched and derived business rules for calculating taxes. Certainly, as a part of the work this engineer executed detailed analysis of tax rules in different states of America. Of course, sometimes tax laws are the same in some states, but sometimes each state has its own unique tax rules and may differ from others. 

The main objective for the software development team – implementation of payroll calculator API from scratch. Payroll calculator API was implemented on Node.js stack in AWS cloud. Notably, that client has the ability to change these business rules according to own view over the configuration file.

Business Impact

Software development team implemented a payroll calculator API from scratch. Due to development of this part, the customer was able to replace the external back-end solution by its own code. Payroll calculator API was successfully connected to the existing front-end as a part of auto calculator in W-2 generator form.

Chudovo: custom payroll software provider

Development of custom software for online payroll calculation and management is one of key competences of our company. Software engineering team can be useful by the development and support of the following payroll solutions:

• Payroll calculator – software tool that helps to execute automatic calculations of the employment costs, including all possible taxes. Usually, customers propose such simple calculators as a free feature for the users of their websites. Although, there are other variants of such calculators. For example, more complex calculators may be integrated in some types of financial documentation / reports generators. Such calculators might do some specific calculations. They are available for the users free or as a part of paid functionality of the services.
• Payroll software – solution that helps to automate and simplify employee payments. Usually, this type of software is either available on-premises or in the cloud. The process of salary payments becomes much easier and efficient if it is automated. Companies are able to manage and maintain the full cycle of payroll operations. Indeed, firms benefit from this solution as all employee payment processes are automated.

Chudovo as a provider of custom payroll software solutions can help in realisation of similar projects. Professional software development team or custom specialists from our side can join your team at any stage. Planning, analysis, design, development as well as product maintenance are one of the main strengths of our engineering team. Let’s discuss the details of your payroll software and possible cooperation options!