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Since they were still marveling at the abacus when I came one the tax scene, I'll offer the old-fashioned method of just doing it by hand. There would be a big investment of start up time in learning the rules and getting everything set up with the state, but after that it's no big whoop. The starting point for Federal is Publication 15.

I agree with Phil. With only two employees, it would not be too difficult to keep track on a spreadsheet. There is a good, free payroll calculator on AccountantsWorld (requires registration).
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