Does LedgerSMB support payroll?  If so, how so?

 

The best I can do is an example:

 

If I have an employee that I’m paying $20/hour that works 40 hours per week, how do I go about adding up his time for the week, subtracting the necessary payroll taxes, and accounting for this within the software?

In all fairness: no, there's only the ambition to add it: I mean, there's an experimental feature to deal with payroll, but the development of it was stopped due to lack of real life use-cases. Maybe you can describe your use-cases so we have reference functionality we'd need to implement? There are functionalities to record actual hours worked, if you're looking for those (although if the contractual number of hours is 40, you might not be interested to record the actual hours, assuming 40 every week).