Since we don't know which program do you run, I will state :
3 Typical settings for programs running on MS SQL server.
1. You must have installed and Patched (with last service pack) MS SQL server.
2. You must be sure that you can connect to MS SQL server from your workstation - typical example for this is using Query Analyzer to make sure that you can connect to master database. This means that you have set ted user name and password with rights for creation and drop database on server. Also you must check payroll program manual to see how its is connect to MS SQL and do it - typical example is trough ODBC (in this case you set ODBC connection string and check it to see if it works.Slow method) or trough native MS SQL connections (you must configure MS SQL Server and Client Network Utility.Faster method)
3. You must again read payroll manual and check how it uses MS SQL databases - typical example here is that in most cases you must manually create database for your program on server, using script, which you run trough Query Analyzer.
After you finished these steps you can start your payroll program and see if it work good - i.e., program can access her own database on MS SQL server and can fill and read data from it
Hope This help. Best Luck.