Cloud-Based Payroll Software: 7 Reasons to Make The Move

Contemplating a move to a cloud-based payroll software? You’re not alone. More and more companies are switching from on-premise payroll software applications to online payroll solutions.

What Is Cloud Payroll Software?

Cloud payroll software allows you to access, manage, and process payroll through a remote system—aka the cloud—via an electronic device connected to the internet.

A cloud based payroll system provides invaluable benefits to employers and employees alike, such as ensuring payroll data security, simplifying processes (i.e. self-service payroll), and managing tax compliance.

Online payroll solutions are becoming more popular, especially for companies operating remotely.

Benefits of Cloud Based Payroll Software

If your organization isn’t fully sold on the idea of online payroll solutions, here are seven great reasons why you should be.

1. Cloud Based Payroll Software Improves Speed and Accuracy

Few things are more important to your employees than being paid right and right on time. Yet for many HR and payroll departments, running payroll is often a rushed, down-to-the-wire affair.

Cloud payroll software is designed to ease that pre-payroll crunch. Most feature a friendly, intuitive user interface and straightforward navigation. Perhaps more significantly, because many functions are automated, it eliminates the need for manual calculations, reducing the errors, redundancies, and workarounds that plague employers still wrestling with older on-premise payroll software.  

2. Cloud Payroll Software Offers Online Payroll Solutions

These days, the real work often gets done outside of the office. One of the great benefits of cloud-based payroll services is that HR staff and field managers can process and approve payroll from any device, any time of day.

For businesses with multiple worksites spread across multiple time zones, this is a huge advantage. It is also advantageous for field managers who can review and approve time cards—not to mention respond to requests for paid time off—right from their smartphones or tablets.

3. Cloud Based Payroll Software Provides Payroll Data Security

Some employers worry about the security of cloud-based payroll software, but data stored in the cloud is generally much safer than data stored on-premise. When your sensitive payroll data is stored in on-premise servers, it’s vulnerable to natural disasters, fire, and even major technology outages.

Cloud-based payroll service providers invest enormous resources in data and infrastructure security. In addition, the data is encrypted and rigorously backed up.   

All the same, here’s what to look for when comparing a provider’s payroll data  security practices:

• Data should be hosted on a private cloud.
• Guaranteed server uptime should be high (close to 100%).
• The providers’ servers should be located in top-tier certified data centers with 24/7 security monitoring.
• Information should be encrypted using secure protocols.

4. Cloud Based Payroll Software Is Scalable to Your Business

Unlike on-premise payroll software, cloud payroll systems are scalable. If your company manages a seasonal, fluctuating or growing workforce, this is a huge plus.

As a result, you don’t need to worry about outgrowing capacity or paying for more than you need. With cloud-based payroll software, you typically pay only for the capacity you use during a particular billing period.

5. Cloud Payroll Software Gives Employees Self-Service Payroll

Employee self-service portals provide significant benefits to everyone within an organization: workers, managers, and HR and payroll staff. 

Self-service portals give employees anywhere, anytime access to their HR and payroll information. Using their personal mobile devices, employees can check their pay history and benefits, request PTO, update their contact information, and more. Not only is this empowering to employees, it frees up managers and HR staff who would be responding to these incoming requests, allowing them to focus on more essential responsibilities.

6. Cloud Based Payroll Software Reduces Ownership Costs

Online payroll solutions offer a higher return on investment than on-premise software. There are no in-house servers to buy and maintain, no physical set-up to accomplish, and no upgrades to purchase. Employers save both on initial and recurring expenses.

Further, updates are handled painlessly by the SaaS provider. There are no lengthy downtimes to deal with, the in-house IT team can focus on other priorities, and the payroll staff benefits from processing payroll in the cloud using the most up-to-date software version.    

7. Cloud Payroll Software Is Environmentally Friendly

When there are fewer servers to maintain, companies reduce their energy consumption, thereby reducing their carbon footprint—a plus with environmentally-conscious employers. In addition, when an employer moves to a SaaS-based system, it only uses as much cloud storage as needed…no waste!

8. Cloud Based Payroll Software Helps Ensure Tax Compliance

Online payroll solutions typically come with features that ensure updated local, state, and federal tax compliance regulations are followed. Additionally, some payroll software might provide notifications on any changes or updates to current laws and regulations that may impact your business. Tax compliance can be a daunting hurdle for many business owners—cloud payroll software can give you peace of mind by simplifying the process.

If that didn't convince you, explore Namely's Managed Payroll and learn how we make payroll easier through cloud based payroll software.