Cloud-Based Payroll Software: 7 Reasons to Switch

Are you considering switching to cloud-based payroll software? You are not alone in this. More and more companies are moving from on-site payroll software applications to online payroll solutions.

What is Cloud Payroll Software?

Cloud-based payroll software allows you to access payroll through an electronic device connected to the Internet and manage and process it through a remote system - the cloud.

A cloud-based payroll system offers both employers and employees invaluable benefits, such as: Such as ensuring the security of payroll data, simplifying processes (e.g. self-service payroll), and ensuring tax compliance.

Online payroll solutions are becoming increasingly popular, especially among companies operating in remote locations.

Benefits of Cloud-Based Payroll Software

If your company isn't quite sold on the idea of online payroll yet, here are seven good reasons why you should be.

1.Cloud-based payroll software improves speed and accuracy

Few things are more important to your employees than correct and timely pay. However, for many HR and payroll departments, executing payroll is often a hectic, all-hands-on-all affair.

Cloud payroll software is designed to ease the pre-payroll hassle. Most offer a friendly, intuitive interface and straightforward navigation. And perhaps more importantly, because many features are automated, manual calculations are eliminated, eliminating the errors, redundancies, and workarounds that plague employers still struggling with legacy on-site payroll software.

2.Cloud payroll software provides online payroll solutions

These days, actual work is often done outside of the office. One of the great benefits of cloud-based payroll services is that human resources and field workers can edit and approve payroll from any device, at any time of the day.

This is a huge advantage for companies with multiple workstations in different time zones. It's also beneficial for field workers, as they can review and approve timecards - not to mention respond to paid time off requests - right from their smartphone or tablet.

3.Cloud-based payroll software provides security for payroll data

Some employers are concerned about the security of cloud-based payroll software, but data stored in the cloud is generally much more secure than data stored on-premises. When your sensitive payroll data is stored on on-site servers, it is vulnerable to natural disasters, fires, and even major technical failures.

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

However, when comparing a payroll data provider's security practices, you should pay attention to the following:

The data should be hosted in a private cloud.
The guaranteed uptime of the servers should be high (close to 100%).
The provider's servers should be located in top-notch certified data centers that are monitored 24/7.
Data should be encrypted using secure protocols.

4.Cloud-based payroll software is scalable for your business

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

So you don't have to worry about outgrowing your capacity or paying for more than you need. With cloud-based payroll software, you typically only pay for the capacity you use in a given billing cycle.

5.Cloud payroll software provides self-service payroll to employees

Employee self-service portals offer significant benefits to everyone involved in the company: employees, managers, HR and payroll managers.

Self-service portals give employees access to their HR and payroll data anywhere, anytime. From their personal mobile devices, they can view their pay stubs and benefits, apply for PTO, update their contact information, and more. Not only is this beneficial for employees, but it also frees up managers and HR staff who would otherwise have to respond to these incoming requests, allowing them to focus on more important tasks.

6.Cloud-based payroll software reduces operational costs

Online payroll solutions offer a higher return on investment than on-premise software. There are no servers to buy and maintain, no physical setup to do, and no upgrades to purchase. Employers save on both initial and recurring costs.

Additionally, updates are easily handled by the SaaS provider. There is no lengthy downtime, the internal IT team can focus on other priorities, and staff benefit from having payroll run in the cloud with the most current software version.

7.Cloud payroll software is environmentally friendly

When fewer servers need to be maintained, companies reduce their energy consumption and thus their CO2 emissions - a plus for environmentally conscious employers. Additionally, when an employer moves to a SaaS-based system, only as much cloud storage is used as necessary... no waste!

8.Cloud-based payroll software helps with tax compliance

Online payroll solutions typically have features that ensure compliance with current local, state and federal tax regulations. Additionally, some payroll software can provide notifications of changes or updates to applicable laws and regulations that may impact your business. Tax compliance can be a daunting hurdle for many business owners - with cloud-based payroll software you can have peace of mind by simplifying the process.

In conclusion, adopting cloud-based payroll software like IceHrm brings numerous advantages, including enhanced speed, security, scalability, and simplified tax compliance. Make the switch today for streamlined payroll processes and cost savings.