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The benefits of cloud-based payroll software

March 17, 2018

By Natalie B. Hoffmann, CPA.CITP HKP President

Payroll processing companies have recognized the value in this technology and are offering cloud-based solutions to their clients for more convenient, secure and efficient payroll and human capital management services.

Businesses who are currently taking care of payroll processing in-house or are wondering if moving to the cloud is right for them have a lot to consider. While each business is unique, cloud-based solutions through an outsourced payroll service provider can offer benefits to nearly everyone.

One system

One of the biggest advantages to cloud-based payroll solutions is that everything from payroll, human resource and benefit administration, and time and attendance is consolidated into one system. Instead of updating employee information across multiple platforms, businesses can sign into one system and update all essential employee information with one entry. This saves significant time for staff in charge of workforce management and also reduces the risk of errors that can occur when repetitious data is entered across multiple systems. Businesses find this all-in-one approach to be one of the biggest benefits of cloud-based human capital management.


Cloud-based payroll solutions offer an economical and ecological solution to all of that HR paperwork that tends to build up in employers’ file cabinets. Through this technology, employers can go paperless, eliminating waste, freeing up storage space, and providing a more efficient solution to staff who are in charge of managing the business’s human capital. By going paperless, employers can eliminate the headaches that often come from incomplete or lost work because the system prompts employees to complete forms in their entirety and can send alerts when an employee form is missing or incomplete to the person in charge of workforce management.

Employee self-management

Through cloud-based technology, employers can offer their employees easier access to manage their own accounts and information, increasing employee engagement. Through self-management, employees can view their time card, PTO requests and availability, sign up during open enrollment, and more. By empowering employees to take charge of their accounts, employers also take some of the administrative burden off their HR staff because employees can update and view their information at any time, submit PTO requests for manager approval, and sign up for benefits all with one login. These solutions provide security protections and can be customized to protect sensitive or executive information.


For businesses experiencing or desiring growth, cloud-based payroll services provide scalable human capital management solutions. Because processes and data are stored in the cloud, the paper processes and costs that may have been too complex and hindered growth in the past, become easy to manage through this technology. Employers can customize, add on or upgrade their systems to handle their needs no matter what the size of the business. The technology can scale with them while keeping the employer’s history and records in the same system as the years pass and the company grows and changes.

Real-time data/accurate reporting

Because the cloud operates in real time, employers can see their data as it stands in the moment without having to compile weeks, months or years of information manually. Cloud-based payroll solutions help businesses stay on top of what’s going on with their human capital management so they can make informed decisions in areas like benefits and growth at the end of the quarter, the month or at annual budget time. With customized reports, employers can get all the information they need, when they need it, keeping them informed and in touch with their human capital management.

Always up-to-date

HR law is complicated and changing constantly. Payroll providers who offer cloud-based solutions can provide automatic reporting that updates with changing laws to let employers know their compliance status. When businesses grow or shrink, their liabilities can change. Outsourcing to a payroll provider who leverages the cloud can help employers get a grip on how legislative changes will affect them helping them make more informed decisions and giving them peace of mind. HR law can be overwhelming, but it doesn’t have to be with accurate, up-to-date information.

While it may make some business owners uneasy transferring all of their sensitive employee data to the cloud, these service providers are using the strongest data protection technologies available to ensure private information is protected. Businesses who make the decision to convert to cloud-based payroll services experience enhanced productivity, greater satisfaction in their employees, and greater peace of mind with less administrative burden.

Originally published on sooperarticles.com, July 24, 2017.

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