What are the benefits of using cloud payroll?
Running payroll can be messy, especially as your business grows. Luckily, a cloud payroll service can simplify the process of paying employees while helping keep your company compliant and secure.
Unlike software-based payroll, which is installed on the computer of the person who processes payroll, cloud-based payroll runs in the “cloud.” This simply means that payroll runs remotely through a server.
If you’ve been running payroll by hand or using a desktop-based service, switching to an online payroll provider can help streamline your company’s payroll process.
Here are the top benefits of using a cloud payroll system.
1. Helps keep you compliant
Staying on top of payroll and tax deadlines can be a big ordeal for even the most organized business owner. And the consequences can be huge. Miss a payroll deadline, and your employees don’t get paid. Miss a tax deadline, and you may wind up paying fines.
By using a cloud payroll service, you can avoid missing these types of crucial deadlines.
Cloud payroll functions like a direct software application, but it doesn’t rely on you or your employees installing updates. Instead, the cloud payroll provider makes the updates and ensures the latest tax changes are always integrated with payroll, which means you minimize your chances of making a payroll mistake.
Some online payroll systems also integrate directly with employee benefits, so you can manage payroll and benefits in one place. That means it’s easier for you to stay compliant on both fronts.
“The onboarding process is incredibly easy, and I know I don’t have to worry about constantly filing paperwork because Gusto has it all under control for me. It takes the usual payroll stress off my shoulders entirely.”
2. Grows with your business
Whether you have five employees or 50, cloud-based payroll grows with you. You’re not tied to the software you purchased when you hired your first employee.
As your company expands, online payroll software allows you to tap into more features and integrations. Many cloud-based payroll systems integrate with accounting, time tracking, expense management, and other types of business software.
3. Available when you need it
When you’re running payroll by hand or through a computer application, your flexibility to access payroll information is limited.
With cloud payroll, you can see your payroll information through any web browser, be it on your phone, tablet, or computer. As long as you have internet access, you can process payroll. Want to run payroll from the beach or a conference? With the cloud, you can.
Some payroll providers even offer automatic payroll, allowing you to run payroll without having to log in. This capability can save you valuable time each pay period.
Here's another bonus: Many cloud payroll systems support collaboration, letting multiple users access payroll at the same time. This way, you don’t need to set up complicated permissions or hand-offs — all of your payroll information is up-to-date and accessible, no matter how many employees are working on payroll.
4. More cost-effective
Cloud payroll systems can be significantly more cost-effective, often requiring just a monthly fee.
In comparison, desktop-based software can be more costly and can lead to a number of extra costs. For instance, you may need to maintain servers or hire more IT staff to update computers and deal with problems. With cloud programs, your payroll software company handles maintenance and tech support — not you.
5. Keeps your payroll data secure
Running payroll manually or through a local application opens your company up to vulnerabilities.
A fire, for instance, could wipe out years of payroll data. Missing a vital software update could leave your data exposed. With cloud-based payroll, your data is typically backed up and secure.
Online payroll providers are designed to store sensitive information, like salaries, bank account details, and Social Security numbers. Expect cloud payroll systems to offer security features like advanced encryption services and password protection to keep your company’s payroll data safe.
“Gusto is intuitive and easy to use. Not to mention, it is beautifully designed and has a persona that brings a smile to face with every notification.”
6. Helps with recordkeeping
Recordkeeping is essential for tax purposes, as well as if your business gets audited or if an employee brings you to court.
When your payroll data is maintained in the cloud, it’s immediately accessible in the cloud. Keeping all this information in the same spot helps you stay organized, which means no more digging through file cabinets or desktop folders to get the information you need.
7. Gives your employees access to their payroll information
Many cloud-based HR and payroll services allow your employees to log in and manage basic payroll-related functions, like updating their Form W-4 or benefits details.
Opening up access to this type of information saves you time and is more flexible for your employees. For example, if an employee requires a copy of their pay stub because they're applying for a loan, you won't need to find it for them.
Ultimately, a cloud-based payroll solution can be a huge help if you’re juggling payroll responsibilities. Not only will your employees get paid on time, but you’ll also have a better grasp of the tax and compliance changes that impact your business — so your employees can be paid accurately.