The Advantages of Using Online Payroll Services

Online payroll services offer many advantages over local software packages that do not have access to the Internet and cloud-based systems. Businesses using cloud-based payroll systems do not need to worry about hardware and software upgrades. It is important to understand the benefits of using payroll services that are delivered across the cloud.

Access Payroll from Any Location

One of the main advantages is that payroll services online can be accessed from any location. The software and the data are both stored online in a remote location. Some online payroll solutions allow businesses to access data and applications through mobile devices. This allows for more flexibility since payroll is not tied to a specific set of computers or any geographic location. Businesses can move or run payroll from anywhere that is convenient.


Using payroll software through the cloud will mean increased speed. Entering and checking payroll data will become very simple. Many services online actually have convenient clients that can automatically perform calculations, fill in fields or take other steps to speed up the process. Running payroll through one of these services is also usually quicker than using outdated in-house or manual systems. Faster payroll processing means that more time can be spent on other tasks.

Seamless Upgrades and Modifications

Upgrading or modifying software that is stored on a local computer or network can be a large hassle. It can take time. Errors could be generated when the system starts again. Payroll computers might be unusable until the upgrades are complete. With online payroll software cloud systems can be updated seamlessly in the background. A free payroll service might do this automatically to keep tax laws and security measures up to date. Additionally, new services or payroll modules can be added without disrupting the system.

Lower Costs

The reality is that online payroll services can lower operating costs. This is especially true when the service can handle multiple areas of payroll like compliance, issuing payments and tracking hours. There is no need to buy expensive hardware and software with online services. It could be possible to reduce the number of employees dedicated to that one task with online payroll since so much can be automated.

Security and Protection

A final advantage of cloud-based payroll software is security. Payroll information is stored in a secure data center. Data packets are encrypted. This extends to physical security as well. Payroll software in the cloud is protected against anything that happens in the main office. This means the payroll information is safe even if a natural disaster damages or destroys the in-house systems at the business.

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