Many companies like yours have been debating this for a while now – whether or not to move to a cloud payroll system. There are pros and cons for both sides of the argument, but every organization has a different set of needs. Your payroll team should know what’s best for your organization. Do you needs lots of bells and whistles, or is the standard, out of the box payroll processing enough?
If you’ve already decided that a cloud payroll solution is right for you, do you know what to expect when you implement that new system?
Below we’ll outline the good and the bad of cloud payroll, and how to prepare for a cloud-based payroll implementation.
Pros of Cloud Payroll
Using a cloud-based payroll system has a variety of benefits. Here’s a summary of our top arguments FOR migrating to the cloud.
With your software being off-site and not based on your servers, you don’t have to dedicate IT resources to it. This cost-effective strategy also saves you money on things like installation costs, updates, support, etc.
Managing payroll is easier as well because it’s accessible at any time. You can decide who has access and spread out responsibilities as needed. With live access to the data, multiple people can collaborate.
You’ll have a lot more security with a cloud-based system. The server backup system helps to ensure you don’t lose any data that you need, and cloud-based providers invest heavily in system security. You can count on your data being encrypted and regularly backed up.
On-premise payroll systems are slowly moving out, as cloud payroll is becoming the new standard. So if you’re company is determined to stay on-premise for payroll, your options may be limited. After all the time and money you put into implementing a new payroll system, you don’t want to find out a year or two later that it’s not longer going to be supported. Keeping up or even ahead of the latest technology will keep your company and payroll on track.
We often hear about security concerns with the cloud. However, sometimes security can be mistaken for control. Often a business may think that if they store their data on their own server in a space they can control, that it will be more secure. A company needs to dedicate sufficient money and resources to protect those servers, but that doesn’t often happen, leaving those servers more vulnerable to attacks than cloud data. With a cloud payroll service, you get the top-of-the-line security that a small-medium business wouldn’t otherwise be able to afford. Security updates can also be pushed to your cloud payroll faster and more often, whereas on-premise solutions may only release these updates 1-2 times a year. The fact is, any company connected to the internet can be at risk of cyber attack, so it’s up to you to ask the right security protection questions when vetting your cloud payroll options.
Finally, you’ll also get the benefits of scalability. As your business grows, your payroll system will grow with it. If you have seasonal fluctuations, you won’t have to worry about changing plans or updating your systems — it will simply adjust with you. Changes in legislation? Most systems will auto-update to ensure you have the latest and greatest data, so you are always compliant!
Cons of Cloud Payroll
It’s only fair that we also point out a few of the flaws that you could run into with a cloud payroll system, nothing is perfect right?
As with anything in the cloud, you’ll be relying heavily on a good internet connection. If you have a unreliable internet connection, you’ll have to consider boosting your speed or changing providers. Also, with any kind of internet or power outage, you lose access to your payroll system. One way to combat this issue would be to consider a cloud payroll system that also provides an app that allows your employees to access their information and benefits. Mobile apps are accessible with or without wi-fi, even when the power goes out.
Another strength on-premise systems have on the cloud is control over the data. Companies own the physical location and servers that the software is stored in. Your IT personnel can physically walk to the actual servers that data is stored within. However, remember data risks exist just as much for an on-premise solution as cloud if sufficient security protocols are not put into place. Also, cloud payroll doesn’t typically support API integration, so modifications can be limited. However, this also means that cloud payroll companies listen heavily to the feedback and requests of their customers, and often will add functionality based on those consumer needs.
Weighing the Options
It’s becoming more and more clear that moving to the cloud is certainly an emerging trend that continues to grow in 2020. We couldn’t even list of the advantages that a cloud payroll system that provide there’s so many. But some of the downsides are certainly worth considering as well. Payroll is key part of your business, and you want to make sure you have the right systems in place to keep it running efficiently. Be sure to ask plenty of questions and thoroughly vet your options. This is not a decision to rush. And remember that no matter which choice you make, the implementation of a new system doesn’t happen overnight. There will be some work on your end as well to make sure the transition is smooth. Read on to see how to prepare.
Implementing a New Cloud Payroll System
If you’re ready to streamline your payroll system while also improving overall security, sounds like you are ready to implement a cloud-based payroll system.
You might feel like making such a big change is overwhelming, but it doesn’t have to be. Having a payroll system based in the cloud can be just as easy — if not easier — to use than your current payroll software.
How do you implement a change like this? Here is what you need to know.
Make Sure You Have the Features You Need
If you’re going to choose the right payroll system, it’s vital to have all the features you need. Is the software you’re looking for payroll only, or are there other elements you can use in your business as well?
Consider looking for additional features, such as employee self-service, HR onboarding, compliance reporting, timeclock, and even tax filing options.
When you have a full-service software, you’ll be saving time and money. There will be no need to cobble together several applications to get what you need. This will help you avoid conflicts in software, problems with usability, and multiple subscription fees.
Get Copies of All Reports and Pay Stubs for All Staff
As you transition to a new payroll provider, you’ll need copies of all your previous data. Have your current provider send you electronic copies of all reports and pay stubs for all your employees, including terminated staff or contractors.
Remember that you have to keep payroll records for three years, so be sure that you have that on file before you make the transition to your cloud-based payroll system.
You’ll also need to keep employee tax records for at least four years, so if that was part of your previous system, be sure you ask for that as well.
Install the New Cloud-Based Payroll System
Next, it’s time to put the new payroll system into commission. The right system will have an easy, seamless installation, like Payroll NOW by Integrity Data. It integrates easily into Microsoft Dynamics® 365 Business Central, a broader ERP system.
You can quickly and easily install the software from AppSource, and it will integrate with other components of the Microsoft Dynamics® 365 Business Central. You can access real-time data and instantly share or download data as needed.
Your IT personnel can help you make sure that everything is working smoothly, but with Payroll NOW, everything is easy to install and use.
Set up Your Employee Profiles
Employee information can easily be imported from your previous software into your cloud-based payroll system. Once you have them in place, your payroll will continue uninterrupted.
How do you add new employees? Simple! Just take advantage of the built-in Employee Setup Wizard, which will help you on-board new staff members quickly and easily.
Your new system will be a lot easier to use than your old one, as a cloud-based system features a clean and easy-to-use interface.
Once everyone is loaded into the system, you can activate Employee Self Service. If you’re using Payroll NOW, your employees will be able to view paystubs, submit time-off requests, and make benefit enrollment choices quickly and easily.