As wage and withholding calculations begin to get complex, cloud-based systems do the work to essentially eliminate the chance for errors. Many even offer a tax accuracy guarantee.
Similarly, expense management and reimbursements can often be integrated into payroll software to facilitate payments and simplify bookkeeping.
Moving payroll and HR to the cloud also means being better prepared for change. The software itself never needs to be updated or reloaded as features and functionality are added (like tracking expenses for COVID-related relief programs). And employee self-service makes it easy for workers to share, update, or retrieve information.
For example, companies that have to handle furloughs or recall workers can communicate with their team through a cloud-based system. If business owners find that they need to help workers file for unemployment, having W-2s and paystubs accessible in the cloud makes the process easier for everyone.
Cloud-based solutions also give businesses a way to scale repetitive manual payroll procedures like adding new employees and pathways to distribute the workload among team members. It goes anywhere the “office” is, even when a business operates completely remotely.
Most payroll software options allow businesses and their accountants to sync up with their accounting software to streamline bookkeeping. It also enables deeper analysis of employment-related expenses leading to smarter decisions about the bigger financial picture.
Many businesses have seen the benefits of switching to cloud-based payroll services in the last five years. Now, changes to how we work during COVID-19 have clarified the need for more adaptable solutions that can be managed from anywhere, allow virtual collaboration, and simplify payroll accounting and HR. As things continue to shift, businesses will find themselves looking more and more to the cloud.
