Moving Your Payroll to Cloud


Many companies, big and small, are increasingly migrating their payroll systems to the cloud largely because of the various benefits this brings about.  Moving payroll to the cloud is certainly an emerging payroll management trend that is gaining momentum in the corporate world. Listed below are some of these benefits.

Cut Costs

Among other things, cloud-based payroll systems enable company managers to cut costs by reducing redundant payroll data processing. By so doing, management can get more freedom to concentrate on core business and thus boost productivity.


More importantly, cloud-based payroll systems also offer more flexibility in terms of access than on-premises payrolls. This was amply demonstrated during the COVID-19 lockdowns when cloud users, who were able to work remotely, continued to have access to their payrolls, unlike users of on-premises payrolls. 


Unlike the on-site ones, cloud-based payroll systems facilitate improved and accurate payroll processes in a secure environment in addition to empowering payroll teams and improving employee experience regardless of where they work or where they are in the world. 

Easy Access

Another plus is that cloud-based payroll systems make it easy for employees to be given access to payroll documents such as payslips as and when they need them.

Before migrating to the cloud, however, it is important for payroll professionals and the company they work for to be clear about the objectives of the whole process. According to HR expert Doug Betts, transitioning to the cloud should be much more than mere technology migration; it should be technology optimisation. 

For a company to make the most of the migration to the cloud, planning is paramount. It is important to have clarity on issues such as the functionality you want to use, third-party interfaces and reporting requirements upfront. While it is important to have a project timeline, payroll professionals should not be rigid about it. There is a need for flexibility to accommodate eventualities that can necessitate the pushing forward of the date when the cloud-based payroll system can go live.

Another key piece of advice for anyone intending to migrate to the cloud is to factor in ample testing time before the payroll goes live. Crucially, for the migration to the cloud to be as seamless as possible,  the company’s IT department must be involved from the planning stage to the implementation phase as they will play an important role in both data migration and ensuring data security. As with anything in the cloud, you’ll be relying heavily on a good internet connection. If you have an unreliable internet connection, it is critical to boost your speed, change internet providers or acquire a backup internet service.


Another advantage that is increasingly persuading many companies to go the cloud route is scalability. As your business grows, your payroll management system grows with it. If you have seasonal fluctuations, you won’t have to worry about changing plans or updating your systems, it will simply make the necessary adjustments. You won’t worry over changes in regulations too because most systems will auto-update to ensure you have the latest and greatest data, so you are always compliant!

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