Many companies today are moving to online payroll systems – but why? What’s the draw from traditional payroll systems to these newer online ones? We’ve broken down the top six reasons why you should consider an online payroll service for your organization.

  1. They’re more efficient.
    To put it simply, online payroll systems are a lot more efficient than traditional, manual systems. Think about all the things one has to go through to manually process payroll: reconcile time and attendance records, calculate the benefits and tax withholdings, get the paychecks printed and signed, file forms with the IRS and more. And it all has to be done every single pay period. Wouldn’t it be easier to have a digital system do all of that for you?

    Online payroll systems take the majority of this tedious, time-consuming work and automate it for you. All you have to do is review the information and hit submit.

  2. They limit errors.
    Manual processes are prone to human error, no matter how hard we try to avoid it. A decimal point in the wrong place can cause weeks of headaches for you and your employees. Human errors can cause your business to lose money and good employees and could lead to serious compliance issues.

    With an online payroll system, most (if not all) of those errors are eliminated. Streamlining your payroll process and automating things like withholdings will save you from accidentally making errors that could cost you.

  3. They’re more secure.
    With manual, paper payroll, there’s always a chance your employees’ personal information could get into the wrong hands. And with the constant stream of data breaches, it seems like it could happen with online payroll systems, too. But most quality payroll service providers have ramped up their security systems to help prevent those kinds of issues.

    Most online payroll systems these days offer state-of-the-art encryption to protect vital information, multiple backup options to increase reliability and multiple server locations to provide even more security.

  4. Your employees will love it.
    Since many online payroll systems have invested in high-quality apps, your employees can easily access their personnel information and update it as needed. If an employee gets a new phone number or moves to a new home, they can easily update their contact information within the app or by logging in on their computers, which will give them more autonomy over their info while giving HR more time to work on strategic initiatives.

    This also helps employees fact-check their information and avoid issues that might cause payroll to be incorrect. And when your employees are paid the right amount on the right day to the right account, they’re much happier.

  5. They’ll help you stay compliant.
    Online payroll systems are constantly updated with the latest compliance requirements by country, state and city. You can even set up alerts so you are informed when there are new compliance requirements to be aware of. Since many companies end up paying the IRS in penalties due to compliance issues every year, an online payroll system can help you save money, too.

    Automating these compliance requirements will help you stay on the right side of the IRS as well as save you money, time and frustration.

  6. They give you easy access to your payroll information.
    The days of filing cabinets filled with personnel records and old payroll information are gone. Now you can easily access any payroll information with the click of a button. No more searching through boxes of old forms and papers, trying to decipher illegible handwriting to get the information you need. Everything is streamlined and stored in digital filing cabinets you can search with ease.


Now, not every online payroll system is created equally, so make sure you talk with a payroll expert to determine which one is right for you. But it might finally be time to upgrade your manual process for a digital one.