Every business owner knows that having efficient processes and systems in place is key to their success. This is true for businesses of all sizes, and especially for small businesses that often get slowed down by repetitive and manual tasks.

Businesses can take advantage of technology and tools to increase productivity and help keep things running smoothly. One such technology they can implement is cloud payroll software.

Most businesses aren’t equipped with accountants and rely on their HR department for all tasks related to payroll, including their employees’ salaries, bonuses, allowances, benefits, and deductions. With these important operations at stake, cloud payroll software is essential.

So how can HR benefit from using cloud payroll software? Keep reading to learn more.


Centralized employee data

With cloud payroll software, all employee records are stored securely in the cloud and can be accessed anywhere, anytime. This is especially useful given that with COVID-19 most employees are working remotely and can access this information from home.

Under traditional payroll schemes, various expenses might be filed separately. Trying to pull together expenses from different places might mean searching through thousands of documents manually. With data stored in a centralized location, consolidated payroll expenses become accessible in a matter of seconds.


Reduced workload and increased productivity

Tasks such as clarifying employee questions, maintaining employee records, collecting proofs and validating submitted proofs take up a lot of HR’s time. Cloud-based payroll solutions with employee self-service portals reduce this workload by delegating routine tasks to employees.

Employees can submit information themselves (e.g. time off requests, timesheets, expenses), and if something is missing, HR can request supporting documents in real-time instead of relying on tedious back-and-forth emails. Similarly, the system maintains logs of all changes, reducing the amount of paperwork for employees to sign and employers to file.


Increased employee peace of mind

Using cloud payroll software not only benefits HR but also improves employees’ peace of mind. Employees expect to be paid accurately, on time, every time, and failure to do so could have serious ramifications. According to research conducted in the UK, 35% of employees would look for a new job if their employer incorrectly paid them just once. This allows no room for error.

The best way to reduce human errors and avoid making payroll mistakes is by investing in a comprehensive payroll solution that comprises everything from pay and bonuses to tax and pension contributions. By using all aspects of a cloud payroll system, businesses can ensure employees are satisfied.


Understand payroll compliance and legislation

HR has a lot on their plate, from managing their employees’ life cycle events (e.g. onboarding, salary revisions, benefits) to paying their staff correctly, but the biggest challenge they face is tackling compliance. Mistakes related to payroll non-compliance can lead to legal and financial risks, including penalties and lawsuits.

Staying up-to-date with payroll legislation and current laws, such as the National Living Wage, can be taxing. Cloud payroll software companies recognize this and update their payroll systems frequently. Therefore, any business using cloud payroll software can be confident of being in full compliance.



Cloud-based solutions are becoming the norm as more businesses adopt newer technology to improve their processes and productivity.

Cloud-based payroll solutions offer numerous benefits: they improve access to employee data from one centralized location, reduce workload, increase employee satisfaction and ensure payroll compliance and legislation.

All of this impacts not just a department but the business as a whole. Businesses should adopt this technology to save time, save money and retain employees.


By Lisa Baker, Senior Editor

Senior Editor Lisa Baker is the owner of Need to See it Publishing Group, providing contract news for business and news sites across the UK. Lisa is an experienced HR writer and commentator, editing HR publications for more than 5 years.