What is Online Payroll?
Online payroll software allows businesses to access and process their payroll on the Internet. All of the payroll information is stored in the cloud, which means it is obtained from anywhere across a range of different devices such as computers, smartphones and tablets.
Differences Between Online and Offline Payroll Software
The primary difference between online payroll and offline payroll is that you can access information through any device, rather than being confined to a dedicated payroll machine. This means that administration can process payroll from anywhere, rather than being in the office. Another significant difference between the two types of payroll software is that online payroll software may give employees access to their information. Rather than asking administration to make changes to their banking information or to provide them with a W-2 form, employees can log in and make changes to their profiles themselves, as well as print off whatever forms they need.
Problems Solved by Online Payroll
Allowing employees to update their information takes pressure off administration. Instead of having one person responsible for maintaining everyone's record, everyone is accountable for their information. Most online payroll systems give businesses the option to pay with a check, direct deposit, or pay card.
Usually, tedious tasks such as tax payments and form filing can be automated, saving employees both money and time. Rather than filing everything by hand, online payroll software lets companies generate reports to keep records. Data can also be exported to the business's preference in tax software. As calculations are automated, problems caused by employee error are minimized.
Users of Online Payroll
Small and medium-sized businesses use online payroll software to save time by automating the payroll process. The software streamlines the entire payroll process so companies can focus on factors that affect their bottom-line. Larger companies may use online payroll software as it allows employees to view their financial information at any given time, offering a level of transparency that isn't found in offline payroll software.
Which is Best?
Both online and offline payroll software have their advantages. Every business needs to look at the pros and cons, then decide which type of system they'd like to use. Most online payroll programs offer a trial period (30 days is common), so companies can try the software before investing.