Reasons to Shift your Payroll Operations to Cloud Payroll Software

What is Payroll?

Payroll is nothing but a list of employees who get paid by the company. It refers to the total salary a company’s employer pays to its employees based on employee’s information like hours worked, time off, leaves taken, etc. It may also be referred to as a company or a department that processes paychecks and taxes. The payroll process is a very important function of an organization.

Payroll includes the following functions:

  1. Develops the organization pay policy like flexible benefits, leave encashment policies, etc,
  2. Payslip components are defined. This includes the basic pay, variable pay, HRA (House Rent Allowance), and, LTA (Leave Travel Allowance).
  3. Other payroll inputs are gathered. For Instance, when the employees of an organization consume a meal from a food vendor of the organization, he may supply the information of the expense that has to be recovered from the employee for the same.
  4. Releasing the employee’s salary.
  5. Dues like TDS, PF are deposited with the appropriate authorities and the returns are filed.

Therefore, payroll processes make sure that the employees get what is due to them.

What is Cloud Payroll?

Human Resources is one of the most important departments of any organization and for this department, payroll is an important function. Today, many companies are adapting to cloud-based payroll software for their HR departments.

Cloud-based payroll software has an in-built function of being able to store programs and data on a remote system that can be accessed by any computer with a good internet connection. Cloud-Payroll provides various benefits to your company. There are several disadvantages of an In-house payroll system that can be one of the reasons to shift your payroll operations to a cloud payroll system.

Disadvantages of an In-house Payroll Department

Administrative burden

The In-house payroll processes are manually done. This method is highly inefficient due to the possibility of human error. There is great paperwork involved in this method which causes a huge burden to the staff.

Organizational issues

In the organization, there is always a problem of maintaining payroll, employee records, and other important information in an efficient and easily accessible manner.

Tracking employee absence

It is not possible to keep an eye on the employees’ whereabouts every time. Paper time cards can easily be misused and thus it creates an error that may lead to an inaccurate payroll result.

Compliance issues

India’s tax law is a complicated one. To understand the Indian tax law completely is nearly impossible. Anything missing can turn out to be expensive to bear. 

Why Should you Switch to a Cloud Payroll Software?

The HR department can stay focused on increasing productivity and engagement with the employee while the Cloud Payroll Software can take care of everything else related to payroll. Many companies all over the world are making a change and adapting to the cloud payroll software for their HR department and payroll needs. Reasons for doing this are various, which ranges from cost-effectiveness to reductions in the various other costs incurred while having an in-house payroll operation. Some of the basic reasons to shift your payroll operations to Cloud Payroll Software are discussed below:

Employee management

Cloud payroll software can manage employee events like onboarding, performance reviews, changes in the pay rate, leave or employee absence, certifications, and many more in a centralized format. You can also track the various assets you have given to the employees like the electronic equipment, documents, and others.

Employee self-service

Staff can be empowered with 24/7 access to benefits like leave requests, payslips, training enrollment, etc. Employees can access their payroll anytime with ease and can raise queries for the same. This way, calls, and emails made to HR staff are reduced.

Manager self-service

Manager self-service is a human resource management platform that gives supervisors and managers immediate access to employee information and executes other employee-related actions. Using mobile devices, managers can approve various requests like time off, reviews, time card approval, view the information of employees, etc at any time.


Cloud payroll software can be obtained with very less investment and with high returns. There is no physical setup or hardware required for installing cloud payroll software which makes us save a lot from both initial and recurring expenses.

Superior customization

If a company want their payroll systems to have a local language with the required needs built, the cloud-payroll software can offer a way through which they can do it in a cost-effective, accurate, and quick manner.

Superior Security

Cloud-payroll software comes with built-in security features that eliminate the risk of storing the payroll data on the premises of the organization.


In conclusion, the above mentioned are just a few of the benefits of what the payroll provides. Cloud payroll software is more secure, providing you a better experience, storing all your important information safely, making your payroll easy, and is easy to use. Therefore, these can be one of the reasons to shift your payroll operations to cloud payroll software as it is an hour of need.

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