For many organisations, payroll is still a frustratingly drawn out administrative activity, prone to error and delay. There’s no easy way to ensure key employee information is up to date, and too many payroll systems are stuck in the dark ages, offering only limited functionality and requiring difficult updates.
With important deadlines to meet, and data accuracy and software maintenance challenges, it’s not unusual to find organisations dedicating entire teams to payroll processing – or outsourcing it entirely. HR and payroll professionals are concerningly spending a lot of money, time and resources on aspects of payroll processing that – while extremely important – should be much more straightforward.
It’s a challenge that modern online payroll systems are designed to solve.
Here are six reasons you should be using modern Cloud payroll software.
1. Timely, accurate data – with a lot less effort
The chief benefit of modern Cloud payroll solutions is that they are designed from the start to be part of a bigger picture. Even if they aren’t a key component in an integrated HR suite, they’ll have APIs or other tools in place to make data flows simple and automatic.
Start dates, salaries, sick leave, and much more can all be fed directly from your core HR system into payroll, avoiding double data entry and potential conflicts in information. Changes to employment status – for example, retirement or being furloughed – flow through just as smoothly. And, thanks to the Cloud’s accessibility, HR can share some of the burden of data administration. For example, to allow employees to update their own bank details or register a change of address or marital status through a secure login to their core HR system.
These systems are also designed to connect with the HMRC, automatically pulling through coding notices, speeding up NINO verifications and generating the reports and documents you need.
2. Automatic software updates – so you never get left behind
Payroll software often isn’t easy to update or maintain. Applying patches, testing them against your existing configurations and ironing out the inevitable glitches takes up days of precious time, usually when you can afford it least.
However, modern Cloud-first solutions take a different approach. These solutions – often described as multi-tenanted – are purposely designed so that the vendor can manage all the updates for you, seamlessly. In this way, multi-tenanted systems reduce IT overheads, and are far more reliable and convenient. New features can be added faster too. For example, Cezanne HR’s payroll solution already has the reports needed to reclaim salary, National Insurance, and pension contributions for furloughed employees.
3. A service employees value – and that saves you time
Cloud payroll enables a better experience for your employees, providing them with secure online access to digital payslips and P60s – and an easy, secure way to let you know if relevant information – such as their bank details – have changed. They’ll always know where to go to check their personal information or find current or past payslips. Just imagine how much time that saves them – and you!
4. More robust security – an essential consideration for GDPR
The best multi-tenanted Cloud HR and payroll software systems are designed around an exceptionally robust multi-tiered product architecture with security built in, and tested over and over again. They’re a much safer way for payroll professionals to secure data than sharing spreadsheets via email, or using internal systems with the potential for IT to be a single point of failure or breaches.
It is also much safer than outsourcing payroll to a third party, where you put the security and control of commercially sensitive data, including salaries, benefits and work statuses, completely in their hands.
5. Reduced risk of penalties – or reputation damage
When payroll fails, the repercussions for businesses can be serious. Alongside the risk of fines from HMRC, there are major reputational risks when things go awry (internally and externally).
Cloud HR systems have two significant benefits. Firstly, accurate data is easier to access, so you aren’t left scrambling to fill gaps or validate information at the last minute. Secondly, as multi-tenanted suppliers are responsible for keeping everything up to date for all of their customers, they have a vested interest in getting it right, every time! The supplier’s commitment to updates means you’re a lot less likely to get stuck with a system that’s missing key features, or having to use your own IT team to fix software bugs.
Multi-tenanted cloud payroll is very cost-effective for a number of reasons:
- Digital payslips avoid the expense of paper-based payroll processing.
- An efficient reporting function delivers insights in less time, pulling reports at the touch of a button.
- An improved experience for employees means fewer enquiries for payroll managers to tackle.
- Updates are provided as part of the service, and should be free and automatic.
- Less staffing overheads from internal payroll or IT teams managing system updates.
Multi-tenanted Cloud payroll software has completely modernised the world of payroll. To learn how Cezanne HR’s integrated, comprehensive HR and payroll system could help you transform your payroll processes book your no-obligation online demo today.