5 Payroll Technology Trends

5 payroll technology trends

Business processes are incorporating new technologies at every turn. Payroll is no different.

Payroll technology is changing the way companies do their own payroll and the way consultants do payroll for them. Here are five trends in payroll technology.

1—Cloud-Based Payroll Technology

Everything is going to the cloud. No matter what business process you’re talking about, you’re likely to use the word cloud during the conversation.

As with other business technologies, cloud-based payroll software enables companies to simplify and improve their payroll functions.

Cloud-based payroll technology is automated, so it improves efficiency and accuracy. And it’s web-based, so you have access to your payroll information anywhere, anytime.

—Jewell Christensen, Avitus Group Payroll Manager

It’s also infrastructure-free. That means you don’t have to pay for a server farm, network hardware and everything else associated with an in-house system. You also don’t need to pay IT professionals to keep everything running smoothly.

2—Mobile Payroll Technology

Workforces in many industries are going mobile. Employees want to communicate with their company via mobile devices. Not just with their coworkers and managers, but also with their human resources and payroll departments.

Many companies are empowering employees to file expense reports via apps like Concur. They’re also providing access to employee payroll, hours, tax and other information via online portals. Employees just need internet access to find the information they need.

Additionally, freelance consultants and telecommuting employees are more common these days. Mobile access to payroll is essential for them.

3—Integrated Systems

Any discussion of payroll technology must include mention of integrated systems, which are a natural extension.

Integrated payroll and accounting systems are more common by the day. As are systems that integrate payroll, accounting and HR functions.


Compliance requires knowledge of regulations that vary from region to region. Payroll technology is simplifying compliance.

Local, state and federal labor and tax laws change all the time. Just keeping on top of the changes is a tall order for any payroll department.

The task becomes even more complicated when your company has employees in multiple states. And it’s not just a big-company issue.

Felicia Cheek, a program director at the Hackett Group, and co-author of a 2013 payroll study, says that while small- and medium-sized businesses don’t face the same level of pressure from globalization, they share similar challenges.

…But payroll administration has certainly been made easier and more efficient with the application of technology. Cloud computing, though not new, continues to be the most significant development.

B2B News Network

5—Data-Driven Strategy

When your payroll and HR professionals automate routine processes, they can turn their attentions to strategy. They can also use data to drive decisions.

Staying on top of compliance regulations, data entry and other administrative functions take time away from strategic parts of the job.

Not only do automated systems improve efficiency, they provide a wealth of information with which to make strategic decisions.

Opinions are essential, and as your employees become more mature at their jobs, they will definitely form them. Without the numbers to back them up however, those opinions are suppositions, not actionable data-based insights.

…Entrepreneurs must open their eyes to data’s boundless possibilities. When they actually delve into the data start analyzing, they realize that there are at least 20 different approaches they can take.

A lot of the time, young organizations spend a lot of time mining data, but end up with no useful insights. That’s because they don’t have a fixed end goal in mind prior to starting data collection and analysis.


Payroll Technology Trends

Technology is becoming more important in all parts of business, all the time. By automating business processes, companies can improve efficiency, accuracy and strategy.

It’s no surprise that payroll technology is moving to the forefront as well. For both the companies doing their own payroll and the consultants they hire to do payroll for them.


By Charlie Smith

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