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Payroll Technology Transforming Payroll

payroll technology is transforming payroll

Technology is changing nearly every aspect of business. It’s no different for payroll technology.

Automation improves efficiency and accuracy. That’s a very good thing when it comes to payroll, which is an inherently scary proposition.

Why Payroll Technology

Payroll won’t make your company, but it could break it. Mistakes in payroll can alienate employees, fudge company’s books and get you into trouble with the Internal Revenue Service.

Payroll is the most complex element of any accounting system. It’s also the scariest. Not only do you have to produce checks and direct deposits that are 100 percent accurate, but you have to make certain that the underlying calculations—taxes and benefits and other withholding—are also correct to the penny.

And you must submit taxes and filings to the IRS and other taxing agencies on time or risk fines and other penalties. Cloud-based payroll applications can help ensure that all of these obligations are met with precision and timeliness.


That’s why so many companies are turning to payroll technology. It’s akin to tax software. Payroll software takes away a lot of the potential for human error, to ensure your payroll is done correctly.

It’s also one reason why companies are turning to full-service consultants to handle their payroll for them. The vast majority of these consultants use technology to handle the number crunching of payroll duties.

One of the biggest benefits of using cloud-based technology for payroll is for your employees.

With a cloud-based system, you can provide your employees with access to their payroll information. They can simply log on through the portal and see pay stubs and also tax forms including their W2 or whatever forms you wish to make available.

Why Cloud-Based Payroll Software

More and more, companies are turning to cloud-based solutions for their payroll functions. They’re doing so for a variety of reasons.

A rapid change in both accounting and bookkeeping practices is occurring because of the introduction of these cloud-based softwares and technologies. These programs allow small business owners to accurately enter and edit financial information on their own, and make better decisions in a much more efficient manner.

The new technology benefits business owners because of its accessibility, convenient storage of financials, and ability (if needed) to be discussed with accountants over the phone.


As with any cloud-based software, payroll software offers freedom from infrastructure.

Companies don’t have to make huge outlays of capital for servers, hard drives, networks and everything else. They also don’t have to make a continued outlay of capital to pay IT professionals to maintain the infrastructure.

Cloud-based payroll software also enables business owners to focus more on their core business, with better information.

Efficiency by itself is reason enough to switch to cloud-based payroll technology. No infrastructure means no hardware, software or resources to maintain the system. An employee portal means employees can help out with data entry as well. However, there are also strategic advantages to cloud-based systems.

One advantage comes from the IT department. Rather than spending time on infrastructure, your IT professionals can redirect efforts towards strategy. Another advantage comes from management. With real-time, accurate data, decision-makers can make more informed and better strategy choices.

—Jewell Christensen, Avitus Group Payroll Manager

Payroll Technology

Payroll technology can turn a somewhat scary exercise into a stress-free one. That’s why so many companies are turning to payroll software.

It’s the same everywhere in business. Factories are installing robots for their efficiency. Accountants are using tax software for its accuracy. And companies are using cloud-based payroll technology for efficiency, accuracy and strategic advantage.


By Charlie Smith

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