Cloud Payroll Myths Busted

The transition from in-house software to cloud is imminent everywhere. According to the HR Software BuyerView report from the website Software Advice, 77% of buyers request cloud-based HR software. But the same report also states that only 24% use a cloud-based payroll solution, while 53% use an on premise one. This clearly indicates the anxiety that business owners face while transitioning to the cloud. This hesitation is understandable, but perhaps buyers can be reassured with more information. Let us alleviate your anxieties around cloud payroll by busting a few cloud payroll myths:

#1.“My payroll data is not secure on the cloud”

57% of the organizations in India still use paper, spread-sheet based or in-house developed payroll systems. This increases the risk of a data breach or a software crash, and that could mean loss of sensitive payroll data. Even with several backups, it could take days for your business to get up and running again.

Security is crucial for suppliers of cloud-based payroll software. A trusted cloud payroll provider will ensure that all your payroll data is stored in a secure data center underpinned by world-class technology. Storing your data in such a center ensures that it is protected by the best in data protection features and security accreditation.

For example, at ADP, payroll data is stored on an in-house, state-of-the-art data center with facilities for automatic back-up and disaster recovery. With business continuity and capacity planning in place, your payroll data is well taken care of. Security accreditations such as ISAE 3402 Type II and ISO 27001:2013 ensure that industry standards for data security are adhered to.

#2.“I will lose control and access to my data in the cloud”

This is one of the biggest concerns that most organizations have while transitioning to the cloud. For business owners handling payroll in-house, moving their data to the cloud might instill a fear that they are handing over control to an outsider. This concern is understandable, but completely misguided. With cloud payroll, you still have the freedom of accessing your data at any point of time. It also ensures that you have access to the most current software version without having to upgrade any software yourself.

A trusted provider with extremely high security standards would not only ensure that you enjoy the same level of access to data but would also alleviate your IT team of responsibilities of installing, updating or maintaining in-house payroll software.

#3. “Payroll compliance is affected when my data is on the cloud”

Payroll compliance is a touchy topic amongst business owners, what with organizations across APAC paying an average penalty cost of USD 1.24 million for non-compliance. With such severe financial penalties, it is not a surprise that most organizations are so concerned with payroll compliance. Most business owners think that running payroll on the cloud would mean outsourcing additional work to third party vendors post processing payroll. This would raise concerns regarding compliance.

When your payroll is on the cloud, the software provider can make automatic updates based on changes to tax rates, thus making sure that your payroll calculations are always accurate. This ensures that none of your payroll transactions are affected and payroll is processed just like before.

#4. “I will not have the necessary payroll help and support”

It is essential to have the right support on hand while processing payroll especially when you do not have the expertise of running payroll on your own. Most business owners feel that by moving to the cloud, they could lose out on the knowledge that an accountant or a book-keeper could bring to their business.

But contrary to popular belief, most cloud solutions these days incorporate almost every detail pertaining to payroll. Leading providers are constantly updating their software to incorporate new features as well as to ensure compliance. Most providers also provide support through web help-desks where customers can seek real-time assistance to ensure optimal business continuity with regards to payroll.

With your payroll fears addressed, it is safe to say that cloud payroll is a no-brainer for small business owners and entrepreneurs. It bestows big advantages such as lower maintenance costs, easy access to data and added levels of security. Start your cloud payroll journey today by investing in a trusted payroll software. The ADP Vista HCM is one such cloud payroll software that can provide you with the scalability, security and spread your business requires. Sign up for a free demo and determine if cloud software is the right solution for you.