The first thing to consider is data security. Payroll contains highly sensitive information for business as well as employee's personal data. With the implementation of GDPR12 across Europe, organisations, even if not based in Europe, will most likely have to make sure that their solutions are GDPR compliant. For example: in Australia, the Privacy Act34, which matches closely GDPR will guide you through the requirements that your Payroll solution must meet.
As there are many cloud-based Payroll solutions available in the market, identifying the one which matches your business's size is key for a cost-optimised solution. For example, small businesses under 50 employees might find a solution that charges on a per employee basis to be more cost effective.
Having a cloud based payroll system that integrates to your actual HR systems is important to consider. For that to be possible, make sure the Payroll SaaS proposes API6 (Application Programming Interface) . The API will allow your team to interconnect your HR Software to the Payroll SaaS, allowing automated transactions and data flow updates. This section should be discussed with your IT teams or a systems expert so they can analyse the feasibility of integration and estimate all associated costs.
For regional or global organisations, having a cloud-based Payroll system supporting multi-currency7 is crucial. It will help you with tax management, understanding labour costs, and international pay slips.
If you already have a local Payroll system, migrating to the cloud will require moving or reinputting data on the new system. Having a Payroll SaaS that allows import of existing data will be a time-saver and cost-effective solution, especially for organisations with large numbers of employees. Dealing with a high volume of sensitive and critical data, having a cloud-based Payroll system with a backup and restoration system is highly recommended. Even though Payroll SaaS help automate and reduce errors, you might still encounter human errors while inputting or manipulating data. Doing regular backups - which can be automated in some systems - will help you deal with the errors mentioned above and maintain confidence and credibility in the payroll system.
Combining the above items, you should now be a step closer to finding a cloud-based Payroll solution fitting your business needs while taking into account several technical aspects for your HR digital transformation. Remember to check each and every employees data within the new SaaS solution before going live.
