Software as a Service is a software distribution model wherein applications are hosted by vendors or service providers and made accessible for customers over a network, usually the internet. It is a term used for software that is delivered and used totally online or in the cloud. Organizations all over the globe are increasingly utilizing SaaS services to streamline and automate business processes like accounting and customer relationship management. Human resource processes, specifically payroll processing, is not an exception to the trend. The capabilities and features offered by SaaS Payroll are at par with the traditional software models. In fact, they arrive bundled with additional data security and statutory compliance measures.
Be it large organizations or small start-ups, SaaS Payroll offers services that suit the requirements of all business sizes. Payroll management becomes simpler, streamlined and tax formalities are handled automatically. This significantly contributes in increasing the overall business productivity.
Simple and Quick Payroll Processing
The most beneficial SaaS Payroll feature is the processing of payroll with a few clicks. Extensive payroll knowledge is not required as the payroll calculation is fully automated and taken care of by the vendor. It only takes a couple of steps and your organization’s payroll is quickly processed:
- Login to your account that is hosted on your service provider’s secure website
- Feed in information and check if the payroll data entered is correct
- Authorize and process payroll
This greatly assists in reducing errors that might occur due to manual processing of payroll or due to transferring of payroll data to your accounting system.
Most SaaS Payroll models have world-class data security and encryption for sensitive personnel data. This includes layers of network and web firewalls, intrusion detection, and client verification to prevent unauthorized and illicit access. There is regular backup of data for protection against natural and human induced disasters. Also, cloud vendors ensure that there is periodic monitoring for viruses to ensure data privacy.
Automation of Payroll Processing
From configuring tax deductions to creating payroll reports, there is nothing that does not come under the vicinity of SaaS Payroll. What’s more? All processes are automated to save time and reduce manual labour. With any traditional payroll model, the same payroll processing would have taken at least a week. With the SaaS model, all it needs is few clicks. An added advantage with the SaaS model is that last minute changes and payroll review can be done before the payroll is actually processed. In the traditional model, payroll administrators cannot review payroll before cheques are cut and funds are deposited.
No Installation and Maintenance Fee
Since SaaS Payroll models are managed by cloud service providers and made available for customers at a subscription fee, you do not have to worry about installation or maintenance concerns. There’s never a need to buy expensive hardware and no significant IT burden. Instead of a huge upfront principal expenditure, there is a monthly subscription fee and there are no surprises at the end of the month.