Whether you’re a small or large business, you know that payroll processing is the most important operation that you cannot mess up. Why? Because the moment your employees are paid inaccurately, or if payment is delayed, there will be problems. This is their livelihood at stake, so it’s up to you to make sure that payroll goes off without a hitch. Fortunately, a cloud-based payroll system can help your company process payroll efficiently and accurately.

This technology, integrated with enterprise relationship planning (ERP) and/or human resource information system (HRIS) modules can help improve payroll administration for your business substantially by combining the data into one, secure location.

With an automated payroll processing system, businesses can avoid some of these common payroll challenges:

  • Missing payroll deadlines
  • Miscalculating payroll amounts
  • Paying fees and penalties due to incorrect tax filing amounts
  • Integration challenges from payroll to general ledger

How to choose the right cloud-based payroll processing system

cloud based payroll

When it comes to choosing the right payroll processing system for your business, there are a lot of factors to consider. For example, when considering a new system, you might examine what other technology you will want to integrate it with, such as a current ERP and/or HCM modules, or any other 3rd party application you will need to include as well.

What to consider when shopping for a cloud-based payroll processing system

Here are some things to consider when shopping around for a payroll processing system:

What features does it have? 

  • Can our payroll system process wage rates, shift differentials, holiday pay, overtime, taxes and social security?
  • Can it issue W-2s and 1099 forms automatically to the right parties?
  • Can it calculate local, state and federal taxes automatically?
  • What reporting functionality can it handle?
  • Is it scalable as we grow?
  • Can it integrate successfully with our other modules as well as any other 3rd party applications?
  • Does it have self-service functionality (employee portal) to allow transparency on paystubs, year-end tax forms and in some cases, PTO balances.
  • What security functionality does it hold?
  • Is it mobile friendly?

Is it easy to use?

Does the payroll processing product feature a modern user interface (UI), combined with a seamless user experience (UX) that allows you to add employees and operate payroll within the system in mere minutes, compared to hours?

cloud based payroll

What’s the overall reputation of the payroll provider?

It’s important to know who you’re partnering with when it comes to payroll processing. Your next partner should have an established track record working with like-industry partners such as yourself.

  • How many lives can their system hold?
  • What security features do they have?
  • What promises they can make to you in the inevitable event they make a mistake with your payroll processing?
  • Is the system scalable to meet your needs as your evolving company’s requirements change?

How much does a cloud-based payroll system cost?

Obviously, spend the money on what you can afford. Next, figure out how you’re going to be paying the provider. Will it be a month-by-month contract or a year-long commitment at a time? Depending on how often you pay your employees, whether that be monthly or bi-monthly, it can possibly determine how costly the implications could be.

Read: Why Aren’t You Outsourcing Your Payroll Yet?


What are the integration capabilities?

Can this cloud-based payroll processing system integrate with my current HCM/ERP modules like time and attendance, performance, finance and accounting for example? What other 3rd party vendors can it connect with that I have an interest in doing so in the future?

What type of support does the vendor offer?

This varies by vendor, but it’s on you to determine what type of support you will need in operating a new payroll processing system. There are vendors out there that have their strengths and weaknesses regarding the type of support they can provide. It’s up to you to decide what you will be able to and not be able to handle.

Does my provider offer any other additional services?

Not all, but some payroll providers offer other modules such as benefits management, ACA compliance and time and attendance in addition to modules that fall under the HCM and/or ERP umbrella to help you streamline your data even further.

Arcoro’s Integrated Payroll and HR solutions

The cloud-based Arcoro payroll processing and HCM platform can integrate with over 300 partners. Data is shared between payroll, HR and ERP modules to seamlessly send information to carriers, benefit administrators, general ledger, payroll bureaus and other numerous 3rd party services. The Payroll Processing modules features:

  • Time import capabilities
  • Payroll and batch-level controls
  • Reporting tools
  • Controls over check overrides
    • View tax frequencies
    • Block earnings/deduction costs
    • Block deposits
  • Generate paystubs, W2s and other forms
  • Review real-time paychecks for employees prior to processing
  • Review pre-processed reporting to ensure accuracy before submitting to payroll
  • Payroll register and custom reports can be accessed
  • Automatically create employee and employer payroll transactions on benefit calculations

Designed with security top-of-mind

With Arcoro, your security is always put first. The platform and its modules are protected by:

  • Company and employee audit and activity logging tools
  • Administrative discretion to limit access to specific module and tools by user
  • 2-factor security authentication
  • Intrusion detection system (IDS) and Intrusion Prevention System (IPS) security
  • Offsite backups for disaster recovery
  • Annual testing which includes:
    • SOC-1
    • Penetration testing
    • Risk assessments
  • SSL certificates utilizing AE256-bit encryption

The platform is securely located offsite at a protected data center to ensure that the technology is secure and reliable. Contact us today to see the scalable payroll processing and HCM platform and its supporting modules in action.

Related reading:

6 Strategies for Secure Payroll and Fraud Prevention

Benefits of Combining Payroll and HRIS to Create a True HCM

[Infographic] – Why Aren’t You Outsourcing Your Payroll Yet?