Hello, in this post we will discuss the difference between Desktop and Cloud payroll software. First, we will look into what payroll software is.
What is a payroll software?
Payroll Software organizes all the tasks of employee salary management, payment, and filing of taxes. It is a technology that aims to automate the payroll processes. Functions that payroll software includes are :
- Salary calculation
- Calculation of with-holdings or deductions
- Benefits and tax calculation
- Calculations based on attendance and leaves
- Keep track of working hours
- Paying employment taxes to the government
- Returns filing
What is a desktop payroll software?
Desktop payroll software is installed on your own computer. Usually, you purchase it as a disk or digital download from the software provider’s website. The software and the payroll data are stored locally on your computer. Internet connection is only needed when you need to update the software or for filing statutory returns. The desktop-based software also tends to have a one-time or per-license pricing.
What is a cloud payroll software?
Cloud Payroll software is not installed on your computer. It is stored in the cloud. You need to login to the application (software on the cloud) with a web browser and then you can start using it. The application and your data are stored remotely in a secure data centre and can be accessed from anywhere. Cloud-based software tends to have a monthly subscription as a payment.
Choosing a Payroll Software
- Analyze the size of your business.
- It depends on the number of employees in your organization.
- You have to decide on how much you are willing to spend on payroll processing.
- Desktop or cloud-based Payroll software?
- Check the features of the payroll software.
- You need to test the compatibility and flexibility of the software.
- You will have to look at the security of the software whether it is password protected or not.
Difference between Cloud and Desktop payroll software
|It is necessary to have constant internet access to work. All the data and calculations need to process payroll is located on a remote server.||It doesn’t necessarily have constant internet access to work. It is only needed when sending data to companies such as banks and tax institutions or when you have an update.|
|Data and other information can be accessed anywhere, anytime.||It is only accessible on one computer.|
|Data is kept securely in the cloud.||Data is kept securely on your local device.|
|It automatically updates.||It either gets automatically updated or will require you to check manually whenever the update is available.|
This ends our post on the Desktop and Cloud Payroll Software. If you have any queries or doubts kindly drop them in the comment section below.
Saral PayPack has both Desktop and Cloud versions of payroll software. Take a look.