Benefits of Using SaaS for Payroll

July 14 2016 - As payroll is one of the largest costs to employers, it is essential to have systems that provide accurate information and payments in line with current legislation.

Your payroll and HR teams need to be on top of the accounting and IR side of payroll, your payroll software needs to be compliant, accurate and easy to use, as well as provide valuable reporting for multiple stakeholders across the organisation.

A further benefit to look for in software is having an all in one system that includes a Workforce Management module as this results in a seamless flow of information eliminating errors between systems.

Here’s a quick guide to get you acquainted with all you need to know about payroll Software as a Service (Saas), and help you to become familiar with the terms used.

What is Software as a Service (SaaS)?

Essentially, software as a service is a tool that makes it much easier for employees to work more efficiently. After engaging a Vendor, and all requirements are discussed, the software can be set up in a relatively short period of time. The process is quick and easy, compared with on-premise applications that take weeks or even months to configure and install. The software can be accessed from any device as long as it is connected to a web browser and an Internet connection. SaaS applications are often called cloud-based software, hosted software, or on-demand software.

What is the origin of the SaaS?

Over a decade ago, not everyone welcomed the idea of using what was then a new form of centralised computing called application service provider (ASP). Eventually, the internet gained popularity and accessibility, which paved the way to the rise of Broadband connections and the introduction of SaaS, which is an extension of the ASP model.

Who uses SaaS?

Now that it is more widely accepted, various teams in the fields of human resource management (HRM), accounting and customer relationship management (CRM) are using SaaS. Other teams also use it as their collaboration software and it is expected that more parties will adopt this new tool.

What are the benefits of using Software as a Service?

There are many benefits of using SaaS applications. Here’s a list of reasons why you should consider getting SaaS for your company:

  • Easily accessible

    As mentioned, SaaS is cloud-based software that you can easily access through devices connected to the internet. Now you can check real-time data anywhere you are.

  • Lower costs

    With SaaS, you only need to pay for what you need. There are no large up front capital costs like Software and Licensing as it is Pay As You Go. Usually your existing hardware is sufficient – the faster your internet connection the better.

  • Painless Upgrades

    The provider of your SaaS model is responsible for hosting the application and for the maintenance of your software, this includes back-ups. Note too, that there are generally no costs for upgrades.

  • Uncompromised Security

    Some people believe that using SaaS compromises data security. In reality, your company’s data is far more securely stored in SaaS applications compared to on-site software environments.

    Ensure that data is hosted in a location that you are happy with bearing in mind that some countries do not have our privacy laws. A high level of encryption for passwords is also a must.

  • Flawless Integration

    With SaaS, integrating to existing ERP or business productivity systems will be a breeze. Your SaaS vendor can indefinitely meet your demands.

When Choosing a Payroll SAAS Vendor

When looking for a provider, some of the items below should be on your checklist:

  • ✓ Quality of Service from Helpdesk with quick turn-around time of calls
  • ✓ Possible leave relief if your internal Payroll Person goes on leave
  • ✓ Software that is compliant with Australian Legislation
  • ✓ All-in-one system (payroll that includes rostering, award interpretation and Time Capture)
  • ✓ Reporting / historical data that stays online for the legislative period within the application
  • ✓ Ease of use
  • ✓ Full end-to-end set up prior to hand over
  • ✓ Training on the application
  • ✓ Online auditing
  • ✓ Pay only for the modules you use
  • ✓ Powerful ad-hoc report writer

Using SaaS tools has its advantages, but keep in mind that not all software is created equal and not all providers give the same type of service. Therefore it is important to take your time looking for the right SaaS provider. We came across E-Payoffice and they seem to tick all the boxes.