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How Can Online Payroll Help My Small Business?

Today, online payroll is popular with businesses across the world.

It’s the fastest and easiest way to pay employees – plus, you can save yourself a lot of money.

All of these advantages have encouraged many businesses to make the switch. So what are you waiting for? Why are you still on the fence about online payroll? Here are some of the most important ways in which online payroll can help your business:

Online Payroll Will Save Time On Every Payroll Period 

“Time is money” is one of the biggest clichés in the business world. However, it’s a cliché for good reason.

The most valuable advantage of online payroll is that it saves time for your business. That frees up you – or another employee – to work on more important things.

Online payroll saves time by simplifying the payroll process. Running payroll with online payroll involves the following steps:

  1. Enter employee hours into the payroll system
  2. The system automatically calculates all required taxes and deductions
  3. Pay your employees via printed paycheck or direct deposit
  4. Receive notifications when tax forms are due

Editor’s Note: Looking for information on payroll services? Use the questionnaire below and our vendor partners will contact you to provide you with the information you need:



Yes – it’s that easy. To save even more time, some payroll systems will let employees enter their own hours. The only time-consuming part of online payroll is setting it up in the first place. However, once you’ve entered all employee data and their pay rates, running payroll won’t take more than a few minutes every payroll period.

Avoid Tax Penalties and IRS Problems When Using Online Payroll

During tax season, it’s natural to stress about tax penalties. Misreporting income or messing up an employee’s W2 statement comes with severe penalties.

Online payroll software helps you easily avoid these penalties. The software is uniquely programmed for each and every state in the US. It will accurately calculate all legally required payroll taxes. It will also notify you when all tax forms are due.

When you run payroll yourself, there’s always a chance for human error. When you run payroll through a computer, it’s 100% accurate. Do you really want to take a chance with tax penalties and other problems with the IRS? Probably not.

Access Payroll Online At Anytime From Anywhere

Online payroll, as you’ve probably guessed from the name, is based entirely online.

That means you can access your online payroll account from anywhere at any time. Most services offer excellent, full-featured mobile apps which make it easy to run payroll on-the-go.

If you’re logging in from a desktop, laptop, or tablet computer, you simply need to visit your payroll provider’s website to login to your account. Since everything is web-based, you don’t need to download any software.

Of course, this isn’t an advantage for everyone: if you frequently work without internet, or if you like to run payroll while flying back from a business trip, then online payroll may not be ideal. However, some online payroll programs will let you make changes offline and then automatically sync those changes to your online account when you reconnect.

For most businesses, the enhanced security, functionality, and accessibility of online payroll will outweigh the disadvantages.

Enjoy Enhanced Security and Automatic Data Backups With Online Payroll

Online payroll is typically based on cloud infrastructure. Cloud infrastructure is fast and secure and offers constant data backups.
Your payroll information will be protected using all of the following security tools:

  • Firewalls
  • Two-factor authentication
  • 128-bit or 256-bit encryption
  • Automatic backups

Together, these tools make your information virtually impossible to hack into. Even if someone knew your password, they wouldn’t have the “second factor” in the two-factor authentication system. Even if someone intercepted your data on a public network, they would be unable to crack the encryption. Even if you accidentally delete employee data, you can restore that data using a backup.

These security policies are a major reason why more and more businesses are switching to online payroll and the enhanced security of the cloud.
Not all payroll services support the cloud. However, even those that don’t have cloud support still offer excellent security and data backups.

Most Online Payroll Services Sync Directly With Existing Bookkeeping Software

Unless you use an obscure bookkeeping tool, you shouldn’t have trouble finding payroll software that works for your business which many offer free trials.

Today’s payroll software developers spend a considerable amount of time making sure their service is compatible with popular bookkeeping tools. QuickBooks is one of the world’s most popular bookkeeping tools, which is why you’ll find that most payroll software is compatible with QuickBooks.

Payroll services don’t sync with all bookkeeping software, but they will sync with most popular bookkeeping software.

Save Money and Time With Online Payroll

Miscalculating employee paychecks has a huge financial impact on your business. Changing a single percentage point can cost your business hundreds or even thousands of dollars. When human error is involved, mistakes are going to occur.

With online payroll, human error can still be a factor, although it plays a diminished role. That means fewer mistakes and more cost savings for your business.

Online payroll saves money for your business in all of the following ways:

  • Avoid hour entry mistakes with easy and accurate employee hour entry
  • Avoid IRS tax penalties
  • Receive reminders before tax forms are due
  • Calculate the exact legally required deductions according to the most recent state and federal laws
  • And more

Time and money savings are two of the most valuable advantages of working with online payroll.

Online Payroll Software Grows and Scales To Your Business’s Needs

Whether your business is upsizing or downsizing, you won’t have to switch online payroll providers. Online payroll is designed to be as flexible as possible. Adding employees is easy and removing employees is even easier.

Whether you’re a sole proprietor or the manager of hundreds of employees, you’ll find that payroll software adjusts to your needs.

How can online payroll help your business? It helps it in too many ways to list here. From automatic data backups to incredible time savings, there are many advantages and few disadvantages to online payroll. So what are you waiting for? Make the switch today! Since many popular payroll providers offer a free no-obligations trial, you don’t even have to commit to anything until you’re ready to officially switch.

Editor’s Note: Looking for information on payroll services? Use the questionnaire below and our vendor partners will contact you to provide you with the information you need:



About Johnson Hur

After having graduated with a degree in Finance and working for a Fortune 500 company for several years, Johnson decided to follow his passion by embarking on a path to the digital world. He has over 8 years of experience with large companies setting marketing strategy.

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