New Zealand business owners, both big and small, share a common problem: managing payroll. If managed properly, payroll is seamless, automatic and almost invisible behind the scenes. If mismanaged or organised poorly chasing up payroll issues can become a headache.
When it comes to organising your payroll, you have one of two choices: using an on premises or online payroll system in NZ. Here at iPayroll we don't see it as a tough choice and here is why.
Online payroll systems are cloud-based solutions that let you manage payroll anytime and anywhere providing you have an internet connection. They store data securely in the cloud giving authorised users the flexibility to access and update information remotely.
By contrast on premises payroll systems are locally installed software. All data is stored on-site, and tasks are managed directly from the system. While this approach may suit businesses with limited internet connectivity it lacks the convenience and adaptability of online solutions.
Online payroll systems bring a host of benefits that make them a flexible choice for New Zealand businesses.
With online payroll systems you are not tied to a single office or location. Whether managing payroll from home, across multiple branches, or on the go these systems provide the flexibility modern businesses need. It’s a game-changer for companies with remote teams or hybrid work setups.
Keeping up with New Zealand’s payroll regulations can be tricky but online systems make it easy. They automatically update to reflect the latest compliance requirements so you can say goodbye to manual adjustments and hello to peace of mind.
Online systems work seamlessly with tools you already use for example accounting and HR software. This integration keeps everything connected saving time and reducing errors by eliminating the need for duplicate data entry.
Give your team the power to access payslips, track leave, and log hours directly with their employee kiosk via web or mobile phone app and it’s a win-win: employees get instant access to what they need and your admin team get fewer queries.
While on premises payroll systems may have traditionally worked for some businesses, they come with several limitations that can make them less practical in today’s dynamic business environment.
Offline payroll systems are tied to the physical location where the software is installed meaning payroll tasks must be handled on-site which can present real challenges for businesses with remote staff or multiple locations. With on premises systems flexibility is sacrificed making it harder to respond quickly to urgent payroll needs.
Storing payroll data locally can be risky. Hardware failures, theft, fire, or insufficient backups could result in significant data loss. Unlike online systems on premises payroll lacks robust built-in security features making sensitive data more vulnerable.
Keeping up with New Zealand’s payroll regulations requires constant vigilance. With on premises payroll systems updates to ensure compliance are manual and often cumbersome. Missing an update can lead to errors, compliance risks, and potentially costly penalties.
As your business grows, on premises systems may struggle to keep up. Adding users or features often involves expensive upgrades or even replacing the system, which can slow progress.
Choosing the right payroll system starts with understanding your business’s needs. Consider factors like business size, workforce distribution, and your budget. For both smaller localised businesses and larger businesses with remote teams the flexibility of online payroll systems will be the perfect fit.
Don’t forget to factor in future growth and scalability. Can your chosen system grow with you? Online systems adapt easily as your business expands while on premises payroll often requires costly upgrades to keep pace.
Compliance and payroll security are also key. Staying on top of New Zealand’s ever-changing payroll regulations is critical and online systems simplify this with automatic updates. They also offer advanced data protection for example encryption and regular backups whereas on premises systems can leave you more vulnerable to data loss or systems failure. Back-ups and redundancy are critical for on premises solutions which are automatic with on-line solutions.
Finally, look at costs. While online systems have ongoing subscription fees, they save time and money by reducing IT maintenance and minimising errors.
Traditionally we always had to go to a bank branch to do our banking, but who wants to do that today, with online services and immediate real time access. The same applies to payroll. In the past it was traditional to opt for on premises payroll systems however as businesses become increasingly sophisticated and digitised forgoing an online payroll system may leave you forever playing catchup.
Stay on top of your payroll and get in touch with iPayroll today to learn more about how cloud-based online payroll can optimise your business.
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