Difference between Desktop and Cloud Payroll Software
8 minutes read

Difference between Desktop and Cloud Payroll Software

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
  • Reporting

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. Take a look at our Desktop Payroll software – Saral PayPack.

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. Take a look at our Cloud Payroll software – Saral PayPack – Cloud.

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




Internet connection It is necessary to have constant internet access to work. All the data and calculations needed to process payroll are 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.
Access Data and other information can be accessed anywhere, anytime. It is only accessible on one computer.
Security Data is kept securely in the cloud. Data is kept securely on your local device.
Updates It automatically updates. It either gets automatically updated or will require you to check manually whenever the update is available.
Users Multiple users can work only if server system access is provided at the same time. It allows users to add more features. Because it’s run on local level
Storage Storage can be expandable based on data stored Fixed amount of storage is required to install software and then can be expanded based on data size
Integration Seamless integration with another cloud-based system, that provides a real-time view of the data from anywhere. Limited ability to integrate with another system.
Back up Automatically backed up and updated. Manual backup and update installation required.
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. Icons made by Eucalyp from www.flaticon.com is licensed by CC 3.0 BY

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  • Cloud based Payroll software are the best choice currently as the internet is no longer difficult to get and with the trends of hiring more and more freelancers, it is convenient to have a software that can be operated from any place in the world.

  • According to me, Cloud Based Payroll Software is a great choice. In today’s business internet connectivity is so pervasive that business holder and managers have the ability to work anywhere they want to like. This software is so worthwhile as you have to only pay the total number of employees you are working with.

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