The Cons and Pros of an Online Payroll System

An online payroll system can be a great tool for the right company. In some cases, online payroll tools incur a monthly subscription. In other cases, these platforms are free to use. Some new and small businesses may find an online payroll provider useful, but these softwares have certain limitations. For example, if a user wants to host their own data on a hard drive, most tools will be insufficient.

Still, choosing between an online tool and a locally hosted, disc-based platform can be difficult. If you’re weighing your options, think about the pros and cons of an online payroll system. Then, if you decide that an online tool might not be the right fit, consider AMS to fill those needs.



When Using an Online Payroll System Can Work

Online payroll options can provide a significant benefit to certain companies. We’ll break it down between paid online tools, known as SaaS, and free options.

  • Paid Online Payroll: These software options include automatic updates with cutting-edge payroll processing technology. Additionally, users can access their dashboards from any location and any device – given that they have the correct login and a stable Internet connection. This can be a good choice for fully remote and/or mobile teams.
  • Free Online Payroll: The benefits of a free online payroll tool are obvious: The platform is free. These systems often provide very limited features. But, for a brand-new business with no additional budget to spend, they can be a lifesaver.


When Online Payroll Systems Fall Short

While online payroll can be a benefit to certain companies, they are not always the best choice. We’ve broken down the downsides of these tools below:

  • Paid Online Payroll: While these tools are often on the cutting edge of payroll technology, they come with a cost – literally. SaaS tools are notoriously expensive. In most cases, users pay a monthly subscription cost, which can be upwards of $100. On top of that, many companies require an additional fee per payee. For small or cash-strapped businesses, this can be an overwhelming cost.
  • Free Online Payroll: Free payroll tools are available at no cost for a reason. They are often too limited to be useful to most companies. Additionally, these tools are unreliable. The platform may randomly impose a subscription in the middle of a pay period, leaving the user with no option but to pay. These tools also rarely offer the option to save recurrent payees. In other words: You’ll have to start from scratch every pay period.


Find Your Perfect Software with AMS

Advanced Micro Solutions offers an alternative payroll solution. Our disc-based software tools are affordable, reliable, and comprehensive. Our accounting and payroll software, AMS Payroll, is an add-on module to our base W-2/1099 Forms Filer. It has everything most businesses need to run efficient and accurate payroll. Plus, your data is stored on your own device, which means you’ll have unlimited access to tools and information exactly when you need it. Our pricing is budget-friendly and not based on a subscription. Just renew your software tools each year to ensure you have the most up-to-date tax-related processes available.

Software Solutions from AMS

Our W-2 and 1099 Forms Filer is our only required platform. From there, users pick the services they need. Choose from the tools below to build out your customized accounting software.