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Is Running In-House Payroll in the Cloud Worth It? An In-Depth Guide 

Lauren DeBisschop
Jan 23, 2024

Bring efficiency to your business by managing payroll in-house with a cloud-based solution.

Table of Contents:

Payroll management is an important business process for any employer, but selecting the right system can be daunting. 

Traditionally, businesses managing payroll “in-house” use on-premise solutions, with software installed on their local computers and servers. However, providers are offering a powerful in-house alternative with cloud-based solutions.

This guide explores why managing your in-house payroll operations on the cloud is a smart, strategic move to meet your evolving business needs.

Understanding In-House, On-Premise Payroll Solutions 

What is on-premise payroll? 

On-premise payroll systems run on computers located within your organization. With an in-house solution, your internal IT staff directly manages and maintains these systems.  


  • Control: You have complete control over the system and the processes that come with it.
  • Data Security: Since the data lives on your internal servers, there is a very high level of security.
  • Customization: The solution is easily tailored to suit your business’s needs.


  • Internal Workload: Your staff faces high demand as they own the operating and updating of the system.
  • Scalability: Growth is limited by your current server capabilities, and oftentimes, on-premise solutions lack advanced features such as automation.
  • Integration Abilities: It can be difficult to fully integrate these systems with other business tools like HR or ERP systems. 

These on-premise solutions have many features that make it the right choice for certain businesses. However, their limitations highlight it is worth exploring more scalable and efficient in-house alternatives.

Understanding In-House, Cloud-Based Payroll Solutions

What is cloud-based payroll? 

Cloud-based payroll is a modern payroll management solution where the software and associated data are hosted on servers managed remotely by a service provider. While the service provider is responsible for maintaining the servers, ensuring security, and providing necessary software updates, all payroll processes, including data entry, processing, and administration, are managed and controlled directly by the company's internal staff.  


  • Scalability: Handle an increasing number of employees and complex payroll structures without the need for significant hardware upgrades or system overhauls.
  • Automatic Software Updates: With a cloud solution software updates including new features and hot fixes are automatically pushed to your system, so you are always current with the latest updates.
  • Resource Allocation: By leveraging cloud hosting, you can reallocate your resources and attention towards core business activities, rather than dedicating them to hosting-related tasks.
  • Enhanced Security: Cloud hosting providers typically prioritize robust security protocols, investing in advanced measures like data encryption and multi-factor authentication to safeguard client data.
  • Reduced Workload: Cloud-based payroll systems automate many of the tedious and time-consuming tasks associated with payroll management.
  • Accessibility: You can access your payroll system from anywhere at any time, which is particularly beneficial in today's remote and flexible working environments.


  • Provider Dependence: You depend on the service provider for access and system performance.  
  • Need for Expertise: Your internal team must understand and manage all payroll processes.
  • Software Updates: Although cloud-based providers regularly update the system, you may have little control over the timing of these changes.

In-house, cloud-based payroll systems are valuable for growing businesses because they offer efficiency, scalability, and control.

The Future is Now: Embrace Cloud-Based Payroll Today

In 2021, global public cloud spending surged by 23%, driven by the rising adoption of automation and the need for digital alternatives to in-person services. This growth shows how businesses are moving toward more remote and flexible work settings. 

As we look towards a rapidly evolving business landscape, the importance of adopting efficient, scalable, and secure payroll systems cannot be overstated. Cloud-based payroll solutions represent more than just a trend; they are a forward-looking approach to managing one of your business's most critical functions.

Case Study: First Century Bank's Transition to Greenshades' In-House Cloud Payroll

First Century Bank faced a challenge when their ERP's on-premise payroll system (Jack Henry) was nearing its discontinuation. They needed a reliable, flexible solution fast, one that worked well for their specific banking needs and was easy to use.

Greenshades stepped in with an in-house solution that changed how the bank handled payroll and HR. This change empowered the bank for well-informed decision-making and greater success.

With Greenshades, First Century Bank improved how they handle finance-related payroll tasks, like breaking down payroll accruals. They also improved their time tracking, payroll management, and benefits enrollment. These improvements impacted employee morale, leading to a considerable boost in team satisfaction.  

quote from employee at first century bank

Read more: First Century Bank | Greenshades Case Study

Embrace the Future with Greenshades’ In-House, Cloud-Based Payroll

Every business has unique challenges and goals. A cloud-based payroll system offers the flexibility and customization to meet these specific needs, ensuring that your payroll process is not just a routine task, but a strategic asset.

Moving your in-house payroll operations to the cloud empowers your team and sets your business on a path of growth. By offering a blend of control, scalability, and efficiency, Greenshades’ in-house, cloud-based solution not only simplifies your payroll process but also elevates your entire business operation.

Ready to upgrade your payroll to the cloud? Connect with us today to unleash the full potential of your payroll operations. Contact us now!
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