Payroll Integration | 3 mins read

The Benefits of Payroll Integration and Why it Matters

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Mary Kate Morrow

By Mary Kate Morrow

The Top Benefits of Payroll Integration

Both a small business and a large corporation will benefit from an integrated payroll system. Payroll integration is a workforce management system and payroll solution component that supplies universal access to employee data. The ability for everyone from human resources and payroll service provider professionals to access the same employee data is crucial.

Resources payroll integration optimizes influences various departments from human resources to workforce management professionals. Both small business and large corporation owners are increasingly adopting payroll integration for their own best practices and operations. Significant benefits of a payroll system that is integrated include-

1. Cost Savings

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Whether a small business or a large corporation, optimizing the payroll process saves money. Time spent on repetitive tasks can quickly result in significant labor cost consequences. Cost savings that a payroll solution offers extend even beyond labor costs. Office supplies and storage space are a large financial responsibility for a small business or large corporation. Whether payroll data is stored at a small business or stored via the cloud offsite, costs can quickly add up. This is especially true for payroll systems that do not embrace workforce management best practices like payroll integration.

A small business or large company may quickly realize a failure to integrate payroll costs much more over time. For example, let's say a small business pays for offsite storage space for payroll data accommodation. Each time a human resource professional or payroll provider needs access, resources are unnecessarily spent. Even a larger business storing payroll data onsite would require filing cabinets and office supplies. If payroll data was required separately for departments, these costs quickly accumulate.

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2. Workforce Management

The organization payroll integrations afford businesses significantly benefits workforce management responsibilities. Workforce management data from a payroll system can supply various reporting formats. Workforce management professionals can easily compare costs associated with everything from benefits administration to retirement plan providers.


A universal copy of payroll data hosted on payroll software avoids conflicting sets of documentation. This is applicable whether employee data is cloud based or a physical file. With payroll integration departments can access employee information simultaneously whenever necessary. One example of when this accessibility is very important is during employee onboarding. A new employee may need to set up retirement plan or benefits administrations while also receiving best practices training. In this situation, payroll integration would optimize workforce management capabilities.

3. Security

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A payroll system that is integrated promotes the security of employee data including payroll data such as retirement plan information. A not integrated payroll process may require separate departments to individually collect payroll data and maintain it. With an integrated payroll system sensitive employee data human resources or a payroll provider needs can be universally accessed. Payroll software also decreases the probability of a physical file being misplaced or otherwise compromised.

4. Accuracy

A notable benefit of integrating human resources and payroll systems is automatic revision capabilities. Rather than needing to update employee information across departments, only one version exists that is automatically updated. Whenever a human resource professional updates an employee's file, changes are reflected automatically to payroll providers offsite. If payroll providers update an employee's file, human resources will also automatically be able to access revisions.

Working off outdated payroll data results in human error occurring much more frequently. Human error is minimized through payroll integrations as every staff member can see the same information. Payroll integration updates payroll data including benefits administration and retirement plan information to limit human error opportunities. When everyone has accurate information about employees available, the entire business is positively affected.

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Key Takeaways for Payroll Integration

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  • Payroll integration allows a payroll provider and human resource professionals to access the same employee data.
  • Benefits of payroll integration range from increased accessibility to optimal accuracy.

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