On-Premise Payroll Software

An on-premise payroll system is payroll software that is hosted on-site by the company using it. Find the best on-premise payroll software today.

on-premise payroll software

Payroll software can be either cloud-based or on-premise. While there are pros and cons to both options, many companies are choosing on-premise software. For some, this is for data security reasons. For others, it’s to maintain more control over their payroll processes. 

What Is On-Premise Payroll Software?

On-premise payroll software is payroll software that is hosted on-site by the company using it. By contrast, a cloud-based payroll system is hosted by the vendor and the company using the payroll software accesses it remotely. With on-premise payroll software, the software is hosted by the company’s own servers located on-site and is managed by the company’s own IT department. This includes updates, changes, and bug fixes, which have to be implemented by the company’s IT staff rather than automatically done by the vendor.

More Control Over Payroll Processes and Data

A major reason why companies choose on-premise payroll software is the amount of control they’re able to maintain over their secure data and their payroll processes. With all of the software hosted on-site, the data used in running payroll is kept more secure. The data never leaves the company and isn’t visible to anyone outside of the company’s own employees.

Increased Customization Options

When payroll software is on-premise, typically there are more options to customize how the software is used. Cloud-based payroll software may be easier to implement and start using, but it’s usually only available as-is. Companies choosing on-premise payroll software can generally make more adjustments with how the software is used in order to match the payroll software to their preferred processes rather than changing their processes to match the software.

Lower Internet Requirements

Because cloud-based payroll software is hosted off-site, it requires a fast, steady Internet connection in order for employees to access the software. In the event of an Internet outage, HR staff would be unable to access the payroll software at all. With on-premise payroll software, on the other hand, employees running payroll won’t necessarily need to access the payroll system outside of the company’s internal network and, depending on the software, may not need Internet access at all in order to access certain features of the system. This means that some data may still be accessible in the event of an Internet outage.

Higher Initial Costs

A downside to choosing on-premise payroll software over cloud-based payroll software is that the initial setup costs may be higher. Many on-premise payroll software systems have a on-time fee that is paid when the software is purchased, rather than the ongoing monthly payments that cloud-based payroll software usually charges. That initial fee is typically only charged once, however. This means that the ongoing costs after the payroll software is set up are lower.

Takes IT Time and Resources

Implementing on-premise payroll software can also take up more IT time and resources. This is because of the increased customization that on-premise software may offer. It may take more time to set up initially, but once the implementation process is complete, companies should have a system that is more customized to meet their needs.

Software Match

Get matched for free with top HR software.

How many employees are in your organization?

Select the software features you need.

We are matching your needs with the software in our database.

We found matches!
To get the shortlist, please provide your contact info.

By clicking the button above, I agree that Matchr and its approved vendors may use my information to follow up on my request. I also accept the Terms of Use and Privacy Policy.

We are sorry, Matchr currently does not offer support to countries outside USA, Canada

Thanks for using our Software Matching service

Would you like to schedule a 5-10 minute meeting with a Software Advisor right now?


7,303 people have requested their software matches !

User Friendly
100% Free
HR Tech Experts
Related Resources

How to Choose the Right HRIS Vendor

HRIS, or Human Resources Information Systems, can be a valuable tool for human resources managers and the entire organization. HRIS can ...

Payroll General Ledger and Taxes Defined

Payroll refers to the reimbursement that employees are provided with in exchange for services performed at a company. General ledger ...

HRIS System Impact To Companies

In the ever-changing world in which we live, new technology is continually being developed. This change requires organizational leaders to ...

Important Considerations When Buying a HRIS

Buying a HRIS is a huge decision. Any selection can alter the way your company handles its greatest asset – your employees – for years to ...

Used by top companies

Trusted by