The growth of a business depends to a great extent on the quality of its employees and the work they do. So the business will usually compensate their employees based on the time they spend working for the business. While smaller organizations with a few employees can keep their records offline, when the number of employees increases, manually maintaining payroll records is time consuming. Manual record keeping for a large number of employees will also increase the possibility of errors. Hence most larger organizations are prefer to install a suitable payroll system software which will largely automate the process of processing the payroll.

For most businesses, especially service providers the salary expenses are a major part of the business. Additional businesses of all sizes would like to keep the financial information of the employee payroll software is confidential. So one of the main considerations while choosing a payroll software, is the security features, whether the data is properly encrypted so that no unauthorized person, especially hackers or competitors can access the confidential information. Often developers of cheap or free payroll software may leave back doors, which will allow them to access confidential salary information which they may sell to competitors or use for data mining.

While a business with only one branch or office may install the payroll software on a computer which is never connected to the internet, most larger organizations are having multiple branches in different locations in the city, state or country. These organizations will usually prefer a web based software, which their staff can easily access from any branch, including from home, if employees are allowed to work at home. Compared to standalone payroll software this web based software is far more to get hacked, and confidential information may be stolen. Hence the software should have multiple authentication options like a one time password or fingerprint reader to prevent unauthorized access.