Payroll Insights
May 29, 2025

How to choose the right payroll technology for organizational growth

There are a lot of payroll technology solutions to choose from today. But choosing the right tech can be transformative. Dayforce partner OnActuate shares what to look for. 

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Payroll is no longer just about getting employees paid on time. In today’s fast-evolving business landscape, it’s about accuracy, compliance, agility, and the ability to support your organization’s growth across borders and industries. 

I have spent the last nearly 30 years helping organizations transform their payroll processes. What I’ve seen consistently is this: Payroll technology is not just a tool. It’s a strategic foundation for sustainable growth and operational success. 

So, how do you choose the right tech for that journey? Here are five of the most important considerations when evaluating a payroll technology solution. 

Your business needs 

Every organization is different. Whether you're expanding into new markets or scaling a growing workforce, your payroll technology needs to be able to manage your organization’s complexity, not add to it.  

Ask yourself: 
 

  • Will this platform scale with our business as we grow? 

  • Does it support your compliance requirements across jurisdictions? 

  • Can it integrate with our existing HR, finance, and benefits systems? 

If the answer to one or more of those foundational questions is no, it’s very likely you’re looking at a payroll solution that won’t fully meet your business needs. 

Integration 

The most effective payroll platforms do more than process payments—they unify your tech stack and eliminate data silos. Be sure to consider: 
 

  • HR functionality: Does the software offer a full range of HR functionality? Payroll and HR are tightly connected, and it makes sense for them to share a database. 

  • ERP integration: Does the vendor seamlessly connect payroll with financial systems? Does it ensure accurate reporting and efficiency?  

  • Time and attendance management: Does the payroll system provide time and attendance functionality or sync with employee scheduling systems to reduce payroll errors and speed processing?  

  • Benefits administration: Does the vendor offer tools for benefits enrollment and tracking to streamline HR operations? 

A complete HCM platform, rather than a standalone payroll system, can increase visibility into essential business data throughout the organization. It’s the difference between having an unobstructed view of a movie theater screen and having the tallest person in the theater sitting right in front of you – you just don’t get the full picture. 

Legal and regulatory compliance 

Compliance is complex. There’s no getting around it. But the right payroll technology should help make it easier to navigate complex tax laws, labor regulations, and jurisdictional requirements, no matter where you operate. 

Here are a few essential questions to ask potential payroll tech vendors: 
 

  • Does the solution support compliance across multiple countries, provinces, or states? 

  • Can it automate jurisdiction-specific reporting and filings? 

  • Are legal and regulatory updates built into the platform to reduce manual tracking? 

Consider the needs of your industry, too. If you’re evaluating a payroll technology platform that can’t address and doesn’t continually monitor industry-specific compliance requirements, it’s highly unlikely that it’s the right solution for your business. 

User experience 

The best payroll technology doesn’t just deliver accurate payments, it enhances the experience for employees and simplifies workflows for administrators. And in a world where people expect consumer-like technology even when they’re on the job, user experience now carries more weight in the payroll technology selection process. 

Here are a few questions to consider as you vet potential vendors: 
 

  • Is the platform intuitive and easy to navigate for your employees? 

  • Will you have access to a dedicated account manager who understands your business? 

  • Are support teams responsive, knowledgeable, and available in your time zone? 

Keep in mind that an intuitive user experience drives adoption and satisfaction among end users and administrators alike —two things organizations must achieve for any technology rollout to be successful.  

Total cost 

Cost will always be among the top deciding factors for an organization when purchasing technology. But if you’ve been part of the procurement process before, you’ve likely noticed that not all pricing is created equal. Some vendors include only the basics in their pricing, while others include certain add-ons or fees. As you look at payroll tech pricing, here are some questions to ask to help you understand the total cost of ownership: 
 

  • Are pricing tiers clearly defined, or are critical features locked behind upgrades? 

  • Are there different pricing tiers based on features? 

  • Are there extra fees for ERP integrations, compliance updates, or tax filings? 

  • Are there hidden costs, such as fees for customer support, customization, or year-end reporting? 

Transparent pricing isn’t just nice to have—it’s essential for long-term planning and avoiding any unwelcome surprises to your budget down the line. 

Before making a final decision, request and seek out customer references and reviews. The right technology solution doesn’t just work, it earns your trust. Look for one with a proven track record of reliability and real customer success stories

Payroll that powers growth 

Choosing the right payroll technology is about more than automation—it’s about alignment. When your platform is built to scale with your business, streamline operations, and support compliance, payroll becomes a growth enabler. 

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