DEPayroll software
What sets payroll programs apart, and which criteria actually matter for a payroll office.
The criteria
| Criterion | Why it matters |
|---|---|
| Cloud or local installation | Locally installed programs need maintenance, updates, backups and a machine that runs. Often a client lock also shuts out the second user. In the browser both disappear. |
| ITSG system audit | Without passing the system audit, software may not transmit electronic social insurance reports. For live operation it is a prerequisite. |
| Data import and export | Master data from the previous system, hours from time tracking, posting data into financial accounting. The clumsier the route, the more manual work each month. |
| Multi-client capability | Payroll offices run payroll for several companies. What counts is clean separation, fast switching and reporting across clients. |
| Annual parameters and fund rates | Contribution ceilings change yearly, health fund supplementary rates can change mid-year. The question is whether rates arrive automatically or have to be imported. |
| Pricing model and commitment | Base fee, price per payslip, cost per client, modules, support. It only becomes comparable once everything is converted into a monthly price per employee. Then the question of commitment: local software also incurs running cost through its maintenance contract, only with a longer tie-in. |
Cloud instead of a Windows program
The German payroll software market consists largely of Windows applications installed locally or on a terminal server. Eight points show what the difference means day to day.
- The operating system does not matter. Windows, macOS and Linux work the same way because the software runs in the browser.
- The device does not matter. Desktop, tablet or phone, with nothing to install.
- The location does not matter. In the office, working from home, or on site with a client.
- Several people work on the same client at the same time. No client lock that shuts out the second person until the first is finished.
- You do not set up or monitor backups. That is part of running the application.
- You do not import updates. Neither for the software nor for the annual parameters and fund rates.
- A new machine or a new colleague means signing in and starting. No installation, no licence file, no data migration.
- Payment is by subscription, cancellable at any time. That is no drawback compared with purchased software: payroll programs need an ongoing maintenance contract anyway, because parameters and reporting procedures have to be updated every year.
Lohnica was built for the browser from the ground up. The calculation logic sits behind an interface other systems can address as well. Taking data from time tracking or an HR system does not require a file export.
Where Lohnica stands today
Usable today are the calculations: gross to net, net to gross, employer costs and trial runs with daily-updated contribution rates of all statutory health funds. Live operation with electronic reporting starts in 2027, once the ITSG system audit is complete. Pricing starts at 5 euros per employee and month, without a base fee.
Frequently asked questions
With a cloud solution the software runs in the browser and the calculation logic on the vendor server. Windows programs are installed and maintained locally or on a terminal server. In practice the difference shows in how updates and annual parameters reach the system, and whether several people can work from the same state at once.