Question 1

What is the difference between cloud and Windows payroll software?

Accepted Answer

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.

Question 2

Does payroll software have to be certified?

Accepted Answer

For live operation, yes. Programs producing electronic social insurance reports must have passed the ITSG system audit. Pure calculation tools do not need it, but then may not report either.

Question 3

What should a payroll office look for in data import?

Accepted Answer

The path in both directions. At the start it is about taking over master data and payroll accounts from the previous system; in ongoing operation it is hours from time tracking and posting data into financial accounting. The more of that runs through files and manual mapping, the more effort every month.

Question 4

Where is the payroll data stored?

Accepted Answer

With Lohnica, exclusively in German data centres. No US providers are involved, neither Google nor AWS. For the data processing agreement that means the question of a third-country transfer does not arise. With other vendors it is worth reading the list of subprocessors.

Question 5

How do payroll software prices compare?

Accepted Answer

They only become comparable once everything is converted into a monthly price per employee. Common elements are a base fee, a price per payslip, cost per client and surcharges for modules or support. The sum of those often differs markedly from the advertised entry price.

Question 6

Can I use Lohnica today?

Accepted Answer

For calculations yes, for live operation not yet. Gross to net, net to gross, employer costs and trial runs work today. Electronic social insurance reporting follows in 2027 with completion of the ITSG system audit.

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.
Server location and subprocessors	Payroll data is among the most sensitive data a company holds. For the data processing agreement, what counts is which country the servers are in and which subprocessors are involved. Vendors on US platforms bring a third-country transfer assessment with them.
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.

Payroll software

The criteria

Cloud instead of a Windows program

Where Lohnica stands today

Frequently asked questions

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Questions about the software?