When moving payroll data to the cloud, the employer remains responsible for the security and privacy of employee information. Key factors to review include the physical location of the data (Option A), as data stored in foreign countries may be subject to different privacy laws, and vendor subcontracts (Option B) to ensure that any third parties used by the provider also maintain high security standards. Backup and recovery (Option D) is also vital for business continuity. However, the size and number of servers (Option C) is generally not a concern for the employer. One of the primary benefits of cloud computing (SaaS) is that the vendor manages the underlying infrastructure and scales hardware resources as needed; the employer focuses on the service levels and security outcomes rather than the specific hardware count.