As a business owner, you know that occasionally you need to adapt your business model in order to grow and remain successful. But with new trends in automation and digitization popping up in the business world, how do you know what’s right for your company? We suggest taking your payroll paperless! Here are seven reasons to consider this trend:
- Environmentally friendly
- Electronic storage
- Electronic Funds Transfer (EFT)
- Employee self-service
- Payroll compliance
Having paperless payroll will allow your team to get paid in a timely manner (that can be scheduled with your payroll company). Employees will be able to access their paycheck funds immediately and won’t need to travel to a bank to deposit a paper check.
Better for the environment
Foregoing paper paychecks will greatly reduce your company’s paper usage and paper waste which will benefit the planet and your budget. Paperless paychecks will also be unable to be misplaced (as its recorded digitally) cutting down on any administration costs of reprinting lost or misplaced paper checks.
When payroll is digitized rather than printed, you’re able to store and access all relevant payroll documents (from the previous two years) on your computer or mobile device. This results in a more organized system that’s easily accessible, 24/7. Say goodbye to clutter!
Electronic Fund Transfer (EFT)
Employers can pay their employees quickly by transferring wages electronically to direct deposit accounts at a bank or on a Paycard. This eliminates the need for paper checks and significantly increases the speed of paycheck delivery.
With paperless payroll software, employees have the freedom to access payroll information online when it’s convenient for them. They can view and print paystubs, and, in some cases, employees can submit time off requests, update personal information, work schedules, and possibly electronic time sheets. This will allow employees to clock in and out online, reducing timecard fraud or time theft.
Maintaining and navigating federal and state regulations can get murky. Adopting HR software or hiring a payroll company to calculate wages, deductions, and online payroll tax reporting will effectively increase speed, accuracy, and organization, while lowering the risk of noncompliance. That way, you’re assured that your company will be in compliance and able to meet payroll deadlines.
Aside from the benefits, it’s also important to consider any potential drawbacks when taking your payroll paperless:
- State laws may require a printable paystub
- Employees need to have a checking/savings account for direct deposit
- Paycard fees (An employee without a bank account can have their paycheck deposited to a Paycard which acts as a debit card.)
- Potential direct deposit delays (non-banking hours, holidays, etc.)
At Payroll Management, we value accuracy, responsiveness, and exceptional customer service, and we know you do too. Have questions? We’re only a conversation away.