Technology has revolutionized everything especially when it comes to paying your employees. Here are seven amazing benefits of paperless pay you did not know.
Instead, companies should harness the power of paperless pay and reap the many perks.
Are you still on the fence about switching to paperless pay? If so, here are seven important benefits to consider.
What Is Paperless Payroll?
Paperless payroll means your entire payroll can be processed without using paper. Each system offers several unique features but the main components remain the same.
What Are the Different Types of Paperless Payroll?
Electronic payroll extends to recording employees’ timestamps, employees getting paid electronically, delivering paperless paycheck stubs, delivering electronic W-2s, and generating payroll reports. When choosing a paperless paycheck service, consider the various functions that go paperless. For example:
Employee Self-Service Models (ESS)
These models let you share critical business information with employees like handbooks and benefit schemes. It also enables employees electronically clock in and out, and then automatically calculates time and attendance data.
Electronic Payroll Records
With this feature, expect an organized and de-cluttered desk. U.S. law requires all payroll to be accurate and for businesses to hold onto payroll records for three years.
Luckily, a paperless payroll system does this via online records which employees can print out if necessary.
Electronic Funds Transfer (EFT)
Another advantage of paperless pay stub is that they let you send wages without a physical check. Employees will have to provide their bank account and routing numbers so you can do this. Employees also have the choice to choose direct deposit, so their wages are transferred to their bank accounts. Or they can choose a payment card, so their funds are sent to a debt-like card.
7 Benefits of Paperless Payroll
If you’re still unsure whether to wave goodbye to paycheck stubs, consider these seven advantages of paperless payroll. Consider the following benefits.
- It’s Eco-Friendly
Paperless payroll systems help the environment as it cuts paper use and prevents the build-up of recycling and waste piles. Currently, paper waste makes up 26% of the country’s solid waste, so companies who adopt paperless payroll systems will drastically help the environment.
- Saves Money
Traditional paystub checks are expensive for companies. A study showed employers pay $3 per printed check, per employee, which quickly adds up. Further, it affects productivity as employees must leave work and cash their paychecks. Paperless payroll systems also protect your business as they ensure small business owners are paying and filing their taxes on time. These systems file local, state, and federal taxes automatically, which streamlines the process and ensures there are zero errors. Further, when you save time, you save money. Paperless payroll systems save time they would have spent delivering or resolving lost checks to employees. Instead, business owners can log in and answer any problems employees have, which is efficient and reduces the risk of miscommunication.
- Increases Reliability and Accessibility
Thanks to the paperless payroll system, employers can pay their employees regardless of any unexpected events like natural disasters. Because of this, employees have added security as they know they’ll get paid on time and don’t have to pick up their checks or rely on delivery. Further, business owners can access their payroll data anytime via their laptop or smartphone. This means you can monitor cash flow and pay existing bills with zero hassle. And a major perk for employees is that they can access the same payroll data alongside their personal information, pay stubs, and W-2s.
- Real-Time Recording of Income and Expenses
A major bonus about payroll systems is that you can record income and expenses as they happen in real-time. You can find a system that lets you capture photos of receipts or invoices so they store in the cloud. Not only does this prevent you from losing valuable bits of paper, but it gives you a cohesive recording of important data. Because of this, you can store up to three years worth of records that employees can access whenever. Further, many paperless systems integrate with accounting software like QuickBooks which helps streamline the payroll process.
- Inspires Collaboration
Traditional payroll systems meant businesses have to store valuable information on a USB stick. This often leads to lost information and security breaches. But when you use a paperless payroll system, your information is only accessible to authorized individuals on their device. This means important team players like accountants can access your business’s financial data without booking appointments.
- Easy to Use
Many paperless payroll systems let you record your income and expenses with no accountant jargon. For instance, you get specific prompts so you enter the correct data in each field, and if you have any issues you can turn to the system’s technicians via online chat or telephone.
- Extra Security
You have more security than with a traditional payroll system. For instance, the cloud gives you automatic backups so data is never lost which gives you more breathing room. Most paperless payroll systems also encrypt your data so it’s impossible for others to read it.
Those Are the Benefits of Paperless Pay Systems
There are many advantages of swapping to a paperless payroll system. Not only is it eco-friendly, but it streamlines the process so employees can ask any questions and receive payment regardless of any unexpected incidents. Further, cloud payroll systems are encrypted so the data is confidential and only accessible by authorized team members.
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