Should Your Payroll Be Completely Paperless
Migration towards a paperless office has continued for nearly the last two decades. Companies moving away from paper hope to save money while also potentially leaving behind a healthier planet. Other advantages include a boost in operational efficiency and more effective workflows.
But what about implementing a paperless payroll process? Direct deposit is nearly a standard across the business world, and the growth of online banking and eCommerce makes considering a similar approach to payroll worthwhile. Let’s look more closely at the issue to help your company make the right choice.
First Consider Your State’s Laws on Paystubs
Before deciding on moving to a paperless payroll, your company needs to consider the state laws on paystub access. This effort becomes more complex for larger companies located in multiple states. Notably, some states require employers to provide their staff with a paper paystub option if requested. So even implementing a paperless payroll system might require some form of printing functionality if the laws in your state demand it.
The Advantages of Paperless Payroll
Improved efficiency and convenience remain the most obvious advantages of a paperless payroll system. When combined with direct deposit, employees get near-instantaneous access to their pay. It’s also a more secure process when considering checks can easily be lost or stolen.
Additionally, companies are typically able to save money when using an electronic payroll system. It’s also more accurate and more environmentally friendly when compared to a paper approach. Companies already embracing the Cloud also benefit from a paperless payroll. It also fits within a modern office culture able to attract the best technology talent.
Are There Any Disadvantages to Electronic Payroll?
Ultimately, the “cons” of moving to a paperless payroll system remain limited. We previously talked about understanding your state’s paystub laws as far as requiring an option to provide a paper version. This is especially important for companies with employees in multiple states. As such, when searching for an electronic payroll vendor, ensure the system makes it easy to produce a paper paystub if necessary.
While the processing at many direct deposit providers is delayed over the weekend or holidays, banks are generally closed during these periods anyway. Also, if your company decides on using a pay card system as part of an electronic payroll, note that pay card providers charge high fees.
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