Now that companies are streamlining operations to cope with the new normal, going paperless will ensure an uninterrupted payroll system during the COVID crisis.
Switching to an online paperless payroll service is an efficient way to manage your business payroll because it is a time saving, cost-efficient, accurate and secure system.
3 Types of Paperless Payroll
There are many different electronic payroll services available to businesses. We detail the main three below:
Employee Self-service (ESS) Models
ESS models allow you to give your employees online access to important data such as employee handbooks, benefit options, and business history.
ESS software also enables employees to time in and out of work electronically. Their timesheets will be automatically computed.
Electronic Payroll Records
This type of paperless payroll software allows you to organize payroll related information.
Without paper, you avoid clutter. This system will enable you to keep your records accurate as required by the Fair Labor Standards Act (FLSA).
Electronic Funds Transfer (EFT)
This payroll software will allow you to transfer funds directly to your employees’ bank accounts.
You do not need to release their salaries onsite because it will be automatically credited to their bank accounts or pay cards every payday.
Benefits of Switching to a Paperless Payroll System
With the changes in the work environment spurred by the COVID crisis, switching to a paperless payroll system will benefit your business and employees in many ways.
Safe and Convenient Access to Your Payroll Files
You can now organize and store your payroll records in one place. Since the data is stored online, it can be accessed anytime and anywhere.
Many business owners are hesitant to go paperless due to security reasons. The company’s payless payroll system is password protected to prevent unauthorized access.
Rest assured, that your payroll data will be safely guarded by the system.
Switching to paperless payroll will help reduce carbon footprint. So, go green by reducing your paper consumption.
Going paperless will help you save on printing costs. According to research conducted by the Electronic Payments Association and the American Payroll Association (APA), businesses save between $2.87 and $3.15 per pay run by switching to electronic payment methods.
Instead of paying employees with paper checks, business owners will save more if they release their salaries via direct deposit. Also, businesses will save $1.20 more if they opt to give online pay stubs instead of printed ones.
APA also pointed out that paperless payroll lessens the risk of lost paychecks which cost business owners $8 to $10 per replacement check.
The manual payroll system is time-consuming, error-prone, and taxing. By going paperless, you will be able to streamline the entire payroll process (from preparation to releasing).
This will also allow you to focus on other aspects of your business because you do not need to spend time on preparing and reviewing payroll records, printing pay stubs, preparing paychecks, resolving lost and undelivered paychecks.
Employees who have queries regarding their salaries can just log in to the company’s payroll website anytime and resolve issues quickly.
With paperless payroll, business owners and their employees can access their payroll information online 24/7.
Employers can conveniently check their payroll records, track releases, and correct data anytime and anywhere.
While employees get access to their employment information, direct deposit details, pay stubs, and even W2s.
With direct deposit, employers are assured that their employees will get their salaries on time come rain or shine.
Business owners need not worry about not being able to release the salaries of their employees on schedule when an untoward incident occurs.
Digital Data Storage
You can store three years’ worth of payroll records per employee in the paperless payroll’s digital storage.
No need to dig up through mounds of files to search for an employee record because it is readily available online anytime.
The paperless software can be integrated with other accounting software like Xero and QuickBooks.
Before you switch to the paperless payroll system, make sure to check if your state allows it.
Some states mandate employers to release salaries in paper checks while others mandate employers to allow their employees to opt-out of receiving pay stubs online.
The Internal Revenue Service also requires that all employers allow employees to choose whether to get their W2 forms online or hard copies.