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November, 2018

Switching to Paperless Payroll

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Switching to Paperless Payroll

It’s no secret that paperless payroll is a critical part of streamlining the entire payroll process. Now more than ever, organizations are eliminating the distribution of paper reports, direct deposit vouchers, and checks. Ditching a paper-based payroll process can save you time, money, and physical space, as well as eliminate potential errors. Let’s discuss the benefits of switching to paperless payroll.

Current Payroll Processes

Before the advent of online payroll solutions, businesses completed their payroll with paper and pencil and soon evolved to use Excel spreadsheets. Even today, HR departments spend hours manually processing payroll and cutting paper checks. This antiquated approach leaves employers vulnerable to payroll errors, meaning HR managers spend even more time correcting paychecks and dealing with upset employees. But thanks to technology, businesses can automate these time-consuming processes so they can focus on more strategic tasks.

Why Make the Switch to Paperless?

Making the switch to paperless payroll can seem like a daunting task, especially if you have always processed payroll by hand. Once you realize the benefits of switching to paperless payroll, the decision will seem like a no-brainer. Here are a few reasons why your company should make the switch to paperless payroll:

24/7 Employee Access

24/7 Employee Access

Employees can have convenient 24/7 access to their pay information. An employee self-service portal empowers employees, as well as increases communication between employers and workers. With the adoption of mobile banking applications, convenience is even more apparent. When employees’ pay is deposited into their bank accounts, they can receive alerts on their smartphones and immediately view their pay stubs.

Money Savings

Money Savings

The time and money saved from eliminating paper check costs are substantial. The average annual cost to issue paper checks is $24,450 in terms of employee labor, materials, bank fees, and postage. By going paperless, you can save yourself and your business unnecessary expenses and time spent on tasks like collecting time sheets, writing and/or signing paychecks, processing W-2s, and more.

Paperless Payroll Processes

Eliminate the Clutter

Eliminating paper-based payroll saves your team the headache of trying to organize and locate physical reports, especially in the event of an audit. Using an online platform to manage payroll processing allows for easy access to real-time analytics dashboards. Some online systems even store historical payroll data online, so you’ll always have a complete audit log available. You can also utilize data integrations for other systems like General Ledger packages to further streamline your payroll process.

Should You Offer Paycards to Employees?

Paycards are another great option to offer employees when switching to 100% paperless payroll. They are similar to a debit card and be a great option if you have employees who do not have a traditional banking account. Instead, employees access their pay from an ATM or use their paycard as a debit card when making purchases. A recent Visa study showed 82% of employees stated that working for a company that offers a paycard is a major benefit. Check to see if the vendors you are considering offer paycard options as part of their automated payroll solution.

Making the Switch

It’s one thing to decide to switch to paperless payroll, but getting your employees on board can be another matter entirely. Employees may be apprehensive towards adopting a new system, especially if they’ve had a negative experience when switching systems in the past. However, once they see how simple it is to transition to paperless, they will be wondering why you didn’t make the switch sooner.

Your company can achieve a paperless payroll in three easy steps:

  1. Communicate with your employees beforehand and explain the benefits of making a change. This way, there are no surprises and employees have time to prepare.
  2. Train your employees on the self-service solution. Show them how they have easy access to their pay history, direct deposit vouchers, personal information, and company information through a secure website.
  3. Pay your employees electronically using direct deposit, paycards, or a combination of both.

Celebrate the Switch to Paperless Payroll

Switching to paperless payroll is beneficial for HR managers, employees, and company decision-makers alike. In today’s business environment and with the HR technology now available, it’s actually counterproductive to use a manual payroll process. Leveraging HR technology to automate business workflows like payroll processing gives your organization a competitive edge, allowing you to focus on the tasks that will grow your business. The best way to start the growth process is by switching to paperless payroll.

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