Saving time, money and the environment are among the reasons why your business should automate payroll. Although your employees may be averse to change or lack bank accounts, you can overcome these roadblocks and make your payroll paperless. Here’s how.
Advantages of Paperless Payroll
Implementing a paperless payroll system provides a variety of benefits. For instance, it keeps all payroll information in one place and reduces the amount of paperwork in your file cabinets. Since records are password protected and may be stored in the cloud, confidential information remains secure. Because the technology is updated as tax laws and regulations change, your company remains compliant in withholding, filing and paying employee taxes. If using an employee self-service (ESS) model that allows employees to clock in and out online, the system computes and stores hours worked, wages earned, tax deductions and net wages to ensure payroll accuracy.
Through direct deposit, you transfer money from the company bank account to an employee’s account on payday. This saves your company a significant amount of money on checks, envelopes and postage, especially when paying weekly or biweekly. Employees appreciate having money on payday rather than having to deposit a check and wait for it to clear.
Payroll Debit Cards
You can issue a payroll debit card to an employee even if they don’t have a bank account. You deposit employee earnings on the card. The employee uses it like a credit card for bill payments or purchases, or like an ATM card for withdrawals. Because payroll debit cards involve fees that can affect take-home pay, check with employees before issuing the cards. Also, ensure you comply with payroll debit card best practices and state and federal laws.
Pay Stub Accessibility
Be sure your pay stubs comply with state laws. States have different requirements for which information, such as pay rate, hours worked and other compensation details, needs to be on a pay stub. States also differ on how employees can access pay stub information. Some states require electronic access, others electronic access and access to a printer. Because other states allow employees to opt-out of receiving electronic pay stubs, paper stubs need to be given to those employees. If a state requires employees to opt-in to receive electronic pay stubs, they otherwise must be given paper pay stubs.