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September, 2020

4 Benefits of Switching to Paperless Payroll

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4 Benefits of Switching to Paperless Payroll

Switching to paperless payroll is a critical part of streamlining your employee pay process. Organizations are continuing to eliminate the distribution of paper checks and pay stubs. Especially, with 45% of U.S. employees still working remotely in some capacity.

Today’s business environment demands the use of technology to keep workflows running smoothly. Shifting from a paper-based payroll process can save you time, money, and eliminate potential errors. Let’s discuss what paperless payroll is and the benefits of switching to an online process.

What is Paperless Payroll?

Paperless payroll is the process of paying your employees online and without the use of paper. Businesses can achieve online pay with the use of paperless payroll systems. Typically, the payroll software features needed for a paperless process include:

  • Employee time tracking
  • Secure, cloud-based storage of employees’ personal information
  • Electronic payment options
  • Employee access to online paystubs and W-2s

The Pitfalls of Manual Payroll Processing

Before the advent of online payroll solutions, businesses completed their payrolls manually using paper and spreadsheets. Even today, HR departments spend hours manually processing payroll and cutting paper checks.

This antiquated approach leaves employers vulnerable to payroll errors. HR managers spend even more time correcting paychecks and dealing with upset employees. However, thanks to payroll technology, businesses can automate these cumbersome processes and focus on more strategic tasks.

The Benefits of Switching to Paperless Payroll

Converting to a paperless payroll process can seem overwhelming. However, once you realize the benefits of paperless payroll, you’ll wonder why you didn’t do it sooner. Here are four benefits of switching to paperless payroll:

24/7 Employee Access

24/7 Employee Access

Employees can have convenient 24/7 access to their pay information using a self-service app. It is predicted that 88% of consumer-bank transactions will happen through smartphones by 2022. Using a mobile self-service app, employees can receive alerts and immediately view their pay stubs.

Money Savings

Money Savings

The time and money saved from cutting 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 timesheets
  • Writing and signing paychecks
  • Printing and distributing paychecks
  • Processing W-2s and 1099s
Paperless Payroll Processes

Eliminated Clutter

Eliminating paper-based payroll saves your team the hassle of organizing and locating physical reports for an audit. Using an online payroll processing platform allows for easy access to real-time analytics dashboards. Some online systems even store historical payroll records 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.
Payroll Tax Filing

Streamlined Payroll Taxes

The benefits of going paperless also extend to your payroll taxes. Most payroll providers offer tax compliance services that will pay and file your federal, state, and local taxes on your behalf. You save valuable time when you don’t have to stress about submitting your payroll taxes. Furthermore, it also protects your company from paying potential fines for incorrect payroll tax filings.
Paycards Guide

Should I Offer Paycards to My Employees?

Paycards are another option to offer employees when switching to 100% paperless payroll. They are like debit cards and are a secure payment solution for workers who do not have a traditional banking account. Instead, employees can 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 consider working for a company that offers a paycard as a significant benefit. Check to see if the vendors you are considering offer paycard options as part of their automated payroll services.

How Do I Switch to Paperless Payroll?

Once you’ve decided to switch to paperless payroll, it’s essential to communicate with employees to encourage adoption. Your staff may be apprehensive about making a change, especially if they’ve had past negative experiences. However, your employees will become your biggest champions once they understand how beneficial paperless payroll is.

Your company can achieve a smooth transition to paperless payroll in four easy steps:

Phase 1

Choose an online payroll solution that meets your company’s needs. Look for features and services like online time tracking, payroll tax filing, and employee self service.

Phase 2

Communicate with your employees beforehand and explain the benefits of changing, so they have time to prepare.

Phase 3

Train your employees on the self-service solution. Demonstrate how they have easy access to their pay history, direct deposit vouchers, and more through a secure application.

Paperless Payroll Processes

Pay your employees 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 tech-friendly business environment, it’s inefficient to use a manual payroll process. Furthermore, it makes your organization more vulnerable to risk.

Leveraging HR technology to automate business workflows like payroll processing gives your company a competitive edge. You can focus on initiatives that will grow your business. The best way to start the growth process is by switching to paperless payroll.

How APS Can Help

The APS all-in-one platform offers paperless payroll processing and tax compliance services. Our intuitive payroll process allows you to apply deductions automatically, fix potential errors, and view payroll reports before you process payroll.

Payroll processing can be decreased from 2 days to 2 hours, saving you valuable time and money. Our technology is designed to support a 100% paperless payroll, so you can offer your employees direct deposit and paycard options.

To learn more, call us at 855.945.7921.

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