Every HR manager wants to manage payroll efficiently and a green payroll approach can help. But how do you make that happen?
Smart business owners and managers are always looking to minimize costs and improve profits. One of the common approaches is to make use of the most cost-effective procedures and tools available. Often, this can simply be accomplished by changing the way they've "always done things" in a particular area, such as payroll.
When it comes to payroll, many HR professionals and owners find that going to a green payroll process can do just that, and save their company in a number of different ways. Despite all the push to "go green" in the U.S., the number of businesses still relying on paper-based payroll is high.
The U.S. Department of Labor and the EPA estimate that paper use in businesses has increased more than 600 percent in the last 50 years. Yet, the impact of going "paperless" is significant. The EPA also estimates that recycling one ton of paper can save 7000 gallons of water, 3.3 cubic yards of landfill space and decrease greenhouse gas emissions by one metric ton.
A mid-sized business with 200-300 employees can easily generate that much paper use - or savings!
And any business will see savings when they move from a paper-based payroll process to a green, or paperless system. While this can be done just by using in-house software solutions, it can also be accomplished by simply outsourcing some or all of a company's payroll functions.
And for many small businesses, the latter option can be especially cost-effective.
There's More Than One Way to Save With a Green Payroll Process
For most owners, saving money may be the main reason for going with a green payroll process. For their managers and payroll staff, the objectives may be more about saving time, materials, and other tangible and intangible resources.
According to the American Payroll Association (APA) businesses save between $2.87 and $3.15 per employee each payday by using electronic payment methods, such as via direct deposit, instead paper checks. In addition, these businesses save another $1.20 by providing employees pay stubs online.
The beauty of a well designed green, or paperless, payroll process is that it will accomplish all of this in addition to freeing up valuable time and resources for you and your company. In essence, your savings are doubled since every hour not spent processing payroll is an hour for additional productivity.
In other words, every dollar not spent on your payroll process costs is a dollar towards revenue building.
The Other Advantages of Going Green
Because it is automated, a paperless payroll process helps to ensure that small businesses are paying and filing their taxes on time. Green, or paperless, payroll systems file all local, state and federal taxes automatically, so that managers no longer have to remember to send in forms or make payments.
Manual payroll processes are labor-intensive and prone to errors and delays. It has been estimated that up to one-third of small business owners get fined every year for filing or paying their payroll taxes incorrectly.
Using an online payroll system, such as Time2Pay by Accuchex, can provide an easy-to-use and integrated solution that is delivered directly from the cloud. In addition to reducing the processing time typically required by a paper-based payroll process, managers can provide employees with direct access to their own pay information anytime.
Using direct deposit, pay cards, and online pay stubs can eliminate trips to the bank, having to drop off paychecks to job sites or other locations, and the delivery of company payroll checks. This also means that security is enhanced, and the overall workload minimized.
Find Out How a Green Payroll Can Work for Your Business
Investing in the best available software for your payroll is one option, but another direction you can consider is outsourcing. This can be simply outsourcing one process such as basic payroll. However, with a full-service provider such as Accuchex, you have additional options for outsourcing as well.
Paperless Payroll Management Solutions by Accuchex, also known as “Green Payroll” combine tax payment and direct deposit with direct deposit and online access and there is no need to have a payroll package delivered every check date.
Your service provider assumes full liability that your taxes are handled correctly. This is great for you since you can have that assurance and simply concentrate on running your business and you will never pay penalties or interest to a taxing authority again.
With online and automated payroll management systems, the most complex aspects of payroll are handled by the vendor making it simple and effective for your company. Many services, such as Accuchex's Time2Pay, offers flexibility and customizable options within the software, allowing for many possibilities for reporting and functionality.
Let Accuchex help you in managing your HR needs, payroll processes, and staying on top of compliance demands. Get your Free Download: Payroll Outsourcing Guide to help you make an informed decision or call Accuchex Payroll Management Services at 877-422-2824.