Every business should be striving to reduce costs and become more cost-efficient. But knowing what and where to cut can be difficult. Paperless payroll can be a good place to start.
We’re almost halfway through 2017 and the end of Q2 is coming up. However, if you’re still struggling with paper timesheets, paychecks, and paystubs, it’s not too late to transition your payroll process into a truly paperless payroll system.
The Very Real Benefits of Paperless Payroll
There are a number of benefits to running a paperless payroll. Notably for many people, it is an extremely environmentally-friendly and green practice.
There are also measurable cost savings.
According to research from the Electronics Payments Association and the American Payroll Association, businesses can save around $3.00 per employee each pay cycle when paying their employees electronically. This might be in the form of pay cards or, more commonly, by direct deposit.
Not only does this eliminate the cost of paper checks, when you add the additional savings of an additional $1.20 by providing online pay stubs online, the savings really add up.
There can be additional cost savings if a check is lost and needs to be replaced. It is estimated that this can as much as $8 to $10 for every replacement check.
Paperless payroll systems also help ensure businesses pay and file their payroll taxes on time. Paperless payroll programs are typically designed to file all local, state and federal taxes automatically. This eliminates the need for HR and payroll staff having to remember to send in forms or make payments.
Payroll, Cloud Computing and the Internet
The rise of the cloud and vastly increasing amounts of remote storage, there has been a massive shift in the way business is done across the entire spectrum of business functions. This is especially true for HR processes, including payroll management.
Having secure access to employee data, along with unlimited remote storage solutions at any time, allows for almost every payroll function to be paperless. And, again, the benefits of having a paperless, or green payroll, are numerous. Aside from the decrease in office clutter and the reduction of labor, a paperless payroll process will significantly impact your bottom line.
This happens through reduced paper, mailing, printing costs as well as the reallocation of labor in more productive tasks. It is entirely possible for a large company to save thousands of dollars annually by implementing a paperless payroll process.
Increase Accuracy and Security with a Paperless Payroll Process
Using direct deposit for employee payroll, or reloadable pay cards, is safer, more secure and less costly than paying by paper checks. With a green payroll system there are no lost and stolen checks. Providing employee’s pay through a secure and reliable system gives your employees immediate and easy access, as well.
6 Reasons Why Paperless Is Better:
- Employees have instant access to their wages on payday from anywhere
- Accurate and streamlined payroll process
- Data storage is offsite and secure
- Paystubs are available 24/7
- Employees do not have to stand in line to receive or cash their paychecks
- No more lost or stolen checks and costly check replacement
Optimize Your Pay Cycle
Another consideration when going paperless is the frequency of your company’s pay cycle. Based on your state’s regulations, you could choose to pay weekly, biweekly or monthly. Each pay cycle has its own benefits and considerations as illustrated in this chart:
(Graphic courtesy of newsroom.inifinisource.com)
Making the Decision to Go Paperless
As a business owner or payroll manager you have a number of options for your payroll functions. Software that can be installed in-house, or cloud-based programs, offers a good alternative. On the other hand, Paperless Payroll Management Solutions by Accuchex, also known as “Green Payroll”, combines 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.
But the ultimate "paperless" pay solution is to outsource your payroll process. There are many reasons why businesses should consider online payroll outsourcing, especially small to medium sized businesses that may not be able to afford dedicated human resources and payroll clerks.
Outsourcing payroll can save staff time, money and be the best payroll solution for your business. In addition, many payroll services offer related services like insurance solutions, retirement planning, and HR functions.
In addition to the time and dollar savings, having the peace of mind of knowing that your payroll processes are being handled competently, accurately, and on time is a great reason to consider outsourcing.
On top of that, you can be assured that the accountability and liability for payroll compliance rests with your vendor, freeing you from the constant pressure of staying fully informed and compliant with the ever changing - and growing - rules, regulations, and legislation.
In addition, all wages and tax payments are sent electronically and online access lets you view, print and save all payroll data. Employees have access to their wage history by logging into their own portal; access to complete wage history ensures they will always be able to view their information at their convenience.
Reliability, full-service options, and reputation are the hallmarks of a quality payroll management service provider. If you are currently looking to invest in outsourcing you get your Free Download: Payroll Outsourcing Guide to help you make an informed decision or call Accuchex Payroll Management Services at 877-422-2824.