Reducing costs and increasing cost-efficiency is a goal of every business. While knowing what to change can be difficult, opting for Paperless Payroll is a good place to start.
[This post was originally published in May 2017 and has been revised and updated.]
We’re over halfway through 2019 and the end of Q3 is around the corner. And, if you’re still sorting through paper time-sheets and even paper paychecks and pay stubs, there's hope! It’s not too late to transform your payroll process into a green and paperless payroll system this year.
The Tangible Benefits of a Paperless Payroll
While there are a number of tangible benefits the derive from a paperless payroll, probably the most obvious one is that it's environmentally-friendly and green process. And this is always a good thing for any business.
But there's much more, such as the measurable cost savings.
According to research from organizations such as the Electronics Payments Association and the American Payroll Association, businesses can save over $3.00 per employee for each pay cycle by using electronic payroll. This can be accomplished using pay cards and by direct deposit.
Opting for a paperless payroll process results in the elimination of paper check costs. And, when you add the savings of approximately $1.20 per employee with online pay stubs online, the overall savings become substantial.
For example, an organization of 100 employees can realize over $400 per pay period, which, for most companies of this size, adds up to almost $11,000 per year.
In addition, every time a paper check is lost and must be replaced, it's estimated that the cost can be as much as $8 to $10 for every replacement check.
Another cost-savings is in the form of fines and fees. With a paperless, or green, payroll system you can be assured that your business will pay and file your payroll taxes on time. This is because online paperless payroll programs are usually designed to file all local, state and federal taxes automatically. In addition to avoiding troublesome fees or even fines, it also eliminates the need to send in forms or make payments.
Payroll Processing in the Cloud
The rise of cloud computing along with almost infinite amounts of remote storage available, has created 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, is a vital payroll function. Protecting your company and employee data is critical, and providers like Accuchex take client's security seriously. We ensure this by providing secure access to our Time2Pay program through our state-of-the-art SSL encrypted software.
In addition, a program like Time2Pay allows security settings for internal users to be managed by assigning permission levels. This ensures that exposure to sensitive company data is limited, but without limiting employee’s ability to do their work.
As we've already noted here, the tangible benefits of a paperless, or green, payroll are numerous. In addition to the decreased office clutter and the reduced of labor for your HR staff, a paperless payroll process will significantly impact your bottom line.
When you add up the savings from reduced paper, mailing, printing costs as well as the cost-effectiveness of reallocating HR staff labor to more productive tasks, it's possible for a large company to save thousands of dollars each year simply by installing a paperless payroll process.
Accuracy and Security With Paperless Payroll
Direct deposit for employee payroll, or re-loadable pay cards, provides a safer, more secure and less costly option instead of sticking with paper checks and pay-stubs. In addition, a green payroll process means no lost and stolen paychecks. And by providing employee’s pay through a secure and reliable system, you can enable your employees immediate and easy access to their personal information, as well.
Benefits of a Paperless Payroll Process
- Employees have instant access to their wages on payday from anywhere
- Pay-stubs are available 24/7
- Data storage is offsite and secure
- Accurate and streamlined payroll process
- No more lost or stolen checks and costly check replacement
- Employees do not have to stand in line to receive or cash their paychecks
Optimizing Your Pay Cycle for Additional Savings
Another consideration if you are considering transitioning to a paperless payroll process is the frequency of your company’s pay cycle. Based on your state’s regulations, you can choose to pay weekly, biweekly or monthly. However, every pay cycle has its own benefits as well as cost considerations.
(Graphic courtesy of newsroom.inifinisource.com)
Although it may not be feasible for many organizations to make radical changes to their payroll frequency, it remains a good consideration for some businesses if it can be accomplished relatively seamlessly.
Expert Help With Your 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.
Payroll managers and business owners gain even greater freedom and simplicity with our enhanced insurance, timekeeping, and HR solutions. With integrated value-added services from Accuchex, you can streamline your processes and cut back on the time, costs, and risks of standalone solutions that keep your workforce management tasks separated.
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.