Switching to Paperless Payroll
August 25, 2021
Switching to Paperless Payroll

Are you tired of passing out paystubs? You are not alone. More and more businesses are switching over to paperless payroll, and for good reasons! Paperless payroll solutions are being sought after by management.  “Too many times, I have received notification that a delivery company is not going to be able to deliver a payroll package as scheduled due to a storm that has impacted a flight or mechanical issues. This creates a huge hassle for the employer and employee. Either the employee has to wait until the check arrives, or the employer has to write a replacement check (including issuing a stop payment on the original check) which is just added cost and time,” says Greg Stabley, Senior Payroll Specialist for SimcoHR.  But before you make the switch, here are some things that employers should know.


Benefits of Paperless Payroll

Organize and Reduce Clutter

Gain the ability to store payroll documents electronically, get rid of clutter and make payroll documents easier to find and access. Have unlimited storage options and the ability to access files from anywhere using you cell phone or laptop. Become eco-friendly by eliminating paper waste.


Electronic Funds Transfer

When you are waiting for those paper checks to be delivered and that inevitable storm hits that delays delivery, you will wish you had done this! Transfer wages to your employees electronically by direct deposit or pay cards. This will minimize your need for paper checks, and a faster way to pay your employees. There are also less checks to reconcile when you do your bank reconciliation.


Self Service for Employees

Gives employees the ability to access their payroll information online. They can digitally view and print paystubs. It’s simply easier and more convenient for your employees.


Modernize with Electronic Time Sheets

Give your employees a simple way to clock in and out online or via an electronic timekeeping system. Not only does this cut down on the opportunity for time theft, but the system does the work and eliminates many manual errors.


Payroll Compliance

Depending on what payroll software or provider you choose, the system calculates wages and deductions--plus it enables online payroll tax reporting, increasing speed and accuracy while lowering the risk of noncompliance. The system provides organized payroll records to help you adhere to federal and state recordkeeping standards. Since your payroll system is accessible online, or in the cloud, it is much easier to meet your payroll deadlines, even during unexpected events such as inclement weather.


Money Saver

According to The American Payroll Association, “employers are switching to paperless payroll because it makes good financial sense.” You’ll find that there are costs saving due to paying less on printing costs (ink, paper, stationary, toner, etc.), decreasing the amount of manual labor, reducing fraud, and allowing your employees to self-manage certain aspects of their payroll instead of having to reach out to their payroll department or resource.


Know What to Watch For

Although paperless payroll is growing in popularity, there are things you should be aware of and watch out for. Keep in mind the following items as you move forward with a paperless payroll process:


Paystub Regulations

Several states, including New York State, has paystub laws which may cover electronic paystub delivery. For example, in some states, employers that offer direct deposit must also give employees the option of paper checks (NY is one of those states). Additionally, some states require that employers give employees the ability to opt out of receiving their paystubs online.


Security Concerns

When it comes to computerized data, security is always important. Payroll has ample amounts of confidential and sensitive information. Make sure to back up regularly and make sure you’re using the latest security controls. Things like secure portals, individual usernames, encrypted passwords guard sensitive information. SimcoHR works with providers who are equipped with strong security measures in place. 


Is going paperless the right decision for your business? 

For most business owners, the answer is an easy yes. It is a great way to upgrade your business, reduce costs, increase efficiency, secure payroll document storage, remain compliant and have less micromanaging. SimcoHR can assist you in moving to a paperless payroll. It is a relatively simple process and one your employees will appreciate! Contact us today if you would like to know more.

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