WHY SHOULD I SWITCH TO DIRECT DEPOSIT AND PAPERLESS PAYROLL?
If you are still issuing paper checks and paper pay stubs, you need to think about the advantages of a more paperless payroll. Maybe you have already implemented a portion of the paperless payroll process but you are interested in taking it a little further. There are many options and alternatives. Let us know if you are interested in looking at a more secure, employee friendly solution and we can assess the options available for your situation.
1. Give employees what they want
Not only are online chceck stubs a good way to save paper and money, but they are also very popular with employees. 87% of employees are highly satisfied with their decision to use direct deposit, according to a recent NACHA survey. 73% say it helps them feel in control of their finances while 72% say it helps them manage their money. With the introduction of mobile apps, employees are able to view their pay details securely from anywhere at any time.
Some payroll services offer employee self-service. This feature gives employees the ability to access their payroll information online. They can digitally view and print paystubs, send time-off requests to their manager, update their personal information, track their work time and schedule, and access payroll information 24/7. Managers can monitor work schedules, approve time-off requests, and share HR and payroll documents with employees.
2. Keep payroll secure and accessible
There are many benefits to switching from paper paychecks to online check stubs, including security. You never know where paper pay stubs may end up, which means your employees' sensitive information could be at risk. An online system allows employees to view their pay stubs securely and on their own time. Online check stubs along with online reports also mean no delivery fees or lost payroll records.
Employers should know that workers trust direct deposit. According to NACHA, 83% say it's a safe and secure method to receiving pay. No more worries about checks being stolen from mailboxes and fraudulently duplicated resulting in loss of funds.
3. Timely Delivery of Payroll and up to date payroll records
Using checks means that an employee who is sick or on vacation doesn't get paid until they come back to work. Employees like being paid immediately, regardless of whether they are in the office on payday. Moreover, bookkeeping will be immediately up to date; you don't have to wait until everyone cashes their check for the books to balance.
4. Reduce Paper Waste
Although 64% of employers encourage or require workers to use direct deposit, 43.9% of American wage earners receive a paper pay stub. That adds up to approximately 1.8 billion paper check stubs each year. That's 3.6 million reams of paper and more than 200,000 trees. Switching to online check stubs is a simple way to reduce your company's carbon footprint.
5. Reduce Costs of running payroll
Paychecks are expensive. According to the National Federation of Independent Business (NFIB), it costs employers $3 to print a single check and postage is up to $.50 per envelope. For organizations with a dozen or more employees, and those looking to grow, these costs can begin to stack up quickly.
The American Payroll Association says that employers are switching to paperless payroll because it makes good financial sense. Sources of savings include spending less on stationery and printing, minimizing manual labor, reducing fraud, and letting employees self-manage certain aspects of their payroll instead of having to contact your payroll staff.
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