Interest in moving to a completely paperless payroll solution is growing across all business types looking to streamline the entire payroll process. At APS, we are experiencing this first hand as more customers choose to eliminate the distribution of paper reports, direct deposit vouchers,and checks.
The time and money saved from eliminating paycheck delivery costs and report storage costs are the primary reasons why companies choose paperless payroll. Another is the convenience to employees of having 24/7 access to their pay information and the efficiency of accessing reports and data electronically. This post summarizes the steps to achieve a paperless payroll solution for your company
1) Start by using a payroll software solution
Payroll software comes with a wide variety of capabilities which you will want to evaluate. For purposes of this discussion you will need an online payroll solution with integrated employee self-service. APS provides online payroll software that allows our customers to run payroll from anywhere at anytime.
2) Pay your employees electronically
The most common electronic payment method is direct deposit. Direct deposit allows your employees’ pay to be transferred into their bank account or multiple bank accounts if desired. Another option of paying employees electronically is to use pay cards. A pay card is similar to a debit card issued through a bank. The card is tied to an actual bank account that does not have the services that a normal checking account would have, such as checks or statements. Instead, employees can access their pay from an ATM or use it as a debit card at numerous merchants.
3) Launch an Employee Self-Service Solution (ESS)
Employee self-service is the term that has been coined for a payroll solution that allows employees to access their pay history, personal information, and company information through a unique login name and password. As it relates to a paperless payroll process, ESS enables employees to receive their direct deposit vouchers electronically,therefore eliminating the need to print and distribute checks or vouchers. In our online payroll solution, APS OnLine, employee self-service is part of the HR and payroll solution. This means that changes to employee information and new pay stub information is available in real-time over the Internet.
Beyond the Status Quo in Paperless Payroll – the Paperless Office
The status quo from payroll outsourcing companies when it comes to a paperless payroll solution stops at some type of electronic delivery of pay stubs.
However,this doesn’t address some of the biggest areas of waste. To start, many payroll outsourcing companies send print copies of the payroll reports to their customers rather than making these reports available in a digital format. An ideal payroll solution will make all payroll reports and data available online and accessible on demand. Some companies provide payroll reports on CD’s and then purge the original data, which reduces paper but still wastes time since it requires loading the CD’s one at a time to retrieve the desired information.
While a paperless payroll solution is a great start, it doesn’t deliver on the full opportunity to reduce waste and save money. Companies themselves spend a large amount of money printing handbooks, enrollment forms, time-off requests, and time cards. Each of these items can be managed electronically if the right software is available. In our case, APS OnLine allows companies to extend the paperless environment by using our web-based time and attendance software, electronic document management, and accounting integration features.
Is a Paperless Payroll Solution Right for Your Business?
To evaluate this it is important to consider the potential benefits to employees, as well as to your staff that performs routine payroll and HR tasks. Here are some questions to ask:
- Is direct deposit a payment option for your employees?
- Do your employees have Internet access?
- How many forms do you print and distribute to your employees?
- How do you track employee time & attendance data?
- What is the process for employees to request time off?
- How many check stubs or W2s do you reprint for employees?
- How are you currently storing your payroll reports?
- How often do employees inquire about vacation or sick time balances?
Based on the questions above you probably discovered some areas of improvement. The reality is paper is not going away, but in payroll it can.
Can your company benefit from a paperless payroll solution and paperless office?