More and more companies are moving every day towards automating most of their operations, including payroll, which no longer naturally remains paper-based, while now most operations are done electronically, and in a much easier way.
A paperless payroll is any fully electronic payroll system, which typically includes electronic tools for preparing payroll, tax forms, and automating the rest of employee payroll processes.
Advantages of Paperless Payroll
1- cost saving
Research by the Electronic Payments Association and the American Payroll Association concludes that direct deposit saves several dollars per payroll.
– Paperless payroll also helps to avoid the loss of checks sent in the mail, thus avoiding the expense of reprinting and sending them.
2- Tax payments
Many paperless payroll systems proactively send notifications when it’s time to generate tax forms, or even automatically generate forms.
These systems also create more accurate tax forms, in addition to informing the user when to pay taxes, avoiding any late penalties.
3- Save time
Writing checks, signing them, and mailing them, all of these processes take time that can be saved by relying on paperless payroll systems.
4- Ensure that employees receive their salaries on time
Manual delivery or postal checks sent through the mail, means that employees’ salaries can be delayed if post offices are closed during public holidays, and this will inevitably be inconvenient for employees, and this can be completely avoided through paperless payroll.
Automated payments enable employees to get paid on time.
5- Security of data and records
It is now increasingly common to store sensitive information digitally, as an electronic system is more difficult to hack than locks, and therefore more secure.
– Digital storage also does not need storage facilities, so if any fire or damage occurs on site, the records will remain safe.
6- Large storage space
While all types of storage facilities have limited space, digital storage has no storage limits, paperless payroll systems allow for unlimited storage spaces.
7- Environmental protection
Producing 100,000 paper requires cutting down eight trees, and while trees absorb carbon dioxide and help fight climate change, paper production results in significant carbon emissions, so if any company wants to reduce its carbon footprint, it has to start off payroll paperwork.
8- Ease of access
– With electronic payroll, employees can easily access the payroll online, through their mobile devices, which is not available in the case of paper payroll.
9- Systems Integration
– If a company has already automated its accounting system, but still issues payroll manually, it will waste a lot of time during the process of entering payroll into the accounting system, while paperless payroll can be integrated with the electronic accounting system, which saves a lot of time The company, reduces errors.