5 Cons of Paperless Payroll, With Tips for a Smooth Transition

In this digital world, more and more business firms are shifting gears to remain competitive and relevant. Deciding to go paperless with different functions like payroll processing is an eco-friendly, responsible decision that also incurs time and cost savings. When you eliminate paper, say for making a pay stub, you also cut back on storage needs. The likelihood of committing mistakes goes down as well. However, the process comes with a few pitfalls that you must guard against.

Potential Drawbacks of Going Paperless With Payroll

If you have decided to switch to a paperless payroll function, here are some setbacks you need to work around:

1. Restrictions under Pay stub Laws

If you have switched to a paperless payroll system at your organisation or use a digital check stub generator, you might still be restricted by the laws in your state. Many states in the US require firms to maintain a pay stub printing option for their employees. Plus, if your company has a presence in multiple states, that’s more regulatory compliance of which you must be mindful.

2. Potential Security Concerns

Since going paperless for payroll is a major decision involving digital systems, security could be a concern. Payment records include confidential information, the breach of which could be an expensive affair for the organisation. This is why workplaces must invest in the latest security standards while making the switch. Tip: Ask your chosen vendor for a paycheck simulation to test their security protocols.

3. Delays in Direct Deposits

Another drawback of paperless payroll is a potential delay in direct deposits in nonbank financial institutions. This might happen during weekends and holidays. Credit unions are especially likely to encounter this problem.

4. Fees for Direct Deposits

Some workplaces might offer paycard systems to employees when they opt for paperless payroll. These systems transfer payments directly onto debit cards. While it is a convenient system, the fees involved could be rather high. In fact, the fees could well eat into your regular pay.

5. Equipment Needed for ESS Model

If your payroll system uses an ESS (employee self-service) model, then your workforce will need a computer and a working internet connection to access it. This might become a challenge for some employees who may struggle to access their payment information, check stubs, etc.

Tips to Make a Smooth Switch to Paperless Payroll

So, how can you make the transition as hassle-free as possible? The most important thing to remember is that the process has a learning curve.

• Choose early whether you wish to keep the paperless payroll system in-house or outsource it. If you lean toward the latter, meet up with multiple vendors to compare the quality and costs of their services. You can find a pay stub maker free online, but be wary of fraudulent websites.
• Extend training to your employees on self-service solutions. This will demonstrate how they can access their payment records securely, whenever they require.
• If you wish to avoid using expensive software for digital check stubs, a reliable online stub creator with an updated algorithm is a good option. At StubCheck.com, we are committed to helping you build professional payment records for your business at optimal costs.

Remember, it is vital to implement the paperless route throughout your payroll system to ensure continuity and generate time- and cost-savings for your business. This includes electronic pay stubs, time cards, timesheets, and any associated documents.