You can't blame most HR executives and managers for reflexively associating the word "green" with money — and paperless payroll systems. But many leading HR software providers are also beginning to "think green" in terms of money and protecting the environment.
Perhaps the most prominent resource-wasting activity in which HR departments routinely engage is the needless generation of paper checks and advice forms. Each year, an untold number of trees are cut down to create payroll-related documents that are typically used once and thrown away.
The Other Green In HR Solutions
While paper documents can be recycled, it requires fuel-burning, pollution-generating factories to convert waste paper into usable material. Paper documents also require printing equipment that consumes expensive ink or toner and cartridges that must be recycled. Finally, the printers must be either recycled or sent to a landfill after they become outdated. In all, paper documents are costly and wasteful.
A better alternative to printed documents is to use computers and the Internet to create a paperless payroll system that eliminates the production and distribution of payroll checks and associated documents. Besides helping the environment, paperless payroll systems can reduce or eliminate the costs associated with paper forms, printers and consumables, lost and stolen checks, and document distribution.
Analyze Your Current Payroll System
If your payroll process has yet to have a significant overhaul in several years, switching to a paperless payroll systems approach is an excellent time to take care of outdated processes and other shortcomings when you are ready to upgrade your payroll software. On the other hand, if your current payroll system is up-to-date, you'll have to take steps to blend the new paperless payroll systems technology into your existing environment.
As with any other major HR technology initiative, the devil is in the details when planning paperless payroll systems. The first step is to educate senior management about the approach's business and environmental benefits of using paperless payroll systems. Next, you'll have to sit with your company's payroll and IT team to work out a paperless payroll systems blueprint and timeline using the best HR tips for every organization.
Check Your Payroll Data
Most companies will have to collect additional information from their employees before launching a paperless payroll system. To arrange for direct deposits, for example, you'll have to ask employees for the names and addresses of their financial institutions and their checking or savings account numbers and routing information. For employees with no financial institution affiliation (the "unbanked"), you'll need to use an alternate payment technique, such as pay-cards.
You will also have to collect your employees' email addresses so you can electronically send them their annual W2 forms and various other paperless payroll systems-related documents. You may, unfortunately, still have to snail mail documents to the homes of employees who need Internet access, but this should be fine with implementing paperless payroll systems.
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Why Consider Paperless Payroll Systems?
Paperless payroll systems have countless benefits, especially from an environmental and sustenance perspective.
- Paperless payroll systems are good for the environment as you require lesser paper and printing resources, reducing your carbon footprint and enabling the conservation of the domain.
- It is an efficient system that helps you save time otherwise spent on preparing and delivering checks, resolving problems regarding cashing checks, lost and undelivered checks, and fixing and managing fraud.
- Paperless payroll systems enable businesses to cut down costs of purchasing payroll resources and printing.
- Paperless payroll systems safeguard your business by streamlining your tax processes.
- Accessing your employees’ payroll data online and via mobile devices is more accessible, even after hours. With paperless payroll systems, employers and employees can conveniently access their payroll data, such as direct deposit information.
- Paperless payroll systems allow you to make timely payments irrespective of sudden unplanned events or holidays. Employees can rely on timely payments and plan accordingly when using paperless payroll systems.
Typically, paperless payroll systems services offer digital storage of records and provide easy access to them.
Find the Right Fit
Only some businesses have the internal expertise to implement paperless payroll systems. Fortunately, spotting a budding trend, the number of paperless payroll service providers is growing rapidly. But before you commit to any particular provider, check to see that the company offers competitive pricing, has experience with businesses in your field, and supports the following paperless payroll systems features you need to grow business while remaining compliant and managing risks:
- Payroll processing
- Time/attendance tracking
- Employee invoice and timesheet submission
- Direct deposit/paycards
- Tax forms and filing
- Standard Services Offered by Paperless Payroll Systems Companies
While it’s best to consult payroll software reviews for in-depth knowledge, we have shared some standard services offered by popular paperless payroll systems providers here:
- Electronic Funds Transfer (EFT) allows you to transfer salaries without needing physical checks, as long as you have your employees' bank details.
- Electronic Payroll Records enable you to avoid wasting paper and save your office from the mess of paper records.
- However, the Fair Labor Standards Act requires businesses to keep all payroll records for a minimum of three years.
- Employee Self-service (ESS) models enable employees to check in and out of work digitally and also access employee handbooks, benefit options, and company history online. This way, attendance data is also accurate when using paperless payroll systems.
If your organization is considering switching to paperless payroll systems, then here is a payroll software list featuring the top paperless payroll systems software solutions:
- ADP Workforce Now
- EPAY Systems
- QuickBooks Payroll
- Sage 50Cloud
- Vibe HCM
Those searching for paperless payroll systems software for large companies can find a decent fit from the above-mentioned list of payroll software.
Get Ready to Deploy.
There's no sugarcoating the fact that paperless payroll systems are a significant project that's fraught with pitfalls. Before taking it to live, you and your service provider must carefully test the system for gaps and bugs. To limit potential startup damage, it's best to begin with a trial paperless payroll systems deployment covering only a small group of employees before applying the new paperless payroll systems to the entire workforce.
Once the paperless payroll systems are up and running, encourage employees to offer their opinions about the process and any suggestions for improvement. Most employees with negative opinions won't hesitate to tell you what they think, but to get a complete picture of the paperless payroll systems’ impact, you'll also want to know what you're doing right. Compare the best HR systems to select the right paperless payroll systems for your business.