Paperless wage payment is a way for budget-conscious employers to cut costs at the same time as adding benefits to protect employee retention and productivity. Paperless wage payment, such as direct deposit with online pay stubs, eliminates traditional paper paychecks. Although employers in many states can’t make direct deposit of pay mandatory and must only offer it as an option, the financial and accessibility benefits for both employers and employees make it a very attractive practice.
The savings from direct deposit payroll with online pay stubs can be enormous, up to $2 per paycheck according to the Comptroller of the Currency estimates. The Agency also estimates savings of $8 to $10 to replace lost or stolen paper check when employees are paid electronically.
The savings extend to delivery of paper paychecks when payroll is processed electronically. Placing postage on checks becomes obsolete, delivery from online payroll services is usually free of charge, and it’s much easier to get payroll distributed in inclement weather or natural disasters when everything moves to employees electronically.
Employees benefit from the convenience of paperless pay in big ways too. Electronic paycheck methods provide employees with wages in a far safer, more secure way than paper paychecks and it prevents them from needing to take a physical check to the bank. When pay is deposited directly into accounts on payday, employees have no delay in access to their money and no risk of losing a paper document before it gets deposited. They can access their wages from a variety of sources, often outside of regular bank hours, and accessing their pay stubs and pay history online means they don’t need to keep track of paper records.
Online pay stubs also provide employees the ability to view and print their check stub online as needed, such as during a loan process or at tax time. They no longer need to request the stub, wait several days, and sometime even pay to receive a copy.
Electronic wage payment with online access to pay stub records benefits the environment, too. A Dove Consulting study found that paper checks use hundreds of millions of gallons of fuel and add millions of tons of carbon dioxide to the environment each year. An electronic, direct deposit process saves significant resources and keeps significant amounts of pollution out of the environment.
The benefits of a paperless pay process for both employers and employees alike are clear. The law or administrative enforcement positions in many states allow employers to implement purely electronic wage payment without also offering paper paychecks. Some states require employee participation in paperless pay on a voluntary basis, meaning that paper paychecks must also be an option.
Every electronic, online pay stub allows for cost and resources savings, access, and administration.
Contact us at PAYDAY to speak to a representative and see how much time and money you can save by having your pay stubs online.
PAYDAY Workforce Solutions provides a single database SAAS solution for Human Capital Management (HCM) including payroll, human resources, time management, benefits administration and onboarding to companies of all sizes and in various industries.
625 The City Drive South, Suite 250
Orange, CA 92868