More and more businesses are digitalizing their operations, meaning more small companies are adopting the paperless payroll system. Paperless payroll is exactly what it sounds like, running payroll without paper. This model not only simplifies business management, but also brings a variety of benefits in daily business activities. Particularly to business owners and HR managers, as payroll errors can be costly and complicated to fix.
In this article, we’ll explore the key paperless payroll benefits for small businesses, cost reduction, increased efficiency, and the positive environmental impact this solution offers.
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What is Paperless Payroll?
Paperless payroll is a digital solution where companies can manage their employees’ payments. It automates and digitalizes the whole system, from calculating payment from employees’ work hours, processing payroll, and generating electronic paystubs. Essentially, eliminating the use of all physical documents used throughout this process.
Completing eliminating your all of your company’s paperwork may not be possible for all small to medium sized businesses (SMBs). However, reducing the amount of paperwork your company saves costs. Particularly when it comes to payroll, going paperless has many benefits including enhanced efficiency, minimized errors, and a more secure and faster payroll process.
Benefits of a Paperless Payroll System
It can be difficult to change operations at your SMB, especially when it comes to payroll. Nowadays, more companies are moving towards a digitalized and automated system by utilizing software. HR managers can process payments automatically while remaining compliant to labor laws. If you’re hesitant to implement a paperless payroll system, here are some benefits to why you should go for it.
Reduced costs from paperless payroll
By cutting down time spent on manually processing payroll, SMBs can reduce their labor costs by automating these steps. Paperless payroll systems free up time for HR managers to focus on duties that keep the business running and require personal attention. Furthermore, implementing an electronic processing system makes documentation easier. Archives will be readily accessible and assist in audits to ensure the company is always complaint with all employment and financial regulations.
In addition to cutting labor costs, going paperless also reduces costs spent on supplies including paper, ink, and printers. While this may not seem like a big monthly saving, overtime this will impact your SMB resulting in a generous amount of savings. Depending on your company’s system in place, digitalizing payroll also means no more physical storage. Ultimately meaning paperless payroll systems cuts costs in two ways: Labor and supplies.
Enhanced payroll documentation
Traditional payroll involves printing checks, tax forms, and other documents, but paperless payroll eliminates these expenses. All these documents will be digitalized and stored electronically which allows them to be easily accessible. Which ensures documents are safely and securely stored to reference at a later date or are required documents to complete audits. In addition, by utilizing payroll software, human error will decrease and improve accuracy in all payroll documents.
Increased efficiency
Your SMBs efficiency and productivity will improve since repetitive and time-consuming tasks will be eliminated due to automation. Compared to manually running payroll, this automation process ensures your employees are paid correctly and on time. Not to mention, it reduces the chance of payroll issues which can lead to delayed paychecks or incorrect payments.
Environmental benefits of paperless payroll
You can reduce your company’s carbon footprint by eliminating the use of paper for your payroll. Paperless payroll reduces paper usage significantly by digitalizing payroll documents and sending electronic pay stubs. This promotes less consumption at the workplace, even beyond just paper. In addition to printers, faxes, and other machines needed to carry out the payroll process. Not only will your company have a more efficient solution when going paperless, it is also an added benefit to be positively impacting the environment.
Staying compliant
Utilizing a payroll software ensures companies are staying compliant with local employment laws and regulations. Payroll softwares are designed with regulations in mind, so it brings peace of mind to your company and HR teams when utilizing software. In addition, paperless payroll systems offer advanced data security to protect your employee’s information as well asa your company’s financial status.
If you want to ensure your company is complaint, download this HIPAA cheatsheet.
Secured employe data
Protect your employee data with software that includes data encryption, multi-factor authentication, and information backups. Implementing paperless payroll software ensures sensitive employee information including salaries, taxes, and personal information is protected from internal and external threats. Moreover, your company remains compliant by adhering with local laws and prevents your company from facing costly fines. This ease allows your HR team to focus on other operations such as growing the business and strategic planning.
Paperless Payroll Software Solutions
Some common solutions used to go paperless are:
Factorial: Specifically designed for SMBs and designed as an all-in-one business management software. Factorial is an intuitive platform that seamlessly integrates it’s HR functions with payroll platforms. It’s the top choice to ensure all required information such as employee hours and employee information work effortlessly when running payroll.
Related: Download Factorial’s Payroll Checklist
QuickBooks: This is a great option for companies already using QuickBooks for accounting. As you are already familiar with it’s platform, processing payroll will be simple and quick. In addition its payroll solutions are comprehensive for companies that need something more robust.
Paycor: Known for its payroll solution, it offers automation and seamless integrations with other digital tools your company may use. Its overall a reliable software solution for companies of any size.
Top Paperless Payroll for SMBs: Factorial
Factorial is the go-to tool for all SMBs. It’s user-friendly design and abundant features are all designed to tackle all of your HR manager’s pains. This platform can transform your company’s payroll management, offering more efficiency, security, and compliance. In addition to providing paperless payroll software, Factorial also automates time tracking, expenses, and document management – all of which are needed to run payroll.
Book a FREE demo to see how Factorial can transform your payroll process. In the meantime, check out all our exciting features Factorial has to offer! Count on us to help your business grow in a smarter and more sustainable way.
