Now more than ever, businesses are looking for ways to go green, while also maintaining security. Doing away with paper pay stubs and checks in favor of an online portal is a great way to do just that. The benefits of paperless extend further as the majority of employees today prefer direct deposit and receiving their check stubs electronically.
Why should I switch to direct deposit and paperless?
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Give employees what they want
Not only are online check stubs a good way to save paper and money, but they are also very popular with employees. 87% of employees are highly satisfied with their decision to use direct deposit, according to a recent NACHA survey. 73% say it helps them feel in control of their finances while 72% say it helps them manage their money. With the introduction of mobile apps, employees are able to view their pay details securely from anywhere at any time.
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Reduce paper waste
Although 64% of employers encourage or require workers to use direct deposit, 43.9% of American wage earners receive a paper pay stub. That adds up to approximately 1.8 billion paper check stubs each year. That’s 3.6 million reams of paper and more than 200,000 trees. Switching to online check stubs is a simple way to reduce your company’s carbon footprint.
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Keep your payroll information securely accessible
There are many benefits to switching from paper paychecks to online check stubs, including security. You never know where paper pay stubs may end up, which means your employees’ sensitive information could be at risk. An online system allows employees to view their pay stubs securely and on their own time. Online check stubs along with online reports also mean no delivery fees or lost payroll records.
Employers should know that workers trust direct deposit. According to NACHA, 83% say it’s a safe and secure method to receiving pay.
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Keep payroll records up to date
Using checks means that an employee who is sick or on vacation doesn’t get paid until they come back to work. Employees like being paid immediately, regardless of whether they are in the office on payday. Moreover, bookkeeping will be immediately up to date; you don’t have to wait until everyone cashes their check for the books to balance.
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Reliability
With direct deposit employers are able to process payroll and pay their employees on time regardless of national holidays or things like bad weather or natural disasters. This puts confidence and reliability into an organization’s framework.
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Costs of running payroll
Paychecks are expensive. According to the National Federation of Independent Business (NFIB), it can cost employers $3 to print a single check. For organizations with a dozen or more employees, and those looking to grow, these costs can begin to stack up quickly.
How Can a Payroll Service Help with Direct Deposit?
Time is money, and you don’t want to waste time (especially as a medium or small business owner) running payroll and managing payroll taxes. A payroll service can handle those tasks for you.
Cloud-based payroll software makes the information available anywhere and from any device. The direct deposit process should be seamless with a top-notch customer support team that’s a phone call away should any questions arise.
For more information on how Paycor can help with your payroll and direct deposit, click the button below for a self-guided tour.