How do you approach processing payroll? If you’re like most employers, you’re likely to spend hours each month calculating payroll.
On average, small business owners spend 5 hours a pay period processing payroll and printing out checks and documents.
You need to be able to find ways to cut down on the amount of time devoted to payroll. One of the ways is to create a paperless employee. This is where all employee documents are online instead of on paper.
Read on to learn about the top benefits of paperless employees and how you can create an entire paperless employee system.
Top Benefits of a Paperless Employee
Does it make sense for your business to shift to paperless employees? Take a look at some of the top benefits of having paperless employees and decide.
Going to a paperless employee system saves time for you and your employees. It saves you time because you no longer have to print paychecks and hand them out to your employees.
You don’t have to worry about replacing those checks because employees lost them or forgot to take the check from their pockets before doing laundry. You do payroll once, and that’s it.
It saves your employees time because they don’t need to run to the bank or remember to deposit a paycheck.
Some people have calculated the financial cost of printing checks of $2 per paycheck. Let’s say that you have 10 employees. It may not seem like $20 is a lot to spend on printing checks.
If you pay your employees every week, that could be over $1,000 a year just to print checks and paystubs.
Another financial cost is in printer ink. You may have spent a little money on the printer, but the ink is expensive. Going paperless completely eliminates this cost and reduces the frequency to replace ink cartridges.
How to Have Paperless Employee Systems
As you can tell, there are many financial benefits of having a paperless employee. If you’d like to have a paperless employee at your business, here are some tips to make the transition from paper to paperless employees.
Analyze Your Current Processes
Take a look at the way your organization currently handles employees. There is a lot of paperwork that happens when onboarding employees, such as W4 forms, I9 forms, and job applications.
Every pay period, you need to pay your employees and keep records of their paycheck stubs. You may print out checks instead of using direct deposit.
At the beginning of each year, it’s your job to create and send out W2 forms for earnings and tax withholdings for the previous year.
This is just basic information. It doesn’t include employee surveys or performance reviews that you need to keep records of as well.
Prioritize the Most Consuming Processes
You’ll want to take a look at what documentation you have on paper for each of your employees. You could choose to go a paperless all at once, or you can go paperless one process at a time.
If you choose the latter, start by prioritizing which processes take up the most time for you. Most business owners will choose payroll because it’s so complicated to figure out.
In that case, you’ll need to figure out how to get pay stubs to your employees if you move payroll online and use electronic pay stubs.
Find Systems to Replace the Processes
As you analyze systems, you need to come up with an idea as to what you’re looking for. You need to have a solution or series of solutions that fit your needs and your budget.
You’ll quickly find that there are dozens of paperless systems out there, and each one will vary in price and features. Make a list of the most important features to you and what you have the budget to spend.
One feature that cannot be overlooked in going paperless is security. About 60% of small business owners don’t have a cybersecurity policy, yet small businesses are big targets of hackers.
You have to make sure that you pick a paperless employee solution that’s safe and secure.
You may be reluctant to spend any money on going paperless. Remember what your time is worth to your business and the opportunity costs in doing payroll and other processes on paper.
Do the math and you realize what the full value of these systems is.
Don’t Forget to Make Backups
One reason why business owners are reluctant to put everything online is that if the information is lost, it’s lost forever. That is true, but something could happen at your place of business that could cause you to lose your paper records.
There’s a risk to everything in business. Risk doesn’t mean that you avoid doing something that can help your business. It’s an opportunity to make a plan to mitigate the risks.
One way to do that with a paperless employee system is to make regular backups of your systems. Weekly or monthly backups are best, especially if you make frequent updates to your system. If you want to be extra secure, you can make a backup of your systems and store the backup offsite.
Paperless Employees Make Sense for Business
There is a business case for making the transition from paper-based employees to paperless employees. A paperless employee saves time and money in administrative costs.
Employees are happier because they don’t need to stand in line at the bank or make an extra trip. You commit to being a more sustainable business.
Remember to take the steps to invest in the right paperless employee systems and make backups of your work. When you do that, you have a great system that works for everyone.
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