Keeping pay stubs is an important part of bookkeeping. These records contain valuable information that your company needs during tax season and the IRS requires you to keep for certain periods of time. But generating physical checks and pay stubs for each employee can be daunting to keep up with and extremely time-consuming.
Making your own paperless pay stubs can help you avoid this hassle and yield other benefits, like saving your company money. Here are five ways paperless payroll can make your life better.
The process of producing paperless stubs is seamless. Add in work hours and the system calculates the rest. After it generates paychecks and stubs, you can download copies for recordkeeping.
Producing your own pay stubs also means quicker payment for your employees. And it translates to greater efficiency when your company is doing its taxes each year, or if there is an audit.
Using a pay stubs generator ensures that the calculations and information produced are accurate. It eliminates the potential for human error that can happen during production. With a pay stub generator, once you set a format, there is very little you have to change each pay period.
Another area of efficiency is that pay stub generators make it easy to make adjustments. If you forgot to input a paid holiday, for instance, it’s simple to go back, make the correction, and generate new checks.
And paperless payroll systems allow you to preview the check and pay stub before it generates them (as opposed to having to go back and reprint them if there is an error).
Once you produce a pay stub, you can save it to electronic records. As long as you are backing up your files, you can ensure that you have a copy should you need to reference it.
In the event of an audit, paperless pay stubs make searching for particular words or phrases much easier. It ensures that you have access to any information you need without onerous searching through file cabinets.
4. Space Saving and Waste Reduction
Having electronic pay stubs can cut down on needed physical file storage space. You can manage all your company’s finances digitally.
There is also an environmental component to this. Even if every paycheck and stub your company generates is recycled, this requires energy. Electronic payroll systems dramatically reduce or eliminate this waste.
Online payroll software allows you to customize the layout of the document. For instance, you can add your business logo and any relevant information you think may be useful to the pay stub.
You might choose to include things like hourly rate, salary, hours of paid-time-off, and many other categories. These details can be helpful in explaining the details of the paycheck to the employee.
Start Producing Paperless Pay Stubs
Now that you understand the many benefits of paperless pay stubs, you can help your business function more efficiently and save money. You can cut stress so that you and your employees are happier.
We hope this information was useful to you. Be sure to check out some of our other posts on technology, business, health, travel, and many other topics.