![]() ![]() This form of payment is becoming increasingly popular with technological advancements and the growth of platforms like PayPal, Cash App, Venmo, Apple Pay, Google Wallet, and Samsung Pay. This option is beneficial for employees who don’t have bank accounts. Each payday, the card is loaded with the employee’s earned wages and can be used for purchases or withdrawals just like any other debit card. Once you receive an employee’s designated bank account information, you can directly deposit his or her wages into that account through an electronic funds transfer.Īnother form of paperless payroll is preloaded debit cards. Included below are a few, but not all, of the major electronic payment methods used today.ĭirect deposit is the most common electronic payment method, with 82% of U.S. Meaning, there are now more methods of paying employees than ever before, especially as money continues to move into a more digital sphere. Nowadays, paperless payroll solutions have become the preferred option for many small businesses. Many businesses have even opted to outsource their payroll needs to vendors that have the technical resources to further optimize processes. Today, a wealth of tools exist to help companies securely, efficiently, and quickly process payroll, manage human resources, and tackle even the most complicated financial planning and analysis. But, technological innovations coupled with regulatory changes created a clear path for payroll process optimization at scale. Up until this point, check processing and employee payroll distribution was a tedious, time-consuming, and inefficient process. Then, legislation called the “Check 21 Act” passed following 9/11, which enabled banks to handle more checks electronically, thus making payment processing faster and more efficient. Accessibility and enhanced speed of the Internet, as well as the development of payroll processing software, makes the transition to electronic pay stubs possible. (Note that, regardless of whether a state requires the provision of check stubs, businesses must always maintain accurate records of employees’ hours worked, wages, and payments.) For example, states like Georgia and Florida do not have their own requirements and thus, do not require companies to provide any kind of paycheck stub. Most states have their own laws regarding access to them. ![]() That said, providing physical pay stubs is not federally required. A physical record of how many hours an employee worked, how much that person earned, and how much was withheld in taxes, Social Security, and other withholdings.įor both employers and employees, paper check stubs have historically been an effective way to manage employee records because all of the information is printed clearly and updated each pay period.A printed, tangible document for employees to take to a bank or other check-cashing facility, and.The most traditional form of payroll distribution has historically been printed paper checks and check stubs. Let’s take a closer look at this evolution and the transition to online pay stubs. While leveraging technology to improve processes is an answer to why paper check stubs have disappeared, it’s not the full story. They have instead welcomed the days of accessing electronic check stubs online. ![]() For many businesses, paper check stubs are an antiquated thing of the past. Over time, companies have identified employee paychecks as an area ripe for improved efficiency. In business, optimization is the name of the game. ![]()
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