Payroll Process – Here’s Why You Should Ditch Paper And Go Paperless

Anyone who has ever performed payroll manually knows how tedious and demanding the entire process is. Verifying time/attendance and then keying in all the information into the proper forms for each employee to generate their paychecks is not only long-winded, but also leaves you with the responsibility to carefully store tons of paperwork.

Let’s consider the example of publicly funded projects. In such projects, contractors pay their workers a prevailing wage by calculating remuneration of each employee with the use of manual timesheets. They take into consideration the number of hours they worked every day for a fixed period. 

This payroll generation process is prone to human error and can have duplicate data entries. In such situations, a certified payroll reporting software proves highly beneficial. It automates the entire process and makes it entirely paperless. This saves everyone a lot of hassle and ensures workers always get paid accurately and on time.

Read on to learn why switching to paperless payroll is a great idea for your the efficiency of your payroll process, regardless of which industry you belong to:

  • Saves time:

Doing payroll manually requires a lot of time and precision. You also need to spend time answering any questions your employees may have regarding their payroll. Switching to paperless payroll saves you a lot of time as there is no need to do calculations manually, check deductions, make paychecks, or deal with any fraudulent issues. 

Additionally, there is no time spent on helping employees with any issues as they can easily log in and find all the necessary information in the payroll portals.

  • Saves space : 

Storing years and years of payroll records for every employee takes up a lot of space and requires constant maintenance. When you switch to a paperless payroll system, all the records are stored digitally. 

Also, the payroll software is much more organized than a file cabinet used to store paper documents. This saves space and you can easily access employee records whenever needed with just the click of a button. 

  • Saves money:

Managing paper payroll records is expensive and not sustainable in the long term. Not only does it take up a lot of space, you also need to constantly spend on resources like printing paper, printers, ink cartridges, envelopes for paychecks, etc.

Paperless payroll saves you a substantial amount of money by reducing business costs as there is no need to buy all these things. In addition to this, there is no need to buy document filing cabinets for your office which makes it cost-effective.

  • Data security:

Ensuring security of paper payroll requires a lot of effort. It needs to be locked up in filling cabinets to prevent it from unauthorized access. Even after it has been locked, it is prone to damage due to accidents and you may end up losing a lot of valuable data.

Paperless payroll provides a high level of data security as the cloud software is digitally protected by passwords. It ensures that you always have data backup and only the authorized company members can access it.

  • Automatic tax compliance:

Understanding tax requirements and calculating tax withholdings manually is no easy task. You need to go through a lot of documents and ensure there are no errors. In case you file incorrect payroll taxes or fail to pay taxes on time, there is a heavy penalty involved.

Paperless payroll software streamlines the payroll tax process and files it electronically as it has automatic compliance with tax laws. Since your payroll data is well organized, submitting your payroll taxes becomes efficient and uncomplicated.


In addition to above mentioned benefits, paperless payroll is environmentally friendly and a green practice. Since employees always receive payments on time regardless of the holidays or any unexpected events, it increases their faith in their employer.

Eada Hudes is an Arts student whose experiences in life make her really tougher than anyone else. She can lend you expert tips on diverse topics ranging from relationship to fashion, technology, making money, health and so on. Her write-ups are a window into her thoughts and knowledge.

Payroll Process – Here’s Why You Should Ditch Paper And Go Paperless

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