In this digital age, businesses are looking for strategies to go green and remain secure. A great way to do that is doing away with paper checks and switching to an online portal. With quality online providers showing businesses how to make a paycheck stub for free, many employers are starting to realize the benefits of using online pay stubs.
What is a Pay Stub?
It’s part of a digital paycheck with details related to the employee’s pay. A pay stub itemizes the salary earned for a certain pay period. It shows taxes along with other deductions made from the employee’s earnings. The pay stub also shows the actual amount received by the employee-net pay.
So, why do most employers use paperless payroll?
1. It makes employees happy
Online checks are not only an ideal way to save money and paper, but they are also what employees want. According to a NACHA survey, 87 percent of employees are satisfied with the use of direct deposit; 73 percent says it helps them to pay bills promptly, and 72 percent says it enables them to be in full control of their finances. By using mobile apps can conveniently view their payment details from any place and at anytime.
2. Keeps payroll information secure and easy to access
Switching from paper pay checks to online-based check stubs is secure. It’s hard to know where paper pay stubs might end up, and that can put your workers’ sensitive information at risk. However, using an online system makes it possible for employees to view pay stubs securely and at their own time. Besides, online check stubs and online reports mean no lost payroll records. Most workers trust direct deposit with NACHA showing that 83 percent find it secure.
3. Keep payroll records updated
To employees, pay stubs are records of their earnings, and by reviewing these records, employees can ensure the payments were made correctly and deductions done accurately. In case of any discrepancies on the pay stub, employers can settle it with their staff. It’s also on the pay stubs that employers can update the tax information of their workers.
4. Enhances Transparency in the Organization
Pay stubs help to maintain transparency between employers and the workers. Employees would like to know the exact amount they’ve earned and the number of deductions made from their income. Other than social welfare deductions like Medicare, there’s also medical insurance, state and Federal income taxes, and many other items. Given that all these details are clear and can easily be accessed online on a pay stub, the level of transparency in an organization improves.
5. Timely Payment of Salaries
Using paper checks means a worker who’s on vacation or sick won’t get paid until they get back to work. Most employees prefer prompt payment regardless of where they are on a payday. Direct deposit makes this possible as employers are able to make payments on time in spite of whether it’s a national holiday or there’s bad weather. This puts reliability and confidence into the company’s framework.
Most employers prefer online pay stubs because of the convenience and cost-effectiveness the method offers to the business.