Go Paperless, Go Green: How to Make Your Payroll Process Paperless


You haven’t been in business too long but already your filing cabinet is full of pay stubs and other paperwork. Not only that but you’re not too good at math so you have messed up a few times while creating pay stubs.

You haven’t gotten it wrong too often but it’s happened and the employees did complain. Get rid of all these problems by making your payroll paperless. It will save you tons of time and money while also helping the environment.

Depending on what state you live in, you may run into a few legal hurdles that you’ll have to jump but if you can switch to paperless, it’s worth it. Check out this guide to learn more about making the transition.

Why Paperless Payroll?

Before we tell you how to switch to paperless payroll, we’re going to go into more detail about why you should consider it. There are a lot of benefits such as an empty filing cabinet.

When all your payroll information is electronic, you don’t have to print anything out. Your computer keeps all the information in one, neat little space. It makes it a lot easier for you to find your employee’s information when a problem pops up.

With a completely electronic payroll system, their time card will be done via computer as well. Since there are no more paper time cards, you won’t have to worry about time card fraud near as much.

We’re all human. Even if you’re good at math, you can make a mistake. A pay stub creator can help with that.

It’s also faster and cuts out the possibility of you violating state standards by accident. With everything online, you’ll never miss a deadline either.

Lastly, you’ll save a lot of money. With everything being electronic you won’t have to spend money on printer ink or stationery. You won’t have to bother your payroll staff as much too.

Things to Be Careful With

Electronic payroll sounds too good to be true. Before you make the transition though, there’s a couple of things you should be aware of.

Even though paperless is so convenient and many companies are moving to it, it’s possible to run into legal trouble.


Before making the switch, you will need to check your paperless payroll state laws. In some states, it’s okay to go electronic but you have to give your employees the option to still print their paystubs if they want.

Some states require you to allow your employees to opt-out of receiving electronic paystubs altogether.


Since all the paperwork is online security is always a concern. For the most part, all your employee’s information will be encrypted and stored on the cloud. Though that doesn’t always protect the info if you experience a data breach.

You’ve got to make sure you keep your data backed up and always keep your security software up to date.

Direct Deposit

Now that you know a little more about the benefits of paperless payroll and the problems you could run into, it’s time to learn how to make the transition. The easiest and most convenient one is direct deposit.

With direct deposit, you can move money over from your company’s bank account, straight into your employee’s account. They’ll have their money that day rather than sitting on their hands waiting for a check to clear.

This payroll method can save your company over a dollar per deposit. That doesn’t sound like a lot but if your company pays weekly or even biweekly, the savings can start to stack up.

The only problem you run into with the direct deposit option is that all your employees will have to have a bank account in order to make use of it. That’s not a problem for most workers but you will run into some who don’t have a bank account for one reason or another.

Payroll Debit

If you want to be inclusive to employees who don’t have bank accounts, payroll debit cards will be your answer. The employee’s check will be deposited right on the card instead of in a bank account.

The employee can then use the card to pay for whatever they need. They can even use it at an ATM to withdraw cash. You will need to ask for your employee’s permission before using this method because card fees are involved.

Even still, it will take no more out of their pay than having a check cashed if they don’t have a bank account. You should also check with federal and state laws before using payroll debit.

Outsource Your Payroll

If you’re worried about plugging the information into a computer yourself, outsource to a payroll service. They can take your information and track your employee’s wages, make all the deductions, and create their paystubs.

Most payroll services offer all the options that we’ve listed above and they can guide you so you don’t run into any legal issues with your payroll as well.

Go Green and Make Your Payroll Paperless

Making your payroll paperless is a more convenient way to pay your employees. It also saves you time and helps the environment one piece of stationery at a time. You will need to check the laws in your state before making the switch but as long as you use a service, you’ll probably be fine.

Switching to electronic payroll gives you more time to run your business. We can help you out with that. Check out our blog daily for even more business tips.

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Hi, I'm James George, the founder of Mind My Business NYC and author of this blog. I am an entrepreneur and internet marketer. My wish is that this website helps you to grow your business and achieve your goals.


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