Paperless Payroll

Paperless payroll processing and electronic payroll reduces payroll costs between $2.40 and $10.00. This savings is on a per payroll basis, according to assessments by Tinucci Associates, NACHA, and the American Payroll Association. Depending on the size of your company this can amount to tens of thousands of dollars per year. In 2006, for example, check printing, clearing, and settlement costs associated with paper were 6.3 times the amount of that of electronic payroll processing and the number is expected to double over the next 2 years.

If you wonder what is factored into your payroll processing costs, consider the following:

• Staff time for payroll check printing and distribution
• Packaging and shipping expenses to multiple locations
• Stop payment charges and check replacement charges
• Check re issuances due to processing errors
• Employee lost time because of check cashing errands
• Time and bank fees associated with account reconciliation
• Costs associated with final payments for terminated employees

Additionally, if an employee cannot cash their paycheck without paying a fee, the employer may be in violation of state law and face significant penalties and fines.