Old methods of payroll processing required calculations by hand and physical checks for all personnel, even at major employers, but those are outdated modes for a reason. Now, integrated human resources management software and advanced payroll software can assist in completing these tasks quickly and efficiently, as well as provide all staff members with a way of reviewing a plethora of information about their payment and employment status. Finding the options to best utilize these solutions and other options that most fit with these tools can help save money for companies.
Certain agencies are now also facing mandatory changeovers to electronic payment solutions, especially those under federal regulations. Organizations that fall under that category or must remain compliant with specific guidelines should verify that their payroll solutions are up to date, as the government modification to all-electronic benefits payments will hit as of March 1, 2013.
Using Electronic Methods
A vast amount of HR and payroll processes are currently handled through electronic means, including internal employee self-service portals, cloud deployments and virtual server applications. There are other tools that correspond well with these structures, such as electronic payment options, that have become standard operating procedure for many organizations. However, this is not the case with all entities, and failing to institute these kinds of opportunities could be costing companies a good deal of money.
Recently, it has been reported that the Veterans Affairs Department is finally switching over to electronic payments, issuing checks as direct deposits into employee and benefit recipient accounts. There will also be a payroll card option available to those without bank information on file or who prefer to have a separate method for receiving paychecks.
On top of saving companies money, using this solution in tandem with payroll software can help businesses cut paper and labor costs, boosting savings even more. It can also help with document management and file archive tending, so if an audit or eDiscovery should ever occur, these requests will be easy to meet without incurring high investigative expenses.
Caveats to Adoption
Moving to digital check options is a good first step for many companies looking to save money, but there are important aspects to remember when switching to these tools. Employees must be given time to present information necessary for turning over the process, firstly, and all workers should be provided disclosure resources showing if there are any new fees or benefits for them using specific handling methods. In some cases, businesses can forge agreements with certain banks to get payroll released a day or so earlier than traditionally expected, for instance, and other agencies may charge an extra fee for people that continue to request paper checks.
Currently, the U.S. Department of the Treasury stated that more than 70,000 recipients in West Virginia alone could be receiving payroll cards in the near future, as anticipation of the federal electronic payments change has prompted organization to debit cards to its clients. These kinds of cards are also available for companies looking for alternative payment options for their personnel.
Streamlining the payroll process should focus on a single method of payment solutions. If companies can encourage employees to choose electronic direct deposits for HR and payroll convenience, it could represent a huge way to save money at work. Handling all income and outgoing funds through a single payment tool can help centralize cost and revenue data, for instance, making it easier for organizations to manage overhead.