Payroll

Go Paperless With Your Payroll: Here are 7 Reasons Why

No longer do payroll functions mean tedious and painstaking calculations for the HR department, with tons of documentation. Companies can deploy technologies now to automate payroll processes and make them completely paperless.

Everything from planning shifts, to recording attendance, can be done electronically. It saves time, resources, and efforts, and helps companies reduce costs significantly. Not to mention, it is environmentally friendly as well.

Here are 7 top reasons why companies need to consider paperless payroll processes.

1. Convenient for Employees

Internet and smartphone penetration in India is spreading into tier-II and tier-III cities too. Blue-collar workers are getting used to online banking, purchases, and payments.

A paperless payroll process adds to their convenience. Employees can receive wages directly in their bank accounts. They can access their funds, salary slips, and ESI and EPF contributions online. This improves transparency too and helps build employee trust.

2. Safe Storage and Data Back-up

Manual processes carry the risk of data loss across multiple touchpoints. For companies, payroll data must be stored properly, and accurately to enable audits and compliance. Electronic copies of attendance records, receipts, invoices, and more can be organised properly and retrieved quickly when required.

A cloud-based payroll system further ensures scalability, which paper-based processes can’t. If companies expand or scale down their operations, the storage needs to change as well.

Paperless payroll processes provide this flexibility to employers. Cloud-based systems also ensure automatic back-ups on a pre-scheduled basis. This eliminates the risk of data loss in case of a cybersecurity breach.

3. Financial Benefits

The substantial costs associated with purchasing paper, ink cartridges, expensive office equipment, and their parts, and more decrease with paperless payroll processes. The absence of paper helps in de-cluttering of offices and makes HR more efficient.

4. Customisation Benefits

A paperless payroll system provides companies with huge customisation options like:

  • Configuring the system to suit specific needs across multiple sites
  • Configuring leaves and holidays as per State Laws and company policy
  • Integrating compensatory and weekly offs
  • Flexible options include leave lapses, encashment of leaves, and carry-forwards

Such options make it easier for companies to ensure timely and accurate salary disbursals to a large distributed workforce.

5. Adherence to Payroll Compliance

Payroll software solutions contain embedded compliance so that companies can deal with the complexities of adhering to various state laws in India. Tax reporting becomes streamlined.

The system can automatically generate compliance reports from the attendance data. This means businesses don’t need to waste time and effort in filling forms or spend more money on hiring experts dealing with company or labour laws.

6. Real-Time Analytics Across Different Sites

Paperless payroll systems can generate real-time data analytics across multiple sites, which can help in policy and decision-making. Easy integrations with HR and accounts software can help to get swift data inputs for P/L statements.

7. Environment-Friendly

Lastly, as companies strive to reduce their carbon footprint, reducing the use of paper and wastage is a crucial step. Being green is more than just reducing paper usage. Paperless processes also mean less energy consumption through printers and copiers. This can help companies avoid hefty electricity bills.

8. Green is the Future for India Inc.

Digital is the way of life for Indian citizens now. Companies need to get away from the archaic processes of payroll calculations and salary disbursals, to remain efficient, relevant, and environment-friendly.

BetterPlace enables a completely paperless payroll process that makes it seamless for companies to manage their permanent as well as the contractual workforce. The state-of-the-art system ensures compliance and timely payment to the workforce. Contact us to learn more.

Shalini L

One of the prime contributors for this blog, Expertise in Staffing and Recruitment, Content Strategist by Profession. A Music Lover & Traveller by Choice.

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