9 Benefits of Paperless Payroll

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It’s time for companies to move away from archaic paper-based payroll processes to automation. Owners with paperless payroll find the system no more tedious and painstaking with tons of paper documents.

Automation has stepped into the payroll process, from planning shifts to recording attendance, keeping employee details, calculating salary, taxes, and deductions, and paying the proper wages within the correct time. It saves time, resources, effort, and cost and is environment-friendly.

We will discuss the reasons for shifting to paperless payroll and understand the benefits in the post.

Table of contents:

●  What is paperless payroll?
●  Why is a paperless payroll process a good thing?
●  9 Benefits of paperless payroll
●  Conclusion

What is paperless payroll?

Paperless payroll refers to the entire payroll management process without generating papers.

There are numerous components of people’s payroll, like recording employees’ time electronically, pain employees through electronic payment methods, delivering pay stubs to employees electronically, etc.

The employee data is vital while calculating their payments. You must add the employee benefits, calculate their tax-free allowances, and deduct income tax and NICs.

Owners are responsible for submitting their payroll data to the HMRC and paying employees taxes on their behalf.

Why is a paperless payroll process a good thing?

For years after the introduction of the computer age, there was a promise of making the workplace paperless, and recently the dream is becoming a reality.

Considering paperless options in your business means choosing a “go green” motto, which enhances your business image.

Managing your company payroll is essential from the first day you recruit your first employee. And it becomes complex and demanding as a business grows and staff size increases. Maintaining a paperless payroll system makes your payroll management more effortless.

As paper costs rise, choosing paperless options can reduce business expenses and eliminate bulk paper usage in companies. Plus,

  • Employees don’t need to wait in bank lines to deposit their paychecks
  • No chance of misplacing or losing paychecks
  • Payments are available on employees’ payday
  • You get tabs of pay stubs and pay information anytime online
  • No more waiting for employees to pick up their checks at work

In addition, owners will have peace of mind that the payroll will always be accurate, trustable, and on time. Instead of hiring an in-house payroll administrator and paying them a good salary, you can look for accounting software that offers payroll services. Plus, when you pay a satisfying amount to every employee without delay, you make them happy and satisfied to keep working with you.

9 Benefits of paperless payroll

  • Get rid of file cabinets

When choosing quickbooks payroll or other cloud accounting solutions, you eliminate the need for ample physical storage for paper documents. It means you don’t need extra space in your business to store receipts and invoices, government and law papers, etc. Plus, no more pain in retaining payroll records for years and guarding your paper payroll registers with a cloud storage solution.

  • Streamlining your accounting process

Consider taking your payroll online using the xero payroll service or others, and lighten up the bookkeeping workload. You don’t need to look into different sources for employee information when everything is available in one place and is accessible at any time.

For the moon, you can pay your employees the correct monthly payments on time. It helps retain your employees in the company.

  • Reducing paper waste

Paperless options are good for mother Earth as it saves our trees and reduces the total amount of paper waste worldwide. Most companies encourage workers to use direct deposit, eliminating a company’s carbon footprint.

  • Reducing costs

Your company can save more by adopting paperless payroll that reduces the cost spent on printer upkeep, ink cartridge costs, postage, physical storage, etc. However, if getting payroll software and updating it is difficult, look for payroll companies offering your services at competitive prices. Sometimes, you may claim back the charges on your tax return.

  • Increasing efficiency

You save time when you automate the payroll processes with sage payroll services and others. No paperwork means spending less time on clerical work, using more time on core business activities, and focusing on value-added tasks.

Additionally, it is simple to use technology to fill out the paperwork with digitally captured data and automatically generate applications. The validation algorithms of this software reduce errors in recording data and calculations.

  • Enhanced security

Sensitive paper documents can easily be compromised, misfiled, destroyed or stolen and affect your customer’s trust.

However, choosing a paperless option gives you a high level of security for sensitive data with numerous security levels, encryption and banking level security.

Plus, everyone gets access to paper documents in your office, but it is not the same with payroll software. It gives access to data to the users with permission.

  • Easy and secured payroll information access

You can access your information with the paperless system anywhere and anytime. Whether you are on leave or discussing an important matter with your employee, cloud-based storage allows access to necessary information.

It helps you improve customer experience as you can answer queries quickly, and they appreciate your personalisation, thus increasing lead generation, sales and retention.

  • Automatic tax compliance

Owners find state and federal tax filing and payments for payroll a burden. However, with the payroll software solution, you can automate these payments, calculate taxes,  and stay compliant with a country’s changing rules and regulations.

  • Faster results

With a cloud solution, you don’t need to search for a bill from the document pile in your cabinet. Such software keeps your data securely backed up and makes them available online. You don’t have to suffer for lost documents, employees’ lousy handwriting, and dealing with a chaotic mess of papers.


Looking into the benefits in the post must now convince you about paperless payroll. It protects the environment and is a convenient, reliable, organised, and productive option for businesses.

You don’t need to commit 100% to make a positive impact, but start replacing heavy paperwork with digital options. Once you opt for paperless payroll, you start seeing business productivity and organisation improvements.

Experlu Editorial Team
The editorial team at Experlu is comprised of seasoned financial professionals dedicated to providing high-quality content on accounting and finance. With a wealth of experience and diverse expertise, the team produces insightful articles that have established the Experlu blog as the UK's leading financial and accounting resource. The team includes accountants, auditors, and business advisors who stay updated with the latest industry developments. Their commitment to excellence ensures that Experlu remains a trusted source of information, helping readers stay informed about audit, business, finance, and tax matters.