Continuing the theme for National Payroll Week, today’s topic is e-payslips. These have been gaining momentum and popularity among SMEs as there are clear advantages to both employers and employees. If you are not already using e-payslips as an alternative to paper payslips, then there are a number of reasons you should consider doing so.
The Chartered Institute of Payroll (CIPP) released statistics at the end of 2016, which outlined key benefits to employers using e-payslips. Some of these benefits included savings on resources; time, printing, postage, and paper so there is a clear cost saving to companies willing to make the switch.
According to CIPP’s statistics, which made a comparison of payroll statistics with 2008, 83.3% of respondents who currently issue electronic payslips have experienced cost savings as a result. When asked to quantify these savings, answers ranged from £1,200 to £6,000 per year.
E-payslips are also arguably better for the environment, reducing a company’s carbon footprint. And, they can also be a way of communicating pay-related issues with staff; for instance, reminding them about auto-enrolment, or other important corporate messages that employers want to communicate.
Another tangible advantage is the access to historical data – without the storage headache traditionally generated by paper payslips. It means that employees can have access to historic payslips for proof of income purposes; for example, in the context of getting a mortgage or other loan agreement.
Keeping the time of year in mind, if you are considering increasing your headcount to help with busy seasonal periods, then e-payslips could be an extremely viable solution to keeping costs low. Remember, whether you choose to recruit temporary or permanent staff, you will still need to issue all of them with a payslip. Even if they are only with you for one day you’ll need to process them through the payroll and provide payslips.
For some business owners, security may be a concern, but most providers use HMRC-accredited ‘HTTPS’ encryption, and payslips are uploaded to a secure dedicated hosting centre. Employees are then provided with unique ID and passwords, enabling them to access payslips, using any computer – or mobile device – at a time to suit them and in complete privacy; this removes the hazard of payslips being left in the office and seen by the wrong eyes.
If you have any further queries relating to your payroll, then why not give Wilkins Kennedy a call to see how we can help.