Effective payroll services ensure workers are paid in a timely manner with the correct amount of pay. Helping to achieve this goal is the transition from paper to electronic payments. Almost all Americans are paid electronically with direct deposit, according to the Getting Paid In America survey by the American Payroll Association. The survey held in conjunction with APA's annual campaign for public awareness and National Payroll Week gathered responses from almost 32,800 employees to show how payroll support serves American employees.
In the survey for those who said they were paid via electronic payroll, 96 percent were paid with direct deposit, while only a fraction paid with a payroll card or prepaid reloadable cards. Only 3 percent of participants said they are paid by paper paycheck or cash.
Leaders in the payroll services industry said the adoption of electronic payroll services is becoming more popular. Direct deposit can save employers time and money with the additional benefit of being more secure than cash or check payments. With this switch from traditional payments to digital, electronic payroll options are becoming more available to make it convenient for employees to keep track of their paychecks and benefits. This allows workers to make sure they were being paid the right amount. In the survey, 64 percent said they were sure their payroll withholding and the net amount of their paychecks were correct each pay day.
Majority of employers provide self-service portal for employees
About 83 percent of respondents said their employers provide employee a self-service portal to access their paystubs and benefits administration information online. Outsourced payroll services can also give managers and employees the opportunity to log into a convenient online-based system. Outsourcing payroll processing allows employers to reduce their internal costs as payroll experts make sure financial reports are filled correctly and payroll taxes are paid promptly.
The survey also found 63 percent of employees obtain their annual wage and earning statement electronically from their place of work.
When logging into this portal, about 58 percent said they access their pay information through a computer, followed by 33 percent who said via a laptop. Mobile devices were far less popular with only 5.8 percent using smartphones and almost 2 percent using tablets.
With outside payroll services, employers are able to not only lower their expenses and reduce the amount of repetitive tasks, they can also use the time and money they saved to put back into their own company.
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