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Modern technologies for pay stubs accounting

Wages have been paid digitally — directly to the employee’s bank account. However, this is only sometimes the case with payrolls, although handing them in on paper is costly and time-consuming. Printing, packaging, and mailing are more complicated and time-consuming than electronic document delivery and much more expensive.

However, the zeitgeist plays into the hands of the IT manager. In the age of smartphones and tablets, most people would prefer to have these documents available digitally and as quickly as possible. With today’s document management system and appropriate HR software, this is no longer a problem. Everyone can use real pay stubs to check salaries. It’s a versatile, modern resource that can save time and money.

Definition: What is a worksheet?

Employers must provide a payroll statement for the wages or salaries paid to each employee. This applies to all employees in various industries, such as health care, hospitality, retail, and many others.

Compensation is generally defined as any money an employer pays in exchange for work performed, including base salary and allowances. Compensation also includes any bonuses or commissions that are taxable income at the end of each tax year.

Payroll is the process by which employers calculate an employee’s wages by subtracting the employee’s gross wages with applicable taxes and deductions from income, such as taxes.

Payroll departments may also be responsible for other tasks, such as. For example, administering the company’s benefits programs, administering payroll, and conducting labor law compliance training.

Peculiarities of the payroll

When paying wages, companies must give employees a statement of salaries in text form. A payroll statement is a document that documents an employee’s wage or salary structure for a specific time. In addition, the payroll serves as a means of keeping track of the payment made.

There is no law requiring companies to issue paper payrolls. As a result, the electronic payslip also follows the established text form. In terms of content, it is no different from a classic payroll.

Electronic payroll not only optimizes internal processes but also increases the efficiency of the company as a whole. Thus, an employee can call monthly payroll at home or on a business trip. Another example: the employee needs copies of the last three payrolls. Instead of requesting copies from Human Resources, as she used to do, she can get copies from her digital personnel file. This is much faster and saves work.

Companies that want to use electronic payroll accounting create an up-to-date list of all employees, which is imported into a portal managed independently or by the service provider. Each employee has their own account in the system. Instead of printed payrolls, the payroll software creates encrypted PDFs that only employees can read. Alternatively or additionally, an electronic payroll can also be sent to an email inbox.

Payroll is the process by which employers calculate an employee’s wages.

For existing employment relationships, employers must provide their employees with proof of wages paid. Payroll statements are necessary because they help ensure that the person is receiving the correct amount. They also help identify any discrepancies between what is on the payroll and the amounts owed. Payroll varies depending on the industry in which you work, but all payrolls must meet some standard requirements or disclosures.

A secure solution: encrypted PDF payroll

This way, a PDF payroll is sent each month automatically using a unique identifier such as a payroll number. Logging into the account replaces the monthly paper letter. Encryption of the PDF file ensures that only an authorized employee has access — and under no circumstances does his or her mother-in-law, system administrator, or co-worker. Anyone who sends a payroll electronically must protect the compassionate personal information it contains. To improve acceptance among the workforce, the encryption technology used should be as easy to use as possible.

Establish framework conditions in the employment contract.

Before migrating to electronic payroll delivery, it is necessary to define framework conditions in the company’s contract. On the one hand, this ensures the rights of employees and, on the other hand, satisfies the company’s need for a modern and cost-effective IT solution. In the absence of a works council, the switch to electronic forms can only be made for those employees who have previously given voluntary and written consent.

Digital creation and electronic payroll delivery mean there is no need to print, prepare and send documents. This ties up a lot of resources in the department. Digital postal delivery of payroll helps keep administrative work to an absolute minimum. A win-win situation for both parties: the HR department is relieved of manual labor — all employees have all documents securely archived electronically and are always ready to go. This is how you take the first step towards the digital development of your staff.

The benefits of digital pay stubs for the employer

The use of innovative technology benefits not only the employee of the company but also the employer. Today, thanks to innovative business models, it is possible to save significantly on hiring an employee for payroll processing. In addition, using innovative models to create payrolls:

  • Automating form creation processes. All you have to do is enter the employee’s information and fill in the required fields.
  • Reduce the risk of error. The program is regularly updated according to current legislation. Therefore, allowance amounts or changes in the tax code will be automatically updated.
  • Save money on a specialist for the execution of calculation sheets. The program is elementary and does not require special skills.

Delegating responsibilities, even in business, is necessary for a successful company. Regularly conduct payroll calculations following legal requirements or your company’s industry standards. Be aware of important deadlines that may affect employee compensation later on. Use modern payroll methods to automate processes and improve company operations.

This will help reduce the percentage of errors that often occur when calculating independently. Thanks to modern methods, the information is constantly updated. The system contains the latest data according to current legislation.