6 Benefits of Online Payslips

The GDPR is in force and it affects the way organizations process personal data. We’re taking another look at how electronic payslips can help your business. All whilst providing a GDPR-compliant way of handling your employee’s pay information.

Save money

In a survey conducted by the Chartered Institute of Payroll Professional (CIPP), payroll statistics were compared between paper and electronic payslips. The findings of the survey revealed that a significant majority of respondents, specifically 83.3%, reported experiencing reduced costs after making the switch to online payslips.

This statistic highlights the financial benefits that organizations can enjoy by transitioning from traditional paper payslips to electronic alternatives. By eliminating the need for physical printing, distribution, and storage of paper payslips, companies can significantly reduce their operational expenses. The savings come from various sources. These include not using paper and printing, spending less on postage, and reducing the work needed for manual payslip processing.

Furthermore, the adoption of online payslips also brings about additional cost-saving opportunities. Employeed can easily access electronic payslips within payroll software systems and store them digitally. This reduces the need for physical storage and minimizes the risk of losing or damaging documents. This not only saves money but also enhances efficiency and accessibility for both employers and employees.

The CIPP survey results serve as a testament to the advantages of adopting electronic payslips. Not only do organizations benefit from reduced costs, but they also experience improved efficiency, accessibility, and environmental sustainability. As technology improves, businesses worldwide expect to use digital payslips more, saving costs and improving operations. Impressively, the savings they declared ranged from £1,200 to £6,000 per year.

Improved Digital Delivery with Online Payslips

One of the key advantages of e-payslips is that they eliminate the inconvenience and potential delays associated with paper payslips. If an employee is absent on the day that payslips are distributed, they would have to return to collect their payslip. This can be particularly problematic for employees who work remotely or are frequently on the go.

Online payslips completely eliminate this issue. Instead of physical distribution, IRIS OpenPayslips send digital payslips directly to the employee's email address. This means that regardless of their location or availability, employees can access their payslips conveniently and securely.

Employees can access their payslip by logging into their email account. They can do this whether they are on vacation, working remotely, or on a business trip.

Furthermore, e-payslips also offer the advantage of being easily accessible and searchable. E-payslips electronically store and enable easy retrieval whenever needed, unlike paper payslips that people can misplace or lose. This can be particularly beneficial during tax season or when employees need to provide proof of income for various purposes. Instead of rummaging through stacks of paper or contacting the HR or finance office for duplicates, employees can simply search their email inbox or designated folder to find the required payslip.

Payroll: Electronic & Environmentally Friendly

By removing paper payslips from circulation, you’re reducing your carbon footprint and helping the environment.

Many businesses discourage printing emails unless necessary, but printing and distributing monthly payslips is also wasteful, especially for larger businesses.

Moreover, the use of e-payslips can contribute to environmental sustainability efforts. By reducing paper consumption, organizations can minimize their carbon footprint and contribute to a greener future. This aligns with the growing trend of corporate social responsibility and demonstrates a commitment to sustainable business practices.

Reduced storage space

As a business, you won’t have to store undelivered or uncollected payslips. This is potentially even more useful for employees, as they’ll have access to historical payslips without having to sort through files or ask you for copies.

This is ideal for situations where employees need proof of income, for example when they’re applying for a mortgage. As an added bonus, pay information can be seen via a computer, tablet or phone for 24/7 and easy access.

Added Communication Benefits

When sending electronic payslips, you can also include auto enrolment reminders and other pay-related messages for all necessary information.

Auto enrolment is a complex area of Payroll, so if you’re struggling with any aspect of it, we recommend that you take a look at the industry leading AE Suite. This is designed to keep you compliant and on top of AE without any hard work involved.

Improved Security with Online Payslips

IRIS Payroll Software uses HMRC-accredited ‘https’ encryption, which means that digital payslips sent using a secure host. This is our own online payslip system, developed to improve security.

Under this system, employees use a unique ID and password to access their payslips. This means they enjoy enhanced security and privacy for their pay information, as we always keep their payslips safe.

Are Electronic Payslips HMRC Compliant?

Many people inquire about their legal permission to send out paperless payslips.

The Employment Rights Act 1996 states that each employee “has the right to be given by his employer, at or before the time at which any payment of wages or salary is made to him, a written itemized pay statement.” It doesn't state that you need to print this, so you can use electronic format as long as it's clear.

Indeed, HMRC readily accept e-payslips and, since 2011, also allow P60s to be issued electronically too. As electronic files are accepted by HMRC, they are also accepted by banks and other financial institutions – so there’s no issue for employees either.

To ensure your online payslips are compliant with the Employment Rights Act and other laws, make sure they are delivered in an easily readable format (such as a PDF) before your employee is paid.

Why choose IRIS OpenPayslips?

IRIS created OpenPayslips, a safe electronic payslip system that benefits you and your employees. You can also use it for P60s and pension information.

Benefits to your business:

• Reduces costs, saving on postage, printing and processing
• Quick and easy to setup with no software to install
• Reduces your carbon footprint - this is an environmentally friendly solution
• Employees can access their payslips anytime from anywhere with internet access
• Increased pay data security, complies to industry standard SSL authentication and UK data protection rules

Benefits to your employees:

• 24/7 access to current and historic pay details and payslips in one place
• Increased speed of delivery of pay information
• Employees can print and reprint their payslips whenever they need them
• Gives your employees a greener way to receive their pay details allowing them to contribute to environmental policies
• Smartphone and mobile device options for payslips available

We use Microsoft Azure and SSL authentication for IRIS OpenPayslips, ensuring compliance with UK data protection guidelines.

Learn more about IRIS OpenPayslips now or take a look at our wide range of payroll software!