While most states require employers to provide their employees with a pay statement each pay period, these state laws can vary as to how pay statements may be delivered. Are you considering paperless payroll? Here is some key information to keep in mind as you consider your options.
Requirements to know
In general, many states require employers to provide employees with:
- Easy access to their pay statement;
- The ability to print a copy at no cost; and
- The choice for all employees to opt out of electronic delivery at any time, especially when employees previously chose paperless electronic delivery.
Some states require employers to obtain consent from their employees to deliver pay statements electronically.
Employers in California, Colorado and Washington are also required to:
- Allow employees to elect to receive paper pay statements or opt-in for electronic delivery at any time; and
- Provide a hard copy of pay statements (when requested).
Additionally, in California, employees must also be able to view and print electronic pay statements at the worksite at no cost.
Employers who elect to use electronic delivery for their payroll should familiarize themselves with the specific requirements for each jurisdiction where they operate and where employees work.
Perks to paperless payroll
Below are some advantages of using paperless payroll:
- Greater flexibility and access. Employers who use paperless payroll can have easy and secure access to their payroll at any time and from anywhere. Additionally, for eligible employers that use the RUN Powered by ADP® (RUN) platform, employees can also easily access their paystubs 24/7 in the RUN platform.
- Faster reporting. With paperless payroll, your data can be readily available, no matter where you and your employees work. RUN clients can also customize reports and download reports and employee paystubs in the RUN platform.
- Reduced risk. If you are a RUN client, your documents are securely stored in the RUN platform, helping to reduce risk.
- Alternatives exist. Another great advantage of paperless payroll is that this solution does not have to be an all-or-nothing option. For example, alternative solutions exist for RUN clients with employees who do not have bank accounts.
Responsibilities when an employee opt-outs
Employers should also be aware of their responsibilities when an employee opts out of receiving electronic pay statements (or cannot access electronic pay statements on site or requests a paper copy). In these situations, the employer must print and provide a paper pay statement to the employee at the time of the payment of wages.
Conclusion
Employers considering or using paperless payroll should review the applicable laws in your jurisdiction. If you have additional questions on your RUN paperless options, reach out to your RUN service representative.
To learn more about direct deposit and paperless W-2s, read our Tip of the Week on this topic.
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