Paperless Payroll Savings Per Employee?

by Corey

How much per employee can a company save by using a paperless payroll system? Our payroll system does not include open enrollment.

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Depends on Economy of Scale
by: Best Business Payroll

The per employee savings you may realize by switching to paperless payroll depends on two things:

1) The number of employees
2) Whether or not you outsource payroll or process it yourself

The typical savings if you outsource are:
1) You save on delivery charges
2) You save on check stuffing and reconciliation charges. In some pricing formulas, check stuffing and/or reconciliation are separate charges, but in others it's all bundled together and cannot be extracted; check to see which is the case with your payroll provider

The typical savings if you process your payroll in-house are:
1) Cost of paper check stock, ink, etc.
2) Cost of mailing paper checks to employees

With in-house processing, a rough estimate is that if your company has over 50 employees, you will realize some significant savings on check stock and ink alone.

With both outsourcing and in-house payroll processing, the more employees you have, the more you may be able to save. By using the guidelines above, you should be able to get a good idea of the savings you may realize in your specific situation.

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