Switching to Paperless Payroll
Aug 25, 2021
Switching to Paperless Payroll

Are you tired of passing out paystubs? You are not alone. More and more businesses are switching over to paperless payroll, and for good reasons! Paperless payroll solutions are being sought after by management.  “Too many times, I have received notification that a delivery company is not going to be able to deliver a payroll package as scheduled due to a storm that has impacted a flight or mechanical issues. This creates a huge hassle for the employer and employee. Either the employee has to wait until the check arrives, or the employer has to write a replacement check (including issuing a stop payment on the original check) which is just added cost and time,” says Greg Stabley, Senior Payroll Specialist for SimcoHR.  But before you make the switch, here are some things that employers should know.


Benefits of Paperless Payroll

Organize and Reduce Clutter

Gain the ability to store payroll documents electronically, get rid of clutter and make payroll documents easier to find and access. Have unlimited storage options and the ability to access files from anywhere using you cell phone or laptop. Become eco-friendly by eliminating paper waste.


Electronic Funds Transfer

When you are waiting for those paper checks to be delivered and that inevitable storm hits that delays delivery, you will wish you had done this! Transfer wages to your employees electronically by direct deposit or pay cards. This will minimize your need for paper checks, and a faster way to pay your employees. There are also less checks to reconcile when you do your bank reconciliation.


Self Service for Employees

Gives employees the ability to access their payroll information online. They can digitally view and print paystubs. It’s simply easier and more convenient for your employees.


Modernize with Electronic Time Sheets

Give your employees a simple way to clock in and out online or via an electronic timekeeping system. Not only does this cut down on the opportunity for time theft, but the system does the work and eliminates many manual errors.


Payroll Compliance

Depending on what payroll software or provider you choose, the system calculates wages and deductions--plus it enables online payroll tax reporting, increasing speed and accuracy while lowering the risk of noncompliance. The system provides organized payroll records to help you adhere to federal and state recordkeeping standards. Since your payroll system is accessible online, or in the cloud, it is much easier to meet your payroll deadlines, even during unexpected events such as inclement weather.


Money Saver

According to The American Payroll Association, “employers are switching to paperless payroll because it makes good financial sense.” You’ll find that there are costs saving due to paying less on printing costs (ink, paper, stationary, toner, etc.), decreasing the amount of manual labor, reducing fraud, and allowing your employees to self-manage certain aspects of their payroll instead of having to reach out to their payroll department or resource.


Know What to Watch For

Although paperless payroll is growing in popularity, there are things you should be aware of and watch out for. Keep in mind the following items as you move forward with a paperless payroll process:


Paystub Regulations

Several states, including New York State, has paystub laws which may cover electronic paystub delivery. For example, in some states, employers that offer direct deposit must also give employees the option of paper checks (NY is one of those states). Additionally, some states require that employers give employees the ability to opt out of receiving their paystubs online.


Security Concerns

When it comes to computerized data, security is always important. Payroll has ample amounts of confidential and sensitive information. Make sure to back up regularly and make sure you’re using the latest security controls. Things like secure portals, individual usernames, encrypted passwords guard sensitive information. SimcoHR works with providers who are equipped with strong security measures in place. 


Is going paperless the right decision for your business? 

For most business owners, the answer is an easy yes. It is a great way to upgrade your business, reduce costs, increase efficiency, secure payroll document storage, remain compliant and have less micromanaging. SimcoHR can assist you in moving to a paperless payroll. It is a relatively simple process and one your employees will appreciate! Contact us today if you would like to know more.

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DOL Issues Guidance on AI-related Wage and Hour Risks

11 May, 2024
On April 29, 2024, the U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) published Field Assistance Bulletin (FAB) No. 2024-1 on the use of artificial intelligence (AI) in the workplace. The FAB follows a statement released by the White House announcing key AI-related actions following President Joe Biden’s executive order issued on Oct. 30, 2023, on establishing standards for AI safety and security. Guidance on AI-related Wage and Hour Risks Employers are increasingly using AI tools to generate timecards, set schedules, monitor performance, track employee hours and process payroll. As such, the FAB highlights certain compliance risks under the Fair Labor Standards Act (FLSA) for employers using these tools. These risks include: Tracking employee work time; Monitoring employee break and waiting time; Using location-based monitoring for individuals performing work at multiple geographic locations; Calculating employees’ regular rate of pay and overtime compensation; and Violating the FLSA’s antiretaliation provisions To aid employers in addressing these compliance risks, the WHD identifies recommended practices, including exercising proper human oversight, to help ensure that AI systems and tools do not violate the FLSA. Additional AI-related Guidance In addition to addressing FLSA compliance risks, the FAB also examines certain AI-related risks that may arise under other laws, including the Family and Medical Leave Act (FMLA), the Providing Urgent Protections for Nursing Mothers Act (PUMP Act) and the Employee Polygraph Protection Act (EPPA). For example, using AI tools to administer FMLA leave can create potential risks for violating the law’s certification requirements when determining whether an employee’s leave is FMLA-qualifying. Employer Action Items While FABs are not necessarily legally binding, they offer insight into how the DOL interprets laws it enforces and how agency officers will analyze workplace conditions and circumstances to enforce compliance.  Using AI systems for scheduling, timekeeping and calculating rates of pay and overtime may increase an employer’s risk under the FLSA. Therefore, employers should ensure that their AI systems and tools comply with all federal laws and regulations by examining potential legal and business risks associated with AI, implementing AI usage policies and establishing internal best practices.

Nurturing Your Mind: Embracing Mental Health Awareness Month

30 Apr, 2024
As we step into May, we're reminded of the importance of mental health and well-being. May marks Mental Health Awareness Month, offering us an opportunity to renew our commitment to nurturing our minds and fostering supportive environments, both in and out of the workplace. In this blog post, we'll explore practical strategies for enhancing mental health, including small tips that can refresh you mentally during the workday. Embracing Self-Care Amid life's hustle and bustle, it's crucial to carve out time for self-care. Whether it's practicing mindfulness, engaging in hobbies, or simply taking a moment to breathe deeply, prioritizing self-care nurtures mental resilience and fosters a sense of inner peace. Cultivating Work-Life Balance In today's fast-paced world, achieving a healthy work-life balance is essential for mental well-being. Set boundaries between work and personal life, establish a routine that includes breaks and leisure activities, and strive to unplug from technology during downtime. Remember, balance is key to sustaining productivity and happiness. Fostering a Supportive Workplace Culture Employers play a pivotal role in promoting mental health in the workplace. Encourage open dialogue about mental health, offer resources such as counseling services or mental health days, and prioritize flexibility to accommodate employees' well-being needs. By fostering a supportive culture, organizations cultivate environments where employees feel valued, understood, and empowered to prioritize their mental health. Supporting Loved Ones If someone you care about is struggling with mental health challenges, your support can make a significant difference. Listen without judgment, offer empathy and reassurance, and encourage them to seek professional help if needed. Remember, your presence and understanding can provide comfort and strength during difficult times. Practicing Gratitude Gratitude is a powerful tool for enhancing mental well-being. Take time each day to reflect on moments of gratitude, whether it's appreciating the beauty of nature, expressing gratitude for supportive relationships, or acknowledging personal achievements. Cultivating a mindset of gratitude fosters resilience and enhances overall happiness. Small Tips to Refresh Your Mind During the Workday  Take short breaks: Step away from your desk for a few minutes to stretch, walk around, or simply gaze out the window. These brief pauses can rejuvenate your mind and boost productivity. Practice deep breathing: Incorporate deep breathing exercises into your day to reduce stress and promote relaxation. Close your eyes, inhale deeply through your nose, hold for a few seconds, and exhale slowly through your mouth. Connect with nature: Spend time outdoors during your lunch break or coffee breaks. Even a brief stroll in a nearby park or green space can invigorate your senses and clear your mind. Listen to music: Create a playlist of soothing music or uplifting tunes to listen to during work breaks. Music has the power to uplift your mood, reduce anxiety, and enhance focus. Stay hydrated: Drink plenty of water throughout the day to stay hydrated and maintain mental alertness. Dehydration can impair cognitive function, so keep a water bottle handy and sip regularly. Practice mindfulness: Take a few moments to practice mindfulness or meditation exercises. Focus on your breath, observe your thoughts without judgment, and cultivate a sense of presence and calm. Declutter your workspace: A clutter-free workspace can promote mental clarity and productivity. Take a few minutes to tidy up your desk, organize files, and create a calming environment conducive to focus. Engage in positive self-talk: Replace negative self-talk with affirming and encouraging statements. Remind yourself of your strengths, accomplishments, and capabilities, and cultivate a mindset of self-compassion and resilience. Connect with colleagues: Build supportive relationships with coworkers by engaging in meaningful conversations, sharing experiences, and offering mutual support. A sense of camaraderie and connection can foster a positive work environment and bolster mental well-being. As Mental Health Awareness Month unfolds, let's commit to nurturing our minds and supporting those around us. By embracing self-care, fostering work-life balance, promoting workplace well-being, and offering compassionate support to loved ones, we contribute to a culture of mental health awareness and resilience. Remember, you are not alone. Reach out for support if you need it, and let's journey toward better mental health together.

DOL Announces Final Overtime Rule Increasing Salary Levels for White-collar Employees

30 Apr, 2024
On April 23, 2024, the U.S. Department of Labor (DOL) announced a final rule to amend current requirements employees in white-collar occupations must satisfy to qualify for an overtime exemption under the Fair Labor Standards Act (FLSA). The final rule will take effect on July 1, 2024. Increased Salary Level The FLSA white-collar exemptions apply to individuals in executive, administrative, professional, and some outside sales and computer-related occupations. Some highly compensated employees may also qualify for the FLSA white-collar overtime exemption. To qualify for this exemption, white-collar employees must satisfy the standard salary level test, among other criteria. This salary level is a wage threshold that white-collar employees must receive to qualify for the exemption. Starting July 1, 2024, the DOL’s final rule increases the standard salary level from: $684 to $844 per week ($35,568 to $43,888 per year); and $107,432 to $132,964 per year for highly compensated employees. On Jan. 1, 2025, the standard salary level will then increase from: $844 to $1,128 per week ($43,888 to $58,656 per year); and $132,964 to $151,164 per year for highly compensated employees. Automatic Updates The DOL’s final rule also includes mechanisms allowing the agency to automatically update the white-collar salary level thresholds without having to rely on the rulemaking process. Effective July 1, 2027, and every three years thereafter, the DOL will increase the standard salary level. The agency will apply up-to-date wage data to determine new salary levels. Impact on Employers The first salary level increase in July is expected to impact nearly 1 million workers, while the second increase in January is expected to affect approximately 3 million workers. Employers should become familiar with the final rule and evaluate what changes they may need to adopt to comply with the rule’s requirements. Legal challenges to the rule are anticipated, which may delay the final rule’s implementation.

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