Eliminating Paper Paychecks: Best Practices for Rolling Out Electronic Pay Distribution
While many employers are embracing electronic pay distribution systems (EPDS), a poor implementation strategy can threaten the successful migration to electronic payroll. With good planning and adherence to best practices, you can ensure success in your move to paperless payroll.
Most employers today recognize the value of electronic pay distribution. Paper paychecks are costly to process and distribute, and a small percentage of paychecks invariably have problems that require administrative resources to sort out. For instance, paper paychecks can be easily lost or stolen. Sometimes, paychecks end up at the wrong location on payday. And occasionally, employees simply fail to pick them up. When an employee does not pick up a paycheck—even a paycheck for a very small amount—employers are required to fulfill an escheatment procedure, which is a cumbersome process that transfers unclaimed paycheck funds to the state.