Paperless Pay Stubs: Full Guide on How to Generate Them

A paperless pay stub is a digital record of an employee’s earnings for a specific pay period. Simply put, it is an electronic version of the traditional paycheck and includes the same information, such as their wages and tax deductions.

With businesses of all sizes switching to paperless payroll to help reduce costs and simplify record keeping, electronic pay stubs will likely become the standard in future years. In this article, we’ll explore how paperless pay stubs work, their key benefits, and offer some tips for managing these documents.

Key Takeaways

• Paperless pay stubs are digital versions of printed paychecks that include details about the employee’s wages, deductions, and tax withholdings.
• The key benefits of paperless pay stubs include ease of access, secure storage, time savings, eco-friendliness, and better compliance and record-keeping.
• To make a paperless pay stub, you need an online generator like Paystub.org.
• Between paperless vs. traditional pay stubs, the former is the better option for businesses and employees, as it offers more secure, efficient, and convenient payroll processing.
• Some tips to keep in mind when switching to paperless pay stubs are to store all your documents in the cloud, use DocuSign to securely e-sign documents, and make pay stubs with an online generator to improve efficiency.

What are Paperless Pay Stubs and How Do They Work?

Paperless paystubs are digital versions of pay stubs that are generated and sent by employers to their employees online. Directly deposited paychecks are a concrete example of a paperless business-to-customer transaction.

Going paperless in this regard entails the use of an online portal framework that enables employees to view and access digital copies of their regular paychecks.

A company that has a solid and integrated HR portal will find that generating digital employee documents is not limited to creating pay stubs. They can also produce electronic copies of the following essential forms:

• 1099-MISC
• Form W-2
• Leave request forms
• Invoices
• Employee timesheets
• Employee performance evaluation
• Employment contracts

How do Paperless Paystubs Work?

Paperless paystubs work like traditional paychecks, giving employees access to their earnings, deductions, and tax withholdings. However, employees can view this information online or through email instead of receiving a printed pay stub.

Verizon paystubs are an example of a paperless paystub that can be accessed specifically on the company’s employee portal. This ensures that employees can check their pay stub whenever they need to without requesting it from their employer.

Why are Paperless Pay Stubs Important?

Paperless payroll shows that the very structure influencing how companies and workers fulfill their daily undertakings is continuously being modified. It shifts the focus on the drastic rise in more convenient and practical substitutes to traditionally print-based employee files and business documents.

Sending pay stubs to employees for each payday takes a few minutes, compared to when they are manually printed and distributed one by one to all the staff. Consequently, when employees require a copy of their most recent pay stub, they can check any piece of information by accessing their email or the company’s HR portal.

Moreover, team managers and supervisors find it practical to update and correct errors in digital timesheet databases. Losing or tampering with employee documents is also less likely to take place if the files are stored in a secure online storage.

5 Key Benefits of Paperless Pay Stubs

There are several other benefits to going paperless with your pay stubs, such as:

#1. Ease of Access

Both employers and employees can access digitally stored pay stubs. Employees can also check if their pay stubs for a completed pay period have already been created anytime and anywhere. All they need to do is ensure they have a secure internet connection and a trustworthy computer, laptop, or mobile device.

In turn, employers maximize the choice of sending paychecks via each of their employees’ email addresses or implementing an employee portal where all of the essential records of their tenure are saved.

Another benefit is that it is also possible to limit who can access the paychecks by making the file exclusive to each employee.

#2. Secure Storage

Electronic pay stubs support the practice of saving copies of paychecks and business forms in cloud storage.

Paper pay stubs are highly prone to tampering and damages. For instance, if the business’s location is hit with a natural disaster, the chances are the documents could get soaked, burned, or misplaced altogether. When this happens, it is impossible to restore any information lost along with the damaged documents.

#3. Saves Time and Money

Paperless paychecks go hand in hand with the use of direct deposit pay stubs. Employers can electronically send paychecks straight to their staff’s bank accounts.

Creating multiple pay stubs is possible with the availability of online paystub generators. Payroll officers will then reduce the time it takes for them to prepare all employee paychecks while ensuring they never miss deadlines in releasing pay stubs.

Startups with limited workforce get to maximize their resources since they can create copies of pay stub templates for future use and reduce the need to purchase more ink and paper to print salary stubs.

#4. Protects Environment

Electronic pay stubs mean a significant decrease in paper waste. In the long run, old employee records will be discarded altogether, and it will only contribute to the bulk of trash that is already polluting various bodies of water.

Taking the paperless route also paves the way for lesser energy consumption since printers and fax machines are not used as frequently.

#5. Better Compliance and Record-Keeping

Switching to paperless pay stubs can help businesses improve their record-keeping practices by storing all documents online.

So, instead of dealing with stacks of paper, businesses can simply keep their payroll records online, significantly reducing the risk of lost or damaged documents. This also makes it easier to access employee records, which can be helpful when applying for loans or filing taxes.

Many online tools, like Paystub.org, also generate pay stubs using standardized templates that meet federal and state requirements to ensure your compliance.

Are Paperless Pay Stubs Legal?

Paperless pay stubs are legal as long as they comply with state and federal regulations and contain the following information:

• Employee’s full name, address, and Social Security number
• Employer’s name, address, and Tax Identification number
• Pay period dates
• Gross pay and net pay
• Total hours worked
• Tax deductions, such as health insurance, retirement contributions, and federal income tax

How to Make Professional Pay Stubs With an Online Generator in 3 Easy Steps

Paystub’s online generator suits self-employed individuals, startups, and midsize enterprises perfectly! Whether you have a limited staff assigned to fulfill payroll duties or not, a pay stub generator doubles the efficiency of your operations.

In fact, it takes three easy steps to use our online generator:

#1. Open the Paystub Generator

The first step to creating paperless pay stubs is to access our paystub generator. After opening the tool, you can start by selecting a template for your document; you can choose from six pay stub templates and three different colors.

#2. Add the Necessary Information

After selecting the template, click Next and add the necessary details, starting with the payment information.

When done, click Next and proceed to add the company information. You must fill out any text boxes with an asterisk, so double-check before proceeding. You can also add your company’s logo to customize your pay stubs further.

#3. Input the Financial Details

Next, you’ll need to input the employee’s financial details; our pay stub generator makes this step easy by listing all the types of income and deductions you need to report.

All you have to do is add the amounts to the categories that apply, and our tool will automatically do the calculations for you.

#4. Review Your Paystub

Finally, review your pay stub on the right side of the screen and generate it once you’re satisfied.

You can download your paperless pay stubs in PDF or Word format.

Paperless vs. Traditional Pay Stubs: Which Are Better?

When deciding between paperless vs. traditional pay stubs, the former comes out on top for its convenience, security, and cost savings. While some employees may prefer traditional pay stubs since these offer a physical record of their earnings, these can be easily lost or damaged.

Moreover, since the IRS recommends keeping your pay stubs for at least three years, having printed ones means you’ll likely end up with a large stack of documents. In comparison, paperless pay stubs are stored online, so they won’t take up any desk space and can be viewed at any time.

Unless you live in a state that requires printed paychecks, paperless pay stubs are the better choice.

3 Tips for Paperless Pay Stubs and Other Important Forms

Here are three simple tips for incorporating paperless pay stubs in your payroll:

#1. Store Your Documents on Cloud

Cloud file storage is an online storage space where various types of files and data are stored, organized, and preserved. It enhances security for your important files and speeds up the rate at which payroll processing is carried out.

Using Cloud storage is an excellent choice for maximizing storage space and improving how you share important files with your employees. The best part is you can see who has implemented changes in the pay stubs thanks to the document history feature.

However, since Cloud is accessible to multiple individuals in a company, it is crucial to ensure that only authorized staff get to edit key employee documents.

#2. Use DocuSign for Digital Signatures

DocuSign is a document signing software that enables a seamless way to sign contracts and agreements. It is secure and effectively saves time completing essential HR forms, including pay stubs.

All you have to do is upload the document or pay stub on DocuSign and tap the fields where the e-signatures are required.

#3. Make Pay Stubs With an Online Generator

Do you have limited resources or workforce to prepare paychecks? Using an online pay stub generator is another low-cost and advantageous solution worth exploring.

It’s easy to use, and it typically comes with a built-in calculator and different templates to choose from. You can create multiple pay stubs in no time and save copies securely or email them directly to your employees.

Final Thoughts

Going paperless is a practice that more and more businesses are beginning to incorporate into their day-to-day operations. It is also a clear indication of how we are currently living in a new era filled with expedient and time-saving solutions.

The shift towards generating paperless pay stubs is an excellent choice, especially if you want to prioritize employee security, confidentiality, and accessibility in producing paychecks and other work-related forms.

Paperless Pay Stubs FAQ

#1. Is your employer required to give you a pay stub?

Your employer may be required to give you a pay stub, depending on the state you live in. For instance, Alabama and Georgia do not require pay stubs, while access states Maryland and New York require at least a paperless pay stub. Meanwhile, in print states like California and Connecticut, employers must provide a printed pay stub to employees.

#2. Are paperless pay stubs accepted for loans and tax filings?

Yes, paperless pay stubs are accepted for loans and tax filings as proof of income since they are essentially the same as traditional pay stubs but in digital form.

#3. Can I request a paper copy of my pay stub if my employer uses digital pay stubs?

Yes, you can request a paper copy of your pay stub if your employer uses digital pay stubs. In fact, if you live in an access/print state, your employer is required to give you a printed copy of your pay stub.

#4. How secure are paperless pay stubs?

Paperless pay stubs are generally more secure than their printed counterparts since these can be encrypted and set to limited access to avoid leaking sensitive information.

5. What happens if I lose access to my digital pay stubs?

If you lose access to your digital pay stubs, you can request another copy from your company’s Human Resources (HR) or payroll department.

6. How do I verify if my paperless pay stub is accurate?

To verify if your paperless pay stub is accurate, you can check the information stated on the document, such as your complete details, the pay period dates, and the salary and deduction amount.

7. Can freelancers and independent contractors generate paperless pay stubs?

Yes, freelancers and independent contractors can generate paperless pay stubs using Paystub.org’s pay stub generator. Our tool has several template settings and color themes to choose from so you can make customized pay stubs that accurately represent your business.