What Are the Benefits of Using Digital Pay Stubs?‍

In the 21st century, it's almost impossible to avoid advanced technology. Even if you work in an industry that is not generally known for its tech-driven nature, some level of digitalization will still be involved. As a result, the potential advantages of using digital pay stubs are diverse. With check stub, your employee will have access to their exact time worked, hourly wages, and deductions — which can only be seen on paper pay stubs with a lot of work.

Additionally, many companies offer programs where employees can save money by using a mobile app to purchase food or gas at an employee discount. Beyond financial benefits, these programs also help foster loyalty among employees by incentivizing them to participate in company perks and features they enjoy. Let's take a look at some of the pros of using digital pay stubs:

Employees Can Track Their Hours More Efficiently

One of the first benefits of using digital pay stubs is that employees can track their hours better. There was often room for error on paper pay stubs when tracking hours worked. After all, how can you be precise when you're writing notes with a black pen on white paper? At best, you can be pretty exact, but mistakes can be difficult to correct and ensure your employees get paid accurately. This problem is solved with digital pay stubs.

Employees can view a visual breakdown of their hours worked with a few taps on their phones. They can also add any additional information that may be relevant to their hours, such as explaining why they took a certain amount of time off or details about a specific project they worked on.

Paychecks Are Automated and Sent Faster

Another advantage of using digital pay stubs is that paychecks are automated and sent to employees faster. Because there are no need to print or even email pay stubs to your workers, fewer steps need to be taken. This means you can quickly and easily get your employees paid without inconveniencing them or requiring a lot of extra effort from your HR team.

Furthermore, you can send your employees their paychecks before they even need them — which is especially helpful during slow seasons or when you know there will be a lot of unscheduled time off, and you want to ensure your employees are still getting paid. This appeals to new employees who often get nervous when their first payment is late.

Employees Can See Exactly Where Their Money Goes

Another advantage of using digital pay stubs is that employees can see exactly where their money is going. With paper pay stubs, it's impossible to see how much is being deducted for taxes and other items. This can be frustrating for many employees who want to know exactly how their pay is used. A tax calculator can help but when you consider that only a few deductions are listed on paper pay stubs, it becomes impossible to tell exactly where the rest of your paycheck is going.

On a digital pay stub, you can click on each deduction and see exactly what it is for. This can be especially helpful if you work in an industry with many mandatory deductions. If your employees want to know more about what their taxes are funding or why they have to pay certain fees, they can easily click on each deduction and see all the necessary information.

Company Reputation May Benefit From Employee Loyalty

Another advantage of digital pay stubs is that the company's reputation may benefit from employee loyalty. Employees who enjoy the convenience of digital pay stubs may be more likely to stay with your company for the long haul — especially if your company offers a loyalty program linked to digital pay stubs. 

Employees who like the features associated with digital pay stubs are more likely to recommend your company to others. This can lead to more high-quality applicants and a better company culture overall. Employees who are satisfied with their work experience are also less likely to leave — which is always a good thing. If your company offers digital pay stubs, it's worth seeing if your employees want a loyalty program added.

Company May Benefit From a Tax Advantage

Another advantage of digital pay stubs is that your company may benefit from a tax advantage. If your company uses an app to issue pay stubs, they may be considered a paperless pay system.

This means that they will be easier to audit and that your workers will be issued a certain amount of tax savings. Depending on your company, you may also be able to issue a W-2 form sooner because paper pay stubs are no longer necessary. This could help you avoid audits and extra work and push your company forward by getting the ball rolling on tax season sooner.

Limits Legal Issues

It is illegal not only not to pay your employees on time but also to withhold proper payment documentation. These employees must understand what taxes are taken from their pay, how much they have been paid, and how many hours they have tracked. This is the only way they can ensure they are being paid properly, and the incapability to provide this information may result in legal ramifications.

It's time to change if you're a small business owner, contractor, or freelancer who still provides pay stubs by hand. As your company expands, so must you.

Happy Employees

Employees feel better about their jobs when they aren't waiting for their pay stubs, right? Employees want to know that their company runs like a well-oiled machine. This will boost their satisfaction, and they will be more likely to put much more effort if they see you making everything possible to get them their pay stubs on time.


Digital pay stubs provide numerous benefits and make life easier for employees and employers. However, the advantages listed above apply to most digital pay stub systems. It's important to note that not all companies will use the same digital pay stub system — so while these advantages may apply to one company, they may not be true for another. If your company uses them, it may be time to ask why you want to use paper pay stubs when digital options are available.

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