Define Paycheck:Benefits of an Electronic Pay Stub?

pay stub

How do you define paycheck? At the end of the day, it boils down to paper vs electronic. Which one is best for the employees and the company?

In this age of technology, the answer is electronic. It’s convenient to be able to get access to your pay stubs no matter where you are by pulling them up on your phone. There’s also some added peace of mind in it and it’s the greenest option.

Green makes your business look good and stand out in a sea of competitors. These aren’t the only benefits of electronic stubs. Check out this guide to learn more.

What is a Pay Stub?

A pay stub is a slip of paper that outlines the details of an employee’s pay. This includes their wages, any deductions that are taken out, their pay rate, taxes that are taken out, etc.

While you’re not required by federal law to give your employees a copy of their pay stubs, there are many states that require you to give them some form of written pay statement.

Pay Stub
up close of paystub

You can give your employees a paper copy of their pay stubs or you can provide it electronically. For a variety of reasons, electronic stubs are the best option.

Why Electronic Pay Stubs?

If you can help it, offer your employees the option of electronic pay stubs. It’s more convenient for everyone, it keeps your costs down, and it’s the greener option.

There’s not much of a downside unless a large number of your employees prefer paper subs. If that’s the case, give these workers the ability to print their stubs from the work computer.


Paperless subs are the most convenient method to pay your employees. Through direct deposit, they’ll get same-day access to their money without any trips to the bank or wait periods.

If an employee needs access to their information for whatever reason, they can pull it up with a few swipes of the finger. There’s no need to contact you.

It can be time-consuming to print off everyone’s stubs too. Electronic payments are automatic so you don’t have to take time out of your day to print anything out.

Peace of Mind

Electronic pay stubs are the safest option for many reasons. Since your employees don’t have paper checks, they don’t have to worry about misplacing their stub. It’s easier for someone to steal a paper stub than an electronic one.

As an employer, you have to keep some records of your worker’s pay stubs for taxes. If your business floods or catches fire, there’s a good chance that you’ll lose all of your paper records. Since their stubs are electronic, that will be the one thing you don’t lose.

Your employees enjoy getting paid. If you’re using the old paper method you may not be able to get their stubs to them in cases of national holidays and natural disasters.

It can vary from bank to bank but in most cases, your workers will get their direct deposit no matter if it’s a national holiday or not.


It takes paper and ink in order to print off pay stubs. It doesn’t seem like you’re using a lot but depending on how many employees you have, it can add up.

Again, it takes time to print off stubs as well. Precious time that you could be spending on being productive and making money.

This being said, electronic stubs will save your business a couple of dollars each pay period. Again, it doesn’t seem like a huge amount but a few dollars is a few dollars.


If you try to plug in the information for the pay stubs yourself, you’re likely to make errors. When you make an error the pay stub has to be corrected and reprinted which could cause a halt in the worker’s pay.

Any pay stub generator free is going to be more accurate than a human so you won’t have to waste time making corrections. This doesn’t mean that you shouldn’t check behind the computer, however.


Electronic stubs are the greenest option. No paper or printer ink is used so nothing ends up in the landfills.


Again, you’ll have to keep some records of your employees stubs. This means that you’ll need a place to store them all. Filing cabinets get full fast and you can only fit so many cabinets in your building.

Electronic stubs used to take up space on the work computer’s hard drive but with Cloud technology, this is a thing of the past. It’s now easy and convenient to store your worker’s pay records.

State Laws on Electronic Pay Stubs?

Different states have different laws on electronic pay stubs. Print states such as Colorado dictate that you can go electronic but every employee must have the option to print out a copy of their stubs if they so choose.

If your business is in an opt-out state, you’ll be allowed to go electronic but employees can opt-out of the program at any time. Hawaii is the only opt-in state. Here, you’ll have to get the consent of your employees before you can go completely electronic.

Define a Paycheck: Electronic or Paper?

How does one define a paycheck? Most of the time it boils down to electronic vs paper. Out of the two, electronic is the clear winner.

It’s more convenient for you and your employees, it’s the greenest option, and it will save your company money. The only reason not to go electronic is if state laws don’t allow it.

Electronic pay stubs aren’t the only technology your business will need in order to stay afloat. Check out our blog daily for all the latest tech news.

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