Workers Sound off on Technology, Identity Theft and Other Key Paycheck Issues American Payroll Association’s Survey Reveals Workers Have Some Valid Concerns

Would you like paper or plastic?

Advances in technology, such as direct deposit and payroll cards, have made paperless payroll a workplace standard for many businesses, and paperless payroll is becoming more and more popular with workers, as well.

When asked how they would feel if their companies adopted a paperless payroll system (where funds are deposited automatically to a bank account and employees view pay stubs online and print them as needed), 74% said they would like it.

Seventy-one percent said they already use direct deposit and 2% said their companies pay them by issuing a “payroll card” (a card that works like a debit card).

“Advances in technology have opened the door to new payroll options,” said S. Michael Martone, president of NPW Diamond Sponsor ADP Employer Services. “What we’re seeing is that more companies are adopting a paperless payroll philosophy to not only save costs, but provide conveniences to their employees.”

Many options exist to help businesses utilize paperless payroll and encourage employee participation. “Some providers even provide programs to help companies plan, create, and launch paperless initiatives to educate employees and encourage adoption of electronic payroll,” Martone said.

Stuart Itkin, vice president of marketing at Kronos Incorporated, an NPW Platinum Sponsor, said employees are reaping the benefits of technology.

“We have seen an increased acceptance of more advanced technology, such as a paperless payroll and biometrics,” said Itkin. “Feedback from the survey is invaluable in ensuring that these solutions are developed, to help employers and employees alike.”

Linda Miller, senior vice president of marketing for Ultimate Software, an NPW Gold Sponsor, is pleased that workers see the value of paperless payroll and credits new software and computer technology for spurring the movement toward a paperless payroll environment.

“This survey indicates the vast majority of respondents already work at companies with a paperless payroll or they would like their companies to take advantage of it,” Miller said.

Sharon Stein, senior vice president of HR/Payroll for Ceridian, a NPW Platinum Sponsor, echoes worker enthusiasm for advances in payroll.

“Employers and employees, both in the U.S. and internationally, are gaining convenience and efficiency from workforce-related solutions, like paperless payroll,” said Stein. “Such advances will enable workers to have information at their fingertips that helps them be successful both in their jobs and at home.”

Identity theft is not a problem, but don’t send my paycheck overseas!

The company payroll department houses important and very private worker information, including Social Security and bank account numbers. However, 86% of survey respondents said they are confident their employers adequately protect their vital information from identity theft.

On the other hand, 86% also said they were not confident that their private data would remain safe if their paychecks were to be processed overseas.

Additionally, 80% indicated that they would be unhappy if their paychecks were processed overseas.

According to the Federal Trade Commission, identity theft affects approximately 10 million Americans each year, and officials advise businesses to take extra steps to protect personal information.

Walter Turek, senior vice president of sales and marketing at Paychex, an NPW Platinum Sponsor, stresses that payroll service providers must take adequate precautions to protect personal data.

“When business owners outsource their payroll, they need to know that their payroll provider has taken every possible step to ensure confidentiality of employee information such as Social Security numbers, pay rates, and other W-2 information,” said Turek.

On time and accurate – what matters most with payroll

Workers believe their employers accurately figure their paychecks every payday, with 89% expressing confidence that their paychecks are accurate.

“Since the most important piece of paper for workers today is the paycheck, it has to be on time and ‘on the money,’” said Terry Hicks, director of QuickBooks Payroll Product Development, an NPW Platinum Sponsor. “America’s small business owners spend between 40 and 60 hours each year just managing payroll, which is time taken away from managing their businesses. There are now software products that make it possible to easily and accurately manage their payroll in-house, without forgoing payroll accuracy or delaying employee paychecks.”

Workers expressed concern over what would happen if their checks were delayed for a week. Almost 75% of workers surveyed said they would have difficulty meeting their financial obligations if their paychecks were late.

Reliability, accuracy and convenience are all important to the way employees receive payments, says Marcie Verdin, vice president, corporate payment solutions, MasterCard International, an NPW Gold Sponsor.

“Often, the best payroll solutions are those that meet these needs while also serving employers with a way to integrate these solutions into the existing payments chain,” said Verdin. “Research like this shows how integral these features are to employees and employers.”

Workers are split over proposed Social Security reform

When asked how they felt about President Bush’s proposal to reform Social Security, which would allow employees to place some Social Security funds in private accounts, 30% of survey participants said they were in favor of Social Security reform, while 29% said they were opposed. Another 18% said they were in favor of the proposal if it included government oversight and 24% were unsure how they felt about the proposal.

“One thing is for certain,” said Scott Mezistrano, CPP, senior manager of government relations at APA, “Workers need more direction and better education from the government when it comes to Social Security reform. Making decisions about how to finance your retirement years is difficult.”

The bottom line: don’t mess with my bottom line

The “Getting Paid In America” online survey gauged workers’ thoughts about the nation’s payroll processes and how they apply to their own paychecks. What it revealed is that workers across America have strong opinions about payroll issues that could affect their own bottom lines.

“How workers are paid; the accuracy of their paychecks; who has access to their vital personal payroll information; how proposed legislation might affect their income or retirement—these are all payroll issues that should be important to workers, and the results of the ‘Getting Paid In America’ survey confirm that they are,” said Dan Maddux, APA executive director. “Since receiving a paycheck is the reason most individuals go to work every day, it’s important for employers to recognize that the processes involved in payroll are also very important to workers. Employers need to address the concerns raised by this survey.”

For complete survey results and year-round information on how workers can maximize their paychecks, save money at tax time, and access simple tools to help plan and save for retirement, visit the National Payroll Week web site at www.nationalpayrollweek.com.
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Note to Media: Experts in the payroll profession are available for interviews and additional comments. Please contact the APA Public Relations Department at (210) 226-4600, ext. 2230 for assistance.