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Electronic paycheck issuance boosts company savings

05/08/2014

Business Mail Payrolls

Since 2011, businesses in Argentina have had the option of issuing their employees’ paychecks digitally. This is an alternative system to paper, which retains the same legal validity and could replace it in the future, as happened in other countries such as Mexico.

The use of electronic means to generate and send pay stubs means greater automation of the process, which translates as a significant time saving, both for company admin departments and workers, who can sign the paycheck with no need to move from their workstation, or remotely, with safe and easy access to the solution through internet. The outcome is a significant saving on costs which, in Mexico, where mandatory electronic paycheck filing and issuing came into force this year, reaches up to 88% in each document, according to a study by EDICOM.

Although issuing electronic paychecks is optional in Argentina, the procedure is fully regulated by the Ministry of Labor, Employment and Social Security. Resolutions 1455/2011 and 1362/2012 establish the requirements for implementing this technology. The first step for interested companies is to submit an application to the Labor Secretariat with the information set forth in Article 2 of Resolution 1455/2011. Thereafter, the agency is responsible for evaluating the request with the technical and legal departments and issuing a positive response if the appropriate conditions are met.

To ensure the integrity, security and proper safekeeping of documents, the regulations also require some additional mechanisms. Among them, the use of digital signature for the employer (may be acquired with an ENCODE certificate) and electronic signature for the worker.

 

Secure automatic management

Electronic paycheck issuing software must meet certain technological specifications to ensure confidentiality. To this end, EDICOM has developed Business Mail Payroll, a platform that includes advanced data encryption techniques to ensure that only the employee can view their paycheck. This solution is fully aligned with Argentinean legislation and totally automates the process to maximize savings in the business administration of companies.

Find out more about our Business@Mail Payrolls solution.

 

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