What can employees do on their own in a payroll self-service portal?

Summary

A payroll portal shows employees their pay stubs, pay history and W-2, and in some products, Patriot's among them, they can also change their address, their federal withholding (Form W-4) and where their pay is deposited. Patriot includes that portal in both of its payroll plans at no extra charge. Delivering W-2s only through the portal is allowed, but only with each employee's consent under IRS rules.

One portal, feature by feature

Patriot's employee self-service portal comes free with either Basic or Full Service Payroll. On the viewing side, employees can see their paychecks, print pay stubs, pull a year-to-date payroll report, download an electronic W-2 and check their time-off history. On the editing side, they can update personal information, edit their federal tax withholding on Form W-4, manage direct deposit and track personal and vacation time. There is a mobile app as well.

Those editing rights are the part to look at closely. A W-4 change alters the next paycheck, and a direct deposit change decides where it lands. Whether an administrator can see who made a change and when is something a demo of the admin screen alone will not show you.

Pricing pages are not much help here. Gusto's plan comparison does not list employee features at all. Its employee app, Gusto Wallet, which the site menu labels "Employee self-service app," is described on a separate page and is available only to employees paid through Gusto.

The IRS conditions for electronic W-2s

IRS Publication 15-A lets employers furnish Form W-2 electronically, but each employee must consent, on paper or electronically, and must be told what hardware and software they need. Anyone who does not consent, or who has withdrawn consent, gets paper. Before consent, employees must be told:

• that they will receive a paper W-2 if they do not consent
• the scope and duration of the consent
• how to get a paper copy, and whether asking for one counts as withdrawing consent
• how to withdraw consent, and that withdrawal does not affect W-2s already issued
• any conditions under which electronic W-2s will stop, such as termination of employment
• how to update their contact information

Electronic W-2s are due on the same date as paper ones. Neither Patriot's portal page nor Gusto's pages say what happens to a former employee's login, so if leaving the company ends electronic delivery, the employer has to say so when it asks for consent.

Records the portal does not replace

Under the Fair Labor Standards Act, the Department of Labor expects employers to keep payroll records for at least three years, and the records wages are computed from (time cards, wage rate tables, schedules, additions and deductions) for two. Employees being able to see their stubs online is separate from the employer's duty to keep those records available for inspection, which becomes a real question on the day you cancel the software.

Sources

• https://www.patriotsoftware.com/payroll/employee-self-service/
• https://www.patriotsoftware.com/pricing/
• https://gusto.com/pricing
• https://gusto.com/product/wallet
• https://www.irs.gov/pub/irs-pdf/p15a.pdf
• https://www.dol.gov/agencies/whd/fact-sheets/21-flsa-recordkeeping

Related on this site

• What does payroll software do, and where does a payroll service take over?
• Should payroll and HR live in the same software?
• Which payroll records do you have to keep, and what do you do when a filed Form 941 turns out to be wrong?
• What payroll software pricing includes