Digital vs. Electronic Signatures for Massachusetts Payroll

Posted on September 21, 2019

In today’s world, it seems that nearly everything is digital. From billboards to advertising, even legal documents, digital content is becoming the norm. However, many people are still hesitant when the digital world steps into legal matters. For example, many Massachusetts payroll companies now utilize direct deposit or issue payroll checks with a preprinted or digital signature. Although this may not seem a legit transaction, we assure you it is.

However, when it comes to the subject of digital signatures, there are two very different types; electronic and digital. This article will highlight the differences between the two.

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Electronic Signatures

At one point or another, you’ve probably come across a merchant requesting your signature via a touch screen. Whether you’re required to sign your name with a “pen” or with your finger, the signature that appears on the screen is considered a binding signature to the receipt or document. This method of signature is becoming wide-spread for retail merchants, as well as medical offices and businesses. With constant updates of federally required acknowledgments, creating a digital database is more accessible than sifting through thousands of files.


Digital Signatures

On the other side of things, there is a digital signature. Although electronic and digital signatures sound like they go hand-in-hand, they are two very separate types of documentation. Digital signatures take matters a step further by embedding authenticity to the electronic signature. For example, one of the most common digital signature programs utilized is DocuSign. Used by many HR systems and banking systems, DocuSign includes a date and time stamp. The program also allows legal documents to be sent via email for signature authorization.


With the use of digital signatures, you can save your Massachusetts payroll company hundreds of dollars per year. By eliminating the need for printing, you’ll reduce your expenses on paper, ink, and the labor costs for the administrator organizing everything. Whether your employee needs to update their withholding election or opt into benefits, everything can be finalized with the use of a digital program. Besides, electronically signed documents are more secure than paper. Not only will the verified signature be attached to the material, but the chances of lost or misplaced paperwork is eliminated.


For more information on how to make your payroll services more efficient, contact the team at abc Payroll. Our team of experts can help you create a simplified, cost-effective solution. Call us today at 978.251.3003 and start putting time and money back into your business.