Instituting Paperless Payroll

In today’s “fast-food” world, convenience is mandatory. It’s no different when it comes to paying your employees. As a result, payroll cards are a fast-growing option to more traditional forms of payroll payment, such as paper checks and bank direct deposit. Plus, failing to offer payroll alternatives can result in your company running the risk of missing out on talent and retaining experienced employees. With paycards, employees’ payments are directly deposited onto a debit card without the need for a bank or cash checking service as the middleman. Payroll debit cards are reloadable pre-paid cards that employers can use to deposit their employees’ net wages. In turn, workers can conveniently use them to make purchases, withdraw cash, and pay bills.

Payroll debit cards are a win/win for you, the employer, and your employees. A top reason to use them includes boosting employee satisfaction, because, in addition to helping to retain employees, they simplify your payroll process.

When using payroll debit cards, your employees:

  • Gain immediate access to funds, once they’re deposited. They no longer have to cash a check, take time during lunch to make a deposit, or incur check cashing fees.
  • If an employee doesn’t have a bank account, they can still access their money by using a paycard, provided paycards are permitted in your state and all rules and regulations are met.
  • With a paycard, there are no monthly fees, minimum balances, or bank charges incurred, and more often than not, only a small fee is charged for handling certain transactions.
  • Paycards are ideal for certain industries, including hospitality and food service. In some instances, paycards have programs that give employees the option to have their tips sent directly to their paycards, along with their wages.
  • Employees can access their money through ATMs; however, they should note that some financial institutions limit the number of monthly transactions or charge a fee for withdrawals.
  • Just like a debit card, merchants who accept them will also accept paycards when handling transactions.
  • With a paycard, there’s no concern over fraudulent or stolen checks.
  • Depending on the vendor, an employee can access financial information, such as viewing their transaction history, making transfers to other accounts, and sometimes accessing account information via a mobile app.
  • Most paycard programs are FDIC insured and/or include fraud protection in case the card is lost or stolen.
  • Similar to debit cards, employees can only spend what they have in their account. There’s no chance of running into debt. As a result, this can help employees enhance their credit rating.

On the employer’s side:

  • Paycards function similarly to direct deposit: you can run payroll remotely, after hours, or during an emergency. You can also make corrections to paychecks and issue employee reimbursements through a paycard, just like with any other form of traditional wage payment.
  • Paying employees via a paycard eliminates the need for paper checks—the labor costs and environmental waste associated with them and running the risk of lost or stolen checks.
  • Issuing paycards saves the time and cost of delivering checks to those employees who opt out of direct deposit. They can receive wages at institutions of their choice by electronic transfer to a payroll card account.
  • Paycards can also be insured by the Federal Deposit Insurance Corporation (FDIC). Many paycard programs include fraud protection, dispute resolution procedures, and purchase protection plans.
  • Paycards are flexible. If an employee has a bank account, an employer can allocate a portion into a paycard and the balance into a bank account.

As an employer, if you run your payroll 100% paperless, you need to establish a strategy. For example:

  • Determine whether your business will mandate paperless payroll enrollment or make it voluntary.
  • Use different communication tools to ensure that your employees are on board with paperless payroll.
  • Obtain input/feedback from your managers so they can reiterate the benefits of paperless payroll and answer employee questions.

If you successfully switch to paperless payroll, you’ll reduce payroll costs, eliminate check-cashing fees, and increase efficiency. Is paperless payroll right for you?

Looking for Personal Service, Customized Solutions at a Competitive Price?