HR & Payroll Software Service
Payroll debit cards are an off-shoot of gift cards. The employer sets up a central payroll account and issues a card to each employee, electronically depositing into the account the amount owed each payday.
Employees can access their pay either by withdrawing cash at any ATM or by using the card to make purchases and get cash back. The company's payroll vendor tracks all the debits and credits for each paycard, sends out paper pay stubs and tax forms and provides a way for employees to check their balances either online or by phone.
If you're still paying some employees with paper checks, you're likely to see a speedy return on investment when switching to payroll debit cards.
The cards are also far more convenient, especially for business owners who rely on part-time or young employees or workers who have recently immigrated to the U.S. - anyone who might not have a bank account. About 17 percent of U.S. workers fall into that category.
The cards are as easy to manage electronically as direct deposit, they eliminate the expense of printing and distributing paper checks, and they ensure that everyone gets paid on time and in full - benefits for any growing company.
In 22 states you can completely eliminate paper paychecks, by requiring employees to receive their pay electronically via direct deposit to a bank account or payroll card.
Paycards can also build employee satisfaction and loyalty. They save workers the semi-larcenous 10 percent charged by the typical check-cashing store, are safer than carrying cash and can't get lost in the mail. What's more, they're handy financial-management tools, and not just for unbanked employees.