A pay card for employees is an inexpensive way for companies to streamline their payroll processing. An employer generally arrangements with a local bank or other financial organization to issue a payroll card to each of its employees. The card is loaded right onto the payroll card instead of deposited directly into the employee’s bank account or paid via paper check. The payroll debit card serves as an employee’s proof of income for the period that the period of validity expires. This payroll debit card helps avoid bounced checks that can cost employers a lot of money in missed payroll tax payments.
Before you set up your payroll card you need to make sure that you have a bank that will issue it. You can check with the people in your area to determine which bank offers the service. Many banks offer the service online so you may not even need to travel to your local branch to complete the transaction. Once you have chosen which bank to process your card transactions, you will download your financial institution’s form from the Internet and print it. Along with your personal information and identification, the payroll cardholder information must be filled out accurately including any membership benefits.
If you choose a direct deposit payroll card provider, you will still need to provide your employer with the funds each pay period unless you request a change. Your employer should provide you with instructions about how to make the regular deposits into your account. Some will deposit the money directly into your checking account while others will deposit it into your savings. The employer will also usually provide you with instructions about how much money needs to be put into the account to make the deposit. Click for more info about the benefits of payroll cards.
Another benefit of accepting payroll cards for payment of your employees’ wages is that you eliminate the need for printing checks. By eliminating the need for printing checks you will save the company a lot of printing costs. There are small businesses that still print out their own checks. While they do save money on paper, the time and effort required printing these checks is still very much worth it. Instead of printing out hundreds of paper checks each month your small business can utilize a payroll debit card instead.
For many small businesses, getting cash advances on hand and eliminating the need for paper checks is essential to growing and success. However, for most companies getting a payroll cards is a cost they are more than willing to accept. There are some employers that still expect their employees to bring in their checkbooks to pay them. Even for these employers it may not be practical to provide their employees with payroll cards every pay period. They may have an option of allowing their employee’s use of a debit or ATM cards instead. This does eliminate the need for the check-cashing fees.
Whether you are using payroll cards to pay your employees or you are getting your employee’s checks directly deposited to your bank account, there are some important things to keep in mind. While the payroll debit card allows you to deposit your employees’ checks into their accounts any time, you must ensure that the employee is actually depositing their check into their account. If the check is not deducted from the employee’s account within a couple of days, the employer will be charged a fee. Also, when an employee does not give you the proper identification, you could be held liable. You should always make sure that the employees you are paying with payroll cards have a valid government issued photo ID. Knowledge is power and so you would like to top up what you have learned in this article at https://en.wikipedia.org/wiki/Payment_card.