Today’s payroll cards are a safe way to pay employees and offer value to employees and employers alike. Here are some of the top payroll card benefits you should know about.
Reduces Payroll Costs
One of the greatest benefits to employers is lower payroll costs. Direct deposit onto a card eliminates the need for paper checks and the time, labor, and expense it takes to distribute them.
Your business uses a single financial institution insured by the U.S. government and streamlines its payroll process. You can even pay workers during a natural disaster or postal strike, plus you use less paper to reduce your environmental footprint.
24/7 Anywhere Access
Payroll card programs provide an online portal which allows employers and employees access to vital information.
Employees can check their balance, view and print statements, or sign up for real-time alerts via text or email. Employers can manage all aspects of their payroll program for any computer or mobile device, 24/7.
Easier to Track Finances
Companies using pay cards know exactly what it in their payroll bank account at any given moment. They can track their cash flow easily and reconcile their payroll bank account with ease.
Many programs allow employers to store pay cards on-site. They’re available to temporary, contract, and full-time workers when needed without a waiting period. They’re also an excellent way to pay terminated employees immediately to satisfy legal requirements.
Employees receive their pay in-hand immediately. They don’t need to have a bank account, or wait for a check to clear. They can use their pay card to pay bills or make purchases, but may incur fees similar to those charged for ATM/Debit card use.
Pay cards from widely accepted institutions such Visa, MasterCard or Discover ensure employees can use their card as they please. They can withdraw cash from their bank, use an ATM, or take them with them on vacation. Employees can request an additional card and transfer money onto it for a child away at college so they can monitor their spending too.
Cards are protected with a PIN much life an ATM/Debit card, are easily canceled, and have liability limits if the card is lost or stolen.
Legal Form of Payment
Pay cards are an acceptable form of payment for North Carolina employees and these programs don’t involve high fees.
Employers must meet these conditions to comply with North Carolina law:
- The employee’s full pay is available to them on payday
- The employee receives a one-time no-cost withdrawal of all monies every payday
- When payment by pay card is mandatory, minimum wage employees can’t incur fees since it drops them below the N.C. minimum of $7.25 an hour.
Employers should provide employees with clear information on fees and how to use their payroll card safely.
Charlotte Payroll caters to small to medium-sized business in the Greater Charlotte area. Let us help you simplify your company’s backend processes seamlessly and painlessly. We’re here to help.