Small Business News, Tips and Information

Search



Syndication



Categories

Blog Carnivals (25)
Business Law (19)
Customer Service (12)
Family Business (4)
Human Resources (27)
Marketing (53)
Money (36)
Motivation (21)
Networking (23)
Operations (71)
Ownership (52)
Startup (41)
Taxes (20)
Technology (34)
Ventures (20)


Recent Posts

Telephone Etiquette Tips - Handling Client Calls

Choosing a Business Name

Seeking a Dream

Expanding Your Business Overseas: Why and Why Not?

Getting the Most Out of E-Mail Marketing

How to Fire an Employee


Archives

August 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
November 2005
October 2005
September 2005
August 2005

GreatFX Business CardsSmall Business Buzz › A New Way for Employees to Get Paid

Small Business Buzz
A doubleshot of business news espresso with extra froth
A New Way for Employees to Get Paid

Some say that there will soon come a day when checks are no longer in existence. Well, how would you like to get paid by your employer with a debit card? Sounds a bit strange, but it’s catching on and here’s why:

Many businesses have employees, such as minors or new U.S. immigrants, that don’t hold bank accounts. When those employees receive their paycheck, they will pay up to 10% of the check in order to get it cashed. A recent alternative is providing employees with a payroll debit card.

Basically, the employer deposits funds in a payroll account and then distributes payroll debit cards to his employees. Each card has an amount attached to it that is equal to that of the employee’s paycheck for that pay period. The funds can be withdrawn from an ATM or the card used as a debit card at any retailer.

Not only does it save employees without bank accounts the expense of getting a check cashed, but it also saves the employer the expense of printing paper paychecks. Checks typically cost $1-2 to print, while it is only about twenty-cents to provide a payroll debit card.

There are still a few bugs left to work out, however. Most state laws require that employees get their entire paycheck on pay day. This could be a problem if the ATM machine has a withdrawal limit that is less the the employee’s paycheck amount. The employer may to have to pay extra ATM withdrawal fees for all of the funds to be accessible at once.

Not to mention the fact that changing over to a payroll debit card process (in addition to direct deposit) can be time consuming, as most employees would be wary of such a change at first. It would take some time to reassure them that the process is secure and efficient.

Payroll debit cards are clearly one of the first steps in the extinction of checks. Despite the wrinkles that remain in the process, it is definitely something that makes things a bit easier for the employee, and requires less paperwork for the employer, which is always a good thing.

Source:
• CNNMoney.com: The End of the Paycheck

Related Buzz Posts:
Professional Employer Organization Services
A Little Relief from High Gas Prices on the Horizon
Business Card Cases
Retirement for the Sole-Proprietor

By Michelle Cramer
Thursday, March 15th, 2007 @ 12:06 PM CDT

Money, Operations, Technology |

One Response to “A New Way for Employees to Get Paid”

  1. Alex says:

    Thank You

    Posted April 25th, 2007 @ 9:47 am
    ----------------------------------------------------

Share Your Thoughts


Freedom of speech is a beautiful thing.
Thank you for taking the time to voice your opinion on this article.