Are you a new or growing business, interested in knowing your payroll options for your employees? No matter the size of your business, payday is one of the most “looked forward to days” of the year…right up there with a birthday or Christmas.
Although I know that you are more than aware that one option is the old fashioned paper check, many businesses are getting away from this traditional means of paying their employees. Not only are consumers becoming much more electronically centric, so are businesses; times are changing! It won’t be long and checks will be a distant memory. I never thought this would be possible, but I guess I never thought I would be getting rid of my favorite cassette singles or VHS tapes either.
So if you were to ask me, “What are the top 5 reasons why I should look at electronic payroll options for my employees?” I would tell you…
- Fraud – nothing opens your eyes quicker than fraud happening on your account due to sending out your account number, routing number and most importantly your signature on payroll checks.
- Time – not only is it extremely less time consuming for you to process payroll, but it also means that your employees aren’t having to come into the office to pick up their checks.
- Cost of checks – the cost of checks continues to rise as the demand for them becomes less
- Loss of productivity – company time lost from employees cashing their checks on company time
- Checks lost – either the employee loses their check or it gets lost in the mail when mailing it to the employee that is offsite.
So I know what you are thinking…I could never get all of my employees to agree to change from paper checks to direct deposit. Here are a few of the rebuttals that I have heard..
- Change is just too hard!
- My employees want their money in their pocket.
- Old school bookkeeper wants a paper trail for everything.
- Not all of my employees have or can get bank accounts.
Many employers have decided to mandate an all direct deposit payroll policy. This would be a decision that you would have to make. There is no law that states that you have to give employees a paper check option, but even the government doesn’t issue paper benefit checks anymore for those employees that don’t have bank accounts or can’t get bank accounts. Many banks offer Payroll Cards (also known as Reloadable Cards). These cards have a specific routing number and account number, so your employee can receive direct deposit just like a bank account. Some bank’s also offer “second chance” accounts for those employees that have had a previous history of bank account negligence.
According to the 2014 Getting Paid in America survey conducted by the American National Payroll Association, 96 percent of Americans are paid electronically via direct deposit. If you are not a part of this 96%, what is keeping you from this change? Are they some of the reasons I listed above? Now that you know some of your options, I encourage you have that talk with your banker today and iron out those questions and concerns that have been lingering from quite some time.