5/12/2021 0 Comments How a Payroll Card Works Payroll cards have long been used by small businesses and are increasingly becoming the choice for many larger businesses. The payroll card is a pre-loaded debit card or credit card that can be used to make payroll deposits. Unlike previous payroll cards, which required the employee to provide their postdated check, payroll pay card technology has made it possible for the business owner to not only accept debit card payments but also offer the option of e-checks as well. This allows the business owner to not only reduce paper waste but also increase cash flow. The debit card is great because it saves the time needed for writing payroll checks and for receiving and cashing payroll checks. The business owner simply accesses the company's payroll company online and provides information about their employees. Using the company's online system, they can set up direct deposit and automatically receive their paychecks. This makes it easy to do paperwork and stay organized, while still being able to manage the payroll of your employees. Because the payroll card contains all pertinent information about your employees, such as pay grade, hourly wage, date of birth, and other important data, it is often used as the primary method of tracking and paying employees' payroll. Because the payroll card is a credit or debit card, it is a good way to ensure the safety of an employee's bank account. If an employee should get out their card to pay you, they can use it anywhere like a major credit card. This also makes it safer for the business owner to ensure they are not giving out their debit card information to someone else. If you are using a payroll debit card, then there is a security deposit involved in case the employee should go somewhere without a valid card. This can be taken out from the savings or checking account of the employee. E-Checks are another newer addition to payroll cards. With an E-Check, instead of printing checks from your company's check machine, you load the information on to an online site and the employee submits it online to the site via the Internet or a phone call. The system then deducts the amount of the payroll check from the account of the employee's employer. This provides a fast and convenient way to electronically print payroll checks, which saves your company money by eliminating the cost of paper. Go here: https://www.payactiv.com/ for more details about the topic. While some people might view these cards as a modern convenience, they are considered a legal requirement in some places. You may find that some places insist on you having one. Some countries, such as Turkey, have laws against employers requesting or requiring employees to have payroll cards. In Turkey, you can be fired for displaying or having the card without legal authorization. In some countries, using an electronic transfer service to make payroll card transactions is strictly prohibited, since those services aren't regulated by government agencies in those countries. The downside to these cards is that they may not store all of the pertinent information, such as hours worked or hours paid, of an employee. If an employee leaves your company, you will still need to access the pertinent data on the card. In addition, because most cards use the information on the front of the card (like gender and names), if the card is lost or stolen, the employee's data might still be on the card. You can get more enlightened on this topic by reading here: https://en.wikipedia.org/wiki/Payment_card.
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