Are you interested in simplifying your payroll processing, saving money, and boosting your company’s environmental friendliness? You can do all three when you celebrate Direct Deposit Month in May!
Direct deposit is a timely topic for employers, especially considering the legislative measures in process during the 2013 congressional session. One of them is Oregon House Bill 2683, which would authorize employers to pay wages due employees through direct deposit into an employee’s account. The bill states the following:
An employer may pay wages without discount through direct deposit of wages due to an employee into the employee’s account in a financial institution, as defined in ORS 706.008, in this state or by automated teller machine card, payroll card or other means of electronic transfer if the employee may make an initial withdrawal of the entire amount of net pay without cost to the employee.
The American Payroll Association (APA) has written to the Oregon legislature in support of this bill, which would benefit employers by reducing the costs of issuing and distributing paper checks. The third reading of the bill passed 58-2-0 on April 10 and is currently in working session in the House. Payroll Specialties NW, Inc. is following the issue and will keep our clients posted on the potential changes that may affect your business.
In the meantime, there are a number of ways to support direct deposit participation this month. One way is to add paycards to your employees’ payroll processing options. According to a 2011 study by the FDIC, 4.3% of Oregon households are unbanked and another 14.4% are underbanked, which means they have a bank account but rely on alternative financial services, such as check cashers and payday lenders. So how can payroll cards help?
A familiar format
Easy-to-use electronic paycards are one of the many payroll services PWNW offers, and they’re a great way to save time and paper when it comes time to do your payroll processing. Paycards are a perfect solution for employees who haven’t signed up for direct deposit, or who don’t have a bank account. Paycards work much like the pre-paid debit cards that your employees are probably familiar with. You set up a paycard account for your employees, and then each pay period, you electronically load funds onto it. Using the paycard, your employee can get cash back at an ATM or use the paycard like a traditional debit card at grocery stores, retailers and gas stations across the U.S., backed by the trust and security of a Visa® Payroll Check Card.
A greener option
Paycards cut down on the expense and waste associated with payroll processing of traditional checks, including the need to buy expensive paycheck stock with security features, excessive ink and toner usage, and valuable time spent mailing or distributing paper checks. According to NACHA, the electronic payments association, paper checks use more than 674 gallons of fuel each year. To calculate how much you could reduce your company’s carbon footprint by eliminating paper checks, check out the Direct Deposit Calculator from PayItGreen.org.
A safer solution
Simplifying your payroll processing with paycards brings benefits for employees, too. Fewer trips to the bank, no more excessive fees at check cashing stores, and less risk of lost or stolen paychecks are just a few of the employee benefits to paycards. According to NACHA, 85 percent of identity theft cases start with a lost or stolen check or billing statement. Using a paycard allows employees to shop online, pay bills over the Internet, and receive their earnings even when they’re out of the office or gone on vacation. All employees are eligible for PSNW’s paycard option.
To find out how you can benefit from adding paycards to your payroll processing, contact PSNW. We can help you make Direct Deposit Month the time you simplified your payroll processing for good.