My State does not allow companies to mandate Electronic Pay… What can I do?
by ReadyFUND$ Payroll Card
In the event that your state does not allow mandating electronic pay, you can still offer your employees options of direct deposit to a bank account, payroll card or continue with paper checks. However, it is at the company’s advantage to offer incentives for electronic pay. You may want to remind employees of benefits associated with electronic pay, such as maybe getting paid a day earlier, not having to go into work on their day off to pick up their check, or not having to run out on their lunch breaks to cash a check. Many of our clients find that if they get the employee to use the card for 2 payroll cycles, the employee loves it and keeps the payroll card. According to the NACHA, 97% of employees who use direct deposit are happy with it.
You may find some resistance to direct deposit or electronic pay, either because the employee cannot get a bank account due to past financial issues or they don’t want to pay the fees incurred with bank accounts. Payroll cards can be the answer. There is no cost to the employer or employee to set up or receive funds and the pay card can be used absolutely fee free. Recent regulations require a payroll card to provide at least one free of charge transaction to access all of the cardholder’s money. With many payroll cards, you set up the payroll card through your payroll system just like a bank account. You won’t even notice a difference, except of course less paper checks.