An employer now can arrange with a payroll card processing company to electronically pay its employees with no cash. The employee's pay is deposited directly onto the payroll card instead of paid by check or directly to the employee's bank account. Payroll cards now are processed electronically, which eliminates the need for paper checks, click here to learn more now. Previously, an employee would have to write a check for his or her pay and sign a post-dated check or a coupon for their pay. This could take several weeks, if the check did not clear.
With electronic funds processing, the payroll card company deposits the payment directly into an account that is controlled by the employer. The bank account of the employee is usually a separate checking account from the employer. It is easy for an employee to access his or her bank account when the payroll card is issued with electronic funds.
If an employee has a bank account, he or she can access it at any time and the payroll card company will deposit the money into that account electronically. In many cases, the debit amount from the bank account is less than what the employer deposits into it. With electronic funds processing, the employer no longer needs to worry about remembering to deposit the correct amount into each account each pay period. Nowadays, most employers have their own bank accounts and many employees have their own bank accounts with which to deposit their pay.
Some companies have used payroll cards to process their sales tax payments and quarterly profits without them having to print out paper checks. This saves the company time and money in the long run because it is faster and easier to process paychecks without paper checks. It is now possible to process millions of paychecks per day with these types of systems. Processing millions of payroll cards per day has become one of the most popular online businesses today.
For the employer, this option has made it easy to have all employees pay into their own bank accounts with which they deposit their paychecks without the hassle of writing out paper checks. An employee does not need to provide his or her bank information to the employer, as long as they have a pay on demand account. The other benefit for employers is that it has made it much easier to track payroll records, as well as their tax obligations. They no longer have to rely on the quarterly return they receive from their accounting firm to know how much they have earned from their employees.
In addition, most payroll services charge very little for their services. Since most of these systems are designed to be integrated with your existing banking system, there is no additional fee required. The only possible fees you might incur would be if you wanted to issue more than one payroll card or if you wanted to allow your employees to cash in their payroll advance fees for online processing. Each company has its own set up fees for these services so it is best to check with your payroll service to find out exactly what you will have to pay. Payroll services also generally offer free customer support and payroll debit cards.