At this point in time, we are all aware that there are certain things we simply cannot control. From the pandemic, to government shutdowns and adverse weather, there's many situations in our not-so-distant past that could prevent your employees from receiving their paper paycheck on time.
Just this year, UPS closed on Martin Luther King Jr. Day, which may have snuck up on some employers with checks scheduled for courier delivery over the holiday. Our home state of Wisconsin also recently experienced a terrible winter snowstorm. Not only did businesses close, but a significant number also experienced power outages lasting several days. Delivery services, including couriers and the post office, didn't make deliveries in areas where snow obstructed roads or mailboxes. While some deliveries could be rescheduled for the following day, the delays often resulted in additional charges. Complicating matters further, the snowstorm extended over a Friday, and with many businesses closed on Saturdays, this left the possibility of packages lingering unattended through the weekend. In other words, a lot has (and can) happen that is out of our control.
By moving from paper paychecks to an electronic payment method, businesses can give their employees peace of mind that they’ll be paid on time — no matter what.
In this article we’ll discuss two popular electronic payment options, as well as the many benefits that come from moving to a paperless payment option.
There are a variety of paperless payment options for employers to consider, two of which include direct deposit and payroll cards (aka “paycards”). Here’s a high-level overview of each:
Direct deposit is more popular, but depending on your industry, pay cards may make sense. Some industries, such as foodservice, hospitality and agriculture tend to have higher percentages of unbanked employees, so paycards are a good option. Paycards are also a great solution if you want to offer employees the option for an advance on their pay. Before you make a decision on which payment type (or types) to offer, check with your bank on associated fees for each option and ask your employees which method they prefer.
Both direct deposit and paycards have a bevy of short and long-term benefits for employees and employers alike. Here’s a few of the main reasons more and more business are saying goodbye to paper paychecks forever:
As an employer, you’re responsible for paying your employees accurately and on time. Considering this, you may want to transition all employees to an electronic payment method. Just check your state laws to see if mandatory direct deposit is an option for your business.
In some states, employers can make direct deposit mandatory for their employers. If you’re in Wisconsin, for example, you can mandate direct deposit if you comply with specific state guidelines. In other states, such as Illinois, the employee must agree to receive their pay via the electronic method.
Employers that already offer paperless pay options have taken the first step. However, there’s more to it. Encouraging — and in some cases requiring — employees to move to electronic pay might just be the next, best step for you and your workforce.
Already a client? Reach out to your Client Service Representative (CSR), Client Success Manager (CSM), or our general inquiry box. Whether you’re new to direct deposit, want to boost employee participation (hint: you’re one authorization form away), or are interested in a paycard offering, we are here to help.
Not yet a client? We’re still here to help! Send us a note today to discuss your needs and learn about our electronic pay options.
Editor's Note: This blog was originally posted on August 26, 2021 and has been update with new content that is relevant for 2024.