How many paychecks couldchuck, if Payroll could chuck checks? All of them, if you pay employees through direct deposit or with plastic payroll debit cards. May is direct deposit month, so now is the time to convince skeptical employees of the benefits of direct deposit/paycards.
Paycard tips and traps. The biggest trap for employees is the numerous fees paycard issuers pile on to access the funds loaded onto the card for statements, etc. The biggest trap for employers is mandating paycard use.
Under federal Regulation E, you can’t force employees into a paycard program unless they can choose the bank. That’s obviously off the table for employees who don’t use a bank. You can offer paycards to those employees, but you must also offer to pay them by check, even if they would incur check-cashing fees.
Similarly, most states require that employees volunteer to use paycards. And all states require that employees be a...(register to read more)