10.20.14 |
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Making the Switch to an Electronic Pay Solution

Electronic PayMore than 96 percent of American workers prefer to receive their pay by direct deposit, a payroll card or a prepaid reloadable card, according to the National Payroll Association’s “Getting Paid in America” survey. Only 3 percent opt for paper checks, indicating employees generally prefer to go electronic.

So, where does your business stand? If you’re still issuing traditional paper checks to employees, you may want to reconsider. The American Payroll Association reports approximately 4 million checks are lost or stolen each year, and people who deposit paper checks can spend as much as 24 hours each year waiting in line to cash their checks. For an employee, that’s valuable time lost that could have been spent managing or investing their hard-earned cash.

Electronic pay includes a choice between direct deposit, a payroll card and a self-issued payroll check.  If employees elect to receive their wages via direct deposit or a payroll card, these options can be a safe and reliable alternative to traditional paper checks and can save the employees from making multiple trips to the bank. Direct deposit also makes it easy for employees to track their money because their net payroll funds are automatically deposited straight into their banking account(s). For those employees who don’t want to use direct deposit or a paper paycheck, employers can offer them prepaid cards. With this option, an employee’s funds are automatically preloaded onto the card, giving them immediate access to their cash. A recent report from the Pew Charitable Trusts indicates the use of prepaid cards is on the rise.

Business owners ultimately win with this proposition, too. By moving to an electronic pay solution, payroll can be processed quickly and accurately. It can also help your business control spending because you can substantially reduce or even virtually eliminate expenses associated with issuing paper checks. Perhaps most importantly, it helps free up your staff to focus on the value-added activities that will grow your business.

Click the button below if you’re interested in learning more about ADP’s electronic pay solutions, which include a choice between direct deposit, a payroll card and a self-issued payroll check.

 

 
 



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