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Paycards 3 of 4: Navigating Multi-State Paycard Compliance

Paycard compliance is a challenge no matter where your business resides, but it becomes even more complicated if your organization operates across state lines. Multi-state employers must be aware of the varying state-by-state regulations in order to synchronize their payroll operations and avoid compliance penalties. The key to remaining compliant across state borders is an understanding of paycard compliance fundamentals, identifying state law variations and staying on top of state regulation changes.

 Understanding the basics of paycard statutory law and regulation goes hand-in-hand with identifying how state-specific paycard requirements can impact your business. For example, an area of paycard regulation that can differ by state is the access to funds for employees, in particular the methods used to access pay, the number of withdrawals and fee prohibitions.  It’s no surprise that compliance requirements with respect to employers’ access to employee account information, balance inquiries and transaction histories alter across state lines as well. Employee choice and consent in terms of payment method – in particular its relationship to Regulation E of the Electronic Fund Transfer Act – is another area to consider when it comes to wage payment regulations by state.

Multi-stateIt’s important to stay up-to-date on paycard law and regulation changes. A great resource tracking the pulse of paycard regulation is the American Payroll Association (APA). The APA offers a wealth of resources for employers, including:

  • APA Government Relations Task Force Payroll Card Subcommittee – A group of APA members that monitor federal and state legislation and/or regulatory actions that could adversely affect the ability of employers to successfully implement paycard systems. This subcommittee conducts regular conference calls and publishes its comments and letters online.1
  •  APA Visa Payroll Card Portal – A portal on the APA website in partnership with VISA is available to help employers learn about compliance, regulations and state law changes. 2
  • APA Publications – Industry publications, including PayTech and Payroll Currently, are available for payroll professionals. PayTech is a monthly outlet that covers payroll management, technology, professional development and trends that are shaping the payroll industry. Payroll Currently is the APA’s monthly newsletter, containing breaking payroll compliance news.

Many companies have had success meeting multi-state compliance regulations by collaborating with an outside provider that offers wage payments solutions to help companies stay on top of legal requirements. Click here for more information about ADP’s electronic payment solutions.


Learn More About ADP SmartCompliance® Wage Payments


The information provided in this blog post is for informational purposes only and not for the purpose of providing accounting, legal, or tax advice.  The information and services ADP provides should not be deemed a substitute for the advice of any such professional.  Such information is by nature subject to revision and may not be the most current information available.









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