Tired of hearing employees gripe about waiting for paper checks or not wanting to convert to direct deposit? Now there’s another Payroll option in your arsenal.
On March 20, 2008, Colorado state legislature and the governor signed off on a bill which allows companies to pay employees via paycards as long as two requirements are met:
- Employees are provided access to the entire amount of their paycheck at least one per pay period, and
- Employees can choose to use other means (paper checks or direct deposit) to receive their wages.
What’s in it for companies? Paycards eliminate time spent cutting paper checks and dramatically reduce the risk of fraud. They’re just as secure — and cheap — as going with direct deposit, but they can have a much higher enrollment rate. The cards are immediately loaded with an employee’s wages on payday, but employees don’t need to have a checking account to receive their money. It’s a win for both parties: Payroll gets the security boost and time-savings it needs, and employees get their money as quickly as possible.
If your company’s in Colorado and you think paycards might be the next great thing for Payroll, you’ll want to make a note: Although the legislature was signed and passed by the governor, you’ll still need to wait until (at least) August 6, 2008 before the act is put into effect. Luckily, that gives you just enough time to research vendors and set a system up.
