An employer provides an employee with a payroll card for making payment of his/her salary. The salary is deposited directly onto the payroll card instead of paid electronically through paper check or directly deposited in the employee's bank account, see this website for more info. The payroll card serves as proof of income and it is usually valid for a limited period of time which varies from one year to one month. It is usually valid for a maximum period of three consecutive years. Once the validity period is expired, the payroll card is valid only for a maximum of three consecutive years.
For companies who do not have their own bank, they can approach a third-party bank to issue a payroll card to their employees. Banks usually charge a fee for this service and take a percentage from the amount of the transaction. The employers who do not have their own bank can use the services of a reputable third-party bank. There are various such banks that issue the cards. Some of these banks include Bank of America, Discover Paycheck, Sun Trust Bank, Chase Bank and Wells Fargo.
While the PayActiv payroll cards allow employees to make electronic deposits into their bank accounts, they also function like debit cards. This means an employee can withdraw cash from their bank account and use this cash to make their payments. Unlike debit cards, payroll cards allow employees to make electronic deposits into their bank accounts electronically. This function like debit cards allows employees to withdraw cash from their bank account without physically presenting their bank account to their employer.
Before you decide on a particular payroll service provider, it is advisable to compare the different fees charged by them. Some of these fees include the annual service fee, application fees and the transaction fee. It is advisable to read the fine print so that you understand the exact cost of the service before you decide on which payroll service provider to hire. Many of these companies charge exorbitant annual fees for their service which may result in employees paying exorbitant amount of taxes to their government employer.
Payroll cards are a great way to automate payroll processing for your business. This will enable you to reduce the labor costs that your employees incur as well as save a significant amount of money. With the help of payroll cards, you will be able to monitor all the information regarding your employees' salaries and expenses and will be able to make direct deposit fees payable to your bank account. Direct deposit fees are usually levied on the month-to-month basis while payroll cards are processed upon the basis of each employee's pay slip.
Employees today have a choice when it comes to accessing their bank accounts to make payroll card purchases or for electronic deposits. They can use their debit cards for electronic deposits. However, if they choose to use their payroll cards, they can only do so during working hours and cannot withdraw cash during non-office hours. If an employee does not possess enough money in his account to cover his entire purchase, he is required to visit his employer's store or purchase from the retailer who accepts his card, thereby incurring additional charges. Hence, it is a great way to automate the payment of deductions made by your employees.
For more info related to this article, click this link: https://en.wikipedia.org/wiki/Payroll_automation.