Payroll processing is and always has been a major hurdle for any company. In fact, a lot of times, a human resources department starts as little more than payroll with a few extra functions put in. When you need to pay your people, which they expect sooner instead of later on, you need to make sure that your methods are simple, direct, quick, and that your employees can use their pay however they want.
The trick is sometimes, there are just impediments that can keep you from properly depositing payments. When you don’t want to hire an outside company to handle all of the ins and outs of payroll processing, it can become a challenge to make this all work together. For some companies, it’s okay, but many of the processes that folks use are either complicated or carry a lot of additional expenses along with themselves. However, there are ways you can get past this.
Starting With the Bank Account
A lot of companies essentially have three bank accounts: One for taxes that need to be withheld, one for payroll, and one for general usage with regard to lease payments, utilities, and the like. With your set of different bank accounts, it’s relatively easy to keep the money organized until it’s time to disburse it. But then, with this many bank accounts, it can begin to get complicated when it’s time to start cutting checks.
The tradition is, every week, the boss spends half of the day just writing out checks based on the amount of pay the employees agreed to work for. Once everything is verified, the pen comes out, and the checkbook gets that much thinner. Of course, this is more than just a significant carpal tunnel risk for the unfortunate boss. It can also get to be expensive when it comes to putting out all of those checks, and this is assuming that there’s never an error.
Accounts and the Beginnings of Trouble
There are a lot of different situations in which an employee might not even have a checking account. Check cashing places have their bread and butter with companies that cut checks in spite of the lack of employee bank accounts. The entire process becomes more cumbersome because of rigidity from the company. Luckily, you don’t have to act like that kind of company.
The fact of the matter is using prepaid debit cards can save a couple of steps for everyone who’s involved in the process. You can even brand your debit cards as you please, which allows your employees to easily keep track of which card is their pay. They can use their pay however they please, and you don’t have to involve a separate company that adds expense and difficulty to the process. When you make use of white label prepaid debit cards, you can pay everyone the easiest way possible while you express the brand of your company.