Corporate payroll departments struggle with many challenges, including paycheck fraud, regulatory compliance and meeting the needs of unbanked employees. Voluntary direct deposit and paycard programs have helped to partially resolve many payroll challenges, but they don’t go far enough. Corporations need a solution that addresses the issues of unbanked employees, helps with compliance issues and enables companies to attain 100 percent electronic pay.
In today’s competitive business environment, employers are continually looking for ways to save money, increase efficiency and improve productivity. However, many of the advances in technology that have automated business processes and optimized workflows have had minimal impact on the distribution challenges facing payroll managers at corporations across America.
Some of the most technologically adept businesses continue to struggle with age-old payroll distribution challenges that have a significant impact on their bottom line. From reducing the high costs associated with processing and distributing paper paychecks, to complying with state and federal regulations and working to avert fraudulent activities like counterfeit paychecks, organizations of all sizes are attempting to solve these challenges with solutions that don’t fully meet their needs.
For many years the approach to payroll distribution has varied little: meet compliance regulations with a company-issued paper check and reduce payroll costs with an offer of voluntary direct deposit to employees with bank accounts. While this has been effective with a large portion of the employment base, it hasn’t helped unbanked employees who represent almost 10 million U.S. households, according to the American Payroll Association. By implementing a revolutionary new payroll distribution solution that meets state compliance requirements and the needs of unbanked employees, companies are on the verge of reaching the once-unimaginable goal of 100 percent electronic pay.
Prepared for professionals tasked with managing corporate payroll systems, this paper examines the challenges of paper check solutions, electronic payroll distribution solutions, state compliance issues and inefficiencies created by unbanked employees. It also illustrates the benefits of choosing a payment distribution solution that meets state compliance requirements, the needs of the unbanked and the goals of the corporation.