Professional Employer Organizations (PEOs) offer many solutions that improve worker experiences, including convenient payroll solutions. When it comes to paying employees, paper checks were the norm years ago and then came direct deposit, which is a great option for employees with checking accounts. With so many workers in Hawaii choosing not to or unable to open checking accounts, however, direct deposit isn’t a solution for all employees. This leaves room for another solution: paycards.
As a PEO, we highly encourage our clients to take advantage of setting up direct deposit or rapid! PayCard® Visa® Prepaid cards for their employees because they offer so many benefits over paper checks.
Challenges of paper checks
Workers paid with paper checks face many frustrations including check cashing fees – sometimes up to 8% of their check – long teller lines on a Friday afternoon, and driving across Honolulu in heavy traffic when they could be on their way home or grocery shopping for the weekend. Paper checks have their role, but they aren’t an ideal long-term payment method.
Payroll solution for workers without checking accounts: rapid! PayCard® Visa® Prepaid cards
For employees without checking accounts or who are only working in the U.S. temporarily, the solution is rapid! PayCard® Visa® Prepaid cards. Paycards give workers without the option to open a checking account the same benefits as those who have a bank account. Each employee’s paycard is automatically loaded with payroll every pay period, which means employees have easy, instant access to their pay.
Because the rapid! PayCard® Visa® Prepaid card is not a credit card, no credit check is necessary. It also means that employees will not be charged interest on purchases they make on their card. While employees cannot charge purchases to the card and then pay them off later, they do receive all the security protection and conveniences offered to credit card holders, including a security PIN number.
Benefits of rapid! PayCard® Visa® Prepaid cards:
- Acts like a Visa debit card: use your rapid! PayCard® Visa® Prepaid card anywhere that accepts Visa
- Employees can manage their balance online or use their smart phone to access their card, check their balance, and transfer funds
- Employees can open a no-fee savings account with their rapid! PayCard.
- Employees can safely and securely pay bills online or by phone using the money on their card
- Get cash back without a penalty
- No cost to enroll
- No credit check required
- Fast access to paycheck without the hassles of depositing a check
- Request checks based on paycard balance
- Free cash withdrawals at any in-network ATM or Visa partner bank
- Withdraw cash from non-Visa partnered bank ATMs with a small surcharge
- Easy to replace a lost/stolen paycard
- Employees will receive text alerts directly to their phones when a load has been placed onto the account, get their card balance, etc.
Payroll solution for workers with checking accounts: direct deposit
Direct deposit is a great option for workers with checking accounts, providing flexibility, convenience, and security for their employee checks.
Benefits of direct deposit:
- Ensures payments arrive on time, usually first thing in the morning on payday
- Immediate access to money without effort
- Eliminates risk of check being damaged, lost, or delayed in the mail
- No need to drive to the bank to deposit a check
- Great for remote workers who aren’t in the office to pick up a paper check
- Employee controls where their money goes
- Employee can deposit different percentage of paychecks into different bank accounts
As employers, the best thing you can do is to offer convenient and reliable payment options to your employees; paycards and direct deposit are two of the best payroll solutions out there.
Want access to paycards and direct deposit for your employees? We’ve got you covered through HR outsourcing! When you partner with Makai HR you can get on with the business you are trying to grow while we take care of your employee needs from payroll to taxes, health insurance/benefits and worker’s compensation. You also gain peace of mind that you are compliant with all of Hawaii’s employer laws (if you’ve ever looked you know that the list is very long and changes happen). When choosing a PEO to partner with, there are many things to consider including cost, services, and technology solutions.
With the cost of doing business in Hawaii at record highs, we know how important it is to keep labor costs in line with revenue. Our plans are priced competitively and include value-added services like time-in/time-out systems. Our three tiers of PEO service plans are tailored to the size of your business and specific needs. We offer a 100% paperless solution which means that your employees can manage their needs through a computer, tablet, or phone. We can truly improve your employees’ work benefits while freeing you up to run your business.
What are you waiting for? Companies that partner with a PEO benefit from 7-9% faster growth, 10-14% lower employee turnover; and they are 50% less likely to go out of business. Contact us today to get started!