While most businesses use major accounting software programs such as Quickbooks or Netsuite to manage payroll hours and deductions, issuing actual payment to employees or contractors can be costly.
An NACHA survey in 2011 of 2,249 small businesses revealed that 48% still used paper checks to pay their employees. Using paper checks can significantly add to an organization's payroll expenses over the course of a year as a single paper check can cost up to $2 to issue. If a small business had 30 employees that were paid weekly and switched to a different method, they could save over $3000 annually.
Although generally viewed by employees as a more convenient form of payment, the direct deposit method is subject to fees as well. Depending on the service provider or bank, per deposit transactions can apply and Entrepreneur magazine has estimated direct deposits cost the average small business between $4 -$9 per month, per employee.
An Alternative: The Corporate Reloadable Debit Card
By using prepaid business debit cards, also referred to as a corporate reloadable debit card, businesses can reduce expenses on recurring payments such as payroll. By using a prepaid card, employers can simply and cost-effectively load the card with the employee’s wages. Many employees prefer this method to being issued a paper check, as the funds are available instantly and not subject to any bank account holds or clearing delays.
- Cost effective solution to manage payroll
- Simple implementation
- Reduces cheque and processing costs
- Reduces recurring bank fees
- Reduces risks involved with cheque fraud
- Eliminates lost cheque replacement expenses
- Funds are available immediately
- Eliminates check cashing fees
- Can be used online for purchasing
- Safety features such as PIN and Chip-enabled
At Emburse, we offer prepaid employee debit cards that can be reloaded each time that an employee or contractor needs to be paid. Our user-friendly software makes it simple to load the funds onto the card, which is instantly available to be used. We offer a straightforward pricing program as well as a free 30 trial for businesses to try our system and gain a detailed understanding of how our platform can not only reduce payroll costs but provide more insight and control over all corporate expenses.
To arrange for a demo, contact a member of the Emburse team today.