For business owners, switching to an electronic payroll system can save time and money by eliminating paper checks.
“There is a lot of mess that goes along with that piece of paper. You have to do the paper stock, you have to do the check run, and then you have to do the reconciliation. Inevitably, there are always lost checks. That paper costs a lot of money—typically $2.50 in time, materials and money for each payroll check,” said Marty Faber with Brightwell Payments. “Although handing out paychecks is a time-honored tradition for many business owners, it is really the least effective way to do it.”
More and more business are switching to direct deposit and placing money right in their employees’ checking accounts, but the challenge with getting to a 100 percent electronic payroll is that not every employee has a bank account. “There is a huge demographic of people in our industry who can’t get or don’t want a bank account,” Faber said. More