Paper or Plastic?


A new Kansas law could lead to the elimination of paychecks—paper ones, anyway. The state’s employers can now require employees to receive their pay either by direct deposit or pay card.

And it could save businesses a lot of money.

While most states still require that employees have the option to receive paper paychecks, more than 70% of Americans participate in direct deposit.

What about workers who don’t have bank accounts?

According to a study by the Federal Reserve Bank of Philadelphia, pay cards are one of the least expensive ways to receive wages. They act like debit cards for wages and can provide the cost savings and convenience of electronic payments even for employees who don’t have bank accounts.

The most expensive way to pay wages? Paper checks.

Source: American Payroll Association, www.americanpayroll.org.

SPONSORED REPORT

Revenue recognition: A complex effort

Implementing the new standard requires careful judgment. Learn how to make significant accounting judgments and document them and collaborate with peers for consistent application.

VIDEO

How to Excel pivot a general ledger

The general ledger is a vast historical data archive of your company's financial activities, including revenue, expenses, adjustments, and account balances. J. Carlton Collins, CPA, shows how to prepare data for, and mine data with, PivotTables.

QUIZ

News quiz: Taking an economic snapshot and looking to the future

Recent news included IRS actions that affect individuals and partnerships and a possibly influential move by a Big Four accounting firm.Take this short quiz to see how much you know about the news.